Visa examines European differences on corporate spending habits

Citation

(2001), "Visa examines European differences on corporate spending habits", European Business Review, Vol. 13 No. 3. https://doi.org/10.1108/ebr.2001.05413cab.002

Visa examines European differences on corporate spending habits

Visa examines European differences on corporate spending habits

Keywords Business travel, Expenses, Behavioural sciences, Europe

A survey recently commissioned by Visa Corporate Card has highlighted Europe's national differences in managing corporate expenses.

On average the UK business traveller takes 50 minutes per month to fill out their business travel expense claims. The Germans and Swedes take the most time (57 minutes per month) with the Spanish at the other end of the spectrum (35 minutes per month). Women are also quicker than their male counterparts, in France (47 minutes as opposed to 49), the UK (42 minutes as opposed to 56) and Germany (54 minutes as opposed to 61).

UK business travellers are likely to have 59 per cent of their expenses refunded (this is in line with the European average of 57 per cent). On the whole, hotel and transport expenses are readily approved and reimbursed by UK companies. Videos are the most queried expense (only l6 per cent of claims are reimbursed) with minibar (27 per cent) and personal phone calls (37 per cent) being alternative bones of contention for reimbursement. On average 41 per cent of laundry bills are approved for the UK traveller.

The UK is not as technologically advanced as countries such as Germany and Sweden but does reimburse 62 per cent of Internet connection expenses (Germany reimbursing 71 per cent and Sweden 67 per cent). In fact Internet connection is now more readily accepted than personal phone calls.

It is one thing to be authorised to reclaim expenses, it is another to have expenses passed without query – this varies dramatically across Europe. The UK is relatively relaxed, querying approximately 16 per cent of claims. Most common corporate expenses are accepted, although UK citizens (along with the French) are most willing to accept a lower level of hotel accommodation. The French and Spanish seem to have the most difficulty reclaiming expenses, querying between 44 per cent and 57 per cent of claims. On the other hand, the Italians are most relaxed when it comes to expenses (only 7 per cent of claims are questioned).

Corporate trust is further reflected in choice of payment mechanisms. The business card is the most popular method, settling 56 per cent expenses; it is most used in Sweden (67 per cent) and least in the UK (43 per cent). The UK and Germany lag behind, favouring personal credit cards (58-60 per cent) and straight cash.

Iain Currie, Vice President, Visa Commercial Card Sales, EU Region, commented: "In developing our Corporate Card, Visa has amassed considerable intelligence on travel and entertainment expenditure across Europe. An understanding of national tastes and tendencies, fears and issues is critical to the service we provide throughout the EU region."

The survey was undertaken among 1,000 business travellers from the UK, France, Germany, Italy, Spain and Sweden. This group contained an equal number of men and women in management roles.

Statistics (Tables IV-VIII)