CT100: 2008 Spending Cuts Signal Deeper Decline In '09

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BREAKING NEWS

CT100: 2008 Spending Cuts Signal Deeper Decline In '09

SEPTEMBER 24, 2009 -- Business Travel News' 22nd annual Corporate Travel 100 benchmarking report shows a decline in overall spending for the largest buyers of business travel to $10.3 billion in 2008 from $11.2 billion in 2007. Declines in travel spending are poised to be even more dramatic this year, as aggressive budget cuts, tightened policies and increased use of travel alternatives expanded late last year and continue well into 2009, companies report.

Of the 94 companies that appeared on the Corporate Travel 100 list this year and last, 48 show a decrease in U.S. booked air volume in 2008, compared with 2007. A couple of CT100 travel buyers said spending this year was down by a magnitude of 70 percent, though many said spending cuts were trending in the negative 25 percent to 30 percent range so far this year.

BTN's annual yearbook of business travel spending shows common threads running through corporate initiatives, including increased use of remote conferencing options and more restrictive travel policies. Among those, companies have restricted the purchase of business class tickets, enforced advance purchase requirements and in some cases even deployed the M-word.

For example, Science Applications International Corp. last year mandated its corporate travel policy for the first time, while Hewlett-Packard in the past year mandated non-customer-facing travel be booked at least seven days in advance, and Ernst & Young mandated the use of its preferred booking channels, among other examples of stricter policy and enforcement.

Of the 100 largest spenders on corporate travel, more than one dozen said they have expanded the use of remote conferencing options, including high-definition telepresence systems. Those companies include GE, Accenture, Procter & Gamble, Intel, Lockheed Martin and Verizon.

Click here to see BTN's 2009 Corporate Travel 100 report, including features on BTN's Best Practitioners of 2009.

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