Assessing the current state of corporate travel budgets and plans

As the economy continues to loom uncertain, corporate travel managers are poised to take action to rein in costs if necessary, according to a study.

AirPlus, which surveyed 152 corporate travel managers at the beginning of September about the state of their corporate travel budgets and plan, found that respondents were nearly split when asked if they expected their company’s travel programme 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.

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