A study undertaken by Technavio forecasts the global travel and expense (T & E) management software market to grow at a CAGR (Compound Annual Growth Rate) of up to 8% during the period 2017-2021, as per their latest report.
The report further classifies the T & E management software by deployment type (cloud-based and on-premise and component (expense T & E software) and by geo-regions (the APAC, Americas and EMEA).
Technavio mentions three market drivers as the key to contributing to the growth of global T & E management software market:
- Vendor’s pricing strategies:
A competitive market environment demands a robust travel and expense management software. T & E providers empower users with tailored-pricing driven by advances in technology, adopt SaaS model and term licensing to go with the ever-changing demands. Several other providers offer value-based pricing model based on the customer’s needs. They also base their pricing on differentiating the build features and value-added features of the software solution offered to their users. Customers too are ROI-focussed, and look for free versions initially as they are budget-stricken; therefore, only price structure based on feature differentiation will drive increased adoption during the forecast period.
- Growing demand for SaaS-based T &E management software solutions:
The use of cloud computing solutions in the global T &E management software market is on a all-time high, and several enterprises of all sizes, all over the world, have been hosting the solutions on data centres. This is mainly because cloud-based SaaS T &E management software models save considerable time and effort owing to their reduced upfront costs, flexibility based on the actual requirements and fast deployment speed. In addition, the external server providers offer appreciable maintenance and technical support to their users. One can access SaaS-based solutions remotely through a web-browser, without the need to install application software, as they render all functions of the software at a minimum price point of ownership.
- Need for hassle-free travel expenditure claims and reimbursement:Enterprises are hell bent on keeping their employee’s travel spends under check. Add to those the mounting cost of maintaining travel spend reports. A travel and expense management software like Tripeur, for example, is an integrated platform for maintaining travel booking and expenditure reports, while allowing employees focus on core business functions, thus leading to increased employee productivity and satisfaction. Also, the processes of streamlining expense reports and claiming travel expenses are handled in a controlled manner with employees creating their own travel spend report. With no ad hoc approach, human discrepancy is significantly reduced with ready access to reports and analytics dashboards – the hassle and stress of managing manual, paper-based processes are completed eliminated.