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Item 5 - ZA18-006 Parking Analysis with appendix1 CERTIFY SPENDSMART™ REPORT: 2016 Year in Review 2016 Year in Review Travel & Entertainment Expense Management Trends With new and disruptive sharing economy services for the business traveler entering the mainstream, 2016 was truly an amazing year of change for corporate travel and the accounting professionals who manage the process. Check out some of the past year’s highlights and top stories, including expense category spending benchmark averages from the latest Certify SpendSmart™ Report. Category 2016 Expense Percent Meal 19% Airfare 15% Hotel 14% Misc. 13% Fuel 11% Taxi 9% Cell Phone 5% Car Rental 5% Supplies 5% Shipping 2% Toll 1% Parking 1% Category 2016 Average Expense Cost Increase/decline from 2015 Meal $27.02 + Airfare $316.17 + Hotel $210.91 – Misc. $68.20 + Fuel $29.77 – Taxi $27.90 – Cell Phone $89.00 – Car Rental $190.74 + Supplies $108.89 + Shipping $99.24 + Toll $24.38 + Parking $34.10 + HOW THE T&E EXPENSE BUDGET WAS SPENT IN 2016 Percent of total annual company travel and entertainment spend by expense category based on nearly 40 million business traveler receipts and expenses processed by the Certify system in 2016. AVERAGE TRANSACTION COST BY EXPENSE CATEGORY The majority of expense categories increased in average cost per transaction from 2015. Of interesting note, “miscellaneous” expenses increased more than $12 in 2016, nearly 13% of all spending, and “taxi” increased more than 5% from 2015 with an average cost of $27.90 per transaction. These trends are both attributable to the soaring popularity of ride- hailing service Uber, as without clear policies business travelers are often uncertain how to treat these services and categorize their expenses in the best available way. The majority of expense categories increased in average cost per transaction from 2015 2016 Year in Review Travel & Entertainment Expense Management Trends 2 CERTIFY SPENDSMART™ REPORT: 2016 Year in Review SHARING ECONOMY TRENDS There was perhaps no bigger story in 2016 than the shake up in the ground transportation category, led by ride-hailing pioneer Uber. With continued momentum in the fourth quarter of 2016, Uber now has the largest share of ground transportation overall; first time above 50% in the Certify SpendSmart Data. In addition, while at just over 4% of rides, Lyft increased its share of ground transportation transactions in 2016 at a faster rate than its larger rival. However, Uber seems to be capitalizing on its leadership position with food delivery service, UberEats. Introduced in December 2015, UberEats now represents 6% of the overall food delivery service category. ELSEWHERE IN THE SHARING ECONOMY AirBNB has doubled in transaction growth year over year since 2014 and now represents .27% of the total lodging category for Q4 2016. While still under 1% of the total, Airbnb’s growth is significant in this context. For example, Certify reports on the top 15 hotels by expense percentage with Hampton Inn in the number one spot at 8.82% and Residence Inn in last place with 1.18%. Looking at average room nights, business travelers also stayed longer with Airbnb compared to traditional hotels; 4.51 to 2.58 nights, respectively. CRAIGSLIST COMES ON STRONG Sharing economy original Craigslist.org also found new life in the 2016 Certfy SpendSmart™ Report. For the first time since Certify began reporting on business travel trends in 2013, data shows the venerable online marketplace made up .53% of the general cash expense category in Q4 2016. This is notable, as more common expenses like WiFi accounted for just .40% of the cash category in the same quarter. Airbnb Business Travel Usage • Doubled in transactions year over year since 2014 • Accounts for .27 of total lodging category in 2016 • 4.51 average nights compared to 2.58 hotel Craigslist.org was .53% of general cash expenses in Q4 2016 More common expenses like WiFi accounted for just .40% For taxis, 2016 was the toughest year as it rapidly accelerated its decline, down more than 37% since Q1 2014. In addition, car rental had its largest recorded decline in Q4 2016, dropping more than 3% from the previous quarter. Q4 2015 Q4 2016 FY 2016 Growth Lyft 2%4%551% Uber 40%52%254% Taxi 20%11%102% Rental Car 38%33%150% Q1 2016 Q2 2016 Q3 2016 Q4 2016 Lyft 2.36%3.26%3.63%4.30% Car Rental 40.01%37.35%36.27%32.93% Taxi 14.23%13.95%12.05%11.03% Uber 43.40%45.44%48.05%51.74% Lyft Uber Taxi $24.99 $24.75 $34.62 QUARTERLY GROUND TRANSPORTATION SHARE FOR 2016 AVERAGE COST PER RIDE (Q4 2016) OVERALL MOST EXPENSED VENDORS The ride-hailing revolution puts Uber in the number one spot with 6% of all transactions in 2016. Starbucks, Delta and American Airlines took two, three and four, respectively, with Amazon rounding out the top five for another somewhat unexpected showing. MOST EXPENSED VENDORS BY CATEGORY Traditional business travel brands took all the top spots for hotel, meals, car rental and airfare. National Car Rental is the clear leader in its category with 25% of expenses and receipts. THE BRANDS BUSINESS TRAVELERS LOVE MOST The highest rated brands of 2016 based on full-year SpendSmart user rating averages. Here, again ,more traditional travel vendors were rated best in their categories. Want to learn more about the Certify SpendSmart™ Report? Contact Certify at 1-888-925-0510 or visit Certify.com/CertifySpendSmartReport.aspx About Certify Certify is a web-based provider of expense management and travel booking software. Using mobile software and web-based interfaces, Certify helps companies enforce travel and expense policies and streamline expense reporting while controlling overall costs. CERTIFY SUPPORT Phone: 888-925-0510 Email: support@certify.com CERTIFY SALES Phone: 888-925-0510 Email: sales@certify.com COMPANY HEADQUARTERS 20 York Street, Portland, ME 04101 Phone: 207-773-6100 www.certify.com © 2017, Certify Uber 6% Starbucks 4% Delta 4% American Airlines 4% Amazon 3% Hotel Hampton Inn 9% Meals Starbucks 5% Rental National Car Rental 25% Airfare Delta 4% Hotel Homewood Suites 4.3 Meals CHICK-FIL-A 4.5 Rental Enterprise Rent-A-Car 4.3 Airfare JetBlue 4.5 3 2016 Year in Review Travel & Entertainment Expense Management Trends