Spend Caps: A Business Travel Essential

Spend Caps: A Business Travel Essential

The concept of “bill shock” has become a common concern for UK businesses who travel overseas. Bill shock occurs when people travel abroad for business and unknowingly stack up exorbitant charges for using mobile data, resulting in unexpected (and potentially extortionate) bills.

One of the most infamous examples of this concept in action is when travellers cross borders into Syria or Iran from Turkey. Providers in these regions have been known to charge unsuspecting travellers up to £6,000 per GB, resulting in completely unacceptable roaming bills and/or total loss of communication.

To combat this issue and ensure business travellers stay connected without fear of being overcharged, mobile spend caps have become a vital solution for UK firms heading overseas.

What is a Mobile Spend Cap?

A mobile spend cap is a predefined limit set on the amount a business or individual can spend on roaming charges during international travel. By implementing spend caps, businesses can avoid extra charges beyond their allocated allowance, effectively ruling “bill shock” out of the equation.

These caps provide flexibility, ensuring that irrespective of where the mobile device users head, the business retains full control over their data usage, without having to worry about unexpected costs. One less burden for the duration of the trip, enabling business travellers to focus more on doing business.

Working Example of a Mobile Spend Cap in Action

Put in practice in a typical example, a company could set a mobile spend cap of £500 for an employee travelling abroad. As the employee uses data during their trip, the usage is monitored and accounted for via a central dashboard.

When the employee’s data usage approaches the spend cap, the account manager receives an alert at 50%, 75%, 90%, and 100% usage. This real-time tracking enables the account manager to make adjustments to the agreed data cap, before reaching the individual’s spending limit.

What Happens if You Reach Your Limit?

If an individual user reaches their spend cap limit, service will be temporarily lost until the company’s account manager requests changes. To prevent unexpected disconnections, users receive a text message containing a data warning before they approach their agreed limitation.

This proactive approach enables users to contact their account managers and make necessary adjustments to avoid potential disruption.

Individual Alerts for Efficient Data Management

Spend caps and alerts are applied at an individual level, as opposed to being cumulative. This approach is more cost-effective as not all users will require the same amount of data. Additionally, account alerts at various usage thresholds help ensure that the data pool is managed efficiently while eliminating the risk of downtime for critical communications.

How We Calculate Spend Caps

At RoamingExpert, we work closely with our clients to determine appropriate spend caps, based on their unique travel plans, past usage patterns, and budget considerations. Our experts analyse data usage patterns, anticipated roaming costs in specific destinations, trip durations and more, in order to create a bespoke plan that aligns with the business’s needs and financial goals.

Our team will help you determine an accurate estimate for your total data usage requirements, along with a sensible spend cap that ensures you never exceed your budget.

Can Spend Caps Be Removed?

Yes, spend caps and alerts can be adjusted or removed anytime, based on the changing requirements of your business. Flexibility is crucial when setting up roaming agreements, as travel plans and data needs can evolve over time.

RoamingExpert offers the flexibility to modify spend caps to ensure the best possible roaming experience while making significant savings on conventional roaming charges.

Do I Really Need a Spend Cap?

Having a spend cap is essential for businesses for two reasons. Firstly, the fact that many countries still impose impossibly high roaming costs is remarkable, but is also the reality of business travel in many regions.

Secondly, silent background data usage on smartphones can accumulate substantial charges. Even when your device is seemingly in an idle state, it could still be using a great deal of background data and eating into your allowance.

Spend caps prevent both scenarios, providing cost control and avoiding excessive data consumption through managed limitations.

Discuss Your Needs with RoamingExpert

At RoamingExpert, we specialise in bespoke roaming agreements for business travel, tailored from scratch to suit all requirements and budgets. Our solutions are designed to save you time, money and hassle while ensuring a seamless and stress-free roaming experience.

Contact us today for an obligation-free consultation and discover how we can support your next business trip with a personalised roaming agreement.

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