Over Half Travel Booking Companies Consider Carbon Footprint
Saturday, 06 Sep, 2009
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54% say carbon footprint important consideration, 53% rate environment as a top factor when choosing a travel provider, 60% would opt for hotels with viewable carbon footprint
New research commissioned by HRS.com reveals that corporate travel managers and buyers have gone full circle and are now taking back the reins of travel procurement by re-centralising their business travel budgets. The UK Companies Travel Barometer reveals 49% of procurement departments are taking the lead once again in buying corporate business travel as the recession continues to take its toll and companies look to make significant savings in every department. The figure reveals a 21% increase in re-centralisation compared to last year and follows years of decentralisation and autonomy for corporate travellers.
The HRS.com UK Companies Travel Barometer 2009 takes a snapshot look at corporate travel trends for 2009/10 and reveals that, as well as re-centralisation, another rising factor influencing procurement directors is their company’s CSR policy. Over half (54%) of companies state that their carbon footprint is an important consideration when organising business travel and 53% rate environmental issues as one of the top factors influencing decisions regarding a new travel provider. Nearly 60% of UK companies would opt for a preferred hotel supplier if they’re carbon footprint was available to view.
Another key trend in business travel buying habits is a significant fall in TMC usage with only 1 in 3 companies in the UK now using their services – down from 47% in 2008. Two thirds of companies (66%) now book travel without a TMC, an increase of 20% on last year (48%)
Of those that do use a TMC, only 68% believe the service levels they receive deserve the management fees charged – a drop in satisfaction of 22% on last year. Procurement managers are now twice as aware as they were last year (22% vs 11% in 2008) that TMCs push them towards using their preferred suppliers rather than the most cost effective option
The Barometer also reveals increasing democratisation in travel as companies enforce stringent cost cutting measures in order to control travel spend:
- 40% have implemented economy class only as standard company policy regardless of seniority
- Standard rooms only are the norm now for 72% of companies
- Just one in five trips now require an overnight stay (21%) vs 40% last year
Says Jon West, Commercial Director, HRS, ‘Current budget pressures are making it increasingly important for companies to take advantage of all cost-cutting potentials at their disposal.
As a result more companies are looking towards transparency and standardisation as a way to save money. Direct booking specialists such as HRS.com are reaping the benefits of this change in travel buying habits as procurement departments increasingly realise the savings to be made by using specialist independent agencies with no hidden agenda or preferred suppliers. This year alone HRS.com has helped over 20,000 companies to switch from offline to online bookings, resulting in an increase in corporate hotel bookings via its service.’
The UK Companies Travel Barometer found that whilst UK expenditure is down for over two thirds of companies, with travel budgets either remaining static or decreasing in 2009, the recession is proving to be beneficial to the independent hotel sector. The use of independent hotels has doubled compared to last year as companies look to avoid expensive chain hotels but still require the convenience of city centre locations that the budget chains cannot provide.
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