Find out the latest business travel trends and how they’re driving the purchase decisions and preferences of your employees on the road. Plus, learn how automation improves the expense reporting process for employees and accountants with commentary from Teri Tocash, AP Manager for CBC Companies.

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Taking Control of Employee Spending:
Business Travel and Expense Management Trends 2016

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3. Learning Objectives
• Budgets and benchmark spending by category for annual T&E expenses
• The top expense management pressures, pain points and areas of opportunity
• Average estimated processing costs for an individual expense report
• Systems and processes currently used to manage expense reporting
• Timelines and tactics for achieving a return on investment with a new system
Attending this event will help you understand:
3

4. Mark Brousseau
President and Owner
Brousseau & Associates
Today’s Presenter

5. Featured Speakers
Josh Casey
Data and Content Manager
Certify
5
Teri Tocash
Accounts Payable Manager
CBC Companies

6. T&E Spending and
Business Travel Trends

7. U.S. Business Travel Breakdown
74%
under 250 miles
from 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:
7

8. Base Costs Per Trip
Travel Leaders Corporate 2015
Average business trip cost for air,
hotel and car rental:
INTERNATIONAL DOMESTIC
$2,502 $1,002
8

9. Business Investment in T&E
8-12%
total annual budget
for T&E expenses1
1. Aberdeen Group 2015
2. Global Business Travel Association 2015
U.S. business travel spending in 2015 topped an
estimated $310b, up 6% from 20142
9

10. 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
10

11. $98.75
DAILY
MEAL 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
11

12. 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 2015
12

13. How Travelers Spend the Company Dime
13
Most expensed and highest rated for dining:
Certify SpendSmart Report, Q1 2016

14. How Travelers Spend the Company Dime
14
Most expensed and highest rated for hotel:
Certify SpendSmart Report, Q1 2016

15. How Travelers Spend the Company Dime
15
Most expensed and highest rated for air carrier:
Certify SpendSmart Report, Q1 2016

16. 97%of business travelers carry at
least one mobile device
Mobile is Made for Travel
Expedia/Egencia Mobile Index 2015
16

17. Ground Transportation Trends
Certify SpendSmart Report 2014 - 2016
17

18. Ground Transportation Trends
ride-hailing receipts in 2 years
18
Certify SpendSmart Report 2014 - 2016

19. T&E spending is the
2nd most difficult operating
expense to control
Forrester Research 2015

20. Polling Question 1
a) Paper-based/spreadsheets
b) 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?

21. Methods for Managing T&E Reporting
2013 2014 2015 2016
Cloud/web-based 36% 44% 37% 35%
Excel spreadsheets 35% 29% 32% 37%
Homegrown solution 7% 5% 7% 5%
Pen and paper 10% 4% 4% 8%
ERP 12% 18% 19% 15%
Consistent mix of expense management systems:
Certify Annual Travel & Expense Management Survey 2013-2016
21

22. Web-based solution (Concur, IBM, etc.)
Microsoft Excel/spreadsheets
Pen and paper
Homegrown solution
ERP/accounting package (Oracle, SAP, etc.)
T&E Systems by Company Size
MANUAL SYSTEMS: 70% small businesses, 26% enterprise
22%
55%
10%
5%
8%
37%
37%
9%
4%
13%
46%
16%
4%
6%
28%
SMALL
BUSINESS
MID-SIZE
BUSINESS ENTERPRISE
Certify Annual Travel & Expense Management Survey 2016
22

23. Leading frustrations for T&E program administrators:
Top Expense Management Pain Points
50%
employees
losing receipts
45%
employee’s failure
to submit reports
on time
38%
time it takes to
reconcile, review
and approve
30%
reviewing for
policy violations
28%
errors on
the report
Certify Annual Travel & Expense Management Survey 2016
23

24. 25%
28%
32%
40%
66%
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
Driving Force Behind the Switch
Certify Annual Travel & Expense Management Survey 2016
24

25. 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
25
Certify Annual Travel & Expense Management Survey 2016

26. Best-in-Class T&E Strategies
Aberdeen Group 2015
88%
58%
87%
77%
68%
63%
34%
63%
50%
35%
Expense reports audited
regularly
Automatic linkage between
expense mgt. and back-end
systems
Online travel booking
system
Commercial card
system/program
End-to-end expense mgt.
solution
Best-in-Class Industry Average
26

27. Best-in-class expense management
practices drive 87% compliance or
higher with company T&E policy
Aberdeen Group 2015

28. Polling Question 2
a) We have no formal T&E policy
b) Manual review process
c) Automated system that flags violations
d) Policy is not enforced
How does your organization enforce compliance
with T&E policies?

29. 73%
T&E Policy Compliance
85%of all companies report
having a written
T&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
29

30. 6%
31%
42%
20%
26%
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
Policy Enforcement Practices
Certify Annual Travel & Expense Management Survey 2016
30
53%
of companies on a
web-based system

31. 9%
10%
11%
21%
37%
Systems and data integration
Mobility/mobile access
Travel booking
Transparency/visibility into reporting data
Expense management process
Key Areas for Improvement
Certify Annual Travel & Expense Management Survey 2016
31

32. 43%
22%
15%
20%
29%
15%
5%
51%
0% 10% 20% 30% 40% 50% 60%
A COMBINATION OF ABOVE
A TRAVEL AGENCY
CORPORATE TRAVEL SOFTWARE
ONLINE TRAVEL SITES
Manual Web-based
Certify Annual Travel & Expense Management Survey 2016
Travel Booking Technologies
32

33. Travel Booking Controls
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)
$
33

34. Companies that track/apply
unused airline tickets can save 5-8%
of total annual travel budget
2015 GBTA Ancillary Fee Handbook

35. Polling Question 3
a) Under $7 per report
b) $10−$20 per report
c) $25 or more per report
d) We do not track these costs
What is the average cost to process a single expense
report at your organization?

36. Cost to Process a Single Expense Report
$6.85
fully 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
36

37. Automation Drives ROI
Certify Annual Travel & Expense Management Survey 2016
Businesses of every size are quickly realizing ROI:
37

38. 58%
53%
33%
26%
22% 22%
Improved
efficiency/expense
reporting process
Reduction in processing
costs (less paper,
postage, storage etc.)
Mobile accessibility Increased employee
productivity
Elimination of payment for
duplicate expenses
Reduction in
overhead/staffing
requirements
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
38

39. Automation Gets Results
39
Certify Customer Case Study Results 2015

40. Questions?

41. Our Sponsor

42. Thank You!
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