"Major realignment" in travel - PhoCusWright
Corporate travel could contract by 15% in the US this year amid double-digit declines in demand and revenue, a report from PhoCusWright has shown.
The research company has found what it calls "fundamental shifts that will change the business travel landscape over the next three years."
"Recessionary trends are driving a steep contraction in business travel in 2009, resulting in a 15% decline in the US corporate travel market to US$85bn," the company said.
"While corporate travel has historically comprised approximately 40% of the total travel market, this share will decrease as the fall-off in corporate travel demand far outpaces the decline in leisure/unmanaged business travel."
US corporate travel share of the total travel market will drop markedly from 39% in 2007 to 35% in 2010.
"Current economic challenges and public scrutiny of travel and entertainment spending has placed corporate travel on the chopping block," said Susan Steinbrink, PhoCusWright's senior research and corporate market analyst.
"Sharply curtailed corporate travel budgets will mean not only less travel in 2009, but stricter policies and tougher policing when spending does occur."
But Ms Steinbrink said the recession would drive innovation as corporates and travel management companies (TMCs) improve travel programmes.
More spend management, better travel value integration and new technologies "would bolster the bottom line," she said.
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