Managing Travel & Entertainment Expenses in Indian Businesses: Trends Toward Savings and Digital Adoption

Travel & Entertainment Expenses: The Rising Focus for Indian Companies

In recent years, Travel & Entertainment (T&E) costs have gained attention as potentially the largest controllable line item in corporate budgets across India, surpassing traditional expenses such as employee salaries and administrative overheads. With business travel evolving rapidly, companies from multinational giants to micro, small, and medium enterprises (MSMEs) are recalibrating how they manage these costs to boost efficiency and enforce tighter control.

Who Bears the Brunt of T&E Costs?

Insights from the “India Travel & Expense Study 2025-26” show a clear divergence between large enterprises and MSMEs in expense structure and management style:

• For multinational corporations (MNCs), T&E is the top controllable expense, followed by employee-related and administrative costs.
• Conversely, MSMEs tend to place employee costs above T&E in their expense structures.
• Travel-related expenses such as airfares, lodging, and ground transportation are major budget items, especially for MSMEs.

The Impact of Work Models on Travel

Hybrid work arrangements have a big say in how companies approach travel these days. About 63% of MNCs adopt a hybrid model requiring employees to be in offices roughly half the month, influencing travel frequency and policy adherence. Meanwhile, 67% of MSMEs still run with a full-time office presence, often resulting in more regular travel but also more cumbersome approval chains.

Travel Policy Compliance and Digital Transformation

Getting travel approvals can be a headache, with MSMEs usually reporting double the challenge compared to larger corporations. Complex approval layers and compliance processes can slow trips down considerably:

Digital Adoption Gap

When it comes to digitizing the travel experience, the gap between large and small businesses remains striking. Most MNCs (80%) have embraced digital platforms for travel booking and expense management, and a majority (over 70%) leverage online tools. MSMEs, however, rely heavily on manual processes, with just 20% integrating digital booking solutions.

For MSMEs, controlling costs is especially important as air travel alone accounts for 81% of their controllable expenses, followed by lodging (61%) and ground transport (53%) — areas ripe for digital optimization.

Strategic Partnerships with Travel Payment Providers

Business travel payment solutions are no longer seen only as transactional necessities but as strategic partners in managing complex T&E requirements:

• MNCs emphasize global scalability, regulatory compliance, and reward integration, including cashback and air miles.
• MSMEs focus on simplicity, affordability, and spending controls, often using personal credit cards or cash advances due to limited options.
• A shared preference for one-stop integrated payment platforms is evident, with 75% of MSMEs and a majority of MNCs favoring such solutions for ease of use and financial management.

Hybrid Travel Agency Models and Data-Driven Negotiations

The industry response to the evolving travel landscape involves adopting hybrid travel agency models that mix online and offline services, increasing integration and flexibility. Among MSMEs, 81% utilize historical spending data to improve supplier negotiations, while 75% leverage current data for real-time cost optimization.

Наслідки для служб таксі та трансферу

The shift toward digital management and cost control in business travel has meaningful implications for taxi and transfer services. As companies scrutinize every fare and ride, platforms offering transparent pricing and vehicle choices – including ground transport options – become crucial in corporate travel planning.

Services like LocalsRide.com stand out by enabling travelers and corporate clients to select specific vehicles with complete details such as make, model, and driver ratings upfront. This transparency helps businesses manage transfer costs precisely and ensure efficiency without surprises.

How LocalsRide Supports Efficient Corporate Travel

By integrating user-friendly booking with an extensive fleet of private cars and shuttles, LocalsRide navigates the complexities of corporate transfer needs seamlessly. The platform’s digital approach mirrors the broader trend in T&E management — embracing technology to simplify processes and cut costs.

Wrapping Up: The Shift Toward Smarter Travel Expense Management

To have a mind to control costs, Indian businesses are stepping up their game by focusing on Travel & Entertainment expenses as critical controllable elements. From hybrid work approaches influencing travel decisions, to significant disparities in digital tool adoption between large companies and MSMEs, the landscape is evolving quickly. These changes highlight a growing preference for integrated, cost-effective payment solutions and hybrid travel agency models that leverage data for better negotiation and real-time adjustments.

Taxi and transfer services naturally form a pivotal part of this ecosystem, where clear pricing and efficient rides can save both time and money, fitting neatly into corporate travel policies.

Why Personal Experience Still Matters – Choosing the Right Transfer Service

The topic of managing Travel & Entertainment expenses is undoubtedly fascinating and crucial amid rising cost consciousness in Indian companies. However, even the most detailed reviews and thorough feedback can’t quite measure up to firsthand experience. On LocalsRide, the option to hire a car with a licensed driver from verified providers at reasonable, transparent prices empowers travelers and companies alike to make informed choices without unnecessary expenses or disappointments. The ease of browsing vehicle types and driver profiles, alongside varied options for seater count and luxurious to budget rides, adds significant convenience for city or airport transfers and beyond.

Book now to enjoy affordable, reliable travel solutions at LocalsRide.com.

Looking Ahead: The Future of Corporate Travel Management in India

While this more meticulous approach to T&E costs may have limited global impact, it’s highly relevant for Indian businesses aiming for efficiency in a fast-changing travel environment. LocalsRide stays tuned to these shifts, ensuring its platform reflects the latest trends and offers users worldwide a reliable, transparent solution for transfers, trips, and deliveries.

Start planning your next adventure and secure your worldwide transfer with LocalsRide.

Висновок

In essence, Indian enterprises view Travel & Entertainment expenses as a foremost area to optimize, driving adoption of digital tools and integrated payment systems to manage travel efficiently and cost-effectively. This shift is reflected in their travel policies, approval complexities, and digital readiness, which vary significantly between large MNCs and MSMEs. For ground transport, especially taxi and transfer services, transparency, convenience, and affordability are paramount, aligning perfectly with technological advancements and smarter expense control.

Platforms like LocalsRide.com exemplify this new wave by providing detailed insights into vehicle fleets, allowing corporate travelers to tailor their transfer choices exactly as needed — contributing to streamlined business travel experiences across cities and airports globally.