2016 business travel trends and expense management best practices
TRANSCRIPT
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LIVE WEBINARJune 28, 2016
Hosted by CFO.com | Presented by Certify
2016 Business Travel Trends andExpense Management Best Practices
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Learning Objectives
• Annual T&E benchmark spending trends by expense category and company size
• Expense management strategies used by small, midsize and enterprise companies
• Best practices and solutions to improve process efficiency and spending control
• The often “hidden” costs associated with expense report processing
• How automation delivers a full ROI for 92% of all companies in 2 years or less
Attending this event will help you understand:
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Today’s Presenter
Ernie HumphreyPresident
360 Thought Leadership Consulting
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Featured Speaker
Robert NeveuPresident and Co-founder
Certify
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• Industry-leading, first fully automated travel and expense management system
• 64 languages, 140+ currencies, clients in 80 countries
• #1 highest rated expense management software for user satisfaction on G2 Crowd
• PC Magazine Editors’ Choice for best expense management software of 2016
• Processing over 30 million expense transactions and $10+ billion in expense reports for 2015
About Certify
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Business Travel Trends
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T&E Spending Around the World
U.S. business travel spending 2015
$310b
$1.25tglobal business travel
spending 2015
Global Business Travel Association 2015 7
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Business Investment in T&E
8-12%total annual budget for T&E expenses1
1. Aberdeen Group 20152. PayStream Advisors 2015
25% of all U.S. companies spend $1 million or more on annual T&E expenses2
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Base Costs Per Trip
Travel Leaders Corporate 2015
Average business trip cost for air, hotel and car rental:
INTERNATIONAL DOMESTIC
$2,502 $1,002
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U.S. Business Travel Breakdown
74%under 250 milesfrom home office
48%involves a
personal vehicle
69%do not require
air travel
Global Business Travel Association 2015
U.S. Travel Association 2015
Of the 1.3 million domestic business trips made daily:
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What’s New With Business Travelers?
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97%of business travelers carry at least one mobile device
Mobile is Made for Travel
Expedia/Egencia Mobile Index 2015
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• Nearly 80% of business travelers used their smartphone to plan or book corporate travel in 20141
• 76% of travelers say their smartphones are “very important/critical” to daily life; 70% feel the same about their laptop1
• Global mobile payments market up 38% from 2015 to $620b worldwide2
• More than 45% of best-in-class companies use mobile expense apps (89% spend under management, 91% compliance rate)3
Mobile Travel Trends
1. Expedia/Egencia Mobile Index 2015 2. TrendForce 2016 3. Aberdeen Group 2014
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Ground Transportation Trends
Certify SpendSmart Report 2014 - 2016 14
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Ground Transportation Trends
+1890% ride-hailing receipts in 2 years
Certify SpendSmart Report 2014 - 2016 15
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Convenience and Cost
55%Lower average fareper transaction
Certify SpendSmart Report Q1 2016: Average cost for Uber includes all UberX, UberXL, UberPLUS, Uber Taxi, UberBlack, UberSUV and UberLUX rides. Certify has a relationship with Uber as an integrated expense management solution.
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The Dimensions of Effective T&E Expense Management:Visibility & Benchmarking
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1. Meals 19%
2. Airfare 17%
3. Misc. 17%
4. Lodging 14%
5. Gas 11%
6. Cell phone 5%
7. Car rental 5%
8. Groceries 5%
9. Supplies 5%
10. Taxi 3%
11. Shipping 2%
12. Tolls 1%
13. Parking 1%
How the Expense Budget is Spent
Certify SpendSmart Report, Q4 2015
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$98.75DAILYMEAL COST
2016
1. Meals 19%
2. Airfare 17%
3. Misc. 17%
4. Lodging 14%
5. Gas 11%
6. Cell phone 5%
7. Car rental 5%
8. Groceries 5%
9. Supplies 5%
10. Taxi 3%
11. Shipping 2%
12. Tolls 1%
13. Parking 1%
How the Expense Budget is Spent
Certify SpendSmart Report, Q4 2015
2016 Business Travel News Corporate Travel Index 19
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Category 2014 2015 Difference
Gas $40.41 $30.32 –24.96%
Airfare $345.21 $274.00 –20.62%
Lodging $213.90 $223.45 +4.64%
Car Rental $193.58 $186.45 –3.68%
Cell Phone $89.30 $92.24 +3.29%
Meals $25.67 $26.06 +1.52%
Parking $32.70 $32.23 –1.43%
Taxi $31.81 $31.82 +0.03%
Benchmark Spending by Category
Certify SpendSmart Report, Q4 201520
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The Dimensions of Effective T&E Expense Management:Policy & Spending Control
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Polling Question 1
a) We have no formal T&E policy b) Manual review processc) Automated system that flags violationsd) Policy is not enforced
How does your organization enforce compliance with T&E policies?
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73%
T&E Policy Compliance
85%of all companies report
having a writtenT&E policy in place
of those companies are manually reviewing
for policy violations
Manual policy review is inefficient, prone to error and fraud
Certify Annual Travel & Expense Management Survey 2016
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T&E spending is the 2nd most difficult operating
expense to control
Forrester Research 2015
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T&E policy is not enforced Employee is responsible Manager manually review each expense
Manager manually review, checking only high value
expenses
T&E system automatically flags out-of-policy violations
6%
31%
42%
20%
26%
Policy Enforcement Practices
Certify Annual Travel & Expense Management Survey 2016
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T&E policy is not enforced Employee is responsible Manager manually review each expense
Manager manually review, checking only high value
expenses
T&E system automatically flags out-of-policy violations
6%
31%
42%
20%
26%
53% of companies on a web-based system
Policy Enforcement Practices
Certify Annual Travel & Expense Management Survey 2016
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The Dimensions of Effective T&E Expense Management:
Process Efficiency
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Polling Question 2
a) Under $7 per reportb) $10−$20 per reportc) $25 or more per reportd) We do not track these costs
What is the average cost to process a single expense report at your organization?
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Cost to Process a Single Expense Report
$6.85fully automated
$17.31 semi-automated
$26.63 manual process
PayStream Advisors 2015
28%
19%
5%
48%
Under $7 per report $10−$20 per report $25 or more per report
We do not track these costs
Certify Annual Travel & Expense Management Survey 2016 29
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Leading frustrations for T&E program administrators:
Top Expense Management Pain Points
50% employees
losing receipts
45% employee’s failureto submit reports
on time
38% time it takes to
reconcile, reviewand approve
30% reviewing for
policy violations
28% errors onthe report
Certify Annual Travel & Expense Management Survey 201630
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Systems and data integration
Mobility/mobile access
Travel booking
Transparency/visibility into reporting data
Expense management process
9%
10%
11%
21%
37%
Key Areas for Improvement
Certify Annual Travel & Expense Management Survey 2016
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Systems and data integration
Mobility/mobile access
Travel booking
Transparency/visibility into reporting data
Expense management process
9%
10%
11%
21%
37%
Key Areas for Improvement
Certify Annual Travel & Expense Management Survey 2016
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A COMBINATION OF ABOVE
A TRAVEL AGENCY
CORPORATE TRAVEL SOFTWARE
ONLINE TRAVEL SITES
0% 10% 20% 30% 40% 50% 60%
43%
22%
15%
20%
29%
15%
5%
51%
Manual Web-based
Certify Annual Travel & Expense Management Survey 2016
Travel Booking Technologies
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Travel Booking Best Practices
Pre-Trip Approval:Requires manager authorization prior to booking; configurable by employee,
policy specifics, etc.
Lowest Logical Fare:Automatically identifies best available rates for proposed itinerary (and only
best available rates)
$
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Companies that track/apply unused tickets can save 5-8% of
total annual travel budget
2015 GBTA Ancillary Fee Handbook
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Polling Question 3
a) Paper-based/spreadsheetsb) ERP system (Oracle, Microsoft Dynamics, etc.)c) Web-based expense software (Certify, Concur, etc.)d) Not applicable
How does your organization currently manage T&E expense reporting?
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Methods for Managing T&E Reporting
Consistent mix of expense management systems:
Certify Annual Travel & Expense Management Survey 2013-2016
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Web-based solution (Concur, IBM, etc.)Microsoft Excel/spreadsheetsPen and paperHomegrown solutionERP/accounting package (Oracle, SAP, etc.)
T&E Systems by Company Size
MANUAL SYSTEM USAGE: 70% small businesses | 26% enterprise
22%
55%
10%
5%8%
37%
37%
9%
4%
13%
46%
16%
4%
6%
28%
SMALLBUSINESS
MID-SIZEBUSINESS ENTERPRISE
Certify Annual Travel & Expense Management Survey 201638
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Improving Expense Management
Are you planning to switch or currently in the process of evaluating vendors for a new web-based system?
37%SMALL
BUSINESS
46%MIDSIZED
COMPANIES
53%ENTERPRISE
Certify Annual Travel & Expense Management Survey 2016
62% of all companies planning to make the switch will do so in the next 12 months
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Reimburse employees faster
Improve employee compliance rates to corporate policy
Gain reporting and analytics around T&E spend
Provide system accessibly from anywhere (online, mobile)
Simplify process for employees and managers
25%
28%
32%
40%
66%
Driving Force Behind the Switch
Certify Annual Travel & Expense Management Survey 2016
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Reducing processing costs is the #1 T&E improvement for 48% of
all best-in-class companies
Aberdeen Group 2015
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Best-in-Class T&E Strategies
Aberdeen Group 2015
Expen
se reports
audited re
gular
ly
Automatic li
nkage
betwee
n expen
se mgt. a
nd back-en
d syste
ms
Online t
ravel b
ooking syste
m
Commercial ca
rd syste
m/program
End-to
-end ex
pense
mgt. solution
88%
58%
87% 77% 68%63%
34%
63%50%
35%
Best-in-Class Industry Average
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Must-Have Expense Reporting Features
Automation: Expense report creation, workflow process and approvals, direct credit card feeds
Mobile Applications: Smartphone-enabled receipt image capture, mobile report creation and approval, and policy tools
Compliance: Duplicate receipts/expenses, category spending limits, automatic notification of violations
Integration: Accounting software, general ledger, HRIS, CRM, ERP, ACH direct deposit
Reporting: Complete visibility into process and spending by category, department, employee
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The Economics of Effective T&E Expense Management: Defining the ROI
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Automation Drives ROI
Certify Annual Travel & Expense Management Survey 2016
Businesses of every size are quickly realizing ROI:
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How ROI is Achieved
What are the ways you’ve achieved ROI on your automated expense management system?
Certify Annual Travel & Expense Management Survey 2016
Impr
oved
effic
iency
/expen
se re
portin
g pro
cess
Reducti
on in
proce
ssing
costs
(less
paper
, pos
tage,
stora
ge etc.
)
Mobile
acces
sibilit
y
Increas
ed emplo
yee p
rodu
ctivit
y
Elimina
tion of
paymen
t for d
uplica
te ex
pens
es
Reducti
on in
over
head
/staffin
g requ
iremen
ts
58%53%
33%26% 22% 22%
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Automation Gets Results
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Benefits for Businesses & Travelers
• 65% reduction in processing costs via mobile expense reporting
• Expense report automation increases employee productivity 29%
• Best-in-class expense management drives 87% rate of compliance or greater to company T&E policy
• Of companies switching to an automated system, 39% report higher employee satisfaction after adoption
• 28% less accountant time spent approving expenses for companies with an automated system spent
Aberdeen Group 2015
PayStream Advisors 2015
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Effective T&E Expense Management
• Visibility into T&E Spend by Category
• Benchmarking by T&E Spend Category
• Clear & Enforceable T&E Policies
• Governance & Control over T&E spend
• Process Efficiency from Expense Report Creation to Reimbursement
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Questions?
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For more information about Certify, go to www.certify.com
Thank you!