2016 Business Travel Trends and Expense Management Best Practices

LIVE WEBINARJune 28, 2016

Hosted by CFO.com | Presented by Certify

2016 Business Travel Trends andExpense Management Best Practices

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

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

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?

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

Ground Transportation Trends

+1890% ride-hailing receipts in 2 years

Certify SpendSmart Report 2014 - 2016 15

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

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


2016 Business Travel News Corporate Travel Index 19

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


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The Dimensions of Effective T&E Expense Management:Policy & Spending Control

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?

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

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


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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


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The Dimensions of Effective T&E Expense Management:

Process Efficiency

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?

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

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


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


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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


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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


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

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?

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


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


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


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Reducing processing costs is the #1 T&E improvement for 48% of

all best-in-class companies

Aberdeen Group 2015

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

Automation Drives ROI


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?


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?

For more information about Certify, go to www.certify.com

Thank you!

2016 Business Travel Trends and Expense Management Best Practices

Business

Transcript of 2016 Business Travel Trends and Expense Management Best Practices