Breaking Down $50 billion: Industry Insight with the Expense IQ Report

What’s the best way to negotiate better deals, evaluate providers and efficiently measure and benchmark travel and expense patterns for next year? Try taking a look at the industry’s spend trends from last year.

In 2012, Concur clients spent more than $50 billion on T&E, the second-largest controllable cost for most companies — second only to payroll. But visibility into where that money goes is a challenge for companies of all sizes.

So to get some insight, we partnered with IDC to create the third annual Concur Expense IQ Report, an exclusive analysis of the T&E spend from more than 20 million Concur users worldwide.

A few key findings

  • We found that business travelers spent 93 percent more on airline ancillary fees in 2012 ($58 million) than they did in 2011 ($30 million). That means the addition and evolution of these elusive fees are challenging companies with nearly twice as much hidden or low-visibility spend.
  • This is in stark contrast to the 4.5 percent drop in overall spending in 2012. Much of this significant drop could be attributed to fourth-quarter events such as Hurricane Sandy, the U.S. Presidential election and concern about the “fiscal cliff.”
  • The report also uncovered that on average per quarter small businesses travel more often and spend more money on the road than large market companies – totalling 24 percent more.

Insight for all

For business and travel managers, the Expense IQ Report is an unparalleled inside view into T&E spend. Without access to this valuable set of controllable costs, organizations lack the means to negotiate lower rates and track their own T&E spending. The infographic below highlights the trends and behaviors industry-wide – comparing small and mid-size businesses with large companies.

Next week we’ll break down the report’s insights  for small to mid-size and large businesses. To read all the detailed findings and T&E highlights, download the full report!

Download your complimentary copy of the Expense IQ Report here.