The Travel Expenses Processing Market is currently forecasted to grow at a rate of ~10% CAGR during the forecast period 2022 to 2032. The travel expenses are connected to going on business trips to conferences and meetings. The main expenses are transportation, accommodation, fares and fees requires for admission for some events and sometimes food is also included or partially expended. All these expenses are provided by organizations to employees, and the records for these expenses are kept for tax deduction on that amount.
The regulations governing expense deductions vary by nation, and all organizations are aiming to offset the cost of their expenses with tax. Organizations must provide a thorough report of employee travel expenses in order to qualify for a tax deduction grant. To keep track of all these expenses, organizations prefer using software's which track expenses, form a report and also suggest strategies and budget related decisions, when required data is provided.
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"Travel Expenses management softwares are the best solution available for organisations to plan and execute budgets for corporate travelling" - FMI Analyst said.
Impact of COVID-19
COVID-19 has adverse effects on about all industries, and long term effects are observed on tourism and transportation industries. The pandemic was declared over after a year, but emergence of new variants of virus led to expansion of lockdown around the world. Some countries have strict rules for travelling and public gatherings.
Corporate travel is impacted by all of these issues as well. During lockdown, the staff members worked from their homes, and they now choose to work remotely. Employees prefer virtual meetings over travelling to various cities and countries to attend meetings for two reasons: the digitalization of work and sense of personal wellbeing. Because they are proven to be cost-effective, several firms are also favoring these communication techniques.
Even though, less travelling during pandemic has not reduced the expenses. The expenses are now directed towards the work setups required to employees while working from home and the new technologies required for them to work efficiently. These are proving to be complex situation for organizations and finance departments, to decide whether these expenses can be claimed for deduction or not.
Who is winning?
The important software companies providing expense management and tracking softwares in Travel Expenses Processing sector are Chrome River Technologies Inc., Coupa Software Inc., Infor, TravelPerk, Fyle, TravelBank, Zoho Expense, etc.
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