Center's Annual Expense Survey Reveals Increase in Decentralized Booking Habits, Signaling Need for Modern Travel Management Tools

Only 18% of Employees Utilize Solely Corporate Booking Tools, Exacerbating Compliance and Cost Control Challenges

BELLEVUE, Wash., Jan. 28, 2025 /PRNewswire/ -- Center, a software company modernizing expense management, today released insights from its sixth annual Expense Management Trends Survey. The new data reveals rising travel spend and broader card distribution within the mid-market, despite continued ineffectiveness of the tools being used to manage travel and expenses (T&E). Businesses implementing traditional corporate booking tools admit that nearly two thirds (61%) of employees neglect them, opting instead to use off-platform consumer sites to book travel directly. Similarly, the biggest expense policy hurdles were lack of corporate policy awareness (49%) and compliance with policies (31%), resulting in flawed budgeting accuracy and forecasting.

Direct Booking and Card Expansion Spark Opportunities for Smarter Spend Control
Despite best intentions of having a travel policy, Center's findings indicate most employees are either unaware of them or knowingly ignore them altogether. An increase of cards in force coupled with the rise in off-platform booking highlight a weakening grip on travel compliance, potentially leading to higher spend leakage and fragmented data collection.

These shifts underscore a need for integrated T&E tools that effectively capture both on- and off- program spend and ensure compliance with automated guardrails. McKinsey's 2024 report on business travel views unmanaged travel as an opportunity for more modern tools, citing: 'Tools that attempt to provide more structure for unmanaged business travel are especially intriguing. Integrating an online booking platform, expense management software, and a travel data capture service could help improve a company's visibility into its employees' trips and spending.'

• Three quarters (75%) of respondents have increased corporate card distribution
• Just 18% of employees use only corporate tools to book and manage travel
• While the overwhelming majority of respondents (88%) report having a written travel policy, the biggest expense policy hurdles reported are awareness of policies (49%) and compliance (31%)

A Positive Business Travel Outlook for 2025 Reinforces Need for Effective Cost Control
The forecast for business travel in 2025 is optimistic. A recent report from The Global Travel Business Association (GBTA) cites that two-thirds of business travel professionals (67%) report a positive outlook for 2025, with 52% predicting an increase in their corporate travel budgets. Data from Center's research validates this finding, with mid-market businesses increasing business travel spend. Concurrently, Center's findings reveal growth in decentralized booking habits, adding complexity to T&E budget management and cost control measures.

• Almost all (97%) of respondents believe their travel spend will remain the same or increase in the next 1-3 years
• Over half (56%) of respondents are spending between $100k-$499K a year on business travel, with a quarter (25%) spending more than $500K
• Nearly two thirds (61%) of employees book travel directly (outside of corporate booking tools)

Modern Technology Matters When Aiming to Increase Utilization

Travelers' technology expectations are driving a T&E evolution, with a recent study from Mastercard finding that 80% of respondents agreed that there is a need to "invest more in employee-centric travel payment methods." An increase in decentralized booking habits highlights a demonstrable gap between corporate offerings and employee preferences. To increase utilization of corporate tools, mid-market companies require both modern T&E solutions that meet employee expectations, as well as effective employee training and onboarding.

• Nearly two thirds of employees (68%) are either unaware of corporate tools or find them cumbersome
• The #1 reason cited for mid-market companies to consider new travel tools is the desire for a better employee experience
• Respondents cited three top challenges in managing the expense process:
  • Credit card reconciliation
  • Manual reporting
  • Time to close the books

"Mid-market companies are planning to invest significantly in business travel next year, and the gap between corporate tool offerings and employee booking behavior highlights growing challenges in centralizing travel management," said Naveen Singh, CEO of Center. "A card-first approach provides the guardrails employees need to automatically comply with policy. When employees can leverage corporate tools and get the consumer-grade convenience they've come to expect, businesses gain more control over spending. This is the future of simple and transparent T&E management."

The State of Travel and Expense Management in 2025
View more insights from the 2025 Travel and Expense Management Trends survey here.

About Center
Center is a software company modernizing corporate card, travel, and employee expense management with one integrated solution. Our corporate card and connected software gives businesses real-time visibility into all employee spending, automates manual accounting tasks, streamlines travel booking and expensing, and provides finance teams with the controls and data needed for optimal decision making. With a usage-based business model requiring no upfront investment, our card-first experience combines self-service configurability with first-class deployment to ensure customer success. Center is a privately held company headquartered in Bellevue, WA with team members nationwide. For more information, please visit getcenter.com.

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SOURCE Center