Business travel spending set to rise

5 October 2010
5 October 2010 | Angeline Albert

Buyers of business travel should expect an upturn in spending, according to a global survey of executives serving more than 12 million business travellers.

Just over half the European companies quizzed, and 43 per cent of those in the US, expect their travel spend to increase by between five and 15 per cent, the survey from the Association ofCorporate Travel Executives (ACTE) found.

Most of the respondents (66 per cent from Europe and 60 per cent from the US) expect their company’s employees to travel more in 2011 than in the two previous years of the recession.

“Business travel has always been held up as a key performance indicator of any economy, and the findings from the survey shows that economic performance may well move ahead, across the globe, next year,” said ACTE president Chris Crowley.

To control costs, almost three-quarters of US respondents (73 per cent) will be encouraging or even mandating the use of preferred vendors. Just over half will be encouraging or mandating the use of travel alternatives “when travel can be replaced”, while 57 per cent will encourage or mandate for hotel booking through preferred channels. The results are similar from European respondents.

Only 11 per cent of European member companies (16 per cent in the US) plan to control costs by “managing a previously unmanaged aspect of travel, such as corporate housing or parking”. 

As for encouraging shorter trips, this is planned by only 5.4 per cent of US respondents and 6.4 per cent of those from Europe, the survey found.

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