As the economy continues to loom uncertain, corporate travel managers are poised to take action to rein in costs if necessary.
Through the end of last year and the beginning of this year, industry experts were bullish on business travel, with business travel predictions for volume and pricing nearing or exceeding pre-recession levels.
But a negative U.S. jobs report in early July, coupled with a Standard & Poor downgrading of the U.S. government in early August and ongoing economic problems throughout Europe, brought up the specter of a double-dip recession and put corporate travel departments on notice that growth might not continue at predicted rates.
To take an in-the-moment pulse on the potential effects of negative economic indices, AirPlus surveyed 152 corporate travel managers at the beginning of September about the state of their corporate travel budgets and plans.
The economic uncertainty was clearly reflected in the world of managed corporate travel. Survey respondents were nearly split when asked if they expected their company’s travel program to feel immediate pressure to control volume/costs in light of some economic indices and public sentiment about recovery turning from flat to negative. Nearly half – 47 percent – said yes, they did expect to feel immediate pressure, while slightly less – 41 percent – said no. Another 12 percent simply didn’t know.
Those who did expect to feel pressure to make changes were prepared to pull several cost-saving levers in the next six months. More than half anticipated stricter pre-trip approvals (58 percent) and shifting more travel to web conferencing or telepresence (56 percent). Significant numbers were also prepared to implement class of service restrictions on air (44 percent) or hotel (30 percent) and tighten other air policies (34 percent). Nearly one-quarter (23 percent) were even prepared to impose a temporary travel freeze.
Among the 19 percent who said “other,” several noted strategies revolving around stricter monitoring and adherence to policy and delaying or decreasing travel, although not an outright ban of all travel.
It is in this uncertain economic climate that corporate travel managers begin 2012 corporate negotiations, balancing the potential for budget and volume cuts against anticipated rate increases.
For your complimentary copy of the results, please click here:
Additional Resource:
Advito Projects Higher 2012 Travel Prices
Loading ...
Tell a friend
