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Concur Expense IQ Report 2013

2Expense IQ : 2013

Over

where did it all go?

$50 billion –

Over

where did it all go?

$50 billion –

3 Expense IQ : 2013

The

Expense IQ report provides insight into the

evolution of travel and expense on both global and regional scales.

4Expense IQ : 2013

Dear Reader,

There’s no doubt about it: Today’s marketplace demands quick thinking and decisive action. If you’re like most of us, you’re constantly being asked to lower costs and improve your bottom line—and there’s a growing need to more accurately predict future costs to create precise budgets.

But there’s some good news: Effective expense management systems can address all of these issues. A deep understanding of what you spend and how it compares to your competitors can give you a real competitive edge.

That’s where this report comes in. The Expense IQ Report is designed to give insight into the evolution of travel and expense on both global and regional scales.

Travel and entertainment spend is the second largest controllable cost for most companies—just behind payroll. But where specifically does all of this money go? How is it being spent, and who is doing the spending? How do T&E budgets change by company size and market? And how does it all evolve from year to year?

These are just a few of the important questions we set out to investigate in this one-of-a-kind report, leveraging the information that processing $50 billion in expense transactions per year provides us. We hope the analysis will give you greater insight into your own company’s spending—indicating, for example, if the rates you are negotiating are high or low for your market—so you can manage your T&E budgets and expense management processes more intelligently in the future.

Sincerely,

Robson GrieveVice President, Global Marketing

5 Expense IQ : 2013

Global T&E SpendSpend Comparison: SMB v. Large MarketBusiness Travel DestinationsTop 10 Spend Categories

6122228

Contents

Concur® is the leader in travel and expense automation.As such, we processed over $50 billion in expense reports

last year alone. This gives us unparalleled insight into precisely how businesses are spending in the travel and

entertainments arena, and what impact location, size of company, and other factors have on spend.

To augment our analysis, Concur asked IDC, the premier global market intelligence firm, to give additional insight on

the data. Their comments provide important context for the numbers, to give an even more complete picture of

the global T&E environment.

Who we are and how we did it.

6Expense IQ : 2013

GlobalT&E Spend

7 Expense IQ : 2013

Average T&E spend fell 4.5% from 2011 to 2012, with most of the drop occurring in Q4 of 2012.

In 2012, the average expense report filer spent $3,244 per quarter on T&E.

Among key expense types, dining dropped the most, 11.1%, followed by car rental (9.1%) and airfare (8.2%). Hotel dropped the least (3.8%).

Highlights

8Expense IQ : 2013

“While 2012 was overall a year of tighter budgets for US travelers, the sudden and extreme decline in Q4 T&E spend in particular is a bit of an outlier. The dip is likely due to a set of exogenous macro-economic events, such as the impact of Hurricane Sandy, uncertainty about the U.S. presidential election in November, and the “fiscal cliff” negotiations that extended into the first days of 2013, rather than any broad corporate efforts to cut back on T&E spend in the fourth quarter of 2012.”

T&E Spend Per Filer

$4,000.00

$3,500.00

$3,000.00

$2,500.00

$2,000.00

$1,500.00

$1,000.00

$500.00

$0.00

Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012

$3,591$3,488 $3,402

$3,171

$3,603$3,528

$3,318

$2,629

In 2012, average spend per filer declined 4.5%, from $3,397 to $3,244, with 93% of that drop (4.2%) coming during the fourth quarter of 2012.

Robert Mahowald, VP of Cloud Services at IDC.

9 Expense IQ : 2013

Spend by Category

$912.56 $837.12 $819.71 $660.11 $797.79 $863.00 $806.81 $750.33 $543.72 732.59 -8.2%

$673.63 $673.12 $617.80 $580.99 $632.51 $662.05 $671.01 $598.17 $519.03 $608.62 -3.8%

$352.69 $341.53 $313.37 $301.59 $325.17 $321.55 $317.79 $289.85 $236.84 $289.23 -11.1%

$176.74 $177.29 $172.07 $178.79 $176.26 $182.58 $182.07 $172.70 $141.48 $168.62 -4.3%

$180.13 $179.30 $163.42 $159.57 $169.71 $177.10 $178.51 $160.24 $131.46 $160.59 -4.6%

$126.19 $130.53 $134.47 $121.21 $127.95 $132.52 $131.89 $128.43 $102.65 $123.09 -3.8%

$103.54 $105.75 $103.32 $90.92 $100.40 $99.65 $99.75 $95.03 $73.57 $91.31 -9.1%

$95.65 $88.32 $86.43 $82.43 $87.69 $87.80 $84.74 $82.64 $61.95 $78.61 -10.4%

$70.85 $64.43 $65.67 $61.76 $65.34 $64.40 $58.04 $58.06 $46.29 $56.24 -13.9%

$52.67 $51.81 $44.18 $44.82 $48.02 $47.55 $56.28 $55.99 $44.46 $50.98 6.2%

$846.77 $838.66 $881.80 $889.09 $865.98 $964.50 $940.95 $926.69 $727.72 $883.83 2.1%

$3,591.44 $3,487.86 $3,402.25 $3,171.26 $3,396.82 $3,602.71 $3,527.84 $3,318.13 $2,629.17 $3,243.71 -4.51%

Airfare

Lodging

Dining

Entertainment

Ground Transportation

Personal Car

Car Rental

Telecom

Office

Meetings

Other

Total Spend per Filer

Q1 2011

Q2 2011

Q3 2011

Q4 2011

2011average

2012average

Q1 2012

Q2 2012

Q3 2012

Q4 2012

Increase/Decrease

Of the major spend categories, hotel and personal car spend declined the least (-11%). This suggests that the T&E spend that did occur was kept closer to home, necessitating fewer air tickets, meals, and entertainment.

This “closer to home” impact is increasingly taking the form of what IDC calls “local cluster” meetings, according to Robert Mahowald of IDC. “Employees gather at a telepresence site, a campus conference room with video capabilities, or a local hotel with a good video endpoint and “concierge” services to help with logistics, and have their meetings with a customer, partner, or other employees.

$4,000.00

$3,500.00

$3,000.00

$2,500.00

$2,000.00

$1,500.00

$1,000.00

$500.00

$0.00

Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012

Airfare Entertainment Car Rental Meetings

Lodging Ground Transport Telecom Other

Dining Personal Car Office

KEY:

10Expense IQ : 2013

Spend per filer by category

11 Expense IQ : 2013

Ancillary Spend Trends To capture the real cost of travel, it’s important to include less obvious fees. The total ancillary spend of Concur clients increased from over $30 million to about $58 million from 2011 to 2012.

“Ancillary spend capture is a key part of the spend manage-ment ‘toolbox’ we see smart companies building,” according to Mahowald from IDC. “Like itemizing a receipt, looking at individual spend categories lets you make choices about how you handle policy exceptions, like airline upgrades, and ‘frills’ like airline club memberships. It’s all part of the drive to look deeper at the data and make smart policy decisions.”

$144.68

$28.86

$13.49

$17.34

$64.64

$143.51

$183.39

$30.06

$10.23

$19.30

$71.65

$142.44

Airline Club

Baggage

Onboard Entertainment

Priority Access

Ticket Change Fee

Seats/Upgrade

26.8%

4.1%

-24.2%

11.3%

10.8%

-0.7%

2011 2012 Increase/Decrease

Average Transaction Value for Key Ancillary Fees

12Expense IQ : 2013

Spend Comparison:

SMB vs.Large Market


Highlights

large market companies significant advantages

Negotiating leverage, driven by scale and sophisticated spend management strategies, continues to give

in controlling their T&E spend.

SMBs in the US

spend less per ticket

on airfare than their large market peers on a per trip

basis ($363 vs. $424).

45%higher average hotel rates

SMBs in the US face

than their large market peers.

14Expense IQ : 2013

Comparing Spend per filer:

SMB v. Large MarketAvg. QuarterlySpend per Filer

2012$832.55

$736.69

$340.60

$295.24

$189.22

$143.04

$2,537.33

$732.59

$608.62

$289.23

$168.62

$160.59

$91.31

$2,050.95

SMBLarge

Market

Airfare

Lodging

Dining

Entertainment

Car Rental

$99.96

$128.06

$51.37

$126.62

$28.63

$51.73

$486.38

13.6%

21.0%

17.8%

75.1%

17.8%

56.7%

23.7%


Total spend per filer per quarter

$SMB>Large Market

%SMB>Large Market

Comparing Transactions per filer:

SMB v. Large Market


Total transactions per filer per quarter

2.25

5.28

9.91

2.67

5.04

0.83

25.97

1.64

5.78

7.69

1.60

4.91

0.51

22.13

36.6%

-8.7%

28.9%

66.7%

2.5%

64.5%

17.3%

%SMB>Large Market

Airfare (tickets)

Lodging (room nights)


Car Rental

Dining (# of meals)

Entertainment (# of events)

SMBLarge

MarketTransactions/Quarter/Filer

2012

16Expense IQ : 2013

19.41%

16.57%

7.95%

6.94%

4.38%

3.38%

25.03%

19.48%

9.22%

5.75%

4.16%

3.63%

SMB LargeMarket

Airfare

Lodging

Dining

Entertainment


Car Rental

% of total spend 2012

$362.73

$135.98

$33.99

$110.26

$37.30

$170.17

$423.61

$93.88

$37.17

$100.73

$36.37

$174.69

SMB LargeMarket

Avg. Trans.Amount 2012 SMB>Large Market

-14.37%

44.84%

-8.57%

9.46%

2.58%

-2.59%

Spend Comparison –

Inside the U.S.The table below shows that larger companies spend a much higher proportion of their T&E budget on airfare and more per ticket ($424 vs. $363). However, SMBs are spending considerably more per night for lodging.


In addition to spending a much higher proportion of their T&E budget on airfare, the table at the left, shows that larger companies spend more per ticket on average ($424 vs. $363). This is probably a result of larger companies having their operations spread out over larger areas, which leads to more expensive air travel in order to manage operations and service customers.

We also see that SMBs pay a lot more per night for lodging than their large market peers ($136 vs. $94). This is likely due to the fact that larger companies tend to negotiate favorable rate agreements with major hotel chains and are better able to direct employees to these frequently-used properties.

“98% of the U.S. SMB population is comprised of firms with less than 100 employees, with 9 out of 10 operating out of only one location. Furthermore, many SMBs are operating within industries where there is less of a need for frequent air travel, such as business and consumer-facing services like restaurants, retail trade and construction. This would also negate the need for frequent lodging.”

Chris Chute, Director, IDC SMB Research Practice.

Chute also said that the data indicate SMBs are more likely to outspend larger firms on ground transportation, which makes sense given their need to serve local customers.

18Expense IQ : 2013

22.83%

22.44%

8.39%

6.29%

6.27%

3.10%

17.10%

25.38%

7.89%

4.99%

6.39%

1.84%

SMB LargeMarket

Lodging

Airfare

Dining


Entertainment

Car Rental

% of total spend 2012

$180.29

$577.90

$44.03

$47.52

$119.53

$208.49

$161.91

$614.04

$44.06

$40.92

$126.38

$211.58

SMB LargeMarket

Avg. Trans.Amount 2012 SMB>Large Market

11.35%

-5.89%

-0.07%

16.14%

-5.42%

-1.46%

Spend Comparison – Outside the U.S.

Australia, Canadaand the U.K.


Looking at three other English-speaking countries, Australia, Canada and the UK, we see many similarities to the US case. SMBs in these three countries spend a lower percentage of their T&E budget on airfare (22% vs 25%), and they spend less per ticket ($578 vs $614). They also pay more per room night for lodging ($180 vs $162).

20Expense IQ : 2013

BusinessTravelDestinations


The following tables delve into which

destinations are most popular among business

travelers, and the relative costs for lodging, dining,

ground transportationand entertainment.

22Expense IQ : 2013

Top 25 Most Visited International Cities

London once again came in as the top destination, and the top four most visited cities remained unchanged from 2011. Cities are ranked by number of overnight hotelstays, and include all destinations outside of the U.S.

$51.05 $158.89 $49.52 $255.23 $514.69

$40.66 $100.23 $17.12 $123.60 $281.61

$56.99 $138.90 $20.61 $197.98 $414.48

$44.72 $92.40 $16.75 $124.83 $278.70

$63.28 $254.65 $35.14 $187.44 $540.51

$57.04 $169.27 $30.44 $134.78 $391.52

$57.07 $142.07 $23.01 $206.48 $428.63

$49.55 $143.31 $50.64 $220.26 $463.76

$37.75 $111.50 $20.57 $118.39 $288.22

$42.35 $141.65 $28.80 $158.53 $371.34

$52.75 $147.86 $26.21 $118.33 $345.15

$26.67 $79.10 $23.55 $98.52 $227.83

London, UK

Shanghai, China

Singapore

Beijing, China

Tokyo, Japan

Toronto, Canada

Hong Kong

Paris, France

Mexico City, Mexico

São Paulo, Brazil

Montreal, Canada

Bangalore, India

Dining Ground

Transport

Lodging

TotalEnterta

inment

Amsterdam, The Netherlands

$45.45 $145.59 $44.33 $158.24 $393.61

$45.49 $113.12 $33.61 $131.23 $323.46

$50.74 $146.18 $23.97 $133.62 $354.52

$35.34 $82.86 $17.00 $102.56 $237.76

$70.18 $144.81 $47.89 $259.24 $522.12

$68.37 $164.29 $24.42 $199.83 $456.90

$39.10 $101.40 $27.70 $116.01 $284.20

$22.69 $81.31 $18.31 $116.06 $238.37

$39.90 $110.91 $30.01 $147.57 $328.39

$50.00 $74.22 $23.62 $155.38 $303.22

$39.41 $132.57 $32.03 $145.13 $349.15

$37.96 $69.40 $18.68 $114.47 $240.51

$33.55 $107.73 $39.98 $175.59 $356.84

Calgary, Canada

Vancouver, Canada

Shenzhen, China

Sydney, Australia

Dubai, UAE

Bangkok, Thailand

Mumbai, India

Madrid, Spain

Taipei, Taiwan

Dublin, Ireland

Frankfurt, Germany

Kuala Lumpur, Malaysia

Dining Ground

Transport

Lodging

TotalEnterta

inment

The table below shows the Average Spend in each Category


Top 10 Most Visited U.S. Cities The ten cities on this list remain unchanged from 2011, with the only difference being that Houston and Orlando swapped spots on this year’s list. Cities are ranked by number of overnight hotel stays.

Chute adds, “Las Vegas remains a top destination for busi-ness travel, particularly due to its attractiveness as a trade show host-city. Its ranking can be supported as a travel destination for all business sizes, including SMBs. Often, SMB travel involving airfare will be centered around annual conference and industry trade show attendance, rather than more frequent customer or supplier visits, which could sup-port Las Vegas’ consistent top ranking.”

$65.28 $174.56 $36.33 $193.99 $470.16

$43.14 $166.58 $28.08 $99.08 $336.88

$36.19 $144.28 $32.71 $134.15 $347.33

$43.69 $164.47 $38.91 $158.35 $405.42

$33.78 $102.36 $32.39 $90.93 $259.46

$37.21 $121.15 $30.72 $99.94 $289.03

$29.19 $109.42 $44.82 $94.20 $277.63

$41.56 $118.65 $33.35 $110.57 $304.14

$33.60 $99.83 $29.06 $85.72 $248.22

$33.65 $110.59 $39.26 $93.25 $276.74

New York City, New York

Las Vegas, Nevada

Chicago, Illinois

San Francisco, California

Houston, Texas

Orlando, Florida

Atlanta, Georgia

San Diego, California

Charlotte, North Carolina

Dallas, Texas

Dining Ground

Transport

Lodging

TotalEnterta

inment $45.45 $145.59 $44.33 $158.24 $393.61

$45.49 $113.12 $33.61 $131.23 $323.46

$50.74 $146.18 $23.97 $133.62 $354.52

$35.34 $82.86 $17.00 $102.56 $237.76

$70.18 $144.81 $47.89 $259.24 $522.12

$68.37 $164.29 $24.42 $199.83 $456.90

$39.10 $101.40 $27.70 $116.01 $284.20

$22.69 $81.31 $18.31 $116.06 $238.37

$39.90 $110.91 $30.01 $147.57 $328.39

$50.00 $74.22 $23.62 $155.38 $303.22

$39.41 $132.57 $32.03 $145.13 $349.15

$37.96 $69.40 $18.68 $114.47 $240.51

$33.55 $107.73 $39.98 $175.59 $356.84

Total


24Expense IQ : 2013

Top 10 Most ExpensiveInternational Cities forBusiness Travel

Australia once again boasts four of the top 10 most expensive cities to visit for business travel. Of note, if this list included U.S. cities, New York would rank ninth on this list pushing Paris to tenth.

$57.47 $129.71 $55.30 $305.05 $547.53

$63.19 $254.82 $35.37 $187.52 $540.91

$70.27 $145.69 $48.00 $260.05 $524.01

$60.98 $139.76 $36.07 $284.12 $520.93

$51.10 $159.27 $49.51 $256.58 $516.46

$60.10 $153.31 $51.86 $248.65 $513.92

$63.49 $138.25 $47.48 $226.55 $475.78

$52.69 $149.28 $54.83 $217.53 $474.33

$49.49 $143.09 $50.68 $220.31 $463.58

$68.36 $165.52 $24.38 $197.67 $455.93

Brisbane, Australia

Tokyo, Japan

Sydney, Australia

Perth, Australia

London, United Kingdom

Stockholm, Sweden

Melbourne, Australia

Zurich, Switzerland

Paris, France

Dubai, UAE

Dining Ground

Transport

Lodging

TotalEnterta

inment



Top 10 Most ExpensiveU.S. Cities forBusiness Travel

This year, New York claims the top spot for most expense U.S. city for business travel in 2012.

$65.34 $175.66 $36.44 $194.62 $472.06

$43.65 $165.62 $38.95 $158.82 $407.04

$66.59 $144.10 $72.77 $105.98 $389.44

$38.00 $127.68 $44.45 $164.16 $374.29

$42.76 $144.22 $36.95 $145.01 $368.94

$41.60 $141.14 $27.23 $149.08 $359.05

$36.11 $144.60 $32.72 $132.42 $345.85

$48.53 $148.84 $29.09 $118.38 $344.84

$43.16 $166.22 $28.27 $98.34 $336.00

$35.44 $130.73 $50.53 $114.35 $331.05

New York City, New York

San Francisco, California

Garden City, New York

Washington, D.C.

Boston, Massachusetts

Long Island City, New York

Chicago, Illinois

Miami, Florida

Las Vegas, Nevada

Santa Clara, California

Dining Ground

Transport

Lodging

TotalEnterta

inment


26Expense IQ : 2013

TopSpend Categories

28Expense IQ : 2013

Top 10 Spend Categories –

InternationalOverall, average transaction amounts outside the U.S. generally declined, with dining, car rental and ground transport falling the most. Among the top categories, airfare fell the least. Only rail showed an increase.

Lodging

Airfare

Dining

Entertainment

Meetings

Telecom

Gas

Car Rental

Rail

% of total spend 2012 v. 2011 Increase/

Decrease


23.44%

22.22%

10.33%

7.08%

5.20%

2.07%

2.04%

1.81%

1.71%

1.55%

$135.77

$583.02

$40.29

$29.29

$114.42

$280.60

$69.75

$69.18

$215.20

$64.98

24.03%

23.18%

10.97%

7.13%

5.12%

1.13%

2.20%

1.95%

1.83%

1.47%

$140.60

$587.69

$43.65

$31.04

$120.67

$280.99

$73.03

$72.60

$228.81

$62.34

-3.44%

-0.79%

-7.69%

-5.63%

-5.18%

-0.14%

-4.49%

-4.71%

-5.95%

4.24%

v.

v.

v.

v.

v.

v.

v.

v.

v.

v.

Average TransactionAmount



U.S. In the U.S., average transaction amounts increased most for lodging, training and telecom. They were down in 2012 for meetings, dining and car rental.

Airfare

Lodging

Dining

Entertainment

Car Rental

Telecom

Office

Training

Meetings


Decrease


25.03%

19.48%

9.22%

5.75%

4.16%

3.63%

1.97%

1.84%

1.60%

1.45%

$423.61

$93.88

$37.17

$100.73

$36.37

$174.69

$78.31

$105.37

$385.22

$356.21

26.38%

19.07%

10.05%

5.78%

4.15%

3.82%

1.95%

1.99%

1.64%

1.61%

$418.66

$89.33

$38.52

$100.84

$35.92

$178.94

$75.94

$103.17

$371.47

$394.12

1.18%

5.09%

-3.49%

-0.11%

1.23%

-2.37%

3.12%

2.13%

3.70%

-9.62%

v.

v.

v.

v.

v.

v.

v.

v.

v.

v.


30Expense IQ : 2013


AustraliaDining and entertainment spending, on a per-transaction basis, declined significantly from 2011 to 2012. Lodging and ground transportation rose.

Airfare

Lodging

Dining

Entertainment

Training

Car Rental

Office

Fees/Dues

Telecom


Decrease


26.25%

14.51%

6.71%

6.41%

4.12%

2.10%

1.87%

1.85%

1.73%

1.54%

$522.15

$242.64

$61.03

$47.53

$134.33

$388.65

$216.20

$146.72

$114.44

$105.64

1.03572

29.26%

13.28%

7.33%

6.61%

4.58%

2.06%

1.90%

2.01%

1.57%

1.81%

$534.80

$234.73

$63.89

$44.39

$157.61

$408.56

$206.89

$145.71

$105.37

$111.33

1.03314

-2.36%

3.37%

-4.47%

7.07%

-14.77%

-4.87%

4.50%

0.69%

8.62%

-5.11%

0.25%

v.

v.

v.

v.

v.

v.

v.

v.

v.

v.


* Source: OANDA.com

Average Annual Exchange Rate, USD per AUD*


2012 SMB Spend –

AustraliaIn Australia, SMBs have significantly higher average transaction values for air, hotel and car than do larger companies, though SMBs spend less on entertainment, ground transportation and dining. The data suggests that the average SMB traveler flies much less frequently than his or her large market counterpart, but when they fly, they spend much more.

% of total spend

Average Annual Exchange Rate, USD per AUD*


24.97%

21.86%

6.74%

6.04%

5.57%

5.09%

2.92%

2.43%

2.05%

1.87%

$829.55

$286.80

$127.95

$41.94

$911.76

$37.38

$94.51

$1,169.65

$245.71

$422.93

1.03572

Airfare

Lodging

Entertainment


Trade/Convention

Dining

Gas

Training

Car Rental

Computer

* Source: OANDA.com

32Expense IQ : 2013


Canada Lodging was the only major spend category in Canada to see an increase in average transaction amount from 2011 to 2012.

* Source: OANDA.com

Airfare

Lodging

Dining

Entertainment

Personal Car

Car Rental

Training


Decrease


21.02%

15.68%

9.41%

5.64%

4.46%

3.10%

2.67%

1.71%

$542.78

$112.69

$41.68

$115.44

$32.58

$66.68

$211.61

$465.37

1.000395

22.17%

15.76%

9.90%

5.52%

4.35%

3.14%

2.72%

1.89%

$573.01

$111.41

$43.55

$118.55

$32.78

$68.80

$213.13

$484.01

1.011705

-5.28%

1.15%

-4.29%

-2.62%

-0.62%

-3.07%

-0.71%

-3.85%

-1.12%

v.

v.

v.

v.

v.

v.

v.

v.


Average Annual Exchange Rate, USD per CAD*


2012 SMB Spend –

CanadaIn Canada, compared to their Large Market peers, SMBs pay sig-nificantly more for the average hotel room night, but less for the average air ticket. SMB ground transportation charges also tend to be higher, while spending in other categories is comparable.

% of total spend

Average Annual Exchange Rate, USD per CAD*


20.90%

18.70%

9.00%

6.44%

5.84%

4.22%

4.14%

3.01%

2.70%

$137.55

$452.94

$41.26

$117.52

$45.46

$73.47

$199.33

$112.95

$120.87

1.00040

Lodging

Airfare

Dining

Entertainment


Gas

Car Rental

Personal Car

Office

* Source: OANDA.com

34Expense IQ : 2013


FranceThe Euro fell 7.7% against the U.S. dollar from 2011 to 2012. When this situation is accounted for, we can see that average transaction amounts actually rose in France for most categories, with car rental, entertainment and ground transportation leading the way. Average dining spend declined slightly.

Lodging

Airfare

Dining

Entertainment

Rail

Gas

Personal Car

Car Rental

Meetings


Decrease


27.19%

17.17%

13.29%

9.35%

5.17%

2.98%

2.94%

2.11%

1.95%

1.85%

€108.41

€507.80

€31.28

€32.73

€94.80

€86.89

€57.51

€80.75

€208.47

€208.07

1.285925

27.60%

18.75%

13.12%

8.94%

4.58%

3.40%

3.50%

1.90%

2.03%

2.97%

€105.61

€499.99

€32.00

€31.36

€89.57

€86.06

€56.99

€87.91

€190.82

€248.89

1.392635

2.65%

1.56%

-2.25%

4.37%

5.84%

0.97%

0.92%

-8.15%

9.24%

-16.40%

-7.66%

v.

v.

v.

v.

v.

v.

v.

v.

v.

v.

Average TransactionAmount (EUR)

* Source: OANDA.com

Average Annual Exchange Rate, USD per EUR*



Germany Germany saw increases in average transaction amounts in all major categories except dining and ground transportation, when exchange rate effects are taken out. The largest increases were in telecom, rail and gas.

Lodging

Airfare

Dining

Car Rental

Entertainment

Rail

Gas

Personal Car

Telecom


Decrease


29.89%

20.56%

12.83%

8.16%

4.18%

3.15%

2.72%

2.55%

1.85%

1.22%

€103.33

€442.64

€21.21

€26.86

€214.85

€80.62

€69.98

€61.45

€45.10

€38.75

1.285925

29.30%

23.61%

12.90%

8.08%

4.24%

3.14%

2.90%

2.79%

1.87%

1.33%

€99.63

€436.31

€21.47

€26.94

€207.85

€79.34

€66.32

€58.10

€44.28

€36.54

1.392635

3.71%

1.45%

-1.17%

-0.30%

3.37%

1.61%

5.51%

5.77%

1.85%

6.04%

-7.66%

v.

v.

v.

v.

v.

v.

v.

v.

v.

v.

Average TransactionAmount (EUR)

* Source: OANDA.com

Average Annual Exchange Rate, USD per EUR*

36Expense IQ : 2013


Hong KongAverage transaction amounts in Hong Kong mostly rose between 2012 and 2011, with telecom jumping 24.5%, and meetings, ground transportation and entertainment also increasing strongly. Dining was the only major spend category showing a significant decline.

Airfare

Lodging

Dining

Entertainment

Telecom

Meetings

Fees/Dues

Training

Rail


Decrease


34.96%

24.99%

9.34%

5.86%

5.75%

3.38%

0.75%

0.68%

0.54%

0.39%

$9,111.70

$1,591.75

$437.42

$1,104.24

$179.69

$821.96

$3,037.25

$829.15

$3,204.43

$148.85

0.12891

37.55%

26.85%

9.83%

4.63%

5.33%

2.17%

0.65%

0.66%

0.60%

0.39%

$8,569.31

$1,576.62

$469.52

$1,021.23

$165.73

$660.46

$2,715.70

$802.89

$3,202.78

$149.26

0.12846

6.33%

0.96%

-6.84%

8.13%

8.43%

24.45%

11.84%

3.27%

0.05%

-0.28%

0.35%

v.

v.

v.

v.

v.

v.

v.

v.

v.

v.


* Source: OANDA.com

Average Annual Exchange Rate, USD per HKD*



India The rupee declined 12.4% against the dollar from 2011 to 2012. Accounting for this change in exchange rates, we can see that India saw an 18% increase in the average airfare transaction. Rail costs also increased greatly – nearly 58%. Surprisingly, the average gas transaction declined 4.2%, suggesting that rising fuel costs were not the only factor behind the higher airfare and rail amounts.

Lodging

Airfare

Dining

Telecom

Entertainment

Gas

Car Rental

Personal Car

Rail


Decrease


31.65%

25.59%

7.50%

7.40%

3.93%

2.44%

1.63%

1.51%

1.05%

0.88%

₹4,564.98

₹14,519.19

₹913.22

₹1,039.84

₹1,733.69

₹3,479.49

₹2,156.80

₹2,669.85

₹849.22

₹2,522.35

0.01868

34.47%

22.33%

7.15%

7.94%

3.39%

2.28%

1.84%

1.48%

1.01%

0.48%

₹4,577.38

₹12,299.40

₹910.21

₹1,029.81

₹1,713.51

₹3,183.83

₹2,250.36

₹2,538.48

₹762.05

₹1,597.97

0.02133

-0.27%

18.05%

0.33%

0.97%

1.18%

9.29%

-4.16%

5.18%

11.44%

57.85%

-12.42%

v.

v.

v.

v.

v.

v.

v.

v.

v.

v.


* Source: OANDA.com

Average Annual Exchange Rate, USD per INR*

38Expense IQ : 2013


JapanJapan saw steep declines in the average transaction amounts for air (-10.1%), dining (-11.7%) and entertainment (-9.1%) between 2011 and 2012. Personal car rose 15%, and telecom rose 7.2%.

Lodging

Airfare

Dining

Entertainment

Rail

Gas

Meetings

Personal Car

Telecom


Decrease


23.30%

14.28%

14.17%

11.26%

8.16%

6.74%

1.11%

0.82%

0.78%

0.67%

¥12,042.98

¥61,414.46

¥2,695.01

¥4,153.65

¥19,067.75

¥3,250.18

¥8,688.38

¥9,664.74

¥6,956.69

¥6,077.80

0.01254

21.51%

16.29%

12.32%

11.18%

8.63%

7.24%

1.52%

0.80%

0.97%

0.76%

¥11,768.89

¥68,341.15

¥2,573.27

¥4,703.34

¥20,967.56

¥3,309.37

¥9,431.33

¥9,377.31

¥6,047.38

¥5,667.85

0.012555

2.33%

-10.14%

4.73%

-11.69%

-9.06%

-1.79%

-7.88%

3.07%

15.04%

7.23%

-0.12%

v.

v.

v.

v.

v.

v.

v.

v.

v.

v.


* Source: OANDA.com

Average Annual Exchange Rate, USD per JPY*



United Kingdom In the UK, average transaction amounts on rail, personal car and gas all rose more than 5%, while average transaction amounts on airfare declined nearly 9%. This suggests that UK travelers may have been seeking savings by choosing less expensive modes of travel when feasible.

Airfare

Lodging

Dining

Entertainment

Rail

Personal Car

Telecom

Gas

Training


Decrease


28.85%

20.11%

8.16%

7.25%

4.97%

3.61%

2.27%

2.17%

1.47%

1.35%

£466.22

£119.80

£26.97

£24.92

£83.90

£56.43

£32.10

£45.76

£53.21

£396.29

1.584935

30.27%

19.82%

8.20%

7.62%

4.91%

3.16%

2.28%

2.28%

1.52%

1.41%

£510.99

£118.91

£27.06

£26.77

£87.01

£50.38

£30.19

£50.65

£49.60

£397.86

1.604115

-8.76%

0.75%

-0.31%

-6.93%

-3.59%

12.01%

6.33%

-9.65%

7.27%

-0.39%

-1.20%

v.

v.

v.

v.

v.

v.

v.

v.

v.

v.


* Source: OANDA.com

Average Annual Exchange Rate, USD per GBP*

40Expense IQ : 2013

Recommendations For Better T&E Spend ManagementCompanies that leverage best practices and automated tools are in a much better position to manage their T&E spend. Not only are their processes more efficient, the resulting data they capture provides insight into trends and behavior that would otherwise be impossible to see.


101. Review your organization’s historical spend data. Armed with this information, you can begin making informed decisions about how to shape your policies.

2. Talk to your peers and industry experts like the Global Business Travel Association, IDC, or even local or regional business associations to learn how your organization compares to other businesses.

3. Think about your company’s culture. A core set of guidelines can go a long way towards helping employees understand the kinds of spending that’s within policy—and what’s not.

4. Make sure you have executive support. Lots of good ideas never get implemented, because the right people aren’t bought in. Get a plan together, and make your case to key stakeholders.

5. Evaluate providers. Make sure the providers you evaluate understand your organization’s unique needs, have solutions that are easy to implement, and can scale with your business.

6. Use data to negotiate. Armed with the powerful analysis tools provided by Concur, even smaller companies may find opportunities to improve the deals they have with key vendors.

7. Lock in savings with automated policy enforcement. With Concur, your policy is built into the system, from the time a reservation is made all the way through to the processing of payments.

8. Small businesses should look for new offerings. Many providers are starting to look at small businesses as an untapped market opportunity. Check with your current travel provider, or with companies like Concur, about new programs aimed at SMBs.

9. You can’t manage what you can’t measure. If your aim is to remove out-of-policy T&E overage costs, the first step is to automate your process from end to end—from initial reservation to support to expense reporting. Only then will you be able to measure how good a job you are doing.

10. Finally, once you measure, benchmark - relentlessly. Benchmarking can help you know what’s working and what’s not, and where you most need to focus your attention.

Tips to Transform Your Business

42Expense IQ : 2013

Expense IQ


Concur601 108th Avenue NE

Suite 1000

Bellevue, WA 98004

www.concur.com

Aggregated Data - To produce average line item and location

spending data, Concur looked at aggregated expense report data

for calendar year 2012. For year-over-year data, Concur compared

2012 spend data to comparable data from 2011. All data used to

compile this report is anonymous and aggregated, so that no

specific company or personal identifiable information is ever

used or analyzed.

Currency Conversion - All non-US dollar transactions were

converted to USD using the OANDA exchange rate on the date of

the transaction. When presenting year-over-year comparisons of

spending outside the US, average annual OANDA exchange rates

were applied to present average values in local currency.

Worldwide Vs. U.S. T&E Spend - Global T&E spend represents

consolidated data from Concur clients around the world, including

North America, Europe and Asia. U.S. T&E data represents a subset

of worldwide spend that occurred within the United States.

Most Visited Cities - The most visited cities are determined and

ranked by the number of hotel room nights expensed in those cities.

Methodology

©2013 Concur, all rights reserved.

eiq - sap concur · q1 2011 q2 2011 q3 2011 q4 2011 2011 average q1 2012 2012 q2 2012 q3 2012 q4...

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