Travel and expense (T&E) management software explained: A guide to pricing models and key cost drivers

Choosing a travel and expense (T&E) management solution is one of the most impactful investments a company can make for visibility, compliance, and overall employee experience. But when it comes to pricing, many buyers are left asking the same questions: 

• What will this actually cost me? 
• What am I paying for? 
• And how do I know I’m getting real value? 

T&E software pricing varies widely by provider, not just in cost, but in how you’re charged and what’s included. Understanding the different pricing models is essential to making a decision that supports your business today and scales with you tomorrow. 

Let’s break down the two most common pricing approaches, their pros and cons, and how to evaluate which model delivers the most value for your organization. 

What are the different T&E pricing models? 

Most T&E providers use one of two pricing structures: 

• User-based (or seat-based) pricing 
  You pay based on the number of employees who have access to the platform. 
• Transaction-based pricing 
  You pay based on how much the platform is used, such as expense reports submitted, trips booked, or invoices processed. 

While both models can work, they create very different experiences when it comes to cost control, flexibility, and long-term value. 

The pros and cons of user-based pricing 

User-based pricing can make sense for small, stable organizations with predictable usage. If you know exactly who will need access—and that number isn’t likely to change—you can purchase a fixed number of licenses. 

For example, if only 10 employees book travel and submit expenses, you buy 10 seats. 

However, this model comes with hidden challenges: 

• You may pay for licenses that go unused 
  If even one employee rarely uses the platform, you’re paying for access you’re not getting value from. 
• Light users still cost the same 
  An employee who submits one expense report a year costs the same as someone who travels weekly. 
• Growth creates friction 
  As your business grows, you’ll need more licenses. That can mean renegotiating contracts, shifting seats between employees, or asking someone to manage access instead of focusing on strategic work. 
• Workarounds create risk 
  To avoid buying more seats, companies sometimes have licensed users submit expenses on behalf of others—introducing errors, delays, and compliance risks. 

Three key questions to ask about user-based pricing 

If you’re considering a seat-based model, make sure you understand: 

1. What happens if I need additional licenses? 
2. How much will those licenses cost? 
3. What happens if I don’t use all the seats I’m paying for? 

These details can have a major impact on your total cost of ownership, and your day-to-day operations. 

Why transaction-based pricing offers more flexibility 

Transaction-based pricing shifts the focus from who is using the system to how much it’s being used. 

Instead of buying seats for specific employees, anyone in your organization can use the platform whenever they need it, without worrying about access, licenses, or approvals. 

This model offers several important advantages: 

• You only pay for what you use 
  Costs scale with your actual activity, not your headcount. 
• It grows with your business 
  As usage increases, pricing adjusts through predictable, tiered volume levels, without requiring constant license management. 
• No wasted spend 
  You’re not paying for unused seats or underutilized licenses. 
• No access barriers 
  Employees can book travel, submit expenses, or process invoices without administrative roadblocks. 
• Clear visibility into usage 
  With defined transaction tiers and usage tracking, you can anticipate costs and avoid surprises. 

And if your needs change? You can adjust your transaction volume (up or down), giving you long-term flexibility. 

Data-backed pricing that fits your business 

One of the biggest concerns buyers have with usage-based pricing is predictability. 

That’s where experience and data matter. 

SAP Concur works with more travel and expense data than any other provider in the world. By analyzing historical usage patterns across similar organizations, we can help you estimate the right transaction volume for your business, so you’re not guessing. 

You also benefit from: 

• Tiered pricing discounts for higher usage commitments 
• Visibility into overages before they happen 
• The ability to scale up anytime as your business grows 

The result? Pricing that reflects reality, not assumptions. 

Key benefits of transaction-based pricing 

• Transparency 
  You pay for actual usage, with clear visibility into costs. 
• Accessibility 
  Anyone in your company can use the platform when they need it. 
• Efficiency 
  No license management. No wasted seats. No workarounds. 
• Cost control 
  Pricing scales with your business, not ahead of it. 

Your investment is about more than software 

T&E software isn’t just a line item on a budget. It’s a decision that affects: 

• Risk and compliance 
• Financial visibility 
• Employee experience 
• Operational efficiency 
• Global scalability 

Some tools appear more affordable upfront because they only address part of the problem. Enterprise-grade solutions may cost more—but they deliver value across the entire organization by providing: 

• End-to-end automation 
  From booking travel to submitting expenses and paying invoices—everything is connected. 
• Global capabilities 
  Support for multiple countries, currencies, and languages. 
• Built-in policy enforcement 
  Automated compliance checks and 24/7 monitoring. 
• Intelligent auditing 
  Expenses and invoices are reviewed, validated, and flagged before submission. 
• A connected ecosystem 
  Extensive integrations with ERP, accounting, HR, and finance systems. 

When evaluating cost, it’s important to consider total value, not just the sticker price. 

Smart questions to ask when evaluating T&E software 

To make the best decision for your organization, ask every provider: 

• Is your pricing user-based or transaction-based? 
• What happens if I need more licenses—or don’t use the ones I have? 
• What happens if I go over or under my transaction volume? 
• What features are included in the price? 
• Can I try the solution before buying? 
• How long is the contract, and what’s the cancellation process? 

The answers will reveal not just the cost, but the flexibility, transparency, and long-term value of the solution. 

Choose a T&E pricing model that works for you 

What you pay for T&E software depends on the provider you choose, and how they structure their pricing. 

With a transaction-based model, you get a solution that: 

• Scales with your business  
• Eliminates wasted spend 
• Removes access barriers 
• Delivers predictable, transparent pricing 

Talk to an SAP Concur solutions expert today to get a quote tailored to your business, and see how the right T&E pricing model can drive real value.