Business travel growth has increased by over 100% since the pandemic

In the vibrant landscape of global tourism, business travel represents one of the most important components. These experiences strengthen business relationships, allow companies to explore new markets, offer employees the opportunity to acquire skills and knowledge, and strengthen organizational culture.

In fact, the number of Mexicans who made corporate trips abroad in 2023 increased by 20% compared to 2022, according to industry data. Thus, business tourism continues to grow globally, and is recovering its pre-pandemic levels, as in the last three years these trips increased by 171%.

For Pablo Andrés Rivera, Managing Director of Pay America at Edenred Mexico , “in this context, the management of travel expenses becomes a key activity to address challenges such as guaranteeing a balanced investment, ensuring competitive rates and avoiding unnecessary expenses on flights, lodging and food. In light of this, corporate cards are a key ally, which significantly improve account reconciliation, reimbursements, financial control and operational transparency, with benefits for the company and the employee.” 

For this reason, in the framework of World Tourism Day - which is commemorated every year on September 27 - the expert shares 3 benefits of using a business card to manage business travel expenses: 

1. Improve budgeting and payments

One of the main benefits of corporate cards for employees' business trips is that they help them keep a clear idea of ​​the budget allocated. Defining it allows them to evaluate actions and decisions and better analyze the results, which also helps them avoid unnecessary expenses. 

On the other hand, corporate cards allow employees to cover their purchases efficiently. Choosing this option over cash payments or transfers to their payroll (which must then be reimbursed) simplifies control, developing a point about how it affects whether it is in cash or on the employee's payroll.

2. Advantages of digitalization and automation 

Promoting digitalization in expense management is essential to optimize processes and reduce red tape. With a company card, all employee travel expenses are automatically recorded on the platform, from meals to transportation, providing real-time visibility without the need for paperwork. 

However, establishing a clear and accessible expense policy through technological solutions ensures that employees know the rules and avoid unauthorized purchases. Automating these processes ensures that expenses are aligned with the standards established by the organization.

3. Calculate and deduct expenses easily 

A key practice for controlling travel expenses is to calculate total costs, which will allow you to better allocate your budget for future trips and identify areas of greater expense. To do this, it is essential to detail the concepts of each trip, such as transportation, accommodation, food, and entertainment, to analyze them together and make much more informed decisions.

Furthermore, according to the Income Tax Law, many of these expenses are deductible, provided that certain requirements are met, such as the minimum distance of 50 kilometers and the employment relationship with the taxpayer. That is why it is key to ensure that all expenses have the necessary tax receipts to guarantee their deductibility before the SAT. 

In conclusion, business travel is regaining its strength, boosting organizations and creating new global connections, consolidating itself as a driver for the global economy. Companies need to address this trend with digitalization. By adopting solutions such as business cards for managing these trips, they optimize efficiency and financial control, while improving transparency and driving much more strategic decision-making.

Source: Edenred. Another.