New technology crucial as mobile workers demand speed and efficiency - American Express forecast

• 98% believe mobile working is important for company productivity
• 84% looking forward to using self-booking technology to make travel arrangements
• 75% use their email at least once a day while travelling
• 57% say the introduction of the euro will have a positive impact on their business
• 60% say speed most important when checking-in for flights
• 43% select hotel on quality of service, compared to 14% who believe cost is crucial
• 56% plan to use 'no frills' airlines in the next year.

London -- International corporate travellers are turning to new technology to deliver greater speed and cost savings, according to the fourth American Express Corporate Travel Barometer released today. Conducted at the Business Travel '99 exhibition in February, the survey asked corporate travellers about their individual loves and hates and their views on the corporate travel industry.

Iain Robinson, American Express Head of UK Corporate

Travel, American Express comments: "The pressures facing travelling executives are greater than ever before. The globalisation of the world economy is creating increased demand for corporate travel, but at the same time economic uncertainty is forcing companies to become more cost conscious. Our survey shows corporate travellers are turning to new technologies, such as self-booking solutions, to help them manage their time and money more effectively."

Mobile Working

Being able to work effectively on the move is increasingly important for corporate travellers. Almost all (98%) said that mobile working is important or very important for company productivity, and viewed new technology as indispensable. Two fifths (39%) of respondents said email is vital for staying in touch with colleagues, compared with 32% who relied on mobile phones for keeping in touch. Just under a third (30%) of those surveyed access their email three or more times a day when travelling and 45% once or twice a day. Video- conferencing has still to make a real impact on corporate travellers, only 6% cited it as a time saving innovation.

Looking into the future, the Internet is forecast to continue revolutionising the way corporations do business. Over half (55%) said the Internet will be the most important new technology in the new millennium. Of those surveyed, 13% believe smart cards will change the face of corporate travel, with applications ranging from electronic cash to e-ticketing.

"Corporate travellers are increasingly using email and the Internet to stay in touch with colleagues around the world. The travel manager who caters for executives' working needs is carving out a new role - a role with far-reaching responsibilities that include mobile working, IT, facilities management and executive care programmes, as well as the travel itself," comments Iain Robinson.

Self-booking technology

Selfbooking technologies, such as American Express Interactive (AXI), are increasingly popular with time conscious corporate travellers. 84% say they are looking forward to self-booking to help them plan their travel and book accomodation. A quarter (25%) predict that self-booking technology will be the most important new technology of the future.

Corporate travellers appreciate the flexibility and time saving benefits of self-booking technology. Nearly three fifths (59%) say speed and the ability to book travel quickly are the main benefits of self-booking technology, while 15% appreciate the flexibility of 24-hour access and 13% cited ease of use. Cost savings achieved through self booking technology are seen as secondary benefits, one in ten (9%) said purchase and process savings were the most important advantage of self-booking.

Airport Facilities

As productivity becomes increasingly important for the mobile workforce, corporate travellers are demanding improved facilities at airports. Over a third (34%) would like airports to provide virtual offices or workstations, 16% want meeting facilities and 9% video/teleconferencing. Other corporate travellers appreciate time to relax and 16% would like health and beauty facilities. Nearly a quarter (24%) of those surveyed were strongly opposed to abolition of duty free facilities - due to be phased out within the European Union in June 1999.

Airline Check-in

For 60% of corporate travellers, speed of service is most important when checking in for their flight. 14% would like a separate check-in desk for business travellers to speed up the process, while for a fifth (19%) courteous customer service from check~ in staff is crucial.

For the busy corporate traveller, wasted time at airports is a major frustration. A third (30%) complained about having to check-in early, while over a quarter (27%) resented having to queue. Flight delays were cause for complaint for 26% of those surveyed. Only 5% of respondents complained about the time taken to go through security clearance/passport control, compared with 8% last year and 41 % the year before.

'No Frills' Airlines

No frills airlines are becoming increasingly popular with cost conscious corporate travellers. According to the American Express Corporate Travel Barometer, two fifths (40%) of corporate travellers have used no-frills airlines in the last 12 months and over half (56%) plan to use them in the next year. The lack of primary airport slots, which has traditional held back the growth of low cost airlines, is apparently becoming less important with two thirds (64%) of corporate travellers planning to fly from a secondary airport this year.

Flying is a time to relax

While mobile working is clearly on the increase, many corporate travellers still consider flying to be a time to relax from the pressures of work. Over half (54%) of respondents say they like to relax during the flight, while 18% enjoy in-flight entertainment. Only a quarter (26%) work during the flight, compared with a third (34%) last year and only 2% take advantage of on-board telephone facilities.

Quality over Cost - Hotels

The quality of the hotel is more important than cost for most corporate travellers. The quality of the service was the most important factor in choosing a hotel for nearly half (43%) of those surveyed, compared to only 14% who cited cost as the crucial factor. Convenience was the second most important reason for selecting a hotel. Over a third (37%) considered the distance of the hotel from the business venue before deciding where to stay.

Corporate travellers' main complaint about hotels was lack of flexibility. Nearly half (46%) resented the inconvenience of having fixed check out times, while 12% wanted facilities to be available 24 hours a day. While cost seems to be a lower priority than service for corporate travellers; 21 % complained that telephone and fax charges are excessive. Not being treated like an individual was cited by 13% of mobile workers who wanted a more personalised service.

Corporate Travel Policy

Encouragingly, the American Express Corporate Travel

Barometer showed that most executives realise the importance of sticking to their company's corporate travel policy, the cornerstone of every travel management strategy. 70% had a clear understanding of what their policy included and over half (58%) recognised the cost savings travel policy compliance delivered. A quarter (23%) realised its importance in helping leverage negotiations with suppliers, while 19% appreciated the comprehensive information it could deliver to corporate travellers.

Commenting on the findings, Iain Robinson added: "In the current uncertain economic climate, it is more important than ever that companies keep a tight control on corporate travel and related expenditure. It is encouraging that travelling executives appreciate the importance of travel policy compliance on managing costs and improving negotiations with suppliers."

Asked what they would like to see included as part of their company's corporate travel policy, over a third (38%) suggested allowing partners to join them on their trips. Loyalty schemes were popular with 26% of those surveyed and 20% wanted weekend stopovers.

The Impact of the Euro

According to the survey, the majority of corporate travellers are enthusiastic about the introduction of the euro, although whether it will deliver the promised cost savings is in question. 57% thought the euro, would have a positive impact on their business, compared to 11% who thought it would be negative and 32% who thought it would have no impact at all.

Corporate cards will be the preferred method of payment of corporate travellers during the transition period. With the advent of the euro, 59% said they will be using corporate cards to purchase goods and services in the 'in' countries, compared with 11% who said they would use travellers cheques and 22% who thought they would use cash.

The impact of the euro on business travel is uncertain. 47% of those surveyed thought business travel would increase as a result of the euro with the remainder predicting it will have no effect. Corporate travellers are also uncertain about the promised benefits of price transparency which the euro, should deliver. 38% believe the cost of business trips will increase, compared with a quarter (25%) who think they will fall and 37% who predict they will remain unchanged.

Note to editors:

The Corporate Travel Barometer surveyed over 270 corporate travellers at the Business Travel '99 Exhibition, which was held at The Business Design Centre, London from 9-12 February 1999.