Business travel reimagined

Business Travel Reimagined

Business travel has undergone significant change in recent years. It was one of the most affected industries during the COVID-19 pandemic. With countries going into lockdown and flights coming to a near standstill, companies had to find alternative ways to ensure business continuity. According to a study by Deloitte, the majority of US companies reduced their travel budgets by at least 90% during the early part of 2020. In-person meetings were largely replaced by communication software like Zoom, and only essential trips, approved at the executive level, were undertaken.

Since then, only around 50% of business travel has resumed, but as markets have reopened, business travel is gradually picking up. This shift means companies need to rethink how they manage and budget for business travel.

The Old Way

Previously, employees travelling for business would receive a set per diem allowance based on their seniority and destination. If the actual costs associated with the trip exceeded estimates, employees would need to pay out of pocket and claim reimbursement later, if at all. This often led to conflict between employees and employers. Conversely, companies sometimes overestimated costs, leading to unnecessarily generous per diem allowances—an avoidable overspend for companies.

In the current environment, companies must be more mindful of their expenditures, ensuring that every dollar is spent wisely.

The New Way

Although many companies have shifted primarily to virtual meetings and conferences, certain sectors still value face-to-face interaction. While virtual meetings are more cost-effective and easier to attend, they can sometimes feel impersonal and disconnected. For some industries, in-person events remain the preferred way of conducting business. For such companies, effectively managing employee travel costs is essential to evaluate the return on investment from these events.

Using Qashio, companies can allocate a card for each trip with custom restrictions based on role and requirements, allowing them to accurately track the exact costs associated with travel. This enables them to better assess the return on that investment. Additionally, since receipts are collected in real time via mobile app, the company can be sure each dollar spent was for corporate use only. Another benefit is getting data on actual spending, as opposed to estimated expenses, to create more realistic travel policies.

Eliminate Long Expense Reports

Employees are generally reluctant to travel for business, so reducing the friction of using personal resources is a welcome benefit for many companies. Traditional travel budgets often require employees to keep receipts and wait, sometimes for extended periods, to receive reimbursement. With a Qashio card, employees are spared the hassle of using their own funds and are not drowning with writing long expense reports upon their return.

Employee Resistance

Employees may find planning and organising business travel time-consuming and stressful, especially if they are arranging travel for multiple team members or trying to find the best rates on flights and hotels. This can be a challenge for employees already managing a heavy workload, leaving them with little time or energy to dedicate to travel arrangements. Business travel can also disrupt employees' work-life balance, as being away from home and out of their normal routine can make it difficult to maintain productivity. It can also be emotionally taxing, leading to burnout from prolonged separation from family and friends.

With travel slowly making a comeback, it's essential for companies to avoid reverting to outdated travel policies. By leveraging Qashio’s software, businesses can conveniently create and manage realistic per diem allowances, tailored to the specific country and city where their employees are travelling. Employees can also request additional funds instantly through the app if needed, saving time for both the finance department and the employee.

Especially since nearly 80% of travel managers anticipate an increase, or a significant increase, in the volume of business travel in 2025 compared to 2024, and over 65% expect more travel for meetings, work at different locations, sales meetings, conferences, and more. This is an excellent opportunity for companies to control and specify their travel policies. With Qashio’s controls, companies can easily set custom limits, removing any out-of-policy expenditure and ensuring adherence to specific policies. For instance, you might limit flight tickets to economy class for flights under three hours. Everything can be configured effortlessly within our dashboard to make life easier for both you and your employees, modernising business travel in the process.

Reach out to one of our specialists today and learn how your company can create travel policies that save time and money!

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