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PITTSBURGH, Penn. - As we mark the 200th anniversary of the birth of Charles Darwin, "Survival of the Fittest," the phrase he popularized, is more timely than ever in these tough economic times.

The travel business is just one of many industries hurt by the recession. A recent survey from the Association of Corporate Travel Executives found 71% of its member companies plan to spend less on travel this year than in 2008. Most are ready to cut budgets by 10% to 20%, compared to much rosier forecasts just last September. Hotels, restaurants, and convention centers are feeling the pain, along with airlines and ground transportation companies.

For perspective, it's important to understand that we are experiencing the worst financial crisis in our lifetime, as a downturn in housing led to the banking meltdown, frozen credit markets, investment losses, reduced consumer spending, and spiraling unemployment.

EARLY RESPONSE

To survive in this climate, operators needed to take action months ago on critical financial decisions:

Get A Budget

Most companies likely already have eliminated some expenses or downsized their fleets. However, the depth of this recession requires much greater response than ever before. If you have not implemented a budget, it is time to start. If you have a budget, then do a "sensitivity analysis" of what happens if revenues are 10% to 20% lower than budgeted. What does this do to your anticipated cash flow and how can you respond?

Cut Your Budget

Once you have completed this analysis, are there specific expenses you can reduce or eliminate? For instance, we lowered our mobile telephone charges by $1,000 a month simply by analyzing the bill and making appropriate changes for the service we need.

Find New Revenues

It's also important now to consider new sources of revenue. If your client mix is primarily corporate, perhaps there are opportunities to pursue retail business. If you have a relationship with a hotel sales department or a concierge for corporate conference work, you might leverage it into a relationship with the catering department to begin getting wedding and special event referrals. If you have mini-buses for corporate charter business, look for opportunities to provide some daily shuttle work.

Get Web-Savvy

What is the status of your website? Is it generating traffic to your business? Have you considered doing a Search Engine Optimization (SEO) or Search Engine Marketing (SEM) campaign? There is too much commerce being conducted through the Internet to not consider how you can drive more customers to your company through e-commerce.