On Monday, we published the first article in this brief, two part series exploring the value proposition of travel and expense management. Click here to check it out. To recap, we discussed that:
- The travel and expense management processes have been on a strategic upswing over the past few years.
- Specific technology offerings are paving the way for the continued evolution of the travel and expense management function, and;
- “Next-generation” metrics and performance-tracking capabilities will assist in launching the strategic revolution of travel and expense.
In looking at where the travel and expense management industry can go in the near- and long-term future, many of my “predictions” revolve around improvements to existing processes, strategies, solutions, and concepts that currently support the notion of strategic travel and expense management. And, as we stated in our previous entry in this brief series, business travel is always going to swallow a significant chunk of the average organization’s total budget, forcing many companies to reevaluate their existing programs and build in more nuanced (and “next-gen”) strategies:
- Integration will be the foundation of transforming travel and expense management. We can’t discuss strategic travel and expense management without thinking of the other internal functions that this complex category touches in some meaningful way: sales, operations, finance, IT, etc. With travel seeping into these other units (for example, consider that the sales function typically travels more than any other internal division), it becomes critical that functional-specific systems integrate with the travel / expense management solution for maximum visibility. CRM and expense management integration can provide full visibility and transparency into how business travel links to sales opportunities, while integrating finance and expense applications can allow the larger enterprise to forecast and budget for the future.
- The “T&E lifecycle” will expand to reflect a more social mindset. For years, aspects within the “social” stratosphere (such as entertaining clients and prospective customers) weren’t looped into the T&E lifecycle, a term used to describe the wide range of attributes within the modern travel ecosystem (travel-booking, expense management, analytics, etc.). As the business travel category expands to present these social aspects, it will become critical for organizations to look beyond their existing capabilities for tracking spending related to travel (as well as its associated expenses) to effectively capture every dollar and supplier that arises during a trip. Efforts to enhance these competencies will be rewarded with a clearer picture into the travel and expense function, and thus, more strategic value will be gleaned from its processes.
- Corporate travel policy compliance will continue to be, for years to come, the most critical metric within this industry. Yes, the first article in this short series spoke of the next wave of key performance metrics within the travel / expense management space. However, just because we’re looking ahead doesn’t mean we can forget about the past … or, in this case, the present: corporate travel policy compliance is still a top concern among contemporary organizations as business travel budgets begin to rise to pre-economic-downturn levels. Every year brings about more business travel, and it’s critical for executives to have the necessary capabilities for monitoring, measuring, tracking, and, most importantly, enforcing policy compliance.
Virtual meetings and conference calls will not fully replace business travel, not by a long shot – face-to-face interaction is critical to forging relationships. As you may guess, we believe that travel and expense can go very far. I hope I have given you a few things to think about while you are on the “go” traveling to your next meeting.
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Check out these related articles:
Where Can Travel and Expense Management Go? (Part I)
Three Travel and Expense Management Metrics That Matter
The CFO’s View of Travel and Expense Management
