Guide to T&E Pricing Models

Guide to T&E Pricing Models & Key Cost Drivers

Travel & Expense (T&E) software pricing varies widely by provider—not just in cost, but in how you're charged and what's included. The two most common approaches are user-based and transaction-based pricing, and the right one depends on how your organisation actually uses the platform.

What is user-based (seat-based) pricing?

User-based pricing means you pay based on the number of employees who have access to the platform. This can make sense for static organisations with predictable usage and a fixed number of users. But it comes with trade-offs. You may pay for licenses that go unused, light users cost the same as frequent ones, and growth often means renegotiations. Limiting access to control costs can also create workarounds that increase compliance risk.

What is transaction-based pricing?

Transaction-based pricing means you pay based on how much the platform is used, such as expense reports submitted or trips booked. This shifts the focus from who uses the system to how much it's used, so costs scale with actual activity rather than headcount. It's designed to avoid wasted spend on unused seats and to grow with your business through predictable, tiered volume levels.

Which T&E pricing model is right for you?

The right T&E pricing model comes down to flexibility, transparency, and long-term value, not just sticker price. Our full guide breaks down the pros and cons of each approach, the questions to ask before you buy, and how to estimate the right transaction volume for your business.

Talk to an SAP Concur solutions expert today to get a quote tailored to your business.