The way business travel is managed is undergoing a significant transformation. A recent study by Amadeus, titled “Travel Technology Investment Trends 2024,” reveals a critical shift towards digital payments as the top investment agenda for corporate travel managers. This move aims to address longstanding pain points associated with expense management and improve the overall travel experience for employees.
The Burden of Expense Management: A Cause for Concern
The study highlights several key challenges faced by corporate travel managers:
Employee Out-of-Pocket Expenses: A major concern is the need for employees to use personal funds for travel expenses and then claim reimbursements later. This can be inconvenient and lead to cash flow issues for employees.
Manual Expense Claims: The traditional method of submitting and processing expense claims is often time-consuming and prone to errors. This leads to delays in reimbursements and frustration for employees.
Expense Auditing Costs: Auditing expense reports can be a costly and resource-intensive process for companies.
Fraudulent Activity: Identifying and preventing fraudulent expense claims can be difficult with manual processes.
These challenges not only impact employee experience but also hinder overall business efficiency.
Digital Payments: A Promising Solution
The study finds that a significant portion of corporate travel managers (over 50%) are actively implementing new solutions to address these concerns. These solutions focus on:
Virtual Payments: This emerging technology allows companies to directly pay for employee travel expenses, eliminating the need for employees to use their own money.
Integration with Expense Management Systems: Integrating virtual payments with existing expense management systems can streamline the entire process, from booking to reconciliation.
Benefits of Digital Payments in Business Travel
The adoption of digital payments offers a multitude of benefits for both companies and employees:
Improved Visibility for Travel Managers: Virtual payments provide greater transparency into travel expenses, allowing for better budgeting and cost control.
Reduced Out-of-Pocket Expenses for Employees: Employees no longer need to use their funds for business travel, improving cash flow and overall satisfaction.
Real-Time Policy Enforcement: Digital payment systems can be integrated with company expense policies, ensuring adherence and minimizing the risk of non-compliant spending.
Simplified Expense Management: By eliminating the need for manual expense reports, virtual payments significantly reduce the time and resources required for expense management.
Arlene Coyle, Senior Vice President at Amadeus Cytric Solutions, emphasizes the transformative potential of digital payments: “Virtual payments not only improve visibility for corporate travel managers but also save employees from spending their own money. Additionally, these tools can offer real-time policy checks, potentially eliminating the need for traditional expense reports.”
Increased Investment in Travel Technology
The Amadeus study reveals a significant increase in planned investment for travel technology in 2024. A majority of corporate travel managers (over 70%) anticipate an increase in their travel and expense management technology budgets. This investment reflects the growing recognition of technology’s role in streamlining business travel processes and reducing costs.
Sustainability in Focus
Interestingly, the study also identifies sustainability as a key priority for corporate travel managers. Over 60% of respondents indicated that their technology investments would prioritize solutions that help companies achieve their sustainability goals. Travel technology can play a crucial role in:
Facilitating Sustainable Travel Choices: New tools can help employees find and book more eco-friendly travel options, such as flights with lower carbon emissions or hotels with sustainable practices.
Standardizing Carbon Data: Standardizing carbon emission data collection across travel options allows for more accurate measurement and reporting of a trip’s environmental impact.
Simplified Carbon Footprint Reporting: Tools can aggregate and report on the carbon footprint of individual trips, enabling companies to track progress towards sustainability goals.
Artificial Intelligence Shaping the Future
The study delves into the future of travel technology, highlighting the growing importance of Artificial Intelligence (AI) and Machine Learning. These technologies are expected to play a significant role in travel management over the next few years. Here’s a glimpse into what to expect:
Enhanced Travel Experience: AI can personalize the travel experience for employees by recommending suitable flights, hotels, and activities based on individual preferences and past travel patterns.
Predictive Analytics: Machine learning algorithms can analyze vast amounts of data to predict travel disruptions, optimize travel costs, and ensure employee safety.
Generative AI: This emerging technology has the potential to revolutionize business travel by automating tasks such as itinerary creation and travel booking.
