‘Forecast 2016’ keeps the travel world on its toes
A global card provider recently issued a Travel Forecast for 2016*1 that envisages a rise in airfare and hotel prices, fueled by a buoyant economy and upbeat markets in the Indian and Asian regions. What’s more, India is a developing economy with poor infrastructure – and this makes it a potent mix for more travelers choosing to fly by air and raising travel costs. Admittedly, Companies can prepare to witness a sharp rise in the Travel & Expense graph.
Companies brace for challenges in Travel & Expense
With rising expenditure, organizations must prepare to manage expense reporting efficiently and thoroughly. But many continue to face hitches in their T&E procedure. Problems include manual data entry, inefficient processes, and lack of visibility, with enforcing corporate travel policies ranking as the highest.
Inefficient T&E Management poses a challenge to growth *2
Far from ideal ways of expense receipt submission… *2
For instance, expense receipt submission is commonly done via office mail. This increases the chance of losing documents, and employees may never get their expense reimbursed, leading to confusion and growing discontent.
Swift and secure expense reimbursement helps maintain employee satisfaction. Indeed, this process is largely automated in a lot of Companies and many use direct deposit as well. However, many continue to depend on paper cheques.
… and how are the reimbursements processed? *2
Many companies aren’t even aware of the processing cost. More than 80% of surveyed companies either don’t track the involved costs or just don’t know. And among the 20% who are familiar with the spend on manual T&E operations know that they are spending way too much but somehow are still letting the redundant systems run.
Visibility is the key to improvement
Knowing the cost per expense report can help fix all T&E related glitches. But most firms shy away from measuring their costs – perhaps for the fear that it may turn out too high. Ironically, until they drill down to the reason for high costs, such costs will only continue to rise YoY.
Automation is the way forward
Manual operation is the leading reason for high T & E costs. Plus new factors such as, mobile booking channels are changing the travel scenario by the minute. Travel managers must become aware of these shifting forces and adapt themselves accordingly. An automated T&E solution is an ideal fit for this. Concur’s travel, expense and invoice solution is quick and cost-effective to deploy. It enables automated, fast and accurate business reporting, to help improve productivity, compliance and control over business expenses.
What’s more, organizations can achieve value by going beyond replacing manual T&E processes with automation, and connecting to a broader network of value-added partners. This can empower financial leaders and employees to make smarter decisions: an advantage waiting to be leveraged by businesses of tomorrow.