A recent industry survey shows that during the next 12 months the majority of companies intend to increase or consolidate their spend on corporate travel.
The independent, online survey conducted by travel and expense management specialist FCm Travel Solutions indicates that during the next year more than 70 per cent of business travellers who took part in the survey were looking to increase or consolidate their spend on corporate travel.
The survey results revealed 39 per cent of business travellers would be increasing their corporate travel budgets; 35 per cent would not be changing their spend on business travel, while 26 per cent intend to decrease the amount of money their company spent on business travel.
FCm Travel Solutions executive general manager Australia Shannon O’Brien said the outcome reflected a positive shift in business and consumer confidence within the corporate space.
“Consumer and business confidence has begun to take a turn for the better on the back of the current cycle of cost-friendly travel prices. Travellers have been relishing the discounted airfares, competitive rates for hotel rooms and valuable extras such as free breakfasts, parking or telecommunications that are being included in many corporate accommodation packages or contracts,” he said.
“With the key economic indicators showing encouraging signs of recovery and evidence of a visible rebound in demand for accommodation throughout July and August in Australia, I think we’re going to see a slow but gradual improvement in the corporate travel industry as companies work hard to grow their businesses.
“This means we’ll see more companies starting to consider increasing the frequency of their travel and using more strategic purchasing methods to achieve maximum value from their travel budgets.”
Mr O’Brien said that looking forward, the most effective and enduring cost control strategies would include travel policies that used best practice.
“As the economic climate shifts during the next 12 months companies will be focusing on realigning their procurement strategies, consolidating, driving tighter policy control and using the strategic direction from a travel management consultancy like FCm to adapt to the changing travel industry. “