21
Sep

The Leaking Corporate Travel Management Bucket

Did you know that poor corporate travel management can impact businesses in many ways – from missed bookings, higher costs, disgruntled employees and even compliance issues.
  • Is your corporate travel management policy like a leaking bucket?
  • Does your organization suffer from a lack of corporate travel management?
  • Do you know the top spending categories in the travel expense accounts?
  • How about the average amount an employee pays for food every day during a business trip?

If you lack visibility into this data, you face major hurdles during an auditing and optimization process.

The first sign of bad corporate travel management are travel costs. Typically, higher costs are incurred as a consequence with poor corporate travel management system (or lack thereof). More money is lost through the business as a result of mishandled bookings or lack of reporting.

According to a survey by J.P. Morgan, Travel and Entertainment is the second largest operating expense on the balance sheet after payroll. At a typical organization, employee overspending eats up a fifth to a third of total travel and expense. So take a moment to think about how much your total travel budget per year (or month) and calculate the cost of one fifth or one third of the travel cost. Are you surprised by the size of the dollars that could be potentially wasted in your organization?

For medium to large size organizations, the travel costs are typically high so these travel spends should be easily track able to keep employees from going off budget. The travel costs should be easily track able as to who is spending the money, the amount spent and the costs associated with missed flights or extended stays.

Your organization has two options for how to respond to high travel expenses. They could accept employee overspending as the price of doing business. Or, they could attempt to cut costs with tight spending limits and restrictive travel policies. The first option hurt the bottom line, while the second increased employee dissatisfaction and turnover.

However, there’s a new paradigm emerging in corporate travel management, rather than punishing those employees who overspend on their trips, many businesses are choosing to reward the ones who save. Cutting costs without upsetting employees sounds both attractive and unrealistic.

One way that businesses rack up unnecessary costs is reimbursing employees for costs that are outside of company policy – such as a meal that exceeds limits, or a hotel booking that costs much more than your business allows on a nightly basis. With a manual expense report program, it’s likely that these costs won’t be noticed until it’s too late.

Your organization has two options for how to respond to high travel expenses. They could accept employee overspending as the price of doing business. Or, they could attempt to cut costs with tight spending limits and restrictive travel policies. The first option hurt the bottom line, while the second increased employee dissatisfaction and turnover.

However, there’s a new paradigm emerging in corporate travel management, rather than punishing those employees who overspend on their trips, many businesses are choosing to reward the ones who save. Cutting costs without upsetting employees sounds both attractive and unrealistic.

One way that businesses rack up unnecessary costs is reimbursing employees for costs that are outside of company policy – such as a meal that exceeds limits, or a hotel booking that costs much more than your business allows on a nightly basis. With a manual expense report program, it’s likely that these costs won’t be noticed until it’s too late.

Perhaps, your organization handles all of the travel bookings rather than outsourcing the corporate travel management. Spend a moment to think about:

  • Do you have a corporate travel management policy? If so, is your policy up to date?
  • Do you have a corporate travel budget?
  • Do you have the reports that you can use to effectively measure the cost of travel by employee and the benefits arising from their business trips?
  • How much time does it take your employees to manage your corporate travel?
  • What is it costing your organization for mismanagement of your policy?

If you do not have your own corporate travel management policy in place, you are not alone. Many organizations are in the similar position as your organization but you do not have to stay in that position for long.

These are just some of the questions and issues that you need to consider, and ensure that your corporate travel management company can report on, so you can make business and travel decisions accordingly. If your corporate travel management company cannot provide these solutions that fit your travel requirement, then read on as we have the solution that your organization needs.

TESS360 has the solution that your organization needs. Our experienced team understand the heavy demands and costs of corporate travel. Our team can demonstrate to your organization how our mobile app solution will add value to your business in three ways:

  • Take your stress away from the corporate travel management process.
  • Reduce your corporate travel costs through our direct links to travel operators
  • Put your employees to better use that adds value to your organization

Our solution will inform your employees as soon as they upload the information for a cost that violates your corporate management policy – helping to eliminate unnecessary reimbursements, and save money for your organization.

You cannot measure what you cannot see, so by consolidating all your travel spend through our mobile app solution, you will have the ability to quickly and easily see how much you are spending, what you are spending it on, and who is spending it. Once you have this information, it is then very easy to see what you need to focus on to make savings against budget.

TESS360 is a cloud based solution targeted to automate manual and time intensive Travel authorization and Reimbursement process. TESS360 allows users to submit travel authorization requests online. Our mobile app solution allows you to be able to Track Budget Vs Expenses against Trip, Project, and Customer and our solution integrates with most accounting packages such as Oracle, Quickbooks, SAP and many more packages.

Don’t let travel expenses in your organization be a burden or wasted money! Our Corporate Travel Solution is what your business needs now.