Corporate travel outlook worst for 20 years - survey
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A survey of frequent business travellers projects an overall drop in corporate air travel spend of 7.5% over the next 12 months, according to aerospace specialists Ascend. Reported by Reuters, the poll found that 52% of respondents said their company’s air travel budget was set to drop significantly and 46% expected the number of flights taken would fall significantly.
Ascend surveyed 280 frequent business travellers from over 35 countries about their expected air travel habits over the next year, 60% of whom would typically fly business or first class on long haul.
“This is the weakest outlook for international business travel in nearly 20 years,” said Ascend’s Chief Economist, Peter Morris. “There’s a much higher level of control over corporate travel budgets than in the 90s, with only 20% of business travellers now allowed full freedom to choose whom they will fly with. About 50% of companies now have rigid policies. In terms of corporate strategy for reducing air travel spend, the majority preferred reducing conference-related travel (55%) and the overall number of business trips (53%), using the internet for fares (48%) and using the cheapest available airline (41%).”
The report found that 26% of respondents saying their company’s number of flights would drop by 10% and 20% saying the drop would be 20% or more. 27% said their company’s air travel budget would drop by 10% while 26% said it would drop by 20% or more.
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