A new survey from Booking.com for Business reveals that many business travelers and decision-makers remain unclear about their companies’ travel policies, creating challenges that can disrupt efficiency and morale. The study, which surveyed over 600 U.S. business travelers and decision-makers, examines the awareness of travel guidelines, expense reporting difficulties, and the tools used to manage travel effectively.
While 76% of business travelers claim they are aware of their company’s travel policies, the survey uncovered significant gaps in their understanding. For instance, only 32% of travelers knew their policies included medical care and travel insurance, compared to 45% of decision-makers. Similar discrepancies were noted regarding travel class, preferred accommodations, and the use of loyalty points.
This lack of clarity can lead to mistakes, such as exceeding budgets or missing out on covered expenses. Such errors can result in frustration for employees and additional work for finance departments, potentially lowering morale and productivity.
Booking.com’s findings indicate that small businesses face unique challenges compared to larger organizations. Only 57% of employees in small companies reported having a formal travel policy, compared to 89% in large firms. Smaller companies are also less likely to use specialized travel management platforms, with 68% relying on general booking sites. This can lead to higher costs and less control over travel arrangements.
Generational differences further compound the issue. Younger travelers (18–35) are more likely to use modern, business-specific platforms (79%) than their older counterparts (44% for ages 56–65), who often rely on traditional booking methods.
Expense reporting continues to pose challenges for business travelers and decision-makers alike. Nearly half of all respondents struggle with tracking receipts, and 41% find the reporting process too time-consuming. Other common issues include missing reporting deadlines (20%) and having reports rejected (16%).
For decision-makers, the primary issue (47%) is employees failing to provide receipts for expenses, followed by inaccuracies in reported costs (43%). These errors can result in delayed reimbursements and compliance risks.
Many organizations are adopting expense management systems to improve cost tracking and compliance. Over a third of companies surveyed utilize dedicated tools to automate the reporting process, reducing errors and saving time. However, 16% still rely on manual methods like spreadsheets, which can be inefficient and prone to mistakes, particularly as the volume of expenses grows.
Accurate expense reporting is vital to avoid financial losses, maintain budget integrity, and prevent legal issues. Misreported expenses can lead to audits, fines, and damaged employee trust.
Key Features of Effective Travel Policies
The survey underscores the importance of well-structured travel policies to streamline the process for both organizations and employees. Booking.com for Business suggests several steps to enhance travel policy effectiveness:
- Define Clear Guidelines: Specify approved expenses, vendors, and cost limitations.
- Simplify Approvals: Use digital workflows to speed up and track approval processes.
- Encourage Real-Time Reporting: Implement tools that integrate booking and expense tracking.
- Provide Training: Educate employees on policies and reporting procedures through accessible resources.
Booking.com for Business offers tailored travel management solutions to address these challenges. Its platform provides tools for booking flights and hotels, managing expenses, and ensuring policy compliance. Decision-makers often use multiple platforms, with an average of 2.3 business-specific and 3.2 general platforms, highlighting a need for comprehensive, all-in-one solutions.
Takeaway
As business travel continues to be a crucial component of building relationships and driving growth, companies must address the gaps in policy awareness and improve their management tools. Clear guidelines, effective training, and the right technology can make business travel more seamless, efficient, and satisfying for employees and decision-makers alike.
Image: Booking.com
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