Corporate travel spending to grow in 2010
NBTA reveals results of new survey on travel costs
Susan Avery -- Purchasing, 10/21/2009 2:51:21 PM
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With travel costs down, companies will be traveling more in 2010. That's the word from The National Business Travel Association (NBTA).
NBTA's new 2010 U.S. Business Travel Buyers' Cost Forecast shows that while air travel and car rental costs will essentially remain flat and hotel rates will decline next year, companies will travel more. What's more, survey results show that this growth will lead to an increase in travel spending.
Specifically, survey results show travel buyers expect these changes for these spend categories in 2010:
- Airfare (-2% to +3%). However, airline ancillary fees can increase the cost of a ticket by 30%.
- Hotel room rates (-2% to -8%).
- Car rental rates (-1% to -3%).
Other findings show:
- Sixty-nine percent of travel buyers expect corporate travel volume to grow in 2010.
- Fifty-six percent say spending on travel will increase in 2010. Another 31% say spending will remain flat, when compared with 2009.
- Buyers also expect to see an easing of travel and meeting reductions in 2010.
- Seventy percent of travel buyers expect to negotiate better hotel discounts for 2010, and more than 30% say they will negotiate better discounts with airlines and car rental companies.
"As the economic recovery begins taking hold in 2010, companies will take advantage of low travel costs to send employees on the road in greater volumes, thus fueling the recovery," Craig Banikowski, president and CEO of NBTA in Alexandria, Va.
"The uptick in business travel in 2010 will take place within the framework of a new corporate culture in terms of travel," he says. "In the 'new normal,' we see stronger travel mandates, greater use of pre-trip approval and audits, tighter restrictions on premium class travel, more focus on travel ROI and enterprise-wide strategic meetings management."
See also: Travel procurement professionals seek and find new ideas at NBTA conference
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