16 June 2008 | Jake Kanter
Over half of small and medium size enterprises (SMEs) have "no idea" what their annual business travel costs are, according to a study.
A survey of 252 businesses found 53 per cent are unaware of the amount they spend on accommodation every year. In addition, 34 per cent suggested following a proper procurement process when purchasing travel is not a priority for their business.
Nearly half - 48 per cent - of the SMEs said they don't set a budget for accommodation, while 29 per cent do not assess additional costs such as taxis, meals and telephone charges. It was also revealed 33 per cent don't negotiate to secure their preferred booking terms and costs.
Trevor Elswood, managing director of travel management firm BSI, which published the survey, said a large number of SMEs do not follow best practice procurement when buying and booking accommodation, meetings and events. He added businesses should consider using online booking systems to avoid wasting "significant" amounts of time and money.