ProcurementAlert.com » Warning: T&E expenses are about to soar

Warning: T&E expenses are about to soar

July 14, 2008 by Charlie Walker
Posted in: In this week's e-Newsletter, Latest News & Views, Procurement costs, Procurement trends

Airlines are bleeding from skyrocketing fuel prices — and now it looks like they’re bringing back a past policy to further pad the coffers. We’ve heard about the baggage charges, the $2 sodas and the vanishing in-flight movies.

Here’s another blow that’ll continue to increase the T&E expenses for your company: If employees want to fly cheap, your company’s on the hook for a required, minimum stay: usually one to three nights.

The alternative? Pricier flights that’ll get folks home sooner.

It begs the question: How cheap will the “cheap” flights really be under this policy? Factor in the meals, the hotel, maybe a rental car — not to mention compensation for the time your employee is missing from the office.

You know what happens next: You seek a spike in bookings on the more-expensive flights — so employees can get back home more quickly.

Best advice: Work with management to come up with a policy governing these bookings now, before it becomes a serious issue.

You still have some time: Right now, United is the only airline on board with this rule, but you can count on others to follow.

 

 

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