Many enterprise vacationers have the mindset that “the sky is the restrict” with regards to the prices of enterprise conferences {and professional} journeys. Nevertheless, a brand new international evaluation of SAP Concur information reveals that worker spending elevated by 17% from 2019 to 2023.
Yr after yr, corporations are reimbursing their staff for increased bills. This might turn into an issue if corporations want a transparent image of their worker spending and take applicable management measures. Thankfully, digital options for enterprise journey administration can assist by offering transparency into journey prices and different worker bills, which may then be assigned to applicable classes. The evaluation discovers the place staff are spending essentially the most cash on enterprise journeys and what value will increase this entails for corporations.
Airline tickets are probably the most costly gadgets with regards to enterprise journey. In 2023, the typical value per journey expense declare was €716, 3 times increased than every other expense class. In comparison with 2019, flight prices have elevated by 10%. In distinction, gas and leisure prices are considerably decrease, at €55 and €52, respectively. Nevertheless, these classes have additionally seen a big value enhance resulting from inflation, provide shortages, and tariffs on sure imports, with gas prices growing by 37% and leisure prices growing by 30%. The typical value of in a single day lodging elevated to €130 in 2023, a 21% enhance. The one class to have seen a lower in bills is prepare journey, which has fallen barely worldwide by 5%.
Many corporations are dealing with increased enterprise journey prices that exceed inflation charges. Nevertheless, resulting from a scarcity of research, many corporations must be made conscious of those value will increase and modifications within the spending habits of their staff intimately. Such a lack of information can result in monetary blind spots, the place increased bills are usually not all the time thought of within the monetary planning course of. It is essential for corporations to realize a greater perception into their worker spending habits to make sure a extra correct monetary planning course of for enterprise journey.
It is price noting that airline tickets are typically the most costly transactions. Nevertheless, flights do not have the best general prices. In 2023, 22% of bills had been recorded within the Different class, whereas the miscellaneous class accounted for one more 11%. These classes cowl expenditures that do not match into present classes or relate to expenditure classes outdoors the norm.
As an example, staff might buy new tools for his or her dwelling workplace by these classes. This had penalties, notably through the pandemic, as solely the entire quantity of miscellaneous and miscellaneous classes elevated between 2019 and 2023 in comparison with different classes (+7%), whereas the prices of flight tickets and lodging fell.
The evaluation additionally reveals how typically staff spend in every class. The highest three spending classes for enterprise journey in 2023 had been hospitality (24%), floor transportation (akin to taxi rides or public transport) (22%), and in a single day stays (14%). Which means that almost each fourth bill is related to worker meals.
