Executive Summary

More than a third of companies predict less travel in 2009

According to a Carlson Wagonlit Travel (CWT) survey of 178 travel managers conducted in October 2008, 37 percent of companies expect employees to take fewer trips in 2009 than in 2008. Surprisingly, perhaps, 38 percent expect the number of trips to remain unchanged while 20 percent forecast an increase. (The remaining 5 percent said they did not know.) These figures should be approached with caution, however, given the volatile nature of the current economy.

What is certain is that all companies will find managing travel spend a growing challenge as the cost of trips continues to rise. Airfares will be further impacted by reduced capacity, less competition on some routes and new ancillary fees. At the same time, hotel rates may continue to increase in some markets even though occupancy is beginning to fall.

To face this challenge, travel managers are employing measures ranging from raising awareness of the travel policy and enforcing compliance (72 percent and 70 percent respectively) to imposing a travel freeze if necessary (13 percent), as shown in the following chart.

How is your company managing rising travel expenses?
(Several responses possible)

Source: CWT Travel Management Institute
Based on a survey of 178 travel managers worldwide, October 2008

Most travel managers will increase their focus on savings above all, and some will also ramp up service, security and sustainability

More than half of the survey respondents intend to make a higher priority of improving traveler compliance (66 percent), driving air and ground transportation savings (59 percent), optimizing hotel spend (59 percent), optimizing simple bookings (56 percent) and optimizing the travel policy (56 percent).

In addition, a significant number of travel managers plan to place more focus on developing key performance indicators (46 percent), tackling meetings and events (39 percent), further consolidating the travel program (36 percent) and enhancing the traveler experience (34 percent). Corporate social responsibility will also be higher on many companies’ agenda in terms of addressing safety and security needs (20 percent) and making the travel program more environmentally friendly (18 percent), as shown in the following chart.

Which of the following areas will become a higher priority in your 2009 travel program compared to 2008?
(Several responses possible)