Companies Cut Travel Costs But Not Trips, Study Finds

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Monday, June 23rd, 2008 Subscribe To Our Feed

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TAMPA - Rather than reduce business travel because of the lagging economy, corporate travel managers are booking rooms in less-expensive and lower-rated hotels and increasing day trips in lieu of overnight hotel stays, according to a survey by OrbitzForBusiness.com.

Sixty percent of 610 respondents said they are traveling as much, if not more, on business this year than last, says the report, which was scheduled to be released this morning.

However, companies are reducing trade show and conference travel, with 44 percent either sending fewer people or simply not attending shows this year.

The Orbitz for Business/Business Traveler Magazine Trend Report was conducted online May 15 to 23.

“Most clients aren’t cutting back on travel; rather, they continue to look for ways to become more cost-effective with their managed travel programs in a cost-conscious economy,” said Dean Sivley, senior vice president and chief operating officer of Orbitz for Business.

The survey found that:

•41 percent are tightening travel policies and implementing more restrictions on travelers for hotels and dining.

•47 percent indicate changes to their company’s rental car policy, including requiring employees to rent the smaller/least-expensive car available (38 percent) and return vehicles with a full tank of gas to avoid costly surcharges (20 percent).

•42 percent are exploring alternatives to travel, including video conferencing.

•32 percent say the area in which they are most limiting or keeping an eye on spending is air travel, and 17 percent say their company’s per diem spending for meals has decreased in the past year