24 April 2006
Hidden Costs Of Business Travel
Businesses are spending up to $100 on processing travel expense claims – a cost that is largely avoidable according to
one of the world’s fastest growing business travel specialists.
An independent study by IBM Consulting (2004) found that in the US the average ‘cost per expense report processed’ -
from completing individual reports through checking and manager approval to back-office processing and re-keying for
payment - typically reaches NZ$100.
FCm Travel Solutions General Manager Christian Casbolt said for most businesses in New Zealand the individual costs were
comparable to those in the US, but despite this the overall high cost of making expense claims remained an area often
overlooked by management.
“Without an effective expense management system New Zealand businesses are throwing money away in drawn out expense
claims.”
Mr Casbolt said FCm Travel Solutions had recently introduced a web-based expense management tool, ‘FCm eXpense’, which
in many cases halved the costs of the expense claims process, but the challenge was getting more businesses to take
advantage of the system.
“In larger organisations there can be a tendency to overlook costs that are incurred through a number of steps, but when
these steps are rationalised there can be a very positive cost outcome.”
Mr Casbolt said the eXpense system, a first in New Zealand, was also being used by FCm Travel Solutions internally, with
impressive results.
“All expenses go through a single process and for credit cards the data is pre-populated so cannot be changed. The
margin for error is significantly reduced and it takes all the hassle of processing out of the hands of the individual,
freeing them up to concentrate on their own work.”
Mr Casbolt said it was surprising more business weren’t utilising web-based expense management more, but he was hopeful
that as more was understood about the true cost savings it could deliver, there would be a strong towards this type of
systems.
“We’re educating New Zealand on the benefits, one business at a time.”
ENDS