6 ways your company can reduce business travel expenses

6 Ways Your Company Can Reduce Business Travel Expenses with eSIM Technology

In today's interconnected global economy, business travel remains a crucial component for many companies. Whether it's for sealing international deals, attending conferences, or managing overseas operations, face-to-face interactions often drive business success. However, with rising costs associated with travel, companies are seeking innovative ways to reduce expenses without compromising on opportunities. One such innovation is the adoption of eSIM technology.

The Rising Costs of Business Travel

Business travel expenses encompass a wide range of costs, including airfare, accommodation, meals, and local transportation. However, one often-overlooked expense is communication costs, particularly for international travel. Traditional roaming charges and international calling rates can quickly inflate travel budgets.

Impact on Company Budgets

• Global Spending: According to the Global Business Travel Association (GBTA), global business travel spending reached $1.4 trillion in 2019.
• Communication Costs: The GBTA also highlights that communication expenses can account for up to 10% of total travel costs for international trips.
• Budget Constraints: For small to medium-sized enterprises (SMEs), these costs can significantly impact the bottom line, necessitating cost-saving strategies.

Understanding eSIM Technology

To leverage eSIM technology for cost savings, it's essential to understand what it is and how it functions.

What Is eSIM?

eSIM, or embedded Subscriber Identity Module, is a digital SIM technology embedded directly into devices like smartphones, tablets, and laptops. Unlike physical SIM cards, eSIMs are rewritable and can store multiple carrier profiles, allowing users to switch networks without changing SIM cards.

Key Features of eSIM:

• Remote Provisioning: Activate plans over the air without physical cards.
• Multiple Profiles: Store and switch between different carrier profiles.
• Space-Saving: Frees up physical space within devices for other components.

How eSIM Works

eSIMs utilize remote SIM provisioning (RSP), enabling users to download carrier profiles directly to their devices.

1. Device Compatibility: Ensure the device supports eSIM functionality.
2. Choose a Carrier: Select an eSIM-compatible carrier or service provider.
3. Download Profile: Use a QR code or app to download the carrier profile.
4. Activate Service: Follow on-screen instructions to activate the service.

Benefits of eSIM for Business Travelers

Adopting eSIM technology offers several advantages for companies looking to reduce travel expenses.

• Cost Efficiency: Avoid exorbitant roaming fees by switching to local carriers.
• Convenience: No need to purchase and insert new SIM cards when traveling.
• Flexibility: Easily switch between multiple carrier profiles as needed.
• Security: Reduce the risk of losing physical SIM cards.

1. Eliminate International Roaming Charges

Roaming charges are a significant contributor to high communication costs during international travel.

The Problem with Traditional Roaming

• High Costs: Traditional carriers charge premium rates for voice, text, and data usage abroad.
• Unpredictable Bills: Users may unknowingly incur charges, leading to bill shocks upon return.

How eSIM Solutions Reduce Roaming Costs

By using eSIM, travelers can:

• Switch to Local Carriers: Download a local carrier's profile upon arrival to access local rates.
• Choose Competitive Plans: Select plans tailored to specific data, voice, or text needs.
• Avoid Hidden Fees: Gain transparency in pricing without unexpected charges.

Real-Life Example

An employee traveling from the US to Europe can use eSIM to:

• Download a European Carrier Profile: Access local plans with affordable rates.
• Maintain Business Communication: Use data-intensive applications like video conferencing without worrying about roaming costs.
• Save Up to 85%: According to a study by Juniper Research, eSIM can reduce international roaming costs by up to 85%.

2. Simplify Mobile Connectivity Management

Managing multiple physical SIM cards for employees is logistically challenging and time-consuming.

Challenges of Physical SIM Cards

• Inventory Management: Keeping track of issued SIM cards.
• Distribution Delays: Shipping physical SIMs to traveling employees.
• Security Risks: Lost or stolen SIM cards can lead to unauthorized usage.

eSIM Provides Centralized Control

• Remote Provisioning: IT departments can activate or deactivate services remotely.
• Profile Management: Easily add or remove carrier profiles based on travel schedules.
• Policy Enforcement: Implement company policies for usage limits and approved carriers.

Technical Details

• eSIM Management Platforms: Utilize platforms like eSIM Orchestrator to manage devices.
• API Integration: Integrate eSIM management with existing IT infrastructure.
• Real-Time Monitoring: Track usage and adjust plans as needed.

3. Streamline Expense Reporting

Travel expense reporting is often a complex process fraught with errors and delays.

Pain Points in Expense Reporting

• Manual Entry: Employees manually enter communication expenses, leading to inaccuracies.
• Receipt Collection: Collecting and storing receipts from multiple carriers.
• Currency Conversion: Dealing with different currencies adds complexity.

eSIM Enhances Transparency and Accuracy

• Unified Billing: Consolidate all communication expenses into a single invoice.
• Automated Reporting: Integrate billing data with expense management software.
• Currency Simplification: Bills are often presented in the company's home currency.

Practical Tips

• Use Expense Management Tools: Tools like Expensify or SAP Concur can integrate with eSIM services.
• Set Spending Limits: Predefine spending caps to prevent overages.
• Schedule Regular Reviews: Periodically assess usage patterns for further optimization.

4. Enhance Negotiation Power with Suppliers

Having flexibility in carrier selection strengthens your position when negotiating rates.

Limitations with Single Carriers

• Locked Contracts: Long-term contracts with a single carrier limit bargaining power.
• Lack of Competition: Without alternatives, carriers have less incentive to offer competitive rates.

eSIM Opens Up Options

• Multiple Carriers: Access to a global network of carriers.
• Competitive Bidding: Invite carriers to compete for your business.
• Tailored Plans: Negotiate plans that align with your company's specific needs.

Comparison Chart: Traditional SIM vs. eSIM Negotiation

5. Increase Employee Productivity

Productivity can be hampered by connectivity issues during travel.

Connectivity Challenges

• Activation Delays: Time spent purchasing and activating local SIMs.
• Compatibility Issues: Physical SIMs may not fit or work with all devices.
• Interruption in Service: Switching SIMs can lead to missed calls or messages.

eSIM Ensures Seamless Connectivity

• Pre-Trip Preparation: Download and activate necessary profiles before departure.
• No Physical Changes: Switch profiles without changing SIM cards.
• Concurrent Profiles: Keep multiple profiles active and switch as needed.

Relatable Scenario

An employee attending back-to-back international meetings can:

• Stay Connected: Switch between profiles instantly based on location.
• Access Corporate Resources: Use VPNs and secure apps without interruption.
• Communicate Efficiently: Avoid missed communications that could delay projects.

6. Optimize Data Plans Based on Usage

Standard plans often lead to overpaying for unused services or incurring overage fees.