An American Express expense management study conducted among over 500 Indian companies this year has concluded that travel and entertainment (TE) remains the second largest controllable operating cost after salaries and benefits.
The study also said that air travel spend is the largest component in TE contributor on an average. Almost 45% of employees in a company travel on business trips on a regular basis and in particular single day business trips have increased significantly.
?Today air spend accounts for 42% of a company?s total T&E spend up from 32% in 2001,?? said Tracey Bowra, senior vice president and general manager, global commercial card, Japan Asia Pacific and Australia, Amex.
Amex business in India has experienced an impressive 50 % year growth for the last three years.
Bowra was addressing a press conference after signing a Amex card partnership deal with Kingfisher Airlines.
The SMEs now facing management and shareholder expectations typical of large corporations which is to continually look for ways to improve their revenues and expenses.
However, top Amex officials were tightlipped about the company?s operation in India after the bank sold out its banking business (except card and payment solution business) to Standard Chartered Bank globally.