One out of four
companies increased their corporate travel budgets in 2004 compared
with 2003, according to WorldTravel BTIs annual client survey.
Although this may
indicate a trend in the travel industry, it should be noted that
one-third of those firms surveyed reported a decrease in spending,
while the remaining reported no change.
Just over one-third
(35%) indicated major adjustments to their company travel policy.
Preferred-vendor compliance (54%) led the policy alterations. Other
changes included mandated policy compliance (32%), mandated use of
a particular travel agency (21%) or online booking tool (21%) and
flying coach instead of first/business class (21%).
Increasing employee
adoption of corporate online booking tools is an ongoing trend.
Although the average respondents online adoption rate for corporate
travel is approximately 35%, some respondents reported adoption
levels in excess of 70%. For example, companies with strict
mandates report adoption rates almost twice that of companies
without mandates.
It should be noted,
however, that only 5% of those polled currently apply a strict
mandate to their online-booking program, while one-third of the
respondents apply a soft mandate, and 65% have no
mandate.
Survey results show
that nearly one-third (30%) of respondent companies manage meetings
through the corporate travel department. Ninety-one percent state
that the travel department leverages transient and meetings air
spending to maximize discounts.
Art Pfenning is
the research director for Northstar Travel Media, Travel Weeklys
parent company. For information on how research can help your
business, or if you are interested in having NTM Research conduct
your next project, contact Pfenning at twedito[email protected].