Concur Expense IQ Report 2013

IQ

e

Over

where did it all go?

Over

where did it all go?

$

50 billion –

Expense IQ

The

report provides

insight into the

evolution of travel

and expense on

both global and

regional scales.

Dear Reader,

There’s no doubt about it: Today’s marketplace demands quick thinking and decisive action.

If you’re like most of us, you’re constantly being asked to lower costs and improve your

bottom line—and there’s a growing need to more accurately predict future costs to create

precise budgets.

But there’s some good news: Effective expense management systems can address all

of these issues. A deep understanding of what you spend and how it compares to your

competitors can give you a real competitive edge.

That’s where this report comes in.

The Expense IQ Report is designed to give insight into

the evolution of travel and expense on both global and regional scales.

Travel and entertainment spend is the second largest controllable cost for most companies—

just behind payroll. But where specifically does all of this money go? How is it being spent,

and who is doing the spending? How do T&E budgets change by company size and market?

And how does it all evolve from year to year?

These are just a few of the important questions we set out to investigate in this one-of-a-kind

report, leveraging the information that processing

$50 billion in expense transactions per

year provides us. We hope the analysis will give you greater insight into your own company’s

spending—indicating, for example, if the rates you are negotiating are high or low for your

market—so you can manage your T&E budgets and expense management processes

more intelligently in the future.

Sincerely,

Robson Grieve

Global T&E Spend

Spend Comparison: SMB v. Large Market

Business Travel Destinations

Top 10 Spend Categories

6

12

22

28

Contents

Concur® is the leader in travel and expense automation. As such, we processed over $50 billion in expense reports

last year alone. This gives us unparalleled insight into precisely how businesses are spending in the travel and entertainments arena, and what impact location, size of company, and other factors have on spend. To augment our analysis, Concur asked IDC, the premier global market intelligence firm, to give additional insight on the data. Their comments provide important context for the numbers, to give an even more complete picture of the global T&E environment.

Who we are and

how we did it.

Global

Average T&E spend fell

4.5% from 2011 to 2012,

with most of the drop

occurring in Q4 of 2012.

In 2012, the average

expense report filer

spent $3,244 per

quarter on T&E.

Among key expense

types, dining dropped

the most, 11.1%, followed

by car rental (9.1%) and

airfare (8.2%). Hotel

dropped the least (3.8%).

Highlights

“While 2012 was overall a year of tighter budgets for US travelers, the sudden and extreme decline in Q4 T&E spend in particular is a bit of an outlier. 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 in the fourth quarter of 2012.”

T&E Spend Per Filer

$4,000.00 $3,500.00 $3,000.00 $2,500.00 $2,000.00 $1,500.00 $1,000.00 $500.00 $0.00 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 $3,591 $3,488 $3,402 $3,171 $3,603 $3,528 $3,318 $2,629

In 2012, average spend per filer declined 4.5%,

from $3,397 to $3,244, with 93% of that drop (4.2%)

coming during the fourth quarter of 2012.

Robert Mahowald,

Spend by Category

$912.56 $837.12 $819.71 $660.11 $797.79 $863.00 $806.81 $750.33 $543.72 732.59 -8.2% $673.63 $673.12 $617.80 $580.99 $632.51 $662.05 $671.01 $598.17 $519.03 $608.62 -3.8% $352.69 $341.53 $313.37 $301.59 $325.17 $321.55 $317.79 $289.85 $236.84 $289.23 -11.1% $176.74 $177.29 $172.07 $178.79 $176.26 $182.58 $182.07 $172.70 $141.48 $168.62 -4.3% $180.13 $179.30 $163.42 $159.57 $169.71 $177.10 $178.51 $160.24 $131.46 $160.59 -4.6% $126.19 $130.53 $134.47 $121.21 $127.95 $132.52 $131.89 $128.43 $102.65 $123.09 -3.8% $103.54 $105.75 $103.32 $90.92 $100.40 $99.65 $99.75 $95.03 $73.57 $91.31 -9.1% $95.65 $88.32 $86.43 $82.43 $87.69 $87.80 $84.74 $82.64 $61.95 $78.61 -10.4% $70.85 $64.43 $65.67 $61.76 $65.34 $64.40 $58.04 $58.06 $46.29 $56.24 -13.9% $52.67 $51.81 $44.18 $44.82 $48.02 $47.55 $56.28 $55.99 $44.46 $50.98 6.2% $846.77 $838.66 $881.80 $889.09 $865.98 $964.50 $940.95 $926.69 $727.72 $883.83 2.1% $3,591.44 $3,487.86 $3,402.25 $3,171.26 $3,396.82 $3,602.71 $3,527.84 $3,318.13 $2,629.17 $3,243.71 -4.51% Airfare Lodging Dining Entertainment Ground Transportation Personal Car Car Rental Telecom Office Meetings Other

Total Spend per Filer

Q1

2011

Q2

2011

Q3

2011

Q4

2011

2011

average

Q1

2012

Q2

2012

Q3

2012

Q4

2012

2012

average DecreaseIncrease/

Of the major spend categories, hotel and personal car

spend declined the least (-11%). This suggests that the

T&E spend that did occur was kept closer to home,

necessitating fewer air tickets, meals, and entertainment.

This “closer to home” impact is increasingly taking the form of what IDC calls “local cluster” meetings, according to Robert Mahowald of IDC. “Employees gather at a telepresence site, a campus conference room with video capabilities, or a local hotel with a good video endpoint and “concierge” services to help with logistics, and have their meetings with a customer, partner, or other employees.

$4,000.00 $3,500.00 $3,000.00 $2,500.00 $2,000.00 $1,500.00 $1,000.00 $500.00 $0.00 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012

Airfare Entertainment Car Rental Meetings

Lodging Ground Transport Telecom Other

KEY:

Ancillary Spend Trends

To capture the real cost of travel, it’s important to include

less obvious fees. The total ancillary spend of Concur

clients increased from over $30 million to about $58

million from 2011 to 2012.

“Ancillary spend capture is a key part of the spend management ‘toolbox’ we see smart companies building,” according to Mahowald from IDC. “Like itemizing a receipt, looking at individual spend categories lets you make choices about how you handle policy exceptions, like airline upgrades, and ‘frills’ like airline club memberships. It’s all part of the drive to look deeper at the data and make smart policy decisions.”

$144.68

$28.86

$13.49

$17.34

$64.64

$143.51

$183.39

$30.06

$10.23

$19.30

$71.65

$142.44

Airline Club

Baggage

Onboard Entertainment

Priority Access

Ticket Change Fee

Seats/Upgrade

26.8%

4.1%

-24.2%

11.3%

10.8%

-0.7%

2011 2012

Decrease

Increase/

Spend Comparison:

SMB

vs.

Highlights

large market companies

significant advantages

Negotiating leverage, driven by scale and sophisticated

spend management strategies, continues to give

in controlling their T&E spend.

SMB

s

in the US

spend

less

per ticket

on airfare than their large

market peers on a per trip

basis ($363 vs. $424).

45

%

higher average

hotel rates

SMB

s

in the US face

than their large market peers.

Comparing Spend per filer:

SMB v. Large Market

Avg. Quarterly

Spend per Filer

2012

$832.55

$736.69

$340.60

$295.24

$189.22

$143.04

$2,537.33

$732.59

$608.62

$289.23

$168.62

$160.59

$91.31

$2,050.95

SMB

Market

Large

Airfare

Lodging

Dining

Entertainment

Car Rental

$99.96

$128.06

$51.37

$126.62

$28.63

$51.73

$486.38

13.6%

21.0%

17.8%

75.1%

17.8%

56.7%

23.7%

Ground

Transportation

Total spend per

filer per quarter

$

SMB >

Comparing Transactions per filer:

SMB v. Large Market

Total transactions per

filer per quarter

2.25

5.28

9.91

2.67

5.04

0.83

25.97

1.64

5.78

7.69

1.60

4.91

0.51

22.13

36.6%

-8.7%

28.9%

66.7%

2.5%

64.5%

17.3%

%

SMB >

Large Market

Airfare

(tickets)

Lodging

(room nights)

Ground Transportation

Car Rental

Dining

(# of meals)

Entertainment

(# of events)

SMB

Market

Large

Transactions/Quarter/Filer

2012

Comparing Quarterly Spend—

Airfare

Comparing Quarterly Spend—

Airfare

SMB

_Market

Large

On average, small business travelers buy

almost 37% more airline tickets per quarter.

Comparing Quarterly Spend—

Car Rental

SMB

_Market

Large

Small businesses spend almost

24% more on the road.

19.41%

16.57%

7.95%

6.94%

4.38%

3.38%

25.03%

19.48%

9.22%

5.75%

4.16%

3.63%

SMB

Large

Market

Airfare

Lodging

Dining

Entertainment

Ground Transportation

Car Rental

%

of total

spend

2012

$362.73

$135.98

$33.99

$110.26

$37.30

$170.17

$423.61

$93.88

$37.17

$100.73

$36.37

$174.69

SMB

Large

Market

Avg. Trans.

Amount

2012

SMB >Large Market

-14.37%

44.84%

-8.57%

9.46%

2.58%

-2.59%

Spend Comparison –

Inside the U.S.

The table below shows that larger companies spend a much

higher proportion of their T&E budget on airfare and more

per ticket ($424 vs. $363). However, SMBs are spending

considerably more per night for lodging.

In addition to spending a much

higher proportion of their T&E budget

on airfare, the table shows that

larger companies spend more per

ticket on average ($424 vs. $363).

This is probably a result of larger

companies having their operations

spread out over larger areas, which

leads to more expensive air travel

in order to manage operations and

service customers.

We also see that

SMBs pay a lot

more per night for lodging than their

large market peers ($136 vs. $94).

This is likely due to the fact that

larger companies tend to negotiate

favorable rate agreements with

major hotel chains and are better

able to direct employees to these

frequently-used properties.

“98% of the U.S. SMB population is comprised of firms with less than 100 employees, with 9 out of 10 operating out of only one location. Furthermore, many SMBs are operating within industries where there is less of a need for frequent air travel, such as business and consumer-facing services like restaurants, retail trade and construction. This would also negate the need for frequent lodging.”

Chris Chute, Director, IDC SMB Research Practice.

Chute also said that the data indicate SMBs are more likely to outspend larger firms on ground transportation, which makes sense given their need to serve local customers.

22.83%

22.44%

8.39%

6.29%

6.27%

3.10%

17.10%

25.38%

7.89%

4.99%

6.39%

1.84%

SMB

Large

Market

Lodging

Airfare

Dining

Ground Transportation

Entertainment

Car Rental

%

of total

spend

2012

$180.29

$577.90

$44.03

$47.52

$119.53

$208.49

$161.91

$614.04

$44.06

$40.92

$126.38

$211.58

SMB

Large

Market

Avg. Trans.

Amount

2012

SMB >Large Market

11.35%

-5.89%

-0.07%

16.14%

-5.42%

-1.46%

Spend Comparison – Outside the U.S.

Australia, Canada

and the U.K.

Looking at three other English-speaking countries,

Australia, Canada and the UK, we see many similarities

to the US case. SMBs in

these three countries spend a

lower percentage of their T&E budget on airfare (22%

vs 25%), and they spend less per ticket ($578 vs $614)

.

They also pay more per room night for lodging

($180 vs $162).

Business

Travel

The following tables

delve into which

destinations are most

popular among business

travelers, and the relative

costs for lodging, dining,

ground transportation

Top 25 Most Visited

International Cities

London once again came in as the top destination, and

the top four most visited cities remained unchanged from

2011. Cities are ranked by number of overnight hotel

stays, and include all destinations outside of the U.S.

$51.05 $158.89 $49.52 $255.23 $514.69 $40.66 $100.23 $17.12 $123.60 $281.61 $56.99 $138.90 $20.61 $197.98 $414.48 $44.72 $92.40 $16.75 $124.83 $278.70 $63.28 $254.65 $35.14 $187.44 $540.51 $57.04 $169.27 $30.44 $134.78 $391.52 $57.07 $142.07 $23.01 $206.48 $428.63 $49.55 $143.31 $50.64 $220.26 $463.76 $37.75 $111.50 $20.57 $118.39 $288.22 $42.35 $141.65 $28.80 $158.53 $371.34 $52.75 $147.86 $26.21 $118.33 $345.15 London, UK Shanghai, China Singapore Beijing, China Tokyo, Japan Toronto, Canada Hong Kong Paris, France Mexico City, Mexico São Paulo, Brazil Montreal, Canada

Dining

Entertainment

Ground

_{Transport Lodging}

Total

Amsterdam, The Netherlands $45.45 $145.59 $44.33 $158.24 $393.61 $45.49 $113.12 $33.61 $131.23 $323.46 $50.74 $146.18 $23.97 $133.62 $354.52 $35.34 $82.86 $17.00 $102.56 $237.76 $70.18 $144.81 $47.89 $259.24 $522.12 $68.37 $164.29 $24.42 $199.83 $456.90 $39.10 $101.40 $27.70 $116.01 $284.20 $22.69 $81.31 $18.31 $116.06 $238.37 $39.90 $110.91 $30.01 $147.57 $328.39 $50.00 $74.22 $23.62 $155.38 $303.22 $39.41 $132.57 $32.03 $145.13 $349.15 Calgary, Canada Vancouver, Canada Shenzhen, China Sydney, Australia Dubai, UAE Bangkok, Thailand Mumbai, India Madrid, Spain Taipei, Taiwan Dublin, Ireland

Dining

Entertainment

Ground

Transport Lodging

Total

The table below shows the Average Spend

in each Category

Top 10 Most Visited

U.S. Cities

The ten cities on this list remain unchanged from 2011,

with the only difference being that Houston and Orlando

swapped spots on this year’s list. Cities are ranked by

number of overnight hotel stays.

Chute adds, “Las Vegas remains a top destination for business travel, particularly due to its attractiveness as a trade show host-city. Its ranking can be supported as a travel destination for all business sizes, including SMBs. Often, SMB travel involving airfare will be centered around annual conference and industry trade show attendance, rather than more frequent customer or supplier visits, which could support Las Vegas’ consistent top ranking.”

$65.28 $174.56 $36.33 $193.99 $470.16 $43.14 $166.58 $28.08 $99.08 $336.88 $36.19 $144.28 $32.71 $134.15 $347.33 $43.69 $164.47 $38.91 $158.35 $405.42 $33.78 $102.36 $32.39 $90.93 $259.46 $37.21 $121.15 $30.72 $99.94 $289.03 $29.19 $109.42 $44.82 $94.20 $277.63 $41.56 $118.65 $33.35 $110.57 $304.14 $33.60 $99.83 $29.06 $85.72 $248.22 $33.65 $110.59 $39.26 $93.25 $276.74

New York City, New York Las Vegas, Nevada Chicago, Illinois San Francisco, California Houston, Texas Orlando, Florida Atlanta, Georgia San Diego, California Charlotte, North Carolina Dallas, Texas

Dining

Entertainment

Ground

_{Transport Lodging}

Total

$45.45 $145.59 $44.33 $158.24 $393.61 $45.49 $113.12 $33.61 $131.23 $323.46 $50.74 $146.18 $23.97 $133.62 $354.52 $35.34 $82.86 $17.00 $102.56 $237.76 $70.18 $144.81 $47.89 $259.24 $522.12 $68.37 $164.29 $24.42 $199.83 $456.90 $39.10 $101.40 $27.70 $116.01 $284.20 $22.69 $81.31 $18.31 $116.06 $238.37 $39.90 $110.91 $30.01 $147.57 $328.39 $50.00 $74.22 $23.62 $155.38 $303.22 $39.41 $132.57 $32.03 $145.13 $349.15 $37.96 $69.40 $18.68 $114.47 $240.51

Total

The table below shows the

Top 10 Most Expensive

International Cities for

Business Travel

Australia once again boasts four of the top 10

most expensive cities to visit for business

travel. Of note, if this list included U.S. cities,

New York would rank ninth on this list pushing

Paris to tenth.

$57.47 $129.71 $55.30 $305.05 $547.53 $63.19 $254.82 $35.37 $187.52 $540.91 $70.27 $145.69 $48.00 $260.05 $524.01 $60.98 $139.76 $36.07 $284.12 $520.93 $51.10 $159.27 $49.51 $256.58 $516.46 $60.10 $153.31 $51.86 $248.65 $513.92 $63.49 $138.25 $47.48 $226.55 $475.78 $52.69 $149.28 $54.83 $217.53 $474.33 $49.49 $143.09 $50.68 $220.31 $463.58 $68.36 $165.52 $24.38 $197.67 $455.93 Brisbane, Australia Tokyo, Japan Sydney, Australia Perth, Australia London, United Kingdom Stockholm, Sweden Melbourne, Australia Zurich, Switzerland Paris, France Dubai, UAE

Dining

Entertainment

Ground

_{Transport Lodging}

Total

The table below shows the Average Spend

in each Category

Top 10 Most Expensive

U.S. Cities for

Business Travel

This year, New York claims the top spot for most

expensive U.S. city for business travel in 2012.

$65.34 $175.66 $36.44 $194.62 $472.06 $43.65 $165.62 $38.95 $158.82 $407.04 $66.59 $144.10 $72.77 $105.98 $389.44 $38.00 $127.68 $44.45 $164.16 $374.29 $42.76 $144.22 $36.95 $145.01 $368.94 $41.60 $141.14 $27.23 $149.08 $359.05 $36.11 $144.60 $32.72 $132.42 $345.85 $48.53 $148.84 $29.09 $118.38 $344.84 $43.16 $166.22 $28.27 $98.34 $336.00 $35.44 $130.73 $50.53 $114.35 $331.05

New York City, New York San Francisco, California Garden City, New York Washington, D.C. Boston, Massachusetts Long Island City, New York Chicago, Illinois Miami, Florida Las Vegas, Nevada Santa Clara, California

Dining

Entertainment

Ground

_{Transport Lodging}

Total

The table below shows the Average Spend

in each Category

Top

Top 10 Spend Categories –

International

Overall, average transaction amounts outside the U.S. generally

declined, with dining, car rental and ground transport falling the

most. Among the top categories, airfare fell the least. Only rail

showed an increase.

Lodging Airfare Dining Entertainment Meetings Telecom Gas Car Rental Rail

%

of total

spend

2012

v.

2011

Decrease

Increase/

Ground Transportation 23.44% 22.22% 10.33% 7.08% 5.20% 2.07% 2.04% 1.81% 1.71% 1.55% $135.77 $583.02 $40.29 $29.29 $114.42 $280.60 $69.75 $69.18 $215.20 $64.98 24.03% 23.18% 10.97% 7.13% 5.12% 1.13% 2.20% 1.95% 1.83% 1.47% $140.60 $587.69 $43.65 $31.04 $120.67 $280.99 $73.03 $72.60 $228.81 $62.34 -3.44% -0.79% -7.69% -5.63% -5.18% -0.14% -4.49% -4.71% -5.95% 4.24% v. v. v. v. v. v. v. v. v. v.

Average Transaction

Amount

Top 10 Spend Categories –

U.S.

In the U.S., average transaction amounts increased most for

lodging, training and telecom. They were down in 2012 for

meetings, dining and car rental.

Airfare Lodging Dining Entertainment Car Rental Telecom Office Training Meetings

%

of total

spend

2012

v.

2011

Decrease

Increase/

Ground Transportation 25.03% 19.48% 9.22% 5.75% 4.16% 3.63% 1.97% 1.84% 1.60% 1.45% $423.61 $93.88 $37.17 $100.73 $36.37 $174.69 $78.31 $105.37 $385.22 $356.21 26.38% 19.07% 10.05% 5.78% 4.15% 3.82% 1.95% 1.99% 1.64% 1.61% $418.66 $89.33 $38.52 $100.84 $35.92 $178.94 $75.94 $103.17 $371.47 $394.12 1.18% 5.09% -3.49% -0.11% 1.23% -2.37% 3.12% 2.13% 3.70% -9.62% v. v. v. v. v. v. v. v. v. v.

Average Transaction

Amount

Top 10 Spend Categories –

Australia

Dining and entertainment spending, on a per-transaction basis,

declined significantly from 2011 to 2012. Lodging and ground

transportation rose.

Airfare Lodging Dining Entertainment Training Car Rental Office Fees/Dues Telecom

%

of total

spend

2012

v.

2011

Decrease

Increase/

Ground Transportation 26.25% 14.51% 6.71% 6.41% 4.12% 2.10% 1.87% 1.85% 1.73% 1.54% $522.15 $242.64 $61.03 $47.53 $134.33 $388.65 $216.20 $146.72 $114.44 $105.64 1.03572 29.26% 13.28% 7.33% 6.61% 4.58% 2.06% 1.90% 2.01% 1.57% 1.81% $534.80 $234.73 $63.89 $44.39 $157.61 $408.56 $206.89 $145.71 $105.37 $111.33 1.03314 -2.36% 3.37% -4.47% 7.07% -14.77% -4.87% 4.50% 0.69% 8.62% -5.11% 0.25% v. v. v. v. v. v. v. v. v. v.

Average Transaction

Amount

2012 SMB Spend

–

Australia

In Australia, SMBs have significantly higher average transaction

values for air, hotel and car than do larger companies, though

SMBs spend less on entertainment, ground transportation and

dining. The data suggests that the average SMB traveler flies

much less frequently than his or her large market counterpart,

but when they fly, they spend much more.

%

of total

spend

Average Annual Exchange Rate, USD per AUD*

Average Transaction

Amount

24.97% 21.86% 6.74% 6.04% 5.57% 5.09% 2.92% 2.43% 2.05% 1.87% $829.55 $286.80 $127.95 $41.94 $911.76 $37.38 $94.51 $1,169.65 $245.71 $422.93 1.03572 Airfare Lodging Entertainment Ground Transportation Trade/Convention Dining Gas Training Car Rental Computer * Source: OANDA.com

Top 10 Spend Categories –

Canada

Lodging was the only major spend category in Canada to see an

increase in average transaction amount from 2011 to 2012.

Airfare Lodging Dining Entertainment Personal Car Car Rental Training

%

of total

spend

2012

v.

2011

Decrease

Increase/

Ground Transportation 21.02% 15.68% 9.41% 5.64% 4.46% 3.10% 2.67% 1.71% $542.78 $112.69 $41.68 $115.44 $32.58 $66.68 $211.61 $465.37 1.000395 22.17% 15.76% 9.90% 5.52% 4.35% 3.14% 2.72% 1.89% $573.01 $111.41 $43.55 $118.55 $32.78 $68.80 $213.13 $484.01 1.011705 -5.28% 1.15% -4.29% -2.62% -0.62% -3.07% -0.71% -3.85% -1.12% v. v. v. v. v. v. v. v.

Average Transaction

Amount

2012 SMB Spend

–

Canada

In Canada, compared to their Large Market peers, SMBs pay

significantly more for the average hotel room night, but less

for the average air ticket. SMB ground transportation charges

also tend to be higher, while spending in other categories

is comparable.

%

of total

spend

Average Annual Exchange Rate, USD per CAD*

Average Transaction

Amount

20.90% 18.70% 9.00% 6.44% 5.84% 4.22% 4.14% 3.01% 2.70% $137.55 $452.94 $41.26 $117.52 $45.46 $73.47 $199.33 $112.95 $120.87 1.00040 Lodging Airfare Dining Entertainment Ground Transportation Gas Car Rental Personal Car Office * Source: OANDA.com

Top 10 Spend Categories –

France

The Euro fell 7.7% against the U.S. dollar from 2011 to 2012.

When this situation is accounted for, we can see that average

transaction amounts actually rose in France for most categories,

with car rental, entertainment and ground transportation leading

the way. Average dining spend declined slightly.

Lodging Airfare Dining Entertainment Rail Gas Personal Car Car Rental Meetings

%

of total

spend

2012

v.

2011

Decrease

Increase/

Ground Transportation 27.19% 17.17% 13.29% 9.35% 5.17% 2.98% 2.94% 2.11% 1.95% 1.85% €108.41 €507.80 €31.28 €32.73 €94.80 €86.89 €57.51 €80.75 €208.47 €208.07 1.285925 27.60% 18.75% 13.12% 8.94% 4.58% 3.40% 3.50% 1.90% 2.03% 2.97% €105.61 €499.99 €32.00 €31.36 €89.57 €86.06 €56.99 €87.91 €190.82 €248.89 1.392635 2.65% 1.56% -2.25% 4.37% 5.84% 0.97% 0.92% -8.15% 9.24% -16.40% -7.66% v. v. v. v. v. v. v. v. v. v.

Average Transaction

Amount (EUR)

Top 10 Spend Categories –

Germany

Germany saw increases in average transaction amounts in all

major categories except dining and ground transportation, when

exchange rate effects are taken out. The largest increases were

in telecom, rail and gas.

Lodging Airfare Dining Car Rental Entertainment Rail Gas Personal Car Telecom

%

of total

spend

2012

v.

2011

Decrease

Increase/

Ground Transportation 29.89% 20.56% 12.83% 8.16% 4.18% 3.15% 2.72% 2.55% 1.85% 1.22% €103.33 €442.64 €21.21 €26.86 €214.85 €80.62 €69.98 €61.45 €45.10 €38.75 1.285925 29.30% 23.61% 12.90% 8.08% 4.24% 3.14% 2.90% 2.79% 1.87% 1.33% €99.63 €436.31 €21.47 €26.94 €207.85 €79.34 €66.32 €58.10 €44.28 €36.54 1.392635 3.71% 1.45% -1.17% -0.30% 3.37% 1.61% 5.51% 5.77% 1.85% 6.04% -7.66% v. v. v. v. v. v. v. v. v. v.

Average Transaction

Amount (EUR)

* Source: OANDA.com

Top 10 Spend Categories –

Hong Kong

Average transaction amounts in Hong Kong mostly rose

between 2012 and 2011, with telecom jumping 24.5%, and

meetings, ground transportation and entertainment also

increasing strongly. Dining was the only major spend category

showing a significant decline.

Airfare Lodging Dining Entertainment Telecom Meetings Fees/Dues Training Rail

%

of total

spend

2012

v.

2011

Decrease

Increase/

Ground Transportation 34.96% 24.99% 9.34% 5.86% 5.75% 3.38% 0.75% 0.68% 0.54% 0.39% $9,111.70 $1,591.75 $437.42 $1,104.24 $179.69 $821.96 $3,037.25 $829.15 $3,204.43 $148.85 0.12891 37.55% 26.85% 9.83% 4.63% 5.33% 2.17% 0.65% 0.66% 0.60% 0.39% $8,569.31 $1,576.62 $469.52 $1,021.23 $165.73 $660.46 $2,715.70 $802.89 $3,202.78 $149.26 0.12846 6.33% 0.96% -6.84% 8.13% 8.43% 24.45% 11.84% 3.27% 0.05% -0.28% 0.35% v. v. v. v. v. v. v. v. v. v.

Average Transaction

Amount

Top 10 Spend Categories –

India

The rupee declined 12.4% against the U.S. dollar from 2011 to

2012. Accounting for this change in exchange rates, we can see

that India saw an 18% increase in the average airfare transaction.

Rail costs also increased greatly – nearly 58%. Surprisingly, the

average gas transaction declined 4.2%, suggesting that rising

fuel costs were not the only factor behind the higher airfare

and rail amounts.

Lodging Airfare Dining Telecom Entertainment Gas Car Rental Personal Car Rail

%

of total

spend

2012

v.

2011

Decrease

Increase/

Ground Transportation 31.65% 25.59% 7.50% 7.40% 3.93% 2.44% 1.63% 1.51% 1.05% 0.88% ₹4,564.98 ₹14,519.19 ₹913.22 ₹1,039.84 ₹1,733.69 ₹3,479.49 ₹2,156.80 ₹2,669.85 ₹849.22 ₹2,522.35 0.01868 34.47% 22.33% 7.15% 7.94% 3.39% 2.28% 1.84% 1.48% 1.01% 0.48% ₹4,577.38 ₹12,299.40 ₹910.21 ₹1,029.81 ₹1,713.51 ₹3,183.83 ₹2,250.36 ₹2,538.48 ₹762.05 ₹1,597.97 0.02133 -0.27% 18.05% 0.33% 0.97% 1.18% 9.29% -4.16% 5.18% 11.44% 57.85% -12.42% v. v. v. v. v. v. v. v. v. v.

Average Transaction

Amount

* Source: OANDA.com

Top 10 Spend Categories –

Japan

Japan saw steep declines in the average transaction amounts

for air (-10.1%), dining (-11.7%) and entertainment (-9.1%) between

2011 and 2012. Personal car rose 15%, and telecom rose 7.2%.

Lodging Airfare Dining Entertainment Rail Gas Meetings Personal Car Telecom

%

of total

spend

2012

v.

2011

Decrease

Increase/

Ground Transportation 23.30% 14.28% 14.17% 11.26% 8.16% 6.74% 1.11% 0.82% 0.78% 0.67% ¥12,042.98 ¥61,414.46 ¥2,695.01 ¥4,153.65 ¥19,067.75 ¥3,250.18 ¥8,688.38 ¥9,664.74 ¥6,956.69 ¥6,077.80 0.01254 21.51% 16.29% 12.32% 11.18% 8.63% 7.24% 1.52% 0.80% 0.97% 0.76% ¥11,768.89 ¥68,341.15 ¥2,573.27 ¥4,703.34 ¥20,967.56 ¥3,309.37 ¥9,431.33 ¥9,377.31 ¥6,047.38 ¥5,667.85 0.012555 2.33% -10.14% 4.73% -11.69% -9.06% -1.79% -7.88% 3.07% 15.04% 7.23% -0.12% v. v. v. v. v. v. v. v. v. v.

Average Transaction

Amount

Top 10 Spend Categories –

United Kingdom

In the UK, average transaction amounts on rail, personal car and

gas all rose more than 5%, while average transaction amounts on

airfare declined nearly 9%. This suggests that UK travelers may

have been seeking savings by choosing less expensive modes

of travel when feasible.

Airfare Lodging Dining Entertainment Rail Personal Car Telecom Gas Training

%

of total

spend

2012

v.

2011

Decrease

Increase/

Ground Transportation 28.85% 20.11% 8.16% 7.25% 4.97% 3.61% 2.27% 2.17% 1.47% 1.35% £466.22 £119.80 £26.97 £24.92 £83.90 £56.43 £32.10 £45.76 £53.21 £396.29 1.584935 30.27% 19.82% 8.20% 7.62% 4.91% 3.16% 2.28% 2.28% 1.52% 1.41% £510.99 £118.91 £27.06 £26.77 £87.01 £50.38 £30.19 £50.65 £49.60 £397.86 1.604115 -8.76% 0.75% -0.31% -6.93% -3.59% 12.01% 6.33% -9.65% 7.27% -0.39% -1.20% v. v. v. v. v. v. v. v. v. v.

Average Transaction

Amount

* Source: OANDA.com

Recommendations For Better

T&E Spend Management

Companies that leverage best practices and automated tools are in a much better

position to manage their T&E spend. Not only are their processes more efficient,

the resulting data they capture provides insight into trends and behavior that

would otherwise be impossible to see.

10

1. Review your organization’s historical spend data

.

Armed with this information, you can begin making informed decisions about how to shape your policies.

2. Talk to your peers and industry experts

like the Global Business Travel Association, IDC, or even local or regional business associations to learn how your organization compares to other businesses.

3. Think about your company’s culture.

A core set of

guidelines can go a long way towards helping employees understand the kinds of spending that’s within policy—and what’s not.

4. Make sure you have executive support.

Lots of good ideas never get implemented, because the right people aren’t bought in. Get a plan together, and make your case to key stakeholders.

5. Evaluate providers.

Make sure the providers you evaluate understand your organization’s unique needs, have solutions that are easy to implement, and can scale with your business.

6. Use data to negotiate.

Armed with the powerful analysis tools provided by Concur, even smaller companies may find opportunities to improve the deals they have with key vendors.

7. Lock in savings with automated policy enforcement.

With Concur, your policy is built into the system, from the time a

reservation is made all the way through to the processing of payments.

8. Small businesses should look for new offerings

. Many providers are starting to look at small businesses as an untapped market opportunity. Check with your current travel provider, or with companies like Concur, about new programs aimed at SMBs.

9. You can’t manage what you can’t measure.

If your aim is to remove out-of-policy T&E overage costs, the first step is to automate your process from end to end—from initial reservation to support to expense reporting. Only then will you be able to measure how good a job you are doing.

10. Finally, once you measure, benchmark - relentlessly.

Benchmarking can help you know what’s working and what’s not, and where you most need to focus your attention.

Tips to Transform

Your Business

Concur

601 108th Avenue NE Suite 1000

Bellevue, WA 98004

www.concur.com Aggregated Data - To produce average line item and location

spending data, Concur looked at aggregated expense report data for calendar year 2012. For year-over-year data, Concur compared 2012 spend data to comparable data from 2011. All data used to compile this report is anonymous and aggregated, so that no specific company or personal identifiable information is ever used or analyzed.

Currency Conversion - All non-US dollar transactions were converted to USD using the OANDA exchange rate on the date of the transaction. When presenting year-over-year comparisons of spending outside the US, average annual OANDA exchange rates were applied to present average values in local currency.

Worldwide vs. U.S. T&E Spend - Global T&E spend represents consolidated data from Concur clients around the world, including North America, Europe and Asia. U.S. T&E data represents a subset of worldwide spend that occurred within the United States.

Most Visited Cities- The most visited cities are determined and ranked by the number of hotel room nights expensed in those cities.

Methodology