Travel budgets are expected to remain “stable” across Europe in 2014 despite an increase in economic confidence, according to research from American Express.
The TMC’s survey of around 600 travel buyers and other senior executives based in 11 European countries found that 72 per cent expected budgets to remain the same in 2014 with 18 per cent forecasting a rise in travel spending. Overall budgets next year are expected to rise by just 0.8 per cent.
Amex’s 2013 EVP (executive vice president) Barometer revealed that 64 per cent of European travel budgets had been flat this year.
Confidence among travel buyers is also high with 82 per cent of survey respondents saying they had experienced a “favourable economic situation” in the last 12 months.
Champa Magesh (pictured), Amex’s vice president and general manager UK, said: “In an environment where European business travel budgets are remaining stable, it continues to be important for companies to focus on maximising the budgets that they do have available.”
Magesh added that more companies were now seeing business travel as an “investment” – up from 23 per cent in 2012 to 27 per cent this year.
“Travel management companies have a role to play in helping to support companies make the most of this investment, by enabling maximum visibility of spend and facilitating cost control,” she said.
Controlling costs is still the major concern for buyers with 87 per cent saying this was a top priority in 2014 (up from 80 per cent this year). The second biggest issue is traveller security - 64 per cent said this was a priority for next year compared to 45 per cent in 2013.
The majority of buyers said they had security policies in place to locate (65 per cent) and contact (81 per cent) their travellers at any time. But educating employees on the issue of security is a lower priority with only 23 per cent offering training in this area.
Other priorities for 2014 are gaining a complete view of travel expenses (56 per cent), increasing traveller satisfaction and comfort (55 per cent) and enforcing travel policy (50 per cent).
americanexpress.com/businesstravel