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How to Motivate Responsible Employee Spending Dan Ruch, Founder & CEO How to Motivate Responsible Employee Spending Dan Ruch, Founder & CEO

OUR MISSION To ignite responsible, cost-conscious cultures by aligning employer and employee interests. OUR MISSION To ignite responsible, cost-conscious cultures by aligning employer and employee interests.

Agenda I. The purpose of travel management II. The disconnect with business travelers III. Agenda I. The purpose of travel management II. The disconnect with business travelers III. Behavioral economics as a solution IV. Real-world examples V. p. 3 Q&A

10 -12% 93% 70% of total annual budget is spent on T&E of spending 10 -12% 93% 70% of total annual budget is spent on T&E of spending on corporate cards is for travel of travel spend goes to flights, hotels, and rental cars

Cost Control p. 5 Cost Control p. 5

Duty of Care p. 6 Duty of Care p. 6

Reporting p. 7 Reporting p. 7

Customer Service p. 8 Customer Service p. 8

Do Business Travelers Appreciate the Value of Managed Travel? p. 10 Do Business Travelers Appreciate the Value of Managed Travel? p. 10

New Technologies p. 11 New Technologies p. 11

Open Booking, Lower Cost? What Travel Managers Know Fares are often lower through approved Open Booking, Lower Cost? What Travel Managers Know Fares are often lower through approved booking channel. Fares 9 -24% lower through TMCs. What Business Travelers Think 98% think they’re getting a better deal at least some of the time when booking outside their corporate booking channel. Carlson Wagonlit in “What Now For Managed Travel? ” report (2013). 2013 GBTA study, cited by Concur “Is Your Corporate Travel Policy Leaking” p. 12

The Sharing Economy Is Here to Stay 56% - Increase in Airbnb expenses in The Sharing Economy Is Here to Stay 56% - Increase in Airbnb expenses in Concur over 2015 Airbnb is making an aggressive push to gain market share in corporate travel with centralized booking capabilities and “business travel ready” certification. $110 - Average nightly savings by Rocketrip users who book Airbnb Non-hotel accommodations present a significant opportunity for cost savings. Concur State of Business Travel 2016 report 2013 GBTA study, cited by Concur “Is Your Corporate Travel Policy Leaking” p. 13

Business Travelers Are Millennial Travelers Millennials already account for 35% of business travel spending Business Travelers Are Millennial Travelers Millennials already account for 35% of business travel spending By 2020 they’ll account for more than half. Millennials are more likely to break company policy Roughly 1/3 of Millennial travelers report considering company policy, compared to 1/2 of older travelers. “Certify Releases Q 2 2015 Report on Business Expense Trends, ” Certify press release (2015). “Airbnb and Uber Partner with Concur to Enable Next Generation of Business Travel, ” Concur press release (2014). p. 14