With a lagging economy causing many travelers to change their ways, more than two-thirds (68%) of those surveyed this month by Orbitz for Business (http://www.orbitzforbusiness.com) and Business Traveler Magazine say they are now staying at less expensive/lower star-rated hotels to save on travel costs. Additionally, a large majority of business travelers and corporate travel managers, 79%, are feeling some degree of pressure to cut travel expenses, leading to myriad changes in traveler
behavior in the corporate travel marketplace.
These are among the key findings of the first ever Orbitz for Business/Business Traveler Magazine Quarterly Trend Report, which examines the most prevalent issues affecting the corporate travel industry today.
While the report shows that many business travelers are in fact traveling differently, they aren’t necessarily cutting back — as more than half (60%) say they are conducting as much, if not more business travel in 2008 compared with 2007.
“This report reinforces what we’ve been hearing from our customers: 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 COO, Orbitz for Business. “It’s our mission to give businesses and business travelers the tools, resources and strategic direction they need to manage an efficient travel program during these challenging times.”
A significant segment where companies and travelers alike are cutting back is trade shows and conferences. Almost half (44%) report that they, or their company, are planning to attend fewer trade shows this year, or will simply send fewer employees to those events that are being attended.
Another notable trend is that of business travelers taking more day trips. Twenty-five percent of respondents say that when possible, they are now flying in and out of a business destination the same day more often, rather than spend a night in a hotel.
The report found that companies are implementing a number of different strategies in an effort to be more operationally efficient.
— 41% are tightening their travel policies and implementing more restrictions on travelers for hotels and dining
— Nearly half, 47% of those surveyed, indicate changes to their company’s rental car policy, including requiring employees to rent smaller/least expensive car available (38%) and return vehicles with a full tank of gas to avoid costly surcharges (20%)
— 42% are exploring alternatives to travel, including video/web conferencing
— One-third, 33% of respondents, are urging more travelers to use an online booking tool
International Travel
International travel is another area where some companies are scaling back. Thirty-three percent of those surveyed say their companies are currently doing less international travel as a way to save.
Additionally, the Orbitz for Business/Business Traveler Trend Report found that of those who do travel internationally, 56% say they are allowed to fly business class for long-haul flights. Of the 44% who are not, 10% say their company policy has changed in the past year.
This supports a recent International Air Transport Association report, which found premium air traffic shrank 3.9% in March compared with the same month last year, as the number of international air travelers flying in business or first class fell by its largest amount in five years.
Other report findings include:
— 67% of respondents are more apt to stay at a less expensive hotel if it offers amenities like free Wi-Fi and/or continental breakfast, over a more luxurious hotel that does not offer these perks
— 32% say the area in which they are most limiting or keeping an eye on spending is air.
— 17% of those surveyed say their company’s per diem spending for meals has decreased in the past year
METHODOLOGY
The Orbitz for Business/Business Traveler Magazine Trend Report was conducted online from 5/15/08 through 5/23/08, through a MarketTools survey of 610 Business Traveler Magazine subscribers.
About Orbitz for Business
Orbitz for Business (http://www.orbitzforbusiness.com/) is the corporate travel brand of Orbitz Worldwide. Orbitz for Business serves over 2,000 corporate customers and more than a million business travelers. Launched in 2002, Orbitz for Business was one of the first full-service managed business travel programs offered by an online agency. Orbitz for Business includes a portfolio of business travel products for small to large companies. Its products include self-managed services for small business, managed travel services with fulfillment and service support and international capabilities.
About Orbitz Worldwide
Orbitz Worldwide (NYSE: OWW) is a leading global online travel company that uses innovative technology to enable leisure and business travelers to research, plan and book a broad range of travel products. Orbitz Worldwide owns and operates a portfolio of consumer brands that includes Orbitz (http://www.orbitz.com), CheapTickets (http://www.cheaptickets.com), ebookers (http://www.ebookers.com), HotelClub (http://www.hotelclub.com), RatesToGo (http://www.ratestogo.com), the Away Network (http://www.away.com), and corporate travel brand Orbitz for Business (http://www.orbitzforbusiness.com).
For more information on how your company can partner with Orbitz Worldwide,
visit http://corp.orbitz.com/.
About Business Traveler Magazine
With ten editions and a worldwide distribution of over 500,000 copies, Business Traveler is the world’s leading publication geared towards frequent business travelers. BT offers practical travel resources, destination features, first-hand reviews, convention city reports and a series of special supplements, including the annual business-class airline comparison study, 4-Hour guide and this year added First-Timer’s Guides to Russia and China.
In addition to BT’s monthly features, visitor guides, lifestyle reports and weekend guides, each issue also includes special reports ranging from international business-etiquette tips to preventing identity theft and the growing trend of mixing business trips with vacations. Business Traveler is also the only magazine in these categories that also offers both a weekly newsletter and a monthly digital edition: See more at
http://www.btusonline.com.
The U.S. edition of Business Traveler magazine is published in New York City 10 times a year with a circulation of over 150,000 in the U.S., and just celebrated its 20th anniversary.