As a travel manager, you're tasked with overseeing the complex and often chaotic world of corporate travel. From booking flights and hotels to managing expenses and ensuring policy compliance, your plate is always full. But what if I told you that there's a significant chunk of your travel spend that's flying under the radar, invisible to your watchful eye? Welcome to the world of invisible spend, a phenomenon that poses a significant challenge to travel managers everywhere.
What is Invisible Spend?
Invisible spend refers to travel-related expenses that are not captured or reported through traditional corporate travel booking channels. These expenses can include everything from out-of-policy bookings to unapproved vendor transactions, and they can add up quickly. In fact, according to a recent study, invisible spend can account for up to 30% of a company's total travel spend.
Common Sources of Invisible Spend
So, where does invisible spend come from? There are several common sources, including:
- Out-of-policy bookings
When employees book travel outside of approved channels, such as using a personal credit card or booking through a non-preferred vendor. - Unapproved vendor transactions
When employees use vendors that are not approved by the company, such as booking a hotel through a third-party website. - Unreported expenses
When employees fail to report expenses, such as meals or transportation costs, or when they don't submit receipts for reimbursement. - Bleisure travel
When employees blend business and leisure travel, making it difficult to separate personal from business expenses.
The Risks of Invisible Spend
Invisible spend poses significant risks to cost control and duty of care. When travel expenses are not captured or reported, it's impossible to get an accurate picture of your company's travel spend. This can lead to:
- Lack of cost control
Without visibility into travel spend, it's difficult to negotiate with vendors, optimize travel policies, or identify areas for cost savings. - Non-compliance with travel policies
When employees book outside of approved channels, they may not be adhering to company travel policies, which can lead to security risks, non-compliance with regulatory requirements, and reputational damage. - Duty of care concerns
When employees book travel outside of approved channels, it can be difficult to ensure their safety and well-being while traveling.
Capturing and Managing Invisible Spend with Traxo
So, how can you capture and manage invisible spend? That's where Traxo comes in. Our solutions are designed to help organizations like yours capture and manage all travel-related expenses, including invisible spend.
Comprehensive spend management: Traxo's solutions provide a complete picture of your company's travel spend, including invisible spend, allowing you to optimize travel policies, negotiate with vendors, and identify areas for cost savings.
Real-time visibility: With Traxo, you get real-time visibility into travel bookings and expenses, allowing you to identify and address out-of-policy bookings and non-compliant expenses.
Automated expense reporting: Traxo's solutions automate expense reporting, reducing the risk of unreported expenses and ensuring that all expenses are captured and reported accurately.
Duty of care: With Traxo, you can ensure the safety and well-being of your employees while traveling, even when they book outside of approved channels.
Get Started with Traxo Today
Invisible spend is a significant challenge for travel managers, posing risks to cost control and duty of care. But with Traxo's solutions, you can capture and manage invisible spend, ensuring comprehensive spend management and policy compliance. By gaining visibility into all travel-related expenses, you can optimize travel policies, negotiate with vendors, and identify areas for cost savings. Don't let invisible spend fly under the radar – take control of your company's travel spend today with Traxo.
