New Research Examines the Impact of Economic Downturn on Business Travel
Contact: Caleb Tiller, +1 (703) 684 - 0263 x 138
Nicole Hayes, +1 (703) 684 - 0263 x 133
Alexandria, VA (October 20, 2008) – The National Business Travel Association (NBTA) today released the findings of a comprehensive study that reveal the significant impact the global crisis is having on business travel. The research shows corporate travel managers are finding creative ways to contain rising travel costs while fulfilling businesses’ strategic need to travel.
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Top five things corporate travel managers are doing to contain air travel costs
1. Emphasizing advance purchase of air tickets
2. Encouraging or requiring less air travel
3. Sending fewer employees to conferences
4. Strengthening mandates/enforcement of travel policies
5. Driving people to travel alternatives (e.g. web-based meetings)
Top five things corporate travel managers are doing to contain ground transportation costs
1. Refueling before returning car rental
2. Sharing ground transportation costs with other employees
3. Moving to smaller, less expensive car rentals
4. Renting more fuel efficient cars (non-hybrids)
5. Using more public transportation when traveling |
NBTA surveyed corporate business travel managers from various companies to learn how they are implementing new travel management measures to cope with sizable travel cost increases. With 320 survey responses, the findings show that travel managers are implementing policy and process adjustments to manage additional fees, increased fares, and reduced budgets for travel.
Highlights from the research findings include:
- More than 50 percent of travel managers say new airline fees are having an impact on their planning and they are encouraging less air travel and eliminating all non-essential corporate travel.
- 76 percent of survey respondents believe that airlines are in fact misleading the public with their “low” and “advertised” fares by adding substantial fees.
- 83 percent of respondents indicate that re-introduction by airlines of minimum stay requirements – such as Saturday-night-stay – will increase business travel airfares. A significant percentage of travel managers encourage travelers to consider staying over a Saturday night if the difference in airfares is greater than the hotel and meal costs.
- Travel managers are promoting travel methods like ride-sharing, using public transportation, and suggesting alternatives like Internet-based meetings for business dealings.
NBTA’s research shows that there have been increases this year in the average costs of both domestic and international business trips:
• Respondents indicate domestic trips now cost $140 - $175 more than at the end of 2007.
• International business travel costs have increased $315 - $400 per trip since December of last year.
“Travel managers are coping with the unpredictability of fuel costs, weak financial markets, and the global credit crisis, and assessing the impact on their companies,” said NBTA President and CEO Kevin Maguire, CCTE, GLP. “NBTA plays an integral role in helping travel managers and their employees understand how to better manage corporate travel needs. Through this research, we are providing timely insight on how the business travel industry is dealing with the challenging economic landscape.”
NBTA’s research, Maguire said, is a tool for travel managers to help modify corporate travel programs and policies while also shedding additional light on how factors such as ticketing restrictions and increases in travel pricing relate to corporate budgeting.
NBTA Executive Director and COO Bill Connors, CTC, added, “As we approach 2009 with a sober economic outlook, NBTA is doing its part to help business travel consumers understand the importance of streamlining travel needs and implementing clear cost-cutting techniques. Businesses that strategically manage their travel during these challenging times will be better positioned for success.”
NBTA conducted two surveys over a four-month period in 2008. For more information or a copy of the full report, please visit http://www.nbta.org/Research/Surveys.
The National Business Travel Association (NBTA) is the world’s premier business travel and corporate meetings organization. NBTA and its regional affiliates – NBTA Asia Pacific, NBTA Canada, NBTA Mexico, and NBTA USA – serve a network of more than 15,000 business travel professionals around the globe with industry-leading events, networking, education & professional development, research, news & information, and advocacy. NBTA members, numbering more than 4,000 in 30 nations, are corporate and government travel and meetings managers, as well as travel service providers. They collectively manage and direct more than US$200 billion of global business travel and meetings expenditures annually on behalf of more than 10 million business travelers within their organizations. For more information, visit www.nbta.org.
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