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Travel & Expense

Are Your Business Travelers Spending Too Much Out of Pocket? Analyze & Identify to Create Best Practices

on October 24, 2013

No one likes to feel like they’re owed money after a business trip, yet according to a recent survey, only 27 percent of corporate travelers indicated they had been fully reimbursed for trip costs they incurred on behalf of their employers.

For our customers with corporate card programs, approximately 90% of total travel expenditures are addressed by the corporate card. While this is lion’s share of the total expenses, this means that for every $1,000 trip the traveler is paying out-of-pocket $100.  For frequent travelers, this can sometimes create problems. Unfortunately, some of these travelers are taking out-of-policy steps to address these problems.

Across all of our customers between 2% and 5% of all travelers are habitual abusers of the expense reimbursement policy with multiple violations of expense reporting policy on a quarterly basis. While not all non-compliant activities are the result of out-of-pocket transactions, cash transactions and personal credit card transactions are more likely to be at the root of out-of-compliance transactions.

Leading organizations focus T&E analysis to measure and analyze out-of pocket transactions to determine ways to encourage use of the corporate card, communicate travel policy, and train travelers. The same organizations apply the same analysis rigor to corporate card transactions to measure and influence compliance with policies.