Corporate travel management still missing the implementation of best practices

Corporations are leaving both direct and indirect travel savings on the table by not implementing best practices around comprehensive travel policies and use of a single expense reporting platform, according to a recent online survey of travel management professionals fielded by AirPlus International. While a majority of respondents clearly understand the potential benefits, under 40 percent of survey respondents confirmed that they both utilize a single travel and entertainment policy throughout their organizations and supply a single T&E expense reporting platform for all travelers.

Corporations that have embraced industry best practice by creating comprehensive travel policies, benefit by having a means by which to encourage specific travel behaviors. Many of these companies have also invested in the technologies and tools that make it easy for travelers to comply with policy, including but not limited to the following: Online booking tools, corporate cards and automated expense reporting platforms.

According to the AirPlus survey, more than 79 percent of companies surveyed link credit card data to their expense reporting systems – a signal that they recognize the relationship between spend visibility and compliance. That compares to only 42 percent of respondents whose companies link their booking data to the expense tool, which can provide enhanced visibility into out-of-policy bookings and fewer expense reports submitted with critical policy violations.

Above traveler convenience and compliance, however, 56 percent of respondents to the survey pegged increased back-end efficiencies as the most important benefit of automated data feeds and integrated expense reporting platforms. Indeed, automated expense technology facilitates approval, reconciliation and reimbursement almost 30 percent more efficiently than companies that use manual processes, according to a June report from Aberdeen Group.

With all its potential benefits, automated expense reporting has its challenges. The biggest challenge among survey respondents was simply the diverse lines of business within their companies requiring different processes. Fewer companies experienced setbacks in the form of local statutory requirements, lack of senior management’s support and non-standard reimbursement and accounting processes. Still, moving toward best practices is likely worth the effort, and automated expense reporting has become more accessible – even for midsize companies that in the very recent past could not justify investing in these types of tools.

Download the full report for complete results:

AirPlus…The Wire January 2010 (PDF, 248KB)

Additional Resources
Coca-Cola Automating Expense Audits