Tourism Industry News
NBTA: travel costs will rise
13/11/2008 16:13
The National Business Travel Association is predicting increases in business travel costs and slowdown in growth next year.
In a study carried out by the US-based consortium, travel managers estimated that business travel costs will rise by up to 8%.
The number of business trips taken is expected to rise – but at a slower rate than in previous years.
Kevin Maguire, NBTA president and chief executive, said: “This year we saw a slowdown in the growth of business travel from the rate of growth we saw in 2004 until 2007. In 2009, we will see a continuation of that slowdown in growth. The expansion of the trend is the result of measures travel managers are implementing to contain travel costs during an economic downturn.
“The measures vary widely from company to company. In some, we are already seeing major cutbacks in travel, while other companies have higher travel budgets in place for 2009. Across the board, we can expect to see some changes in the way travel is managed to further maximise value.”
In a study carried out by the US-based consortium, travel managers estimated that business travel costs will rise by up to 8%.
The number of business trips taken is expected to rise – but at a slower rate than in previous years.
Kevin Maguire, NBTA president and chief executive, said: “This year we saw a slowdown in the growth of business travel from the rate of growth we saw in 2004 until 2007. In 2009, we will see a continuation of that slowdown in growth. The expansion of the trend is the result of measures travel managers are implementing to contain travel costs during an economic downturn.
“The measures vary widely from company to company. In some, we are already seeing major cutbacks in travel, while other companies have higher travel budgets in place for 2009. Across the board, we can expect to see some changes in the way travel is managed to further maximise value.”
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