The global travel expense accounting market has been experiencing steady growth, and according to Beroe Inc, a procurement intelligence firm, it is expected to continue growing at a significant rate. With 37 percent adoption of web-based travel expense (TE) solutions, companies are leveraging efficiencies in the workplace and reducing the burden of manual T&E reporting on business travelers and expense report administrators.
The adoption of Travel Expense Management (TEM) software has not yet been seen in emerging economy regions such as APAC. However, it is expected to grow rapidly in the next five years. The most preferred TEM capabilities by organizations and travelers are simplicity and ease of use for employees, expense management automation, integration with HR/finance systems, and mobile applications/accessibility.
Enforcing Corporate Travel Policies: How to Address the Challenge
Traditionally, large companies have focused on compliance and cost savings in travel expense management. However, in recent times, the focus has shifted to an end-to-end solution that gets data from different sources and creates the expense solution in real-time, reducing the effort required from travel.
Manual data entry and insufficient processes account for 37 percent of the challenges faced by employees in expense management, followed by a lack of visibility into spend which is responsible for 22 percent of challenges faced by employees. Other challenges include an inability to enforce corporate travel policies, lengthy reimbursement cycles and an increase in overall T&E expenses.
Automating Expense Report Creation: A New Trend in TEA
TEM solutions consolidate reporting tasks, reduce reliance on paper-based processes and improve expense management visibility – all while providing advanced business intelligence and analytics tools to proactively control costs. It is noteworthy that the average expense report processing cost for manual processing is approximately $26.63, for partial automation, is $17.31 and for full automation is $6.85.
New trends in the Travel Expense Accounting (TEA) industry include AutoFill (Parsing) technology, automated expense report creation with scheduled build days, automated approval workflows, and cloud-based expense management. These trends are making expense management more efficient and user-friendly, thereby improving overall productivity.
In terms of regional insights, North America currently holds the largest market share in the travel and expense management software market, with a market value of USD 1.16 billion in 2022. The U.S. has displayed a 27% recovery rate in 2021, which is a good sign for post-pandemic recovery. Europe holds the second-largest share in the market due to the region’s expanding business travel opportunities. Additionally, it is advised to display a good growth rate during the course of the predicted period.
The Asia Pacific region is predicted to have the highest compound annual growth rate (CAGR) during the forecast period, due to rising cloud adoption and subsequent digital transformation. China and India are expected to earn the largest market share throughout the projection period.
There are several key players in the market, including SAP Concur, Workday Inc., Coupa Software Inc., Basware Corporation, Expensify Inc., DATABASICS Inc., TripActions Inc., Infor Inc., Emburse Inc., and Zoho Corporation Pvt. Ltd. These companies offer various TEM solutions to meet the needs of different organizations.
Conclusion about Travel Expense Market
In conclusion, the travel expense accounting market is growing at a steady rate and is expected to continue growing in the coming years. The adoption of web-based TEM solutions is increasing, and new trends are making expense management more efficient and user-friendly. Organizations are focusing on simplifying the expense management process and reducing the burden on business travelers and expense report administrators. With the right TEM solution, organizations can improve productivity, control costs, and streamline expense management processes.