17 June 2009

Business travel restrictions are here to stay, says ACTE survey

Many restrictions on business travel imposed due to the recession are here to stay, according to a survey compiled by ACTE.

The survey, released to mark the first Business Travel Market which starts today at Londonââ¬â¢s ExCeL, found that6 86.2% of travel buyers said the recession had forced cost cutting measures and many will be retained after full economic recovery.

ââ¬ÅâœIt would appear that some of the travel restrictions that were forced on many business travellers have proved workable and will be here to stay,ââ¬~ said Paul Robin founder of Business Travel Market.

ââ¬ÅâœThe recession hit us fast and travel buyers responded quickly to fine tune their travel management policies and budgets.

ââ¬ÅâœThe survey that we conducted in conjunction with ACTE implies that the changes have worked to reduce costs, business has continued and when we return to financial stability those changes that have worked well will remain in place.

ââ¬ÅâœIt would appear for the moment that cost saving comes before convenience and there is more focus on compliance to policy and reason to travel.ââ¬~

The survey foundââ¬~

79.2% of buyers are making greater use of conference call, webex and tele presence

67.9% have cut back on the number of approved trips

66% reported that they now book further in advance for lower cost options

49.1% said class of travel had been downgraded

7.5% reported a total travel ban

26.4% reported a travel ban for non-revenue generating trips.

31% reported an increased use of rail service to and within Europe, for environmental rather than cost cutting reasons

Of the buyers that use a travel management company, only 13.8% thought they didnââ¬â¢t add value

65.5% said TMCs did add value because they provide best fares and rates and data crucial for efficient management and provide vital 24/7 support.


By Bev Fearis

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• Recession and Beyond...
  
  

  You can discuss the issue and crisis as you like...but what will stay is the continuous squeeze on cost savings. So the results of the study just underline: the fat and comfortable days are over for now: Many Travel Managers and corporates will try to streamline their travel expenses in a strategic sense. Suppliers have to acknowldege that and trim their offers and products accordingly - if that want to stay in business.

  By andreas w. schulz, Monday, June 22, 2009