23 July 2008

Top UK firms rule out travel ban

A report from the UK says that few British companies have plans to impose a freeze on business trips despite the economic downturn and increasing cost of flights, though most say they are limiting non-essential travel.

Of the 175 companies surveyed by the Institute of Travel Management, 80% said they would avoid non-essential trips by making greater use of alternatives such as video conferencing.

Some 20% of firms said they hadnÃ¢â¬â¢t ruled out a travel ban, but they believed this would be a short term measure only, lasting no more than three months.

ITM's survey suggests that, as yet, spiraling energy costs have only moderately affected travel costs (42% of respondees), and over a third reported that increased electricity and gas prices have had no real impact. The price increases have caused only a tiny minority to reduce travel as a result, said a ITM spokesman.

But Colin Goldney of Argate Consulting, ITM's research partner, warned that companies forced to limit business trips now might be reluctant to increase travel when the economy picks up.

"Behavioural change due to economic and environmental factors suggest we may be about to witness a paradigm shift in the business travel sector,Ã¢â¬~ he said.

Ã¢â¬ÅâœIf companies look to technology over mandating travel bans, this presents different options for the future."

"When the economy picks up, changes in behaviour due to increased exposure to video conferencing could result in executives travelling far less than before."

Ã¢â¬ÅâœThe answer to the question of whether this is really likely to happen is the same as the answer to whether we are moving into recession."

A Report by Linsey McNeill