What Travel Managers Are Doing to Handle Recessionary Times

Posted on October 20, 2008 by LCT Magazine

As the business community navigates a global credit crisis, uncertainty in major financial markets, and record spikes in fuel costs, many companies have implemented cost-saving initiatives at all levels. While cost containment has for many years been a major focus of travel managers, the recent developments have both highlighted the importance of effective travel management and prompted adjustments in some corporate travel programs.

To help the business travel industry understand those changes, the National Business Travel Association (NBTA) – the industry’s leading association – conducted two surveys of U.S.-based travel buyers in the middle part of 2008. The first survey ran July through September and garnered responses from more than 230 companies. The second survey ran mid-September through October 10, 2008 and garnered responses from more than 90 companies. The findings are presented below as a benefit to NBTA members.

Survey respondents noted sizable increases in business travel costs. A domestic business trip costs $140-175 more than last year, while international trips are ranging from $315 to $400 more per trip. In response to these increases, travel managers are implementing new cost-containment measures or ramping-up existing initiatives:

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

Additional travel cost-containment measures companies are implementing in today’s challenging
economy
• Moving to more coach-class air travel. Measures may include:
     o Eliminating premium-class on domestic trips
     o Tightening restrictions for premium-class on international trips (for example, increasing the minimum length of a flight for premium-class)
     o Offering cash incentives to those who choose economy over business or first
• Increasing use of online booking tools
• Bidding contracts/reducing #s of preferred suppliers
• Moving to lower-priced hotels
• More day trips (no hotel stay)
• Encouraging travelers to combine multiple trips into one
• Negotiating new airline deals for key city-pairs, sometimes with flat rates (instead of, or in addition to, more traditional network-wide deals with discounts)
• Negotiating rental car fuel surcharges, refueling costs, and other additional fees
• Examining relative costs of various modes of ground transportation, and adjusting policy accordingly (e.g., Is it cheaper for shorter trips to pay for airport parking than roundtrip cab or black car to/from the airport? Is it cheaper for some trips to use cabs locally in destination rather than renting a car? Does hotel offer airport shuttle? Is viable public transportation available?)
• Offering incentives for employees who take travel savings (e.g., cash incentive for taking coach when travel policy allows for business class)
• Implementing strategic meetings management programs (enterprise-wide meeting policies and practices)

View comments or post a comment on this story. (0 Comments)

More LCT Blog Blog Posts

September 13, 2017

Create A Handbook Your Employees Will Actually Read

Black and white words on a page are boring and uninspiring; here are some things to consider when creating a how-to guide for your company.

August 29, 2017

Billy The Coach: How To Plan And Prepare For Success

The LCT Summit keynoter starts contributing this week to our blog by asking: What is it you want bad enough to work for?

August 16, 2017

Don’t Let Poor Grammar, Spelling, And Punctuation Ruin Your Image

You are what you write. Make sure you leave a good business impression, especially on social media.

August 8, 2017

Behind The Screens: Why Face Time Matters

Computers and smartphones have conditioned us to text and email our way through life. Here’s how Millennials and managers can work together to break the habit.

July 31, 2017

Let's Not Make AI The New Y2K Scare

Machines will not take away all of our jobs any more than the Y2K scare ushered in Armageddon.

See More

Facebook Comments ()

Comments (0)

Post a Comment

Submit

Blog

See More

LCT Store

LCT Magazine - September 2017 $12.95 MOTORCOACH / BUS ISSUE COVER STORY: * Irizar Racks Up A Good Rookie Year * *



Connect

Experience the three annual industry events for networking for business, showcasing vehicles and products, and getting the tools for success.

Read About Your Region

What’s Happening Near You?
Click on any state to see the latest industry news and events in that region.

More From The World's Largest Fleet Publisher

Automotive Fleet

The Car and truck fleet and leasing management magazine

Business Fleet

managing 10-50 company vehicles

Fleet Financials

Executive vehicle management

Government Fleet

managing public sector vehicles & equipment

TruckingInfo.com

THE COMMERCIAL TRUCK INDUSTRY’S MOST IN-DEPTH INFORMATION SOURCE

Work Truck Magazine

The number 1 resource for vocational truck fleets

Metro Magazine

Serving the bus and passenger rail industries for more than a century

Schoolbus Fleet

Serving school transportation professionals in the U.S. and Canada

Please sign in or register to .    Close