New white paper offers framework for strategic travel and expense analysisCarlson Wagonlit Travel (CWT) has launched a new strategic framework, the T&E Decision Tree, designed to help clients understand and analyse their travel and expense (T&E) spend.
For many companies, T&E spending is a significant expense, so controlling T&E costs is critical to the health of a business. However, the sheer volume of related data makes it challenging to process, manage and interpret.
Catalin Ciobanu, senior director, Data & Analytics, CWT Solutions Group, said, “The T&E Decision Tree takes the different analyses companies are today doing on an ad-hoc basis and brings them together into one single picture. Looking at several categories simultaneously helps travel and finance managers decide what needs to be improved, in which order.”
The T&E Decision Tree simplifies the task by providing an immediate view of the ways a company could reduce spend. It uses algorithms to turn expense and TMC data into patterns based on three simple questions – what, how and why services and products are purchased.
The spend categories are:
• Travel management company (TMC)-booked services, including air, hotel and car;
• Extra expenses, such as air ancillary fees or car rental GPS navigation charges;
• Off-channel reservations not using the TMC;
• Auxiliary spending, such as meals, taxi or parking;
• And non-trip spending, including office supplies or short-range travel using personal cars or in-city transportation.
As well as providing a strategic view of overall T&E spending, the framework is flexible enough to handle new subcategories of spending as required. Once companies have identified the areas that need attention, they can use the T&E Decision Tree to:
• Align T&E spending with business objectives;
• Use the total cost of the trip in making travel decisions;
• Reduce non-trip, auxiliary or extra spending;
• And improve traveler compliance.
The T&E Decision Tree white paper is available here