Canadian Companies Double Spending on Travel and Business Expenses from Nine Years Ago

Toronto, ON - According to a new Ipsos Reid survey conducted on behalf of Amex, Canadian companies are estimated to now spend approximately $24 billion annually on travel and business expenses, up sharply from the $12.9 billion that was estimated in a 1997 study.

In the area of management of expenses and use of formal controls, companies with someone responsible for the management of travel expenditures indicate that:

• Nearly three-quarters (73%) of companies have travel policies, which are reviewed by senior managers at least once a year;
• Many companies also have guidelines for purchasing everyday items such as office supplies (76%), telecommunication services (76%) and computer software/hardware (81%); and,
• One-third (32%) of companies say their most senior executives are involved in the overall management of travel and business expenses.

These are the findings of an Ipsos Reid telephone survey of 506 Canadian mid- and large-sized companies in Canada. With a sample of this size, the results are considered accurate to within +/-4.4 percentage points, 19 times out of 20, of what would have been, had this entire population been polled. The telephone survey was conducted between December 7, 2005 and April 19, 2006.

Using Technology To Manage Bookings

Nearly two-in-five (39%) of companies expects online bookings to increase in the next year, another one-third of all companies (37%) say that they have no plans to move online.

Mandating Corporate Card Usage

A majority of companies (60%) have a corporate card program issued to employees for business expenses and travel. But just under half (49%) require their employees to use it.

Managing Travel And Expenditures

While fifty-three percent of companies indicated that they have someone who has the ultimate responsibility for the management of travel expenditures, forty seven percent do not. Among these firms, nearly half of companies (47%) are automating their expense reporting. Nearly three quarters (74%) find accessing data to provide a detailed presentation to senior management in terms of travel and entertainment expenses very/somewhat easy. The study also found that fifty-nine percent of the senior management team reviewed their overall travel and entertainment program at least once a year. Furthermore, forty-five percent say that their company has conducted a review of their travel agency in the past 3 years.

Business Travel Still Going Strong

Among the spokesperson most familiar with the travel and entertainment behaviour within the company, eighty-seven percent say that their company's travel has either increased or remained the same as last year.

Total Market Projection Methodology

Ipsos Reid surveyed 500 decision makers in mid-sized and large companies/ organizations across Canada to prepare this report. Large companies were deliberately over-represented in the survey sample to provide a read of this important sector.

The survey was conducted among senior-level decision-makers for expense management/procurement. These decision-makers were asked to report their organization's annual expenditures on travel and entertainment (T&E). This reported expenditure information was then extrapolated to the total Canadian market as follows:

• The most recently available information was compiled for the numbers of businesses/organizations by company size and industry sector. Mid-sized companies were defined as those with between 50 and 499 employees, large companies as those with 500 or more employees. The information source was Statistics Canada
• The survey information for reported T&E expenditures was arrayed by company size and industry sector according to the Statistics Canada categories. The survey data in each of the resulting 'cell' were multiplied by the number of businesses/organizations as determined by Statistics Canada
• An adjustment factor was then applied to the resulting total market projections since the survey sample deliberately over-sampled large companies. The result was a market projection of just over $24 billion in annual T&E expenditures.

For more information on this news release, please contact:



For more information on this news release, please contact:
Ray Kong
Ipsos Reid
(416) 324-2106
[email protected]

Ipsos Reid
Ipsos Reid is Canada's market intelligence leader, the country's leading provider of public opinion research, and research partner for loyalty and forecasting and modelling insights. With operations in eight cities, Ipsos Reid employs more than 300 research professionals and support staff in Canada. The company has the biggest network of telephone call centres in the country, as well as the largest pre-recruited household and online panels. Ipsos Reid's marketing research and public affairs practices offer the premier suite of research vehicles in Canada, all of which provide clients with actionable and relevant information. Staffed with seasoned research consultants with extensive industry-specific backgrounds, Ipsos Reid offers syndicated information or custom solutions across key sectors of the Canadian economy, including consumer packaged goods, financial services, automotive, retail, and technology & telecommunications. Ipsos Reid is an Ipsos company, a leading global survey-based market research group.

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