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Business chiefs' trips will continue to be cut back

Wednesday, 17 June 2009

Executives are likely to continue cutting back on business travel even when the recession ends, it was revealed today.

As many as 86% of UK and European companies have been reducing business travel costs due to the economic downturn, according to a survey released to mark the start today of the first Business Travel Market in London.

Measures such as switching from business and first class to economy travel are expected to stay in place when the recession ends, said the survey conducted by the Association of Corporate Travel Executives.

Other post-recession economies that could persist include making greater use of conference calls and booking further in advance to get better travel deals.

The survey found:

  • 79% of companies are having more conference calls and using new technology to bring executives together rather than getting them to travel to a meeting;
  • Nearly 68% have cut back on the number of approved travel trips, with 7.6% reporting a total travel ban;
  • 49% said class of travel had been downgraded;
  • 31% were making more use of rail.

Paul Robin, founder of Business Travel Market, said: "It would appear that some of the travel restrictions that were forced on many business travellers have proved workable and will be here to stay.

"The recession hit us fast and travel buyers responded quickly to fine-tune their travel management policies and budgets."

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