trip gain

Leakage

What is "Leakage"?

Leakage in the context of corporate travel and expense management occurs when employees book travel — such as flights, hotels, or car rentals — outside of the company's approved systems or preferred vendors. These out-of-policy bookings often bypass negotiated rates, compliance checks, and duty-of-care protocols, causing financial and operational inefficiencies.

 

For companies managing large-scale business travel, leakage can undermine efforts to track spend accurately, enforce travel policies, and leverage volume discounts. It also creates gaps in data analytics, making it harder to evaluate travel behavior, supplier performance, or sustainability metrics. Additionally, off-channel bookings can impact traveler safety if they’re not captured in duty-of-care systems.

 

By using a centralized travel platform like TripGain, businesses can reduce leakage through real-time policy enforcement, preferred supplier integrations, and clear traveler communication. Encouraging in-policy behavior not only helps save money but also improves traveler safety and reporting accuracy.

Examples Of Leakage In Corporate Travel And Expense
1.
Direct Airline Booking
An Employee Books A Flight Directly On An Airline’S Website Instead Of The Company’S T&E Platform, Missing Out On The Corporate Rate And Travel Policy Approval.
2.
Personal Hotel Choice
A Traveler Chooses A Non-Preferred Hotel Via A Third-Party App, Leading To Higher Room Rates And Missed Loyalty Points Or Negotiated Benefits.
3.
Untracked Car Rentals
A Rental Car Is Arranged Informally, Outside The System, Making It Difficult To Track Cost Or Provide Support In Case Of Emergency.
Frequently Asked Questions About Leakage
1.
Why is leakage a problem in corporate travel?
Leakage leads to uncontrolled spending, reduced policy compliance, and lack of visibility into travel behavior and supplier usage.
2.
How can leakage be detected?
Leakage can be identified by reconciling expense reports with travel booking data and flagging expenses that do not match approved channels.
3.
What causes travel leakage?
Common causes include lack of awareness, convenience, unoptimized tools, or employees not seeing value in following policy.
4.
Can leakage be prevented completely?
While 100% prevention is difficult, leakage can be significantly minimized with user-friendly booking tools, clear policies, and travel training.
5.
How does TripGain help reduce leakage?
TripGain centralizes bookings, enforces policy rules, and offers integrated reporting, making it easy for travelers to stay compliant and for admins to track every rupee spent.