Improving and modernising their organisation’s travel and expense (T&E) programme should be a high priority, according to nearly nine in 10 decision-makers active in the sector, says a new report, The connected future of T&E management.
The white paper looks at how corporate card programmes and artificial intelligence (AI) are the foundation of more integrated T&E programmes. It summarises global research commissioned by Mastercard and conducted by The Harris Poll across 1,773 decision-makers in 15 markets, including the United Kingdom.
Business travel is coming under greater scrutiny and outdated travel and expense (T&E) management models cannot keep up, finds the report.
As many as 85% of the decision-makers who participated anticipate that within five years AI will manage most T&E decisions, with minimal human oversight.
Yet 78% said that AI cannot deliver full value until travel, payments plus expense and financial systems are fully connected.
The survey found 73% of respondents said business travel is critical to driving revenue growth in their organisation.
Among multinational companies (MNCs), 50% ranked strengthening client relationships through in-person interactions among the outcomes that matter most. That compares to 42% in non-MNCs.
More than eight in 10 agree that spending on travel is rising while its volume remains constant.
Reshaping T&E models faces four major pressures, according to the report. They are rising costs and dynamic pricing (according to 85% of respondents), increasing corporate aversion to risk (82%), the rapid pace of change in business travel meaning that processes simply cannot keep up (78%) and the rising financial complexities of business travel (70%).
Just over nine in 10 (91%) of respondents want to enforce travel policies at the point of spend, integrating payment methods with expense systems and automating expense reporting. This would give organisations visibility into spend as it happens and stronger governance throughout the travel process. Even more T&E decision-makers (92%) want the capability to drive efficiency in managing financial, compliance and operational risks.
Virtual corporate cards, centrally billed travel accounts and direct invoicing are the chief payment methods organisations expect to use in the next two to three years.
The report’s top implication for T&E leaders is that there should be a shift from managing transactions to managing journeys, breaking that down in silos across bookings, payments, expenses and reporting. That will improve visibility, control and operational efficiency.
