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Overview of Center's Annual Expense Survey Findings

In its sixth annual Expense Management Trends Survey, Center has unveiled significant insights regarding the changing landscape of travel bookings in corporate environments. The data reveals a concerning trend: only 18% of employees solely rely on corporate booking tools. This shift towards decentralized travel booking is not merely a change in habit but a reflection of broader issues that require immediate attention.

Increasing Travel Spend and Card Distribution

The survey indicates a rise in travel expenditures along with a more extensive distribution of corporate cards among employees. This is a double-edged sword, as while it may empower workers with more autonomy, it also presents challenges in terms of compliance and spending control. An alarming 61% of employees are choosing to book travel outside of the sanctioned corporate tools, highlighting a potential gap in both policy enforcement and budget accuracy.

Key Challenges Facing Businesses

The findings point to critical hurdles affecting corporate travel policy adherence. Nearly half of the participants (49%) admitted to a lack of awareness regarding existing corporate travel policies, with 31% citing compliance issues. These statistics underscore the necessity for companies to not only create effective travel policies but to ensure that employees are educated and engaged with them. Without awareness and adherence, budgeting inaccuracies will continue to plague organizations.

Demand for Modern Travel Management Tools

In this evolving environment, there is an urgent need for integrated travel solutions that can effectively monitor both on- and off-program spending. According to a McKinsey report from 2024, the potential for improvements in unmanaged travel policies hinges on modernizing travel tools. This includes the integration of booking platforms, expense management systems, and data monitoring solutions. Only by doing so can companies obtain better visibility and enhance compliance with travel spending.

Optimism for Business Travel in 2025

Despite the mentioned challenges, there remains an optimistic outlook for business travel in the coming year. A report from the Global Travel Business Association (GBTA) indicates that 67% of business travel professionals feel positively about 2025, with a substantial number expecting budget increases. Center’s own findings reflect a similar sentiment, suggesting that mid-market companies are planning to increase their travel expenditures despite the decentralized booking trends.

Almost all respondents (97%) anticipate that their travel spending will remain stable or increase over the next one to three years. Furthermore, 56% of participants report spending between $100,000 to $499,000 yearly on business travel, which illustrates the financial commitment companies are willing to make.

Addressing Employee Preferences in Travel Solutions

In order to align corporate travel tools with employee expectations, it’s clear that businesses need to embrace modern technology. Mastercard's recent research highlights a critical finding: 80% of respondents recognize the necessity of investing more in employee-centric travel payment methods.

However, the current situation reveals that nearly 68% of employees find corporate travel tools either cumbersome or simply do not know about them. Addressing these gaps in knowledge and usability should be a priority for mid-market companies aiming to improve travel management efficiencies.

Conclusion: The Future of Travel Expense Management

In light of these findings, Naveen Singh, CEO of Center, emphasizes that a modernized approach to travel management is essential. A card-first strategy can streamline policy compliance, ensuring that employees have the tools they need while still offering the convenience they desire. This is crucial as companies look to navigate the complexities of decentralized travel bookings while maintaining control over their travel spend.

The 2025 Travel and Expense Management Trends survey results will play an instrumental role in helping organizations identify the right tools and strategies needed to enhance their travel management practices moving forward.