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Our product will help to address issues for travelers, their managers, and auditors. For the primary user (the travelers themselves), we will make both business trip planning and reimbursement easier so that they can spend time working on the main parts of their jobs. Currently, if you consider a salesperson traveling driving regularly from Boston to NYC on sales trips:
- 225 miles (Distance between Boston and NYC) * $.50/mile (IRS reimbursement per mile) * 2 trips (Round trip) = $275$225/week
- Assume the hotel is an average of 10 miles away from the clients on that trip, and they visit the client 5 days a week: 10 miles * $.50/mile * 2 trips * 5 days = $50/week/employee
- Assume that salespeople travel twice a month: $550/month/employee
- Assume that 5% of the company uses this system in a 500 person company
- Of these 25 employees, 10 employees actually use this system, because they own a car.
- Value saved by the company: 10 employees * $550/month * 12 months/year = $66,000 / year
Our program provides the value proposition of planning, reimbursement, and auditing.If there is an overcharge of 10% on the mileage (for instance, if they regularly round up from 225 miles to 250 miles), that works out to $660 / year / person waste on mileage expenses. Depending on the size of the company, that could be a major waste of money, and an opportunity to introduce a more accurate system. The same trip would require a minimum of 2 map printouts per week on the part of the employee, which would certainly get annoying!