Pop quiz: How many employees book hotels out of policy?
The answer: A lot. When Phocuswright surveyed companies on this topic, 45% of them said that more than half of their employees book out-of-policy hotels. That’s causing headaches—and costing businesses real money.
Those companies aren’t alone. Despite the technological prowess of today’s corporate travel and spend management platforms, many companies struggle to get travelers to adopt them. Why?
Answering that question is the focus of a new whitepaper Phocuswright published in conjunction with TripActions: Why Modern Corporate Management Technology Isn’t Just About the Tech.
Using data from Phocuswright’s U.S. Corporate Travel Market Report; information from independent experts; and an in-depth interview with Ofer Ben-David, SVP of engineering at TripActions, the report digs into why technology alone can’t always solve a company’s problems.
This report looks at the state of digitization in corporate travel and the factors most important for recovery. (Spoiler alert: Many people say that vaccines will play a huge role.)
But the report really zeroes in on policy leakage—employees booking outside of company policy—which is a challenge for many companies across all aspects of a business trip: air, hotels, and car. Leakage can be an issue for travel managers trying to maintain duty of care, and it can lead to significantly higher costs for their travel programs.
And at a time when 50% of travel managers say that increasing cost savings is their No. 1 priority, this lack of compliance is a problem in need of a solution.
Plus, this breakdown extends to the “E” side of “T&E.” Many travelers still have to submit paper receipts, and many finance departments still need to spend countless hours tracking and reconciling expense reports. Yet here, too, just having an automated system doesn’t guarantee its effectiveness. In many modern platforms, something is missing.
The fact is that not all technology is created equal. But when a platform focuses on one particular feature of its tech stack, the result can be a game changer.
What is that one feature? Find out!