NBTA Survey Finds Corporations Reducing Travel Based on War, SARS
Economic Conditions Still a Concern
ALEXANDRIA, Va.--In a survey of over 240 corporate travel managers conducted April 1-7 by the National Business Travel Association (NBTA), over 67% of respondents said travel has decreased in their companies in response to the war with Iraq.
The war in Iraq is not the only factor currently affecting corporations' travel decisions. 55% of respondents stated that the outbreak of Severe Acute Respiratory Syndrome (SARS) in Asia has caused a decrease in travel, while 36% credited the nation's orange-level terrorism threat on travel reduction in their companies.
And in another example of the connection between corporate travel and the economy, 49% of respondents stated that corporate profit estimates were causing decreased travel in their companies.
"The war and international health concerns are having a dramatic effect on corporations' travel decisions," said NBTA President Kevin Iwamoto. "Yet our members tell us that economic conditions and corporate finances continue to play a role in declining travel expenditures."
Asked to look forward, 54% of respondents expected their total travel spending in 2003 to be down from 2002 spending levels. In addition, recovery in the business travel industry is not expected until 2004 or later, according to 74% of respondents.
The concerns of corporate travelers are also affecting travel decisions. 73% of survey respondents said their travelers had expressed concerns about traveling since the war began and 58% of travelers have been in increased communications with their corporate travel department.
In response to these concerns, some travel managers are providing their travelers with global cell phones and 24-hour hotlines in order to facilitate communication if an emergency were to occur while on the road.
To further address possible risks, most corporations are requiring employees to book all travel through company channels, are requesting additional contact information, and are urging caution when traveling in international destinations.
"In these uncertain times, the role of the corporate travel department in ensuring employee safety and reaching corporate financial goals becomes even more crucial," stated Iwamoto. "Our members are working creatively to provide valuable information and support to their corporations and their travelers."
The National Business Travel Association, established in 1968, represents over 2,400 corporate travel managers and travel service providers. NBTA members manage and direct more than 70% of expenditures within the business travel industry. NBTA is committed to the professional development of its members and offers educational and training opportunities. It is the source for critical information on the business travel industry.