Reduce Travel & Expense Spend: Benchmarking for Smarter T&E

If there is one thing we all know about budgets, it is that they are never simple. Numbers pile up quickly. Flights, hotel nights, client dinners, and receipts with questionable handwriting add up fast, and before long you are buried under spreadsheets trying to figure out what it all means. You may know how your company is spending, but do you really know if you are spending well?

That is where benchmarking can make all the difference. Looking at your Business Travel and Expense (T&E) program in isolation only tells you part of the story. When you compare your data to what other organizations are experiencing, suddenly you have context. You can see whether you are in line with industry trends, uncover blind spots, and even identify new opportunities to save.

At SAP Concur, we process billions of dollars in spend every year across hundreds of organizations. That means we have a unique window into the real-world shifts happening in business travel and expenses. While the data itself is important, the bigger story is what those numbers mean for you.

Let’s look at a few categories where benchmarking can open your eyes.

Air Travel Expenses: Travel Takes Off Again

After years of volatility, business travel is flying high once more. According to SAP Concur data, airfare spending rose just over 18 percent, with bookings up 20 percent, from 2022-2023. The mix of ticket types shifted significantly: first-class nearly disappeared with an 84 percent drop, while economy class increased 36 percent and business class climbed 22 percent.

This paints a clear picture. Employees are on the move, companies are watching costs, and airlines are offering more options to keep travelers engaged. The parallel increase in carbon footprints suggests that sustainability tools either are not being used or are not being prioritized yet.

Consider this:

• Are you encouraging greener choices in your booking process?
• Do you know if your employees are leaning toward higher-cost fares?
• And most importantly, do you have visibility into whether your airfare budget is stretching as far as it should?

Hotel Expenses: The Hidden Risk of Direct Booking

According to SAP Concur data, hotel spend jumped 24 percent last year, yet bookings through corporate tools barely nudged up at just 4.2 percent. That gap should make travel managers pause.

It suggests employees are increasingly booking directly with hotels or third-party sites. On the surface, that might not seem alarming. What is the harm in a little flexibility? The reality is different. When travelers sidestep approved channels, companies risk losing out on negotiated rates, duty-of-care coverage, and valuable spend insights. In short, you are paying more and seeing less.

This is a prime example of why benchmarking matters. If your numbers mirror this trend, it may be time to revisit how you communicate the benefits of booking in-policy or adjust your program to make approved tools easier and more intuitive to use.

Meal Expenses: A Window into New Working Habits

Meal expenses are another category worth watching. According to SAP Concur data, while the average meal cost only increased slightly from $21.69 to $22.89, total meal spend rose a hefty 20 percent. What is behind it? A mix of return-to-office incentives, face-to-face collaboration days, and the steady rise of business travel.

This is a reminder that expenses reflect culture. Policies written five years ago may not fit the way employees are working and gathering today. Benchmarking can show you whether your meal spending aligns with peers or if it is time to refresh policy language, clarify limits, or rethink incentives.

Expense Policy Compliance: Slipping Through the Cracks

With travel ramping back up, compliance is slipping. According to SAP Concur data, missing receipts climbed 17 percent, spend tied to those receipts rose 29 percent, and expense reports with exceptions increased nearly 10 percent.

These are not just administrative hiccups. They represent real risks. Without proper oversight, costs escalate, reporting accuracy drops, and audit readiness suffers. Benchmarking here helps you see whether your compliance gaps are typical or uniquely problematic, giving you a clear signal on where to tighten controls.

The Bigger Picture: From Data to Decisions

Numbers are powerful, but context is what makes them actionable. Benchmarking is not about proving you are perfect. It is about seeing clearly where you stand, what needs attention, and where you can get ahead of the curve.

So, as you look at your own travel and expense data, do not stop at “what are we spending?” Ask the bigger questions:

• Why are we spending this way?
• How does it compare to what others are doing?
• What can we do differently to improve outcomes?

Ultimately, saving money is not about cutting corners. It is about spending smarter. Benchmarking is one of the sharpest tools you have to unlock those hidden savings.

To explore these insights in greater depth and see how your organization measures up, read our Unlock hidden savings: Benchmark your travel and expense spend report.