Why Airlines Need a Better Expense Management Process

Flying has never been more popular than it is today. Thanks to lower fares, airports popping up close to most large cities and increasing GDPs worldwide, ticket sales have skyrocketed.

All airlines combined welcomed 3.8 billion passengers in 2016, a staggering increase from 2.8 billion in 2011. According to the IATA, there's no reason to believe this growth is stopping anytime soon, as demand is set to double over the coming 20 years, eventually reaching 7.2 billion passengers in 2035.


 

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All of this means more revenue for the airlines but also more staff to make sure they can cope with the increasing demand - making these already complex organisations even more complex.

The number of international offices to support foreign hubs is bound to increase in the future and with it the legion of off-site employees, which is split between ground staff working at airports across the world, and the cabin crew that's constantly hopping between countries.

A company spread out over offices in multiple countries, of which a large part of its personnel is either based internationally or constantly in transit — it's hard to think of a more intricate organisational structure. With the impending growth of airlines, it's important to streamline and improve company processes to sustain an efficient working environment.

 

A new way to handle expenses

If there's one thing that's stuck in the past for most companies, it's expense management. More often than not employees are required to keep receipts of all purchases, which need to be delivered to the financial department accompanied by a filled-out form.

This paper-based way of dealing with expenses is the perfect way to create lengthy processes, massive inefficiency and slowly drive employees crazy. It also doesn't scale when your company grows. Frankly, you and your employees deserve better.

 

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It's time to take your company's expense management to the next level. Xpenditure is a modern, easy-to-use solution that improves efficiency by making expenses easy to manage for both employees and managers.

Instead of constantly losing paper receipts, you just snap a picture with the app, which automatically fills out most of the expense. Controlling is automated in the app with embedded rules in the platform. The expense follows the approval flow set up and it can be that withing minutes the expense is already awaiting reimbursement.

It's a simple, streamlined process that's sure to save lots of time and even more headaches.

 

Why airlines should be interested ?

 

Worldwide presence

Because of its international presence, the aviation industry could easily reap the benefits of more modern expense management.

 

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Let's take the example of a pilot that just got off their shift, and is about to spend a couple of days in a foreign country. All expenses they make during their time abroad can easily be entered into the system, making it effortless to receive reimbursement for things like food, accommodation and travel to and from the airport.

The system allows cabin crew to directly input their expenses from anywhere in the world, and enables the financial department to work with one central platform for everything related to expenses.

It can also be used by corporate employees on a business trip, providing the benefits to all workers, while maintaining a single expense database for the entirety of the company.

 

Attract and retain new talents

There's another reason why upgrading an airline's expense process could be beneficial, and it has to do with the changing environment these companies are operating in.

A couple of years ago, airlines were able to attract talent with a generous package of benefits, including the most coveted of them all — free flights. After the recent economic recession, however, most operators had to make cuts to these advantages in order to save money, leaving one less reason for young hires to join the company.

 

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Instead of showering employees with expensive perks, companies should follow Brussels Airlines example and consider investing in workplace innovation.

By reducing corporate bureaucracy and promoting the usage of modern tools and workflows, young employees don't feel like they have to adjust to old ways of working when they get hired. Better yet, offering a forward-thinking work environment could actually make them choose to reply to your company's job posting over others.

All things considered, there are a lot of reasons why airlines should consider switching to a more efficient way to handle expenses - the benefits are definitely worth it.

Team Xpenditure.

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Nisrine Douidy

Posted by Nisrine Douidy

Head of Content & Communications

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