Travel Managers and their companies are reportedly curtailing spending in 2008 in response to the weakening economy. In the most recent Business Travel News Corporate Travel 100 report surveying businesses nationwide, companies say they are cutting out unnecessary travel spending, while expecting rising travel costs whether on airlines, hotels, or ground transportation.
American Express Business Travel said buyers asked for budget consultation and data in late spring and early summer 2007, which is earlier than previous years. Corporations are not only feeling the strain of the weakening dollar if they travel internationally, but also the rising costs in the travel industry are really putting the strain on budgets.
Accoring to Travel Solutions, the retail and banking sectors are really tighting up their belts. Some companies are of course experiencing growth, therefore bumping up their respective travel budgets, but in doing so must account for the rise in costs and are instead limiting the number of people per trip and per diem accounts.