Study Shows Executive Expense Reporting Not Always Compliant
Corporate travel policies may put a bit of a damper on that business trip to Rio, but they’re a necessary evil – even if a recent study from travel research company PhoCusWright shows that about 66% of executives don’t adhere to their own expense reporting rules. The reason? Convenience and loyalty points top the list, as executives report a higher rate of non-compliance than their lower-ranked associates.
A Travel Weekly article recently covered the results, which included the interesting statistic that unmanaged employees typically spend about 7% more than those who operate under a corporate travel policy while monitored by an expense management system. If you spread those wasted dollars across a few dozen unmanaged business travelers (executive or associate), you can expect an unfortunate impact on the travel budget. Particularly with the rise in SaaS offerings for expense management, it’s a fairly simple matter to get corporate travel back under control and operating in an easily-monitored, budget-friendly way.
As for the state of business travel in general, Travel Weekly offered good news: “Adherence to business travel policies is expected to gain importance within the travel industry as companies continue to boost travel spending in the wake of the recession. U.S. business spending on domestic and outbound international travel totaled $251 billion last year, up 7.3% from 2010, and the Global Business Travel Association estimates it will increase another 4.6% in 2012. “
As for the “rogue” executives who initiated the article, change comes from the top and is easily accomplished with an automated expense management system as backup for a solid corporate travel policy.