How to Fix 7 Common T&E Compliance Problems

No question: When travelers book off-platform and incur expenses, it can trigger a host of problems. For starters, travel managers won’t know where their travelers are, while finance managers can’t immediately see how much company money has been spent. It’s a recipe for cost overruns and manual busywork.

And when it comes to compliance, here’s the bad news: It’s been on a downward trend, according to a report from Skift and Navan, which surveyed 1,500 business travelers, travel managers, and finance managers.

But here’s the good news: Survey respondents cited clear reasons behind the noncompliant behavior. And our guide, 7 T&E Compliance Problems — and How to Fix Them, details not only what those reasons are, but outlines why they’re happening. It also offers suggestions on how companies can turn the trend around.

Here are three of those problems.

#1: Booking Off-Platform For Lower Prices Travelers want to save their companies money when they can. In fact, 46% of travelers say that when they find lower prices on consumer travel sites than on their company’s travel solution, they’re inclined to book off-platform. They may even Slack their boss a screenshot with the lower price — an issue so common it has a name: the “screenshot problem.”

The fix: When travel solutions include the broadest possible inventory, as Navan does, travelers can choose from more flights at every price point. And direct connections, such as New Distribution Capability (NDC), deliver lower fares that can save companies lots of money. It’s why Navan offers 18 of them, with more on the way.

#2: Lack of Incentives or Penalties Should companies incentivize travelers for abiding by the rules or penalize them for noncompliant behavior? Travelers, of course, would like rewards; 22% of them blame noncompliance on a lack of incentives. On the other hand, 19% of managers blame noncompliance on a lack of penalties.

The fix: Who wouldn’t want to get a perk for good behavior? That’s exactly why we offer Navan Rewards, which incentivize travelers for making choices that save their companies money — rewards that are fully funded by Navan. Travelers can then use those perks on their own trips when they book through Navan Personal Travel.

#3: Policy Problems Sometimes, the issue can lie within the policies themselves. In fact, 32% of travelers say that overly restrictive policies are the reason for their noncompliance. Managers also cite policy as an issue, though 12% of them say that noncompliance stems from a lack of policy awareness.

The fix: Why split hairs? With Navan, policies can be tailored to as granular a level as necessary. And since Navan’s policies are auto-enforced, out-of-policy options aren’t even bookable, so managers don’t need to worry about whether travelers know the policy’s details or not.

See the full list of compliance problems — and their fixes — in our guide, 7 T&E Compliance Problems — and How to Fix Them.