Corporate Travelers Asked to Fly Coach, Downgrade Hotels
Friday, 21 Feb, 2013
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While PhoCusWright reports U.S. business travel spending—including air, hotels and car rentals—is projected to exceed $100 billion this year, up from $72.4 billion in 2009 and approaching pre-recession levels, corporate travellers are being asked to trade down to lesser hotels and are banishing even senior executives to coach.
According to the WSJ, "companies have aggressively sent workers back out on the road, but stricter travel policies emphasize utility over luxury, with some companies billing employees for incidental expenses—like in-flight snacks, checked-baggage fees and rental-car fuel surcharges if they forget to fill up the tank."
International airlines are feeling the hit. Cathay Pacific Airways Ltd. 0293.HK +0.14% and Hong Kong Dragon Airlines Ltd., which once reliably packed corporate travelers into their premium seats on long-haul flights, recently discounted fares and offered promotions to fill business-class seats, while Delta has added "Economy Comfort" seating as a lower-priced alternative to business class, reported WSJ.
Corporate travel departments are additionally working to save money by:
– Reducing their lists of preferred hotels to four or five in a given city, so they can consolidate volume to negotiate better rates
– Increasing use of videoconferencing
Charles Kao
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