Confidence improving in business travel sector

Confidence improving in business travel sector

Members of the Association of German Travel Management (VDR) have revealed an increasingly positive outlook in the business travel sector.

Ahead of ITB Berlin – the world’s leading travel convention - later this week, members of VDR were asked to predict what the impact of the world economic and financial crisis would be on business travel during the current business year.

In response, more than half of those polled - including suppliers, as well as German companies with their own travel management departments – revealed they were confident there will be an upturn before the year is over.

Almost a quarter of those questioned expect to see a recovery in business travel activity at the start of next year.

Only ten per cent of companies expressed their concern that there would not be a recovery in business travel.

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“The trend that has been revealed by the latest snap poll by the VDR is giving the industry reasons for cautious optimism. This is good news for ITB Berlin,” commented Martin Buck, director of the competence centre travel & logistics at Messe Berlin.

“Stringent travel guidelines, which have met with complete acceptance within the companies, and are being consistently applied, not only offer tangible benefits for travel management but also ensure high levels of reliability and professionalism in the dealings between companies’ customers and service providers.”

The economic situation continues to have a significant impact on the business travel activities of German companies. However, following a sharp downturn a year ago there seems to have been something of a recovery.

Nevertheless the situation is having a noticeable effect on cost-saving, with almost 60 per cent of VDR member companies still paying particular attention to costs and are seeking cheaper travel options.

However, the survey did reveal that cost-cutting is not being applied as rigorously as it was during the initial phase of the economic and financial crisis at the beginning of last year.

Only 11 per cent of these companies are cutting out all travel which is not absolutely necessary, compared with twice as many in October 2009, according to the latest survey by the VDR.

ITB Berlin will begin on March 10th.