Business travel can be an exciting experience for employees. A recent Booking.com for Business survey revealed that 42% of business travelers believe it can boost career development, and 38% say it helps them network and make new connections. It allows them to meet clients and suppliers face to face, form lasting business relationships, and broaden their business experience. Policies surrounding business travel are designed to manage costs, provide a clear overview, and uphold duty of care.

However, uncertainty around the specifics of what expenses can be reimbursed, the processes for booking travel, and the nuances of allowances can be confusing for employees. This confusion can lead to frustration, delayed reimbursements, and even potential disputes with finance departments.

Booking.com for Business has surveyed hundreds of US business travelers and decision-makers about how satisfied they are with their current processes, their use of travel management tools, and their knowledge of their travel policies and expense management. This data will reveal trends and insights across business travel policy in the United States, which can help inform decision-makers when reviewing their guidelines for business travel.

Business travelers' awareness of travel policies

We asked business travelers and decision-makers from companies ranging from small (2-50 employees) to large (500+) whether their company has a business travel policy. If a company’s employees are unaware of the travel policy or what it covers, they could find business travel intimidating and stressful, especially regarding travel finances.

The survey revealed that 7% of business travelers are unaware of the details of their company's travel policies. Although 76% claim to be aware of the policy, this understanding often lacks depth, and in some areas, there is a significant knowledge gap between business travelers and company decision-makers.

This knowledge gap can lead to employees making mistakes, such as exceeding travel budgets or leaving employees out of pocket for expenses they didn’t know were covered. Mistakes like these could reduce morale within the team and disrupt employees' focus while away on business.

What Do Business Travelers Find Most Confusing About Travel Policies?

* People who have traveled for business in the past 12 months and expect to travel in the next 12 months

** People responsible for management of booking corporate travel within their company (at least senior level)

For example, just 32% are aware that their policies cover medical care and travel insurance, compared to 45% of decision-makers, a difference of 13 percentage points. Other areas with a significant knowledge gap include the class of service (-12%), preferred type of accommodations (-10%), and use of loyalty points (-9). This suggests that many travelers might not be fully informed about the nuances of their policies, which could lead to frustration when navigating business travel for the employee and their company.

How do businesses manage business trips?

Managing business trips has become an essential task for businesses of all sizes and can reduce costs, improve productivity, and ensure a smoother experience for employees. As business travel plays a crucial role in building client relationships, networking, and driving growth, finding the correct travel management tools is more important than ever.

Businesses have several options for managing travel arrangements, from general online platforms designed for consumer use to specialized business platforms like Booking.com for Business that offer tailored solutions for corporate needs. These platforms can help with everything from booking flights and hotels to managing expenses and ensuring compliance with travel policies.

What Do Business Travelers Find Most Confusing About Travel Policies?

27% of business travelers and 45% of decision-makers use business-specific and general online platforms to manage trips. This suggests that decision-makers are more likely to take a broader approach, combining specialized and general solutions.

Just over a third of business travelers rely exclusively on business-specific platforms, compared to around a quarter (27%) of decision-makers.

Business travelers use an average of 1.4 business-specific platforms when booking business travel, while decision-makers use 2.3 brands. This suggests that decision-makers, likely tasked with more comprehensive planning, use a broader range of business-focused options.

Regarding more general online platforms, business travelers use an average of 2 brands, while decision-makers use 3.2. The fact that both groups claim to be using multiple platforms suggests a lack of clarity or that they don’t have an all-in-one platform that meets all their needs.

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Small businesses and travel policies

Here, we explore how awareness of business travel policies varies across differently-sized businesses. Small businesses often have fewer employees who travel, and decision-making and approval processes tend to be quicker and more streamlined. As a result, they have less developed travel policies or see them as unnecessary compared to larger organizations with more complex needs.

Business travel at these smaller companies may be rarer or carried out by only a few select people, such as the CEO and key decision makers, meaning other employees are less aware of whether travel policies are in place.

What Do Business Travelers Find Most Confusing About Travel Policies?

Smaller businesses are less likely to have a formal travel policy (that their employees are aware of). Only 57% of travelers from small firms are aware of having a travel policy, compared to 89% in large firms.

As smaller companies grow, an in-depth set of travel policies may not have been developed or shared with the broader team, which could cause issues as the company grows and more employees are expected to travel.

What Do Business Travelers Find Most Confusing About Travel Policies?

Additionally, small businesses are the least likely to use business-specific travel platforms, with just half doing so and a significant number (68%) still relying on general booking sites. This can result in higher costs and less control over travel management.

Generational awareness of business travel platforms

Younger business travelers (aged 18–35) are more likely to use newer business-oriented platforms, with 79% doing so, far more than any other age group. This suggests that younger business travelers prefer more modern, tech-driven solutions. In contrast, older travelers may be less familiar with these platforms, with just 44% of those aged 56–65 using them, potentially leading to a reliance on more traditional booking methods.

Expense reporting challenges

Effectively reporting business travel expenses can be complicated without a formal, structured system that is well-communicated to employees. But what are the main issues employees face when reporting expenses?

Businesses travelers

The survey highlights that nearly half of the decision-makers and business travelers encounter issues when reporting travel expenses.

They most often struggle with keeping track of receipts, with 43% mentioning this, closely followed by the reporting process taking too long (41%). Following these two main issues are travelers finding the reporting process too complicated (22%), missing the expenses deadline (20%), and having their report rejected (16%).

Decision-makers

It’s a very similar story when we look at the most significant pain points for decision-makers, with receipts and expenses again coming out on top.

Nearly half (47%) of decision-makers said their most significant expense issue was that travelers didn’t have a receipt for their expenses. This was closely followed by expenses not being correctly recorded and reported on time, with 43%.

What Do Business Travelers Find Most Confusing About Travel Policies?

Interestingly, almost three in 10 said that the reported expenses violate the travel policy, despite 76% of travelers saying they were aware of their company’s policy earlier.

How are organizations currently managing their business costs?

What Do Business Travelers Find Most Confusing About Travel Policies?

Over a third of companies utilize dedicated expense management systems to track and record costs associated with business travel. These systems are designed to automate the expense reporting process, reduce manual errors, and improve compliance.

However, despite the availability of more sophisticated tools, 16% of companies continue to use spreadsheets such as Google Sheets to capture travel costs. While familiar and cost-effective, this approach can be prone to errors and inefficiencies, particularly as the volume of expenses grows. The reliance on manual data entry and the potential for inconsistent reporting make this method less ideal for businesses looking to optimize their expense management processes.

Why is accurate expense reporting important?

If business travel expenses are not reported correctly, it can lead to significant financial and compliance issues for the employee and the organization. Misreported expenses may result in inaccurate reimbursements, causing economic losses or discrepancies in company budgets. This can disrupt financial planning and lead to operational issues, as resources are diverted to correct errors and handle disputes.

Also, incorrect reporting can trigger tax issues, potentially leading to audits, fines, or penalties from tax authorities. It can also damage the company’s reputation and employee trust, especially if reimbursements are delayed or mismanaged. Accurate reporting is essential to ensure legal compliance, maintain financial integrity, and foster a positive work environment.

Key insights & tips for an effective travel policy

In conclusion, an effective travel policy clarifies spending guidelines and streamlines expense reporting. It ensures that both the organization and its employees can focus more on the business objectives of travel rather than the logistics. By creating a culture of transparency and efficiency, companies can optimize their travel expenditure and boost compliance, all while making the process smoother for employees.

Tips for creating an effective travel policy:

  • Define clear guidelines: Specify what constitutes a business expense, preferred vendors, and any cost limitations. For example, if a specific flight class or accommodation type is required, this should be stated clearly.
  • Simplify the approval process: Use technology to streamline approvals. Implement digital approval workflows that can be tracked easily.
  • Encourage real-time reporting: Utilize expense management tools that allow for real-time reporting. Tools that integrate with travel booking platforms can significantly reduce the time and effort involved in the process.
  • Provide training and resources: Ensure that all employees know the travel policy and how to report expenses correctly. This can be done through training sessions, webinars, or easily accessible guides.

By following these steps, companies can create a solid travel policy supporting organizational goals and employee satisfaction.

Methodology

Booking.com for Business surveyed 504 US business travelers and 103 decision-makers to identify the most confusing aspects of business travel and expense reporting.

Screening criteria:

  • 18 + years old
  • Employed (full-time/part-time)
  • Travel for business: Have traveled in the past 12 months and expect to travel in the next 12 months
  • OR decision-makers: for management of booking corporate travel within their company (at least senior level)
  • Representative mix / Natural fallout of genders ; company sizes; departments, industries, and job roles within their organization.

This data revealed how aware employees across differently-sized organizations are of business travel policies. It also provided insights into generational differences, the challenges of capturing costs and reporting travel expenses, and the most important features of travel management tools for decision-makers and travelers.

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