Business travel habits change

A survey compiled and released to mark the first Business Travel Market at London’s ExCeL exhibition centre reports that the recession has forced business travel habits to change. A cross section of travel buyers from UK and Europe were surveyed and 86.2% said the recession had forced cost cutting measures, many of which would be retained after full economic recovery.

Of the cutbacks detailed, the highest response for change was that 79.2% are making greater use of conference call and web-based technologies. 67.9% have cut back on the number of approved trips, 66% now book further in advance to take advantage of lower cost options and 49.1% said class of travel had been downgraded. Only 7.5% reported a total travel ban, although 26.4% reported a travel ban for non-revenue generating trips.

Other cutbacks mentioned included holding same day meetings to avoid overnight stays, shorter stays, multiple meetings in the same trip, greater use of low cost airlines and public transport and a reduction in the use of limos and taxis.

Whilst those surveyed who will retain restrictions when financial stability returns, the top three measures most likely to remain were: continued and greater use of conference call and associated web-based technologies; early booking of lower cost travel options; and a downgraded class of travel policy.

Surprisingly, 31% reported an increased use of rail service to and within Europe, for environmental rather than cost cutting reasons, indicating that environmental concerns remain high on the corporate agenda. Finally, of the buyers that use a travel management company, 65.5% felt they provided best fares and rates and provided crucial data for efficient management of travel and offered 24/7 support. Only 13.8% thought they didn’t add value.

APA supports the need for a more strategic approach to cost effective business travel and encourages Members to work within their business to reduce excesses and unnecessary stays away from home. It is far more cost effective to travel on the same day; starting early and returning late and working for half day the following day or working from home than it is to fund an overnight stay.

Gareth