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Companies Anticipate Increasing Their Business Travel Expense Budgets Next Year

By on December 14, 2014 in General with 0 Comments

During the recession, many businesses found that it was simply no longer financially feasible to send employees on expensive business trips. Let’s face it: When you’re worried about keeping the doors open, the last thing on your mind is paying for business trips. Now that the economy is back on more sure footing, that appears to have changed. Companies have once again become willing to send their people on the road and are ready to set aside the budget in order to make that happen.

According to a study recently conducted by the Global Business Travel Association Foundation, businesses in North America plan to increase their travel budgets next year in order to meet anticipated airfare and lodging rates that are expected to increase. The Annual Industry Pulse Report produced by the GBTA found that companies seem to be aware of the importance of business travel and are adjusting their budgets in light of the anticipated cost increases in order to keep their workers traveling.

The Annual Industry Pulse Report found that domestic airfares are expected to increase by as much as 5 percent next year. This would bring the average cost of airfare up to $487. A similar increase of 4 percent is expected for domestic hotel rates.

As a result of such increases, many companies are also investigating advances in expense tracking technology that can assist in keeping up with the rising cost of business travel. While business travel may be viewed as an important part of doing business, companies also recognize the importance of keeping a handle on business travel costs. By leveraging expense tracking software, businesses can ensure that their records are kept up to date. Such software options can also assist companies in ensuring that they remain in compliance with federal requirements. If there is anything worse than paying money for fraudulent business travel expenses, it is getting hammered by the IRS for it.

Among the best ways that companies can avoid having something like that happen is to ensure that an effective system is in place for business expense tracking and management.

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