Business travelers beware: employee spending on business trips is on the rise, with costs increasing by 17% from 2019 to 2023, according to a global analysis of SAP Concur data. Companies are shelling out more money to reimburse their employees for expenses, raising concerns about the need for better control measures.
The analysis reveals that airline tickets are the most expensive item, with the average cost per travel expense claim hitting €716 in 2023, a 10% increase from 2019. Fuel and entertainment costs have also seen significant hikes, with fuel costs up by 37% and entertainment costs up by 30%. Overnight accommodation expenses have surged by 21%, while train travel costs have dropped slightly by 5%.
With expenses in the “Other” and miscellaneous categories increasing by 7% between 2019 and 2023, companies need to pay closer attention to their employees’ spending habits. This lack of understanding can lead to financial blind spots and impact financial planning for business travel.
The top three spending categories for business travel in 2023 were hospitality (24%), ground transportation (22%), and overnight stays (14%). This highlights the importance of gaining insight into employee spending habits to ensure accurate financial planning and control over rising costs. Digital solutions for business travel management can provide transparency and help companies track and categorize expenses effectively.