Booking.com Survey Highlights Confusion and Gaps in Business Travel Policies
A new survey from Booking.com for Business reveals that many business travelers and decision makers remain unclear about their companies’ travel policies, creating challenges that can affect efficiency and morale. The study, which surveyed more than 600 US business travelers and decision makers, examines awareness of travel guidelines, difficulty reporting expenses, and tools used to manage travel effectively.
Although 76% of business travelers say they know their company’s travel policies, the survey found major gaps in their understanding. For example, only 32% of travelers are aware that their policies include medical care and travel insurance, compared to 45% of decision makers. Similar disagreements have been noted regarding the class of travel, preferred accommodations, and the use of loyalty points.
This lack of clarity can lead to errors, such as going over budget or missing out on covered expenses. Such mistakes can cause frustration for employees and additional work for finance departments, potentially reducing morale and productivity.
Booking.com’s findings show that small businesses face different challenges compared to larger organizations. Only 57% of employees at small companies reported having a formal vacation policy, compared to 89% at large companies. Smaller companies are also less likely to use specialized management platforms, with 68% relying on traditional booking sites. This can lead to higher costs and less regulation of transportation systems.
Generational differences perpetuate the issue. Younger travelers (18–35) are more likely to use modern, business-specific platforms (79%) than their older counterparts (44% aged 56–65), who tend to rely on traditional booking methods.
Cost reporting continues to pose challenges for business travelers and decision makers alike. Almost half of all respondents struggle with tracking receipts, and 41% find the reporting process too time-consuming. Other common issues include missing reporting deadlines (20%) and having reports rejected (16%).
For decision makers, the main problem (47%) is that employees fail to provide receipts for expenses, followed by the accuracy of reported expenses (43%). These errors can lead to recovery delays and compliance risks.
Many organizations use cost management systems to improve cost tracking and compliance. More than one-third of companies surveyed use dedicated tools to automate the reporting process, reduce errors and save time. However, 16% still rely on manual methods such as spreadsheets, which are inefficient and prone to errors, especially as the cost increases.
Accurate expense reporting is important to avoid financial losses, maintain budget integrity, and prevent legal issues. Misreported expenses can lead to audits, fines, and damage to employee trust.
Key Features of Effective Travel Policies
The survey emphasizes the importance of well-planned mobility policies to streamline the process for both organizations and employees. Booking.com for Business suggests several steps to improve the effectiveness of the travel policy:
- Define Clear Directions: Specify authorized costs, vendors, and cost limits.
- Make Authorization Easy: Use digital workflows to speed up and track approval processes.
- Enable Real-Time Reporting: Use tools that include booking and expense tracking.
- Provide Training: Educate employees on reporting policies and procedures through accessible resources.
Booking.com for Business offers integrated travel management solutions to address these challenges. Its platform provides tools for booking flights and hotels, managing expenses, and ensuring policy compliance. Decision makers often use multiple platforms, with an average of 2.3 enterprise-specific platforms and 3.2 common platforms, highlighting the need for comprehensive, integrated solutions.
Take away
As business travel continues to be an important part of building relationships and driving growth, companies must address policy awareness gaps and improve their management tools. Clear guidelines, effective training, and the right technology can make business travel smooth, efficient, and satisfying for employees and decision makers alike.
Photo: Booking.com
