How U.S. Companies Are Cutting Travel Costs

U.S. business travel will grow by almost 4 % yearly through 2016, based on the Global Business Travel Association (GBTA) Foundation’s fourth annual business travel report, titled “GBTA BTI™ Outlook – Annual Global Report and Forecast, Prospects for Global Business Travel 2012-2016.”

However with travel costs almost to pre-recession prices, information mill concentrating on cutting costs and controlling spending. The means by which information mill cutting travel costs was addressed in another GBTA Foundation study.

The research backed by Concur, a number one provider of integrated travel and expense management services, surveyed 1788 travelers within the U.S., Canada, Australia and India. The outcomes from the survey printed in May demonstrated:

Several third of travelers surveyed stated that less colleagues are permitted to go to conferences than last year.

In regards to a quarter of individuals surveyed stated much more of their business journeys have spending limits than last year.

Greater than 40 % surveyed stated their business-travel expenses are scrutinized more carefully.

About one fifth surveyed operate under mandated travel programs, which require these to use company-approved airlines, hotels and vehicle rental companies.

Roughly 1 / 3 work for an organization which has no preferred travel vendors, while nearly half fall among – their employer encourages these to use specific airlines, hotels and vehicle rental companies, but don’t want it.

Information mill also reducing travel costs by using videoconferencing equipment, reserving rooms at less costly hotels and reducing the amount of employees delivered to conferences.Â

To help keep a more in-depth eye on spending, some companies have produced individual profiles within their online booking systems.

A lot of companies negotiate discounted rates for air travel tickets, rooms in hotels and car rentals via a corporate travel agent or directly with travel companies by promising them some business.

Aviation Industry Be Aware

Based on Michael W. McCormick, GBTA executive director and COO, the objective of the GBTA Study 2012 would be to comprehend the individual requirements of business travelers to assist companies keep travelers productive and motivated. The GBTA hopes the study will be utilised by the travel industry and guide marketing strategies and cool product development to meet the requirements of road players.

Aviation companies, including FBOs, pilots and aircraft manufacturers should be aware, and think about adapting their marketing tactics to attract the brand new method in which corporations are handling their business travel. For instance, being a preferred travel vendor on corporate lists.