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26 November 2025

The complete guide to travel and expense management: challenges, best practices and innovations

Managing business travel and expense (or T&E) is no longer just an administrative process: it has become a strategic lever for organisational performance and compliance. Between cost pressures, regulatory requirements and employee expectations for fluidity and accountability, companies need to rethink their approach.

This comprehensive guide introduces you to the current challenges, proven best practices, and technological innovations that are redefining T&E management.

Understanding travel and expense (T&E) management

What is T&E?

T&E comprises two complementary components:

  • Travel Management: travel arrangements (transportation and accommodation bookings, compliance with travel policies).
  • Expense Management: processing of expense reports, approval and reimbursement of expenses related to assignments.

These two aspects are inseparable: an effective travel policy must be linked to a smooth expense management process.

Why T&E management is strategic for performance and compliance

  • Controlling costs: travel often represents the second or third largest budget item after salaries.
  • Ensure compliance: avoid tax risks and ensure compliance with internal policies.
  • Improve the employee experience: simplify procedures, speed up reimbursements and reduce friction.
  • Strengthening environmental responsibility: incorporating CSR criteria into travel choices.

The major challenges of travel and expense management

Complex travel policies to harmonise

In an international context, harmonising rules is a challenge: each country has its own specific tax and regulatory requirements. An overly rigid policy can hamper productivity, while an overly flexible policy increases the risk of abuse. Example: an employee on assignment abroad may be unaware of local limits, leading to non-compliant expenses.

Fraud and errors: securing expense report management

Expense reports are prone to unintentional errors (missing receipts, duplicates) as well as fraud. Without automated controls, these anomalies can be costly for the company. According to the ACFE, expense report fraud accounts for up to 15% of losses related to business expenses.

Lack of visibility: when data is lacking

Without consolidated reporting, it is difficult to manage travel budgets, identify potential savings or negotiate with service providers. The result: decisions based on incomplete data, leading to additional costs.

Travel and CSR: integrating sustainability into T&E

Business travel has a significant carbon footprint. Integrating CSR criteria into T&E policy is becoming essential to meet sustainability objectives.

The technological challenge: connecting T&E to your ERP and HR tools

T&E processes must be integrated with ERP, HR and accounting tools. Poor integration leads to duplication, delays and errors. It is best to opt for compatible tools, such as SAP Concur, for smooth management.

Best practices for effective T&E management

Developing a clear and accessible Travel & Expense policy

A T&E policy must be easy to understand, tailored to different profiles, and available on collaborative tools. It must specify:

  • The ceilings by category (transport, accommodation, meals).
  • Booking rules (agencies, authorised platforms).
  • Required supporting documents and submission deadlines.

Our advice: disseminate the policy via collaborative tools and make it available on mobile devices to avoid any grey areas.

Automate expense report management with dedicated software

Digitisation reduces manual tasks and the risk of errors. Modern solutions enable:

  • Automatic receipt capture via OCR.
  • Online validation with configurable workflow.
  • Faster reimbursement thanks to accounting integration.

This means fewer errors, less fraud, and finance teams freed from repetitive tasks.

Training employees for successful adoption of T&E tools

A clear policy is not enough if employees do not know how to apply it.

Some best practices to apply in order to transform constraints into a smooth and intuitive experience:

  • Short, targeted training sessions.
  • Interactive guides integrated into the tool.
  • An FAQ section and accessible support.

Implementing intelligent controls to secure travel expenses

Controls should not be perceived as intrusive surveillance. Innovative T&E tools enable enhanced compliance without complicating the daily lives of teams:

  • Automatic alerts in the event of exceedances or inconsistencies.
  • Regular audits based on reliable data.
  • Predictive AI to detect risky behaviour.

Managing with relevant indicators

Measuring the average cost per trip, reimbursement time or compliance rate allows you to adjust your policy and improve performance.

Key indicators to monitor include:

  • Average reimbursement time: a key indicator for employee experience.
  • Compliance rate: to assess the effectiveness of controls.
  • Average cost per journey: to identify areas for optimisation.
  • Carbon emissions per journey: integrating CSR considerations.

Innovations et trends in T&E

Automation and AI: revolutionising expense claim management

Manually entering expense reports is time-consuming and prone to errors. Modern solutions incorporate technologies such as OCR (Optical Character Recognition) and AI to automate the capture of receipts: employees photograph their receipts using a mobile app, and the tool automatically extracts the data (amount, date, VAT) and integrates it into the approval workflow. The benefits:

  • Reduction in human error.
  • Time savings for accounting teams.
  • Enhanced compliance through automated controls.

The Cloud: flexibility and scalability for your T&E processes

Cloud solutions such as SAP Concur offer a scalable architecture that is accessible anywhere and integrated with existing systems (ERP, HR, accounting).

Why is this key?

  • Automatic updates: no heavy maintenance.
  • Global accessibility: ideal for multi-site businesses.
  • Enhanced security: GDPR compliance and international standards.
    Trend: The cloud is becoming the norm for businesses seeking agility and scalability.

Mobile applications: entering expense reports while on the move

Mobility is at the heart of employee expectations. T&E applications provide a seamless user experience, which promotes tool adoption and reduces processing times.  :

  • Instant expense entry: take a photo of the receipt and the data is added automatically.
  • Real-time tracking: status of validations and reimbursements.
  • Smart notifications: reminders to submit notes or correct an anomaly.

Predictive analytics: anticipating budgets and optimising travel expenditure

The use of T&E data is no longer limited to reporting. Advanced solutions incorporate predictive algorithms to:

  • Anticipating future expenditure: based on historical data and trends.
  • Optimise supplier negotiations: thanks to a consolidated view of volumes.
  • Identify potential savings: for example, favour train travel for certain journeys.
    Example: a company may anticipate an increase in travel related to an international project and adjust its budget accordingly in advance.

Responsible travel: integrating sustainability into travel and expense management

Sustainability is no longer just a trend: it has become a strategic imperative. Companies must now incorporate environmental criteria into their travel policies, and T&E solutions play a key role in this transformation.

How do these tools contribute to responsible practices?

  • Accurate carbon footprint measurement: each journey is assessed to enable reliable and transparent monitoring.
  • Eco-friendly recommendations: choose the train for short journeys, select certified hotels, or optimise itineraries to reduce emissions.
  • Concrete compensation actions: partnerships with environmental programmes, integration of solutions to offset emissions generated.

Beyond regulatory compliance, these initiatives meet a dual requirement: that of employees, who expect responsible practices, and that of stakeholders, who are concerned about environmental impact. A sustainable T&E policy strengthens brand image and contributes to overall performance.

Why choose Arago for your Travel & Expense strategy?

At Arago, we support you in defining and implementing a T&E strategy tailored to your challenges. Our approach aims to analyse your processes, identify levers for optimisation, and build an effective and compliant travel policy. We provide support from strategic framing to technical integration, automating travel and expense management, improving financial visibility and integrating responsible practices. Our goal: to transform your T&E policy into a real lever for performance and employee experience.

Conclusion

Travel and expense management is much more than an administrative process: it is a strategic lever for controlling costs, ensuring compliance and improving the employee experience. Technological innovations (automation, cloud computing, mobility) are paving the way for a more agile and responsible approach.

Would you like to simplify the management of your travel and expense reports, increase efficiency and ensure compliance? Arago supports you every step of the way, from defining your T&E strategy to implementing innovative solutions such as SAP Concur.

Contact us to transform your travel and expense management into a lever for performance and accountability.