Did you know that after salaries and benefits, corporate travel and entertainment (T&E) is the second largest controllable expense, and in most cases a corporate card programme is now considered not just best—but essential—practice? Well indeed it is.
Corporate travel and entertainment (T&E) expense accounts are a sizeable chunk of a company’s outgoings. Most people probably don’t realize how significant it actually is, and with travel budgets being carefully scrutinised in these tough economic times, travel managers are finding it extremely difficult to forecast next year’s budgets.
The research we’ve conducted around this—which can be seen in this White Paper —makes the case abundantly clear.
According to the JP Morgan 2011 Corporate Travel Card Benchmark Survey, detailed card management information gives travel managers accurate data about how much they spend with each T&E supplier, allowing them to negotiate better discounts for:
- frequent air fares (9.1% versus 5.9% without using the corporate card data),
- hotels (12.3% versus 9.5%) and
- car rental (14.5% versus 12.4%).
Payment card data can help forecast and accrue T&E budgets so that companies have a clear picture of their employee’s spend and can allocate resources accordingly.
We are living in data rich times, and the valuable role that information can play in managing budgets and improving the operations of business and government is hugely significant.
I’d encourage anyone who manages travel expense programs to share their thoughts and ideas on the best ways to improve efficiency. I look forward to hearing your insights.