When CFOs all over the world have to grapple with a lot of expenses, travel expenses can pose an ominous threat; definitely pain in the neck. The biggest problem lies in CFOs looking to wrest control of their corporate travel program? But question is whether they have any control in the first place.
Travelling employees exceed spend as much as a third of a business’ T&E budget. Studies also show that falsified expense claims make up 15% of all business fraud; therefore, a firm grip on T&E control is the need of the hour for most senior CFOs. A CFO-based survey hit the nail on the head when it found that 69% of respondents felt business will be better off having greater control over T &E. A J.P. Morgan survey concluded that T &E is the second biggest money burner behind payroll; wonder what the rest 31% believe?
Come 2018 CFOs will have greater challenges cutting down travel spends. But how they can do so effectively is what we’ll see in this post:
Deploying Travel Management Technology:
Companies who fail to take notice and take stock of the latest travel management platforms are missing out on cost-effective, efficient and data-driven travel policies down the line. Travel management tools driven by Travel AI and chat bots empower CFOs with data analytics and real-time insights into how much employees spend on travel and help them counter risk factors.
Many organisations utilize stand-alone approval, reimbursement and payment software or applications that desperately fall short of cloud visibility into employee spend, leaving more room for error. A centralised tech platform that will gather the various elements of data analytics and performance insights is what every CFO and travel manager should be looking at for deployment.
Establishment of Travel Policy for ‘Bleisure’:
The crux of why most business travel programmes go bust is companies failing to integrate travel policy into its corporate travel system. Much has been discussed before on the importance of having a travel policy. A travel manager should establish clear, well-defined travel policy that will empower employees to take travel decisions but that which fall within the travel compliance levels. A travel policy ensures that cost-effective hotels, travel agencies, tour operators, car rentals are brought in for booking and that employees shouldn’t fall outside the booking exception. Though ‘bleisure’ (combination of ‘business’ and ‘pleasure’) can positively impact employee productivity, studies prove that only 14% of businesses have built-in formal bleisure policies.
Working closely with Travel Managers:
CFOs should work closely with Travel managers in making significant travel policy improvements. However, recent studies show that only 27% of CFOs believe their working relationship with travel manager is effective. It goes without saying that CFOs need to work closely with travel managers as much as they demonstrate their commitment to travel policy compliance to make robust, positive data-driven changes. This can be only achieved through periodic meetings with the travel management teams and by empowering them with suitable travel management tools.
So, what are you waiting for? Don’t wait until next year for travel management implementation. Talk to us, as Tripeur, our cloud-based travel management suite, helps CFOs minimize employee overspending, increase visibility into travel spends, identify and disallow fraudulent claims, seize upon anomalies and work in tandem with travel managers for improved business travel experience.