Tightening Economy Squeezes Business Travel

The economic crunch is shaping workers' business travel in 2008 compared to a year ago. While many are not reducing trips, more than two-thirds are staying in less swanky hotels and 44 percent are cutting back on trade show and conference travel, a new survey finds.

A significant majority, 79 percent, of business travelers and corporate travel managers felt some pressure to cut travel expenses, prompting changes in traveler behavior in the corporate travel marketplace, according to findings from a survey of 610 subscribers to Business Traveler Magazine.

"Most clients aren't cutting back on travel; rather, they continue to look for ways to become more cost-effective with their managed travel programs," said Dean Sivley, senior vice president and chief operating officer of Orbitz for Business, in a press release.

Among the findings from the firstever Orbitz for Business/ Business Traveler Magazine Quarterly Trend Report, conducted online in June:

• 68 percent said travelers for their organizations are staying at cheaper or lower-rated hotels.
• 47 percent said their organizations are making changes to their rental car policies, with 38 percent requiring employees to rent smaller or the least expensive car available.
• 44 percent said they, or their organizations, are planning to attend fewer trade shows in 2008 or will send fewer employees to such events.
• 42 percent are exploring travel alternatives, including video and web conferencing.
• 41 percent are tightening travel policies and implementing more restrictions on travelers' use of hotels and dining.
• 33 percent are encouraging booking travel online.
• 25 percent are taking more day trips when possible to avoid overnight stays in hotels.
• 20 percent are requiring their employees to return rental vehicles with a full tank of gas to avoid surcharges.

While more than half, 60 percent, of organizations are conducting as much, if not more, business travel in 2008 than in 2007, about one-third, 33 percent, are doing less international travel as a cost- saving measure, Orbitz found.

Among organizations where employees still make international trips, slightly more than half are allowed to fly business class for long flights.