Explore Leakage with PredictX
PredictX can bring leakage data in from the cold, integrating and aligning it, giving you back control, authority and the capability to utilise this shadowy spend for negotiations.
Why is leakage important?
does not comply with the company's compliant booking channels.
This can occur when bookings are made outside of approved channels
or directly with the supplier.
Addressing leakage is important for several reasons:
Financial Impact
Hidden Spend
Policy Compliance
Supplier Relationships
Risk Management
What are the challenges in finding and addressing Leakage
Conducting expense audits presents several challenges for organizations:
Leakage is hard to pin down in detail. We all know that there is a discrepancy between booked, paid and expensed spend in any given period. There’s also a big time difference, as bookings can frequently be made months before payments are made and that can be weeks before expenses are reconciled.
On top of that, there are legitimate expenses that might initially look like leakage, there are refunds that are made on bookings that are then rebooked directly, becoming leakage. There are also situations where leakage may be legitimate, such as a traveller facing disruption or a short-notice change in requirements.
More detail on how PredictX helps you do it better.
The only real way to manage all of these is to match leaked data up with booked data at the transaction level. This allows real leaked transactions to be identified.
To truly get on top of things, leaked suppliers should also be fused so that leakage is identified at the supplier and market level, and the data integrated with organisational structure, policy and preferred program data, so that the veil can be lifted and leakage addressed.
PredictX has developed Trip Builder, to combine bookings, payments, and expenses. Previously thought to not be possible, Trip Builder makes use of emerging technologies to align these elements, allowing us to see exactly where and why leakage is occurring.
FAQs
Explore some of the frequently asked questions about leakage
PredictX offers a sophisticated approach to calculating the Total Trip Cost by considering all aspects of a trip, from transportation to accommodation and ancillary expenses. It uses proprietary algorithms and machine learning models to consolidate and analyze data, providing you with a clear understanding of the actual cost of sending an employee from point A to point B.
Ancillary costs refer to additional expenses associated with travel, such as baggage fees, in-flight purchases, and other supplementary charges that are not included in the base price of tickets or hotel rooms. PredictX helps you to identify and manage these costs by incorporating them into the Total Trip Cost analysis, ensuring that you have a complete picture of your travel expenses.
Yes, PredictX is designed to detect booking channel leakage by linking booking-side and payment-side data at a transactional level. This allows you to see not only where leakage is occurring but also understand the underlying reasons. PredictX also uncovers expensed spend that may not be categorized as travel, providing a more accurate assessment of your travel spend.
True leakage refers to travel bookings and expenses that bypass preferred channels or policies, often leading to higher costs and reduced visibility. PredictX reveals true leakage by capturing and categorizing all travel-related spend, even when it is mislabeled or not immediately apparent. This includes expenses that might be incorrectly categorized under different budget items, such as training or miscellaneous costs.
The impact of DetectX extends beyond financial savings and compliance. It helps to establish a culture of transparency, accountability, and ethical behavior within the organization, contributing to the cultural integrity of your company.
PredictX tracks and manages refunds and canceled bookings, which became particularly prevalent during the pandemic. The platform's robust tracking capabilities go beyond basic spreadsheets, ensuring that you can account for and reclaim unused tickets, thereby protecting your travel budget from unnecessary losses.
PredictX is continuously developing its applications to adapt to industry changes, including the New Distribution Capability (NDC) standards. The goal is to provide you with the tools to navigate the evolving landscape of travel distribution and pricing, enabling you to maintain optimal air and hotel programs and make strategic decisions based on accurate, real-time data.