Travel expenses

For business travelers, travel expenses usually refer to expenditures which they incurred during business travel, often comprised of multiple elements such as flights, trains, taxis, hotels, WiFi, and meals, which they are submitting a claim for reimbursement, via their organization’s travel expense software or expense management process. Such reimbursement is often subject to a judgment of compliance against their company’s travel expense policy.


For organizations, travel expenses can account for a substantial proportion of controllable costs – often, they are the second-largest area of such outlay after salaries and benefits. Traditionally, travel expenses have been considered difficult to control as the purchasing is completed by the traveler, not the organization’s purchasing department. Expenses incurred by travelers who do not use approved suppliers (sometimes known as “leakage”) can raise costs for a company because such expenses do not take advantage of negotiated rates. Not only may they be more expensive, they also cannot be aggregated to drive possible discounts in the future. Increasingly, the business travel management function is turning to business travel solutions (e.g., corporate travel software) and travel expense software to help target non-compliant bookers and increase travel expense policy compliance.


Learn about expense management solutions from KDS.