Business travel bills set to rise in ’09
Monday, 10 Feb, 2009
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The cost of business travel is forecast to rise in 2009, particularly for hotel stays.
Almost half of travel managers asked in an AirPlus International Travel Management Study predict their company’s travellers will take more trips in the future despite tough economic times.
Although the practices vary based on the size of company budgets, the majority (58%) of travel managers interviewed share the view that the cost of business travel will rise this year, in particular the accommodation sector.
The study also reveals that the trends appear to be changing towards long-haul business travel in the UK, after enjoying the deflationary influence of low-cost carriers in recent years more than any other country in the world. Therefore, the cost of air travel is also predicted to rise.
The one exception to this trend is car hire, where costs are predicted to fall.
The results show that a quarter of companies in the UK still have no travel policy.
The study also found that less than half of British companies organise their travel centrally, falling behind the study average of 62%.
However, the majority of interviewees (65%) recognise this weakness, with plans to manage travel programmes on a more consolidated basis in future.
AirPlus International managing director Yael Klein said: “The UK is generally regarded as one of the more mature markets for travel management, yet British companies have a relatively small number of deals with airlines which does not allow them to yield their full savings potential.”
She added: “By examining the travel trends and views of more than 1,500 travel managers, we see that global businesses are travelling more and their travel budgets are increasing accordingly.
“It comes as no surprise that businesses are looking for tools that can help them uncover their savings potential and build compliance to their travel program.”
The study suggests that British businesses have the highest level of awareness in Europe about the environmental impact of their travel.
Furthermore, more than any other market in this study, the UK ranks the provision of traveller support more emphatically than the other countries, ranking it after the number one priority – cost reduction.
But only half of all UK companies interviewed receive either all or some of their travel invoices in electronic form.
The study shows that in total 17% receive electronic-only invoices, 36% a mixture and 46% paper-only invoices.
by Phil Davies
Phil Davies
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