In this article by Travel Weekly UK, a third of UK travel managers expect the number of business trips to increase in 2014. This of course means that travel spending is set to increase as well, but how do travel managers combat costs when spending is projected to increase?
In an economy where business travel expenditures are expected to rise, the requirement for monitoring these expenses only increases. Thus, the answer to combating rising expenses is to provide more oversight, and technology is a great way to accomplish this. By leveraging automated monitoring and analysis solutions, leading companies are able to reduce overall expenses 5%-10%. How do we get this number? By calculating the costs of reduction of the wasteful and abusive spending. Monitoring transactions allows corporate spending managers to ask the following questions:
- Are preferred suppliers used whenever possible to take advantage of the best discounts and rebates?
- Are corporate cards used at every opportunity in order to maximize company card rebates?
- Do purchase patterns indicate an opportunity to negotiate additional preferred supplier contracts where one is not currently present?
Not only does increased compliance mean reduction in wasteful spending, but it also provides greater insights into where money is being spent and how. A large portion of the percentage of savings is from decreased out-of-policy spending of employees. Why? People behave differently when they know they are being observed and corporate travelers are no different. Among Oversight customers, companies who begin monitoring and analysis of all employee expenses see a reduction in policy violations as high as 70% in the first six months of monitoring.
If you are searching for a way to fight rising costs of your company’s travel program, consider automated transaction monitoring and analysis. Automated monitoring of all travel expenses provides the opportunity to both save money through adherence to corporate policy and to determine where policies might benefit from change.