Spending on business travel in China to rise in 2008
By Susan Avery -- Purchasing, 12/4/2007 9:55:00 AM
Fifty-three percent of companies responding to the 2007 China Business Travel Survey expect growth in business travel expenses in 2008, due to increasing development of business and trade in China and within the Asia Pacific region.
American Express Business Travel announced results of the survey, also known as the Barometer, at the third American Express China Business Travel Forum this week in Shanghai.
More than 200 Chinese and foreign companies with more than 100 employees in six key industries in Shanghai, Beijing and Guangzhou were polled by Research International for American Express. Among the survey’s findings:
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T&E expenditures are the second largest controllable expense for companies in China. The percentage of employees going on business trips is up from 28% in 2006 to 33% in 2007, and 60% of employees are generating T&E expenditures compared to 56% in 2006. Meals and entertainment continue to be the largest portion of business travel expenses, followed by air travel and hotels and other accommodations.
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More companies have policies for controlling T&E expenses: Eighty-one percent of the companies surveyed indicate they have a T&E policy, up from 70% last year.
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Compliance rates for T&E policies are improving. This year, 47% of companies have a compliance rate above 50%, up from 28% of companies last year, with similar compliance rates for both Chinese and foreign-owned companies.
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The number of companies using online tools to book business travel via the Internet increased 24% (61% this year, up from 37% last year).
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Almost half of the companies surveyed are using a travel agency for business travel, compared to 34% in 2006.
See also: Prices for travel expected to rise in 2008, says American Express
and Oracle’s procurement operation consolidates $600 million T&E spend.
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