Businesses intend on spending more on travel,
but 4 in 5 want to better track their spending.
- 49% of ANZ businesses intend on increasing travel budgets this financial year
- This is in line with the 50% intention to increase business travel in EMEA, but higher than the 46% in the Americas
- 48% of ANZ business believe automated expense tracking will be the most transformative tool in their travel program
In a positive sign for business travel, a global survey by Corporate Traveller, the flagship SME division of Flight Centre Travel Group (FCTG), has revealed that almost half (49%) of Australian and New Zealand businesses intend to increase their travel budgets this financial year. Yet 48 per cent believe automated expense tracking would be single most transformative tool in their travel program, suggesting that poor expense tracking, delayed reporting and inefficiencies are a real problem.
The survey of 562 business decision-makers, travel managers and authorised travel bookers across the Americas, EMEA and ANZ found that just 9 per cent of ANZ businesses were considering reducing their budgets this financial year. The trend towards greater spend and intention to travel is reflected globally, with the survey revealing 46 per cent of businesses in the Americas and 50 per cent in EMEA have increased their travel spend.
However, more ANZ businesses indicated they are most in need of automated expense tracking tools than those that assess travel risks and monitor traveller safety (chosen by 23% of ANZ respondents), or tools that offer predictive analytics to optimise travel budgets and identify cost-saving opportunities (45%), and virtual travel assistants (34%).
The comparisons are similar for businesses in the Americans and EMEA, where 46 and 53 per cent also need automated expense tracking more than automated risk assessments, predictive analytics and virtual assistants.
Tom Walley, Australian-based Global Managing Director at Corporate Traveller, says: “Business travel may be back in full swing, but our findings suggest that many businesses are losing value and efficiencies through poor expense tracking and delayed reporting.
“As a travel management company for SMEs across nearly all industries, we know manual expense reporting is one of their biggest challenges. This is time consuming, prone to error, risks lost receipts and leads to delays in reconciliation and reporting. Without an automated expense system, tracking international expenses across multiple currencies is also difficult. Lastly, the lack of a clear and comprehensive travel policy without audits can lead to unauthorised travel claims. These issues lead to budget overruns, missed tax deductions, and costly inefficiencies that are identified months after the fact.”
Tom recommends booking all components of a trip in the initial booking process, to capture as much of the trip spend beforehand and to minimise on-trip expenses. “Around one third of travel expenses can be removed by booking all components of travel together with your travel management company or online booking tool. Your travel management company will ensure those expenses are in line with your travel cost policies and approval processes.”
Corporate Traveller can also assign a corporate credit card to each traveller profile, to help control expenses and simplify reconciliation.
“We can support customers with an on on-account credit solution that streamlines all travel expenses booked through Corporate Traveller, simplifying invoicing and reconciliation for travellers, finance teams and the business,” he said.
“Where customers use corporate credit cards we work hand in hand with their card provider to provide rich enhanced data and provide invoice hand off to their expense provider in order to reconcile transactions.
“With business travel ramping up, companies need real-time visibility over their expenses. By having the right tools to manage every dollar spent along the way, and clear pre-approval processes within a comprehensive travel policy, businesses can take control of their travel budgets, reduce waste and eliminate the frustration of hidden costs.”
Corporate Traveller’s 6 tips to help businesses better control their business travel spending:
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1. Have a clear, comprehensive travel policy.
Your policy should outline allowable expenses, preferred vendors, booking procedures and reimbursement processes. Ensure that employees are aware of, and adhere, to the policy. Think about providing resources, FAQs, and a point of contact within your company to assist travellers with expense reporting.
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2. Use travel management software.
The most useful software provides oversight of and manages bookings, reviews spending in real-time, automates expense reports, and flags non-compliant expenses. Platforms with mobile capabilities can also capture expenses in real time, and allow for easy tracking, categorisation and analysis of expenses. Having a centralised booking system for all company travel can also help compliance with policies, and help businesses negotiate better rates and consolidate approvals.
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3. Set budgets and a pre-approval process.
Allocate travel budgets for departments or projects. After that, implement a pre-approval process for travel plans and budgets. This ensures that trips are necessary and that proposed spending falls within your business travel budget and policy.
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4. Analyse travel data.
Regularly review travel expense reports to find trends, potential savings, and any compliance issues. Use this data to adjust travel policies and practices.
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5. Negotiate supplier agreements.
Establish relationships with airlines, hotels, rental car companies and travel agencies to negotiate better rates. Committing to preferred vendors can result in considerable savings.
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6. Train employees and encourage cost-conscious behaviour.
Train your travellers on expense policies and the use of expense management tools at least once a year. Share cost-effective travel practices and consider incentives for cost-saving behaviours. Promote a culture of accountability around accurate expense reporting and compliance.
