Small Businesses Travel More Than Enterprise Counterparts: Concur
Concur found that despite paying more for airline-related products and services, companies still spent less overall in 2012 per traveler than they did in 2011.Small and midsize businesses traveled more often than their large-market counterparts, purchasing more air tickets (37 percent), meals (29 percent) and rental cars (65 percent), according to a report from integrated travel and expense management solutions provider Concur. The report found that SMB travelers filed 9 percent fewer lodging transactions per quarter than enterprise travelers, and uncovered other differences between SMB and large companies, including the fact that SMB travelers spent more on average per quarter in 2012 for travel and entertainment (T&E) expenses in every major category, including airfare (14 percent), dining (18 percent), lodging (21 percent) and car rentals (57 percent). Concur discovered that despite paying more for airline-related products and services, companies still spent 4.5 percent less overall per traveler per quarter in 2012 than they did in 2011. A key reason for this was a significant drop in fourth-quarter spending. "While 2012 was generally a year of tighter budgets for U.S. travelers, the sudden and extreme decline in Q4 T&E spend in particular is a bit of an outlier," Robert Mahowald, vice president of cloud services at IT research firm IDC, said in a statement. "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."
Hotel spending accounted for the highest share (24 percent) of all international spend, while airfare expenses accounted for the highest share of all U.S. spend. Concur found spending in almost all expense types declined at least slightly, including dining, which fell 11.1 percent; car rental, which dropped 9.1 percent; and airfare, which fell 8.2 percent. Hotel spending dropped the least, sliding by just 3.8 percent.