Written on July 17, 2013 at 7:30 am, by Concur
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.