Travel Content

Managing Employee Spend Strategically

BuyerQuest

Spend Matters welcomes this guest post from Guy La Corte, general manager, Americas, at Concur.

Employees have access to and are spending more of your company’s money across more spend categories using more payment methods than ever before. And for finance and procurement managers, it’s increasingly challenging to track spending in a world where employees are paying supplier invoices directly with company checks; booking and managing travel directly on their mobile devices; using their corporate, ghost, virtual, corporate or even personal cards for just about everything; and vendors are marketing directly to them with upgrades and offers. This employee-initiated spend has become the largest unmanaged spend category in almost every company’s financial program.

New Research: Using Best Practices to Maximize Travel & Expense ROI

T&E

Travel and expense management goes beyond making sure employees aren’t submitting dubious expenses like, say, $1,000 toward adult entertainment or $80 worth of drinks to keep a spouse “calm and occupied” (both of which were real expenses, by the way, as reported by Inc.). According to a new London School of Economics report commissioned by Amadeus, companies can cut the cost of processing a transaction by more than 50% by actively managing T&E and implementing best practices.

Tying up T&E Loose Ends: T&E Meets Risk Management (Part 3) [Plus+]

In previous installments of this Plus series, we discussed the amount of risk companies face when deploying workers around the globe and what precautions the company and its workers must take. In Part 1, we specifically talked about duty of care provisions, and in Part 2 we continued his analysis of corporate travel risks. Today, we complete the series by offering a number of recommendations companies should take regarding T&E management.

Identifying And Responding to Risks Faced By A Global Workforce: T&E Meets Risk Management (Part 2) [Plus+]

What do companies need to be aware of when managing corporate travel and a global workforce? Spend Matters VP of Research Thomas Kase, who has experience working abroad and is our main source for T&E management, started this PRO series discussing the amount of risk a company faces when deploying workers around the globe, how much money a company should allocated to risk mitigation and what is required under duty of care provisions. You can check it out here. Here, in Part 2, Thomas continues this analysis of travel risks and corporate obligations.

Ubering After Dark — in Wisconsin

The Centers for Disease Control and Prevention defines heavy drinking as 15 or more drinks for men and eight or more for women on a weekly basis. On average, 18% of American adults fall into this category, but the percentage is over 25% in Wisconsin. Some experts will tell you that the Germanic and Scandinavian ancestries of Wisconsin, Minnesota and North Dakota have something to do with it. And others will say that it’s the dreary weather.

Understanding “Duty of Care” When Managing Corporate Travel: T&E Meets Risk Management (Part 1) [Plus+]

travel

Vendors hawking T&E software that spans travel booking and expense management claim that it is not just about policy compliance, but that it is also about the risk management benefits of actually seeing where employees (or contractors) are and, in the event of an emergency, being able to provide support as quickly as possible. Enabling this level of visibility and guidance is not just good business practice; there is also a legal angle to it, which varies country by country (e.g., the menacing sounding “corporate manslaughter law” in the U.K.). But in certain cases, T&E software companies (e.g., Concur) might engage in a bit of fear mongering as a sales tactic, as well. The stick prompts many to action more effectively than any amount of carrot.

The risks exist, of course, and in this Spend Matters Plus brief we provide a primer on managing travel and the global corporate workforce, including the requirements and limits of duty of care provisions, as well as what procurement needs to know and how far it should consider going both as good business practice and under the law. 

Millennials Spend Less on Corporate Travel and Expenses, New Research Shows

travel

Millennials: big corporate spenders they still are not. According to Concur’s analysis of $36 billion in expenses that were processed through its travel expense management solution between Q1 2015 and Q1 2017, employees between the ages of 22 and 35 spend 18% less than those who are 36 or older. While it is likely that this generation’s corporate T&E spending patterns will evolve as the employees become older and more senior in their organizations, it is interesting to see how their current spending patterns differ from their older colleagues.

Insatiable Ride-Hailing Companies Bite into Rental Car Demand

cars

Spend Matters welcomes this guest post from Kayla Bruun, senior economist at IHS Markit.

Despite the seemingly favorable demand-driving conditions of a robust job market, low fuel prices and an upward trend in domestic travel spending, rates for U.S. passenger rental cars as measured by the producer price index have declined 31% since the third quarter of 2014. Concurrently, rising fleet costs attributable to a supply glut in the used car market are overwhelming rental car firms' cost savings from automation initiatives and low gas prices. This suggests that rental car prices are falling due to a mismatch between supply and market demand, not as a result of lower input costs flowing through.

Procurement and Travel: How Healthy is Your Relationship?

travel

Spend Matters welcomes this guest post from Katie Virtue, director of category management, travel, at Corporate United.

You probably know that corporate travel programs offer a significant cost savings opportunity and, as a result, are a high priority for most organizations. What you may not know is that the successful management of your travel program relies heavily on the relationship between procurement and travel teams. Although financial goals are important to all organizations, you must not forget the customer experience component that comes into play with these offerings, and also make sure that company travel policies protect employees.

On Expense Management, Mileage Fraud and GPS: An Interview with Runzheimer’s Mike Bassi

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Recently I talked to Mike Bassi, director of partnerships at Runzheimer, a provider of mobile workforce solutions that works with more than 1,300 companies. One of Runzheimer’s areas of expertise is mileage spend, and I was curious to hear about technological advances in expense management from a provider’s point of view — as well as ask about how common low-level expense fraud is.

Affordable Hotel Rooms Get More Expensive

hotel

Spend Matters welcomes this guest post from H. Cole Hassay, economist, pricing and purchasing, at IHS Markit.

The hotel industry experienced healthy demand this past summer. With this strong demand, hotels with the least amenities increased the most in price, as limited-service hotels became more expensive in the United States. While the typical surge in demand from summer travel was partially responsible for a normal seasonal upturn, there were other factors at play, too.

How Different Business Travelers Approach Expense Reports

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Business travelers can end up spending a lot of time filling out expense reports after returning from a business trip. Employees with more experience traveling and more knowledgeable about a company’s travel policies may be able to complete this task quicker than those who travel less frequently. Concur’s new State of Business Travel report details how different types of travelers — from the savvy business traveler to the cautious planner — complete expense reports and how long they take to do so.