But industry "should take heart"
A survey by expense management specialist KDS has found that 71% of companies have "significantly reduced their business travel."
The report released today (June 12) also found that the trend to cut back on trips is accelerating.
Of the 435 respondents, 37% reported travelling less on business than six months ago, compared to 54% in the past two-six months.
"Companies are indeed clamping down hard on travel in order to save money and that this is having a noticeable impact on their effectiveness," the report said.
"The results highlight new traveller priorities that the industry needs to respond to in order to tough out the downturn."
But despite the reported decline, KDS said the "industry should take heart from the fact that travellers still recognise the irreplaceable nature of direct human contact."
"The intensity of the recession has undoubtedly impacted attitudes towards travel," said Stanislas Berteloot, KDS' marketing director.
"However, while superficially the outlook is bleak, in fact it is simply a change in demand patterns.
"Travel businesses that help employers save money, but in a way that still preserves employee morale, are the ones that stand to perform strongest in this recession and emerge in an excellent position once the economy improves."
Sales and commercial relations trips were the most likely to be approved, KDS found, followed by customer support and conferences. Training was the least likely reason to be approved, at just 4%.
KDS said travel suppliers should follow the example of airlines in expanding lower cost "economy" options and cutting back on premium options.
www.kds.com