In a world of increasing personalization, business traveler expectations are being elevated to a point where their needs must be met at every step along the way. This webinar looks at new trends in corporate travel and how finance leaders can build future-proofed corporate travel policies that help manage spend and cuts costs.
2. 2
Ernie Humphrey
Chief Executive Officer
360 Thought Leadership Consulting
360 Thought Leadership Consulting helps companies define
and unlock the strategic value of their thought leadership
programs. Formerly, Ernie served as Vice President,
Educational Programs for Proformative, as the Director of
Treasury Services and as a Director of the Corporate
Treasurers Council for the Association for Financial
Professionals.
Today’s Presenter
3. 3
About Certify
• Integrated, automated solutions for travel, expense and
accounts payable invoice
• 64 languages, 140+ currencies, clients in 80 countries
• #1 G2 Crowd for user satisfaction in expense management
software (2014-2018) and Momentum Grid leader in
expense management software (2018)
• PC Magazine Editors’ Choice for best expense tracking
software (2015-2018)
• Processing expenses and receipts valued
at $10 billion annually
6. 6
Business Travel Spending
$1.3 trillion
spent globally on business
travel activity in 2017
$325 billion
spent on business travel in the
United States in 2017
Source: GBTA BTI™ Outlook – Annual Global Report & Forecast: Prospects for Global Business Travel 2018-2022
7.1%
Global travel to grow by another
7.1% in 2018
7. 7
Business Travel Projections 2019–2022
$1.7 trillion
Predicted to be spent globally on
business travel activity in 2022
3.80%
3.50%
5.80%
7.10%
4.90% 4.70%
4.30%
5%
2015 2016 2017 2018 2019 2020 2021 2022
Global Business Travel Spending
Source: GBTA BTI™ Outlook – Annual Global Report & Forecast: Prospects for Global Business Travel 2018-2022
8. Why Companies are Investing in T&E Spending
Client Meetings
Employee Engagement
Staff Training
Events, Conferences & Trade Shows
New Business
Innovation
Supplier Negotiations
Research & Development
Professional Development
Recruitment
Operations Planning
Quality Control
Strategic Alignment
12. 12
Certify SpendSmart™ Quarterly Report: Q3 2018
• Analysis of North American business traveler spending processed by the Certify system
• Published every quarter with an annual “Year-in-Review” since 2013
• Most expensed and top-rated by category, including transaction averages
• Q3 2018 data included more than 10 million expenses and receipts
13. Polling Question 1
a) Delta
b) Starbucks
c) McDonald’s
d) Amazon
e) Uber
Which of the below do you think was the most expensed vendor
in corporate T&E in Q3 2018?
13
14. 14
Most Expensed Vendor of Q3 2018
Source: Certify SpendSmart™ Report Q3 2018
UBER
Uber tops all other vendors, totaling 10.67% of all expensed
vendors with an average expense amount of $26.51.
15. 15
Most Expensed Vendor of Q3 2018
Source: Certify SpendSmart™ Report Q3 2018
Vendor Expense Percentage* Average Cost
Uber 10.67% $26.51
Starbucks 4.08% $12.67
Amazon 4.05% $110.32
Delta 3.58% $447.97
American Airlines 3.36% $344.22
Lyft 3.01% $23.51
United Airlines 2.81% $409.90
Walmart 2.76% $55.95
Shell 2.61% $37.55
McDonald’s 2.19% $9.51
*Expense percentage represents the number of expenses divided by the total number of expenses across all categories
16. 16
Tech Disruption in Corporate T&E
Source: Recode, October 2018, using Certify data showing Q3 of each year
The Most Common Vendors for North American Business Expenses:
2013 2014 2015 2016 2017 2018
1 Delta Delta Starbucks Uber Uber Uber
2 Starbucks Starbucks Delta American Starbucks Starbucks
3 United Costco Uber Delta Delta Amazon
4 McDonald’s United United Starbucks Amazon Delta
5 Marriott McDonald’s American Amazon American American
6 AT&T AT&T McDonald’s Shell Southwest Lyft
7 US Airways Walmart Amazon United Walmart United
8 Walmart Hampton Inn Marriott McDonald’s Shell Walmart
9 American Marriott Walmart Walmart United Shell
10 Taxis American Hampton Inn Southwest McDonald’s McDonald’s
19. 19
Most Expensed Brands by Category
Source: Certify SpendSmart™ Report Q3 2018
Most Expensed Hotels
HAMPTON INN
Hampton Inn tops all other lodging vendors, totaling
9.46% of all lodging expenses with an average expense
amount of $258.80.
MOST EXPENSED HOTELS
Percentages represent total lodging expenses submitted,
divided by total expenses per individual vendor.
4.78%
4.92%
7.39%
8.08%
9.46%
Hilton Garden Inn
Holiday Inn Express
Courtyard by Marriott
Marriott
Hampton Inn
20. 20
Most Expensed Brands by Category
Source: Certify SpendSmart™ Report Q3 2018
Most Expensed Airlines
DELTA
Delta tops the list for most expensed airline with 19.67%
of all airline expenses with an average expense amount
of $447.95.
MOST EXPENSED AIRLINES
Percentages represent total airfare expenses submitted,
divided by total expenses per individual vendor.
2.00%
11.22%
15.43%
18.51%
19.67%
Alaska Airlines
Southwest Airlines
United Airlines
American Airlines
Delta
21. 21
Most Expensed Brands by Category
Source: Certify SpendSmart™ Report Q3 2018
Most Expensed Restaurants
STARBUCKS
Starbucks tops the list as the overall most expensed
restaurant, with 5.23% of all meal expenses with an
average expense amount of $12.67.
MOST EXPENSED RESTAURANTS
Percentages represent total meal expenses submitted,
divided by total expenses per individual vendor.
1.41%
1.61%
1.66%
2.81%
5.23%
Subway
Chick-Fil-A
Panera Bread
McDonald's
Starbucks
23. The ROI of T&E Spending
Client Meetings
Employee Engagement
Staff Training
Events, Conferences & Trade Shows
New Business
Innovation
Supplier Negotiations
Research & Development
Professional Development
Recruitment
Operations Planning
Quality Control
Strategic Alignment
24. 24
T&E Spend: Budgeting
• Review prior travel spend: Calculate the average spend.
• Analyze previous travel: Most common locations, airlines, and travelers.
Categorize averages beyond hotel and airfare, to meals, snacks,
transportation, and additional expenses.
• Talk to the team: Find out about trips planned for 2019, focusing on the
most frequent travelers.
• Compare and revise: Utilize General Services Administration per diem rate
benchmarks, research organizations like U.S. Travel Association or GBTA,
Certify’s quarterly SpendSmart™ Report for business travel spending data.
• Adjust the budget throughout the year: Check in quarterly, or even
monthly, to see how travel expenses compare with budget.
25. Polling Question 2
a) Determined by annual budgeting process
b) Follow U.S. GSA per diem rate guidelines
c) Based on internal, historical spending trends
d) We do not have policy spending maximums
e) Other
If your company has a travel policy, how do you set policy maximums?
26. 26
How Companies Set T&E Budgets
How Does Your Company Set Policy Maximums?
30%
29%
21%
12%
7%
Percentage
Determined by annual budgeting process
Follow U.S. GSA Per Diem Rate Guidelines
Based on internal historical spending trends
We do not have policy spending maximums
Other
Source: 2018 Expense Management Trends Report, Certify, Inc.
27. 27
How the T&E Budget Was Spent in 2017
Source: Certify SpendSmart™ Report 2017
Meals 19%
Airfare 15%
Lodging 14%
Misc. 13%
Gas 11%
Taxi 9%
Cell Phone 5%
Car Rental 5%
Supplies 5%
Shipping 2% Tolls 1% Parking 1%
Meals 19%
Airfare 15%
Lodging 14%
Misc. 13%
Gas 11%
Taxi 9%
Cell Phone 5%
Car Rental 5%
Supplies 5%
Shipping 2%
Tolls 1%
Parking 1%
$98.00
DAILY
MEAL COST
2018
*
*Certify SpendSmart™ Report Q1 2018
29. 29
A Path to a Better Travel Policy
1. Measure costs in order to manage costs
2. Build a policy that is easy to access and
understand, and is enforceable
3. Be fair, flexible, and human-centric
4. Manage compliance and fraud
5. Leverage the right technology
31. T&E spending ranks as the second
most difficult operating expense
category to control
Source: Forrester Research
32. 32
Data Analysis: Benchmark Spending by Category
Source: Certify SpendSmart™ Report 2017
Higher than 2016 Lower than 2016
2017 Average Expense Costs by Category
33. 33
Build Partnerships & Identify Discounts
• Utilize past travel data to demonstrate the volume
of travel your organization needs each year, and
negotiate better deals for your company.
• Seek out bids from hotel and airline providers that
have properties and routes that provide service to
your most frequent destinations.
• Remember that these companies want your
business and are actively seeking corporate
accounts that are likely to provide continued
revenue.
36. 36
Set Expectations
Example Policy Introduction
This policy is intended to outline the travel guidelines and expense reporting requirements for
[Company Name] business travelers and employee-initiated expenses. All employees must
adhere to the limitations presented within this document and it is the responsibility of managers
to carefully review and approve all compliant expenses. Any expenses that fall outside of the
guidelines set forth by this policy should be reconciled by the manager and employee before
submitting the expense report to accounting.
While this policy is built with best practices for business travelers within [Company Name] and is
meant to be comprehensive, the realities of travel and expenses may conflict with the policy. It
is upon the employee to seek out travel bookings that best align with the policy while meeting
reasonable expectations for travel and accommodations.
37. 37
Responsibility, Authorization, Permissions
• Pre-approvals: Remind travelers that before
booking any travel, it must be approved and
authorized by the required personnel.
• Define approval and permission paths clearly and
succinctly.
• Minimize the number of authorizations: The more
approvals a travel request needs, the longer it will
sit unfulfilled.
• Adopt a streamlined process so travelers will seek
out the proper authorization, but stay within and
adhere to policy
38. 38
The Business Traveler Approval Process
Consider Implementing a Process like This One to Minimize the Number of Travel
Requests and Approvals:
Traveler is responsible for:
• Booking travel arrangements
(personally, via an agent, etc.)
and documenting all the
expenses that are part of
the trip
• Filling out expense reports
that include all travel
expenses and ensuring each is
within policy
Manager is responsible for:
• Approving any expenses that
are associated with the trip
• Assessing what is covered
under the policy and
disqualifying non-compliant
expenses
Accountant is responsible for:
• Reconciling and reimbursing
expense reports for travelers
• Acting as the last gate for
approvals, and double checking
expenses to make sure they are
covered under the policy
39. 39
Expense Reporting and Reimbursement
The Process and Documentation of What Is
Needed Post-trip Is Just As Important.
• Convey what documentation is needed so that the
company may reimburse its employees in a timely manner.
• Establish a post-trip deadline, so that the process
remains efficient.
40. 3. Be Fair, Flexible, and Keep Employee
Wellbeing in Mind
41. Polling Question 3
a) Client meeting
b) Networking / event
c) Training / education
d) Prospecting
What was the reason for your most recent business trip?
42. 42
Be Flexible: Common Policy Exceptions
• Executives: Many companies opt to provide policy exceptions for
executive travel or implement an executive-level travel policy that has
more expansive travel options.
• Long Trips: For travelers taking longer than average trips, some
companies allow for upgraded air travel as well as higher-level
accommodations than the policy typically allows.
• Seasoned Travelers: For employees who are constantly on the road,
some are given an enhanced policy that allows for higher-level travel
options.
43. 43
Remember Employee Wellbeing
The Impact of Business Travel on Retention
79%say business travel
impacts job satisfaction
“More than three quarters of business travelers in North America say their
business travel experience impacts their overall job satisfaction somewhat (47%)
or to a great extent (32%). This is especially true among Millennials and Road
Warriors as well as those who work under managed travel programs.”
Source: Creating a Frictionless Travel Experience–North America. GBTA 2017
44. 44
The Most Difficult Aspects of Travel
Source: Creating a Frictionless Travel Experience–North America. GBTA 2017
3%
15%
19%
20%
22%
27%
29%
33%
37%
41%
42%
48%
61%
Other
Lodging booking experience
Flight/train booking experience
Travel debrief with travel department
Pre-travel approval/gathering travel information
Meals
Changing a lodging reservation during my trip
Working away from the office
Preparing expense report
Work environment while traveling
Changing a flight or train reservation during my trip
Layover
Time spent in transit
Most Difficult Aspects of Business Travel
% included in the top 5
45. 45
Duty of Care: Corporate Responsibility
Employers Have a Legal and Moral
Responsibility to Ensure the Safety and
Security of Their Travelers Around the
World.
• Consult with company experts, legal counsel, and
travel management to ensure your travel policy is in
line with mandates.
• Highlight the specific acts, laws, and regulations that
apply to your company and the processes that need
to be followed to ensure compliance.
47. 47
T&E Fraud
The Association of Certified Fraud Examiners Reports:
• Approximately 15 percent of all fraudulent disbursements involve expense
reimbursement fraud
Most Common Types of Expense Reimbursement Fraud:
• Mischaracterized expenses (disguising personal expenses)
• Overstatement of actual expense (altering receipts)
• Fictitious expenses (usually counterfeit receipts)
• Multiple reimbursements (submitting duplicate reports)
48. Polling Question 4
a) Yes
b) No
c) N/A
Do you submit expense reports via a manual, paper-driven process in your
organization–attaching receipts, etc.?
49. T&E Policy Remains a Manual Affair
2017 2018 %+/-
Manually check each expense, matching it to
corporate policy
41% 38% -3%
It is the responsibility of the employees to comply
with T&E policy
39% 22% -17%
System automatically flags out of policy expenses
for review
26% 26% -
Manually, only reviewing expenses with a high
value
15% 12% -3%
Our T&E policy is not enforced 7% 2% -5%
Source: 2018 Expense Management Trends Report, Certify, Inc.49
50. T&E Policy Trends
Source: 2018 Expense Management Trends Report, Certify, Inc.50
79%companies with a
written T&E policy in
place
50%manually review each
expense report report
for policy violations
51. 51
Balancing Compliance with Travel Perks
Incentives to Drive Policy Compliance:
• Monetary – reward employees for saving company money
• Point systems – gamify policy compliance
• Contests – incentivize and motivate teams
• Penalties – use minimally to avoid negative morale effects
52. Top Expense Management Pain Points
Source: 2016-2018 Expense Management Trends Report, Certify, Inc.52
Leading Frustrations for T&E Program Administrators:
2016 2017 2018
Employees losing paper receipts/submitting without
receipts
50% 52% 50%
Employees failure to submit reports on time 45% 51% 50%
Time it takes to reconcile, review and approve reports 38% 36% 31%
Reviewing for policy violations 30% 28% 28%
Errors on expense reports (incorrect codes, amounts, etc.) 28% 26% 30%
54. Polling Question 5
a) Online travel sites
b) Corporate travel department
c) A travel agency / TMC
d) A combination of the above
How do you handle travel bookings at your company?
55. 55
Tech with Integrated Travel Management
The Benefits of Pre-Trip Approvals
• Requires manager authorization prior to any booking
• Configures to meet policy guidelines (Does every itinerary need approval, or
just bookings that deviate from policy?)
• Keeps spending in check for last-minute trips or frequent exceptions
• Ensures the approver is available to process airfare ticket requests
56. 56
Ease-Of-Use Drives Policy Adoption
Must-Have Expense Management Features
34%
36%
43%
47%
51%
66%
Functionality to enforce corporate travel policies
Reporting and insight into spend
Integrations with HR/Finance systems
Mobile applications and accessibility for business travelers
Expense management automation
Simplicity/ease of use for employees
Source: 2018 Expense Management Trends Report, Certify, Inc.
57. 57
T&E Automation
Can Help You Analyze, Set Goals, Track, and Monitor KPIs:
• T&E process savings
• Savings negotiated with travel providers
• Percentage compliance/exceptions with travel policies
• Identify high and low spenders
• Track trips that were approved prior to travel
• Capture receipts from non-preferred suppliers
• Identify what was purchased from non-preferred vendors and based on
value, determine if it should be negotiated
58. 58
Closing Thoughts
1. Business travelers in 2019 have expectations driven by ease-of-use and accessibility
2. Measure costs in order to better manage costs
3. Build a policy that is easy to locate and understand
4. Be fair, flexible, and human-centric throughout
5. Manage compliance and fraud—using automation
6. The right technology can help you deliver T&E expense visibility, mitigate expense report
processing costs, educate employees, boost user satisfaction, drive policy compliance,
and mitigate T&E related fraud.