Businesses fail to enforce travel spend rules

12 August 2009

13 August 2009 | Jake Kanter

Business travel buyers are struggling to enforce travel and expense policies, according to a study by Aberdeen Group.

Of the 130 global organisations surveyed, 55 per cent said their biggest travel management challenge is ensuring staff comply with purchasing rules.

This was closely followed by 37 per cent of the businesses complaining that employees do not fully understand travel policies.

The report said compliance with spending regulations is the "cornerstone" of an effective travel and expense strategy. Staff failing to adhere to rules could result in increased costs and preferred suppliers not receiving contracted work.

Nearly two-thirds of the organisations - 62 per cent - noted that reducing travel and expense spend in the economic downturn is their biggest priority.

The study recommended that businesses continuously measure compliance and enforce strategies, as well as making it clear to staff how to set out expense claims. Greater use of procurement cards can also improve performance, it added.

Speaking at the Business Travel Show earlier this year, Jamie Hindhaugh, the BBC's head of sourcing for production resources, logistics and operations, said buyers must be "bullish" to win staff round to travel procurement strategies and ensure they sign up to rules (News 19 February).

SMaug2009

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