Corporate travel departments tightening rules

A new study by Rearden Commerce reports that 88 percent of corporate travel managers have seen a "marked increase in stringent policies and tighter requirements for pre-trip approvals" as companies try to reduce their travel budgets.

It's yet another ominous sign for airlines when it comes to passenger demand. Business travelers are the lifeblood of the airlines, because that's where they make most of their money. So cutbacks in corporate travel will definitely have an impact, even more than reduced flying by leisure travelers.

The survey also found:

• 71 percent of travel managers are seeing a significant decline in the number of business trips overall. 

• 82 percent say price has now taken precedence over comfort and convenience; a drastic shift from the first half of 2008.

• 68 percent say compliance is the top priority for businesses in order to drive cost-savings. They expect to see more stringent policies in areas including pre-trip approvals and advance ticket purchasing.

• They also expect to see an increase in Web-conferencing, less-expensive hotel bookings, day trips for business and encouragement for employees to self-modify business travel habits.

- Trebor Banstetter

Comments

[ac130guy]

I'd like to keep my right seat at AA for the long-term and I'm willing to work with the company - the devil you know etc... - to make that happen. I hope Mr. Hill and the rest of our APA leadership will come to the same conclusion that the rest of the world has - it's a new day and a new economy. Wake up to the reality of our - "our" meaning presently employed pilots - situation!

[David Lee]

Apparently (and perhaps for the first time ever) corporate frequent fliers are reacting positively to their companies tightening their travel policies.