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Benchmark Data On Travel & Entertainment Expenses

Saty Ghosh's Profile

average travel cost per employeeAppreciate it, if someone could share benchmarking data on Travel & Entertainment expenses for companies based on revenue and/or employee population and/or market capitalization. Thank you

Answers

Simon Westbrook
Title: CFO
Company: Aargo Inc.
( CFO, Aargo Inc.) |

T&E are probably the second biggest corporate cost after payroll and an area where we have to focus to manage costs. Having industry benchmarks are one thing but the need to T&E can be dynamic and variable depending on a company's state of development, product campaigns etc. We address our management efforts in the following areas and are not intimidated by bench marks, in fact we are not afraid to spend if we spend efficiently, and achieve our budgeted objectives.
1)Trip budgets are approved in advance with stated objectives, and expense reimbursement claims are reconciled back to the trip budget, and the outcome reconciled to the objective before reimbursement.
2)Our T&E reporting software provides analysis and comparison so that "unusual and expensive items are highlighted and call out for explanation.
3) Managers are travelers themselves and know all the dodges.

As a discussion group exercise I would like to invite members to write in with the expense "fiddles" that have most impressed, or nearly beaten, them. I think this would be helpful to us as TE expense reviewers. There never seems to be an end to traveler creativity!

Sarah Jackson
Title: Associate Editor
Company: Proformative
(Associate Editor, Proformative) |

Saty, get this free report here at Proformative:

"Travel and Expense Management Guide"
https://www.proformative.com/whitepapers/travel-expense-management-guide

Enjoy! Best... Sarah

Ronald Bella
Title: In Transition
Company: In Transition
(In Transition, In Transition) |

Saty, I don't mean to sound like the typical consultant but you are basically asking people how long a string should be. You need to tell us more. What business are you in? Do you have satellite locations or customers where you direct this travel? Where are they located? What specifically is the problem you are trying to address?

Saty Ghosh
Title: Senior Vice President - IA
Company: IDT Corporation
(Senior Vice President - IA, IDT Corporation) |

My apologies, Ron.
My company has a revenue of $1.6B and about xxxx number of employees. Most of the revenue comes from providing Telecom services and Energy distribution.
We spend say YYYY $ every year on T&E expenses. I am trying to answer a simple question... are we spending too much, too little or about right on T&E for the company of our size. AMEX used to publish a report that contained Average transaction size, Percentage of spend by industry (as a percentage of revenue ?), etc. Most of the employees are in US but we have presence in EMEA, Asia and South America. Hope this helps
Thanks,
Saty

EMERSON GALFO
Title: CFO
Company: C-Suite Services
LinkedIn Profile
(CFO, C-Suite Services) |

I apologize in advance for the politically incorrect term....

This is like comparing oneself to others at fat camp! Congratulations you are the lightest kid at fat camp!

On a serious note, here is my point...... T&A expenses should seek their own levels per individual company. You can analyze the data and see where your optimum levels are, where cuts/levels does NOT affect revenue...and at what levels, it does. You should seek and understand the levels that WORKS for YOUR COMPANY.

Yeah...you should have figured it by now....I am not really a fan of benchmarking.

Ernie Humphrey CTP
Title: CEO & COO
Company: Treasury Careers
LinkedIn Profile
(CEO & COO, Treasury Careers) |

If you want T&E benchmark data, Certify has a good quarterly report, and they have also have an interesting 2016 survey report which is posted here on Proformative:
https://www.proformative.com/whitepapers/2016-expense-management-trends

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