Business travel on the rise, but cost cutting continues
07/06/2011 by WiT

GetThere Corporate Travel Benchmark Survey shows corporations are still heavily focused on reducing travel expenses even as business travel is increasing.

The 11th edition of GetThere‘s annual survey, revealed that while 2010 saw signs of recovery for corporate travel programmes, in 2011 the industry should see a greater increase in business travel.

More than half of respondents (54%) in Asia reported that they expect an increase in travel demand this year. Asia was the top region cited for growing travel demand. North America followed with 47%, trailed by Europe and Latin America at 37% each, and finally the Middle East at 29%.

Additionally, 61% of respondents expect their travel budgets to increase up to 10% in 2011 and nearly a third expect their travel budgets to increase up to 5%. However, corporations continue to drive down travel costs by achieving higher adoption rates of online travel booking tools like GetThere, the world’s leading travel and collaboration management solution.

“Even though the economy is rebounding and business travel is growing, corporations are using the lessons learned during the recession to continue to push for cost savings in their travel programmes,” said Grant Rattray, managing director of GetThere Asia-Pacific.

He added that online adoption rates continued to rise in every region, representing significant savings for corporations.

The average online adoption rates for GetThere’s customers increased for the 10th tenth consecutive year.

In Asia Pacific responding companies reported an average of 66% online adoption in 2010, up 1% from 2009.

GetThere’s top 10 performing customers reported an average high of 95% online adoption. The company’s online adoption remains well above the industry average of 51%, according to PhoCusWright’s U.S. Travel Distribution 2009 Report.

The higher online adoption rates resulted in greater savings for the respondents:

         •  An average savings of 70% on agency fees 

         •  An average savings of 18% and 24% on domestic and international airfares respectively 

         •  An average savings of 12% and 31% on domestic and international hotel rate respectively

         •  Average rental car rental savings of 4% domestically and 18% internationally

“This survey shows that GetThere is delivering on our promise to help corporations and the travel management companies who support them generate savings through increased online adoption rates, visual guilt and dynamic messaging and an efficient user interface,” Rattray said.

Corporations wrap ancillary fees into travel policies

In 2011 more corporations are addressing ancillary fees in their travel policies as airlines continue to introduce extra fees. In general, most companies are reimbursing travellers for their first checked bag. However, the survey showed 16% drop in companies that reimburse travellers for a second bag. Companies reimbursing for on-board food and beverage and Wi-Fi increased by 13% and 20% respectively.

“Ancillary fees are here to stay and corporations are developing smart, thoughtful travel policies for these extras that maximize travel budgets and meet employees’ needs while on the road. On-board Wi-Fi is clearly viewed as a valuable productivity tool by more and more corporate travel managers” said Rattray.

Mobile space continues growth in meeting travellers’ needs

As corporations continue looking for new technologies and methods to save time and money when it comes to travel programmes mobile tools are invaluable. The mobile space continues to be a growth space for the travel industry. For the second straight year respondents ranked obtaining flight information as the most important feature of a mobile solution, while booking flights and hotels ranked second and third respectively.

• An executive summary of the survey results can be found here.

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