Five takeaways from the big travel & expense policy overhaul

Introduction

Travel & expense (T&E) policies are having a heyday — an overhaul in some ways not seen since the dawn of modern travel management in the 1980s.

In our recent global survey of 265 corporate travel decision-makers and 151 business travelers, we look at how companies are adjusting.

Here are five key takeaways from the online survey, conducted in partnership with BTN Group during December 2023 and January 2024. To read the full report of the survey results, click here. 

1. Costs

Companies are adapting policies to balance the needs of cost controls against the increasing demands of workers:

• 47% of travel decision-makers described their last policy change as a “tightening” to simplify employee choices and better control costs.
• 36% of travel decision-makers overhauled their T&E policies to align with remote work or other cultural changes in the company.

2. Compliance

Companies allow different levels of decision-making and flexibility, but there is sometimes a mismatch between corporate expectations and traveler behavior:

• 58% of travel decision-makers mandate that travelers follow policies or risk consequences — a share that rises to 76% at companies with annual travel spend of $500 million or more.
• 76% of travel decision-makers say their companies mandate use of a preferred booking tool and preferred lodging, but only 35% of business travelers claim this is mandated at their company.

3. Sustainability

Younger travelers are demanding that employer policies reflect issues such as sustainability, and new government regulations in some regions demand reports on carbon output:

• 61% of companies encourage travelers to book sustainable travel, and one-quarter of companies charge travelers or departments an internal “sustainability tax” on booking options.
• 74% of companies have either implemented or considered regional or country policies to encourage rail over air for sustainability or cost saving.

4. Simplicity

Business travelers know what they want in order to adhere to their company’s T&E policies:

• 53% of business travelers say an easy-to-find policy on company intranet or enterprise communications tools would make it easier to adhere to T&E policies.
• 53% of business travelers say system integration makes it easier to book, pay for and seek reimbursement of business expenditures.

5. Bookings

Companies are adopting specific booking policies for air & ground transportation, food & lodging, and payments & expense management:

• 74% of companies contract globally or regionally with preferred airlines, and 76% of companies require travelers to book negotiated hotel rates when available.
• 78% of business travelers say they are required to use a corporate card for travel expenses.

For more takeaways, read the full report: Overhauling travel & expense policies: New corporate priorities and traveler expectations.