30 November 2022, Virtual
12 December 2022, etc.venues Monument, London
Business Travel Show Europe, presented by The BTN
Spending on business travel trips in Germany dropped by around 20% from 54.1bn to 44bn from 2003 to 2004 according to a new survey.But the study also found that the number of trips in the period remained stable with 147.4m journeys taken in 2003 compared with 146.4m in 2004.The survey, The VDR Business Travel Report Germany 2005 is the third major research into business travel management by VDR The Business Travel Association of Germany (VDR) with consultants Bearing Point. Michael Kirnberger, president of VDR, said the reduction of costs was down to tighter control of travel budgets by corporates.“Strict cost control has worked. The causes of the drop in total costs are manifold: less intercontinental travel, shorter trips as well as cost-saving measures, for example the reduction of travel category, more online bookings, use of low cost airlines and discounted fares,” he said.The research found that nearly four out of five companies which managed their travel achieved savings of at least 10%.Most companies (53%) saved between 10-20%, but 15% saved up to 30%, 7% up to 40% and 2% more than 40%.The report commented: “Again it is evident that no other organisational form beats good travel management.”But the report also revealed that smaller companies - those with between 10 and 250 employees -were paying their agents “significantly higher service fees than larger companies since the introduction of zero commission - regardless of the destination.”The report also found that against the trend in other countries, more and more German companies are appointing travel managers and that their responsibilities include event management and insurance relevant to business travel.Also against the trend in other countries, only a tiny number of companies (0.2%) outsource their travel management.Other findings include:* About half the 2004 trips were one day compared with the trend in 2003 for longer trips. * The trend away from traditional travel agencies continues with 25% of companies seeking further cost cuts using online booking tools. * Hotels and rental cars are normally booked directly.* Smaller companies book all travel arrangements directly more often than companies with over 500 employees.* The importance of complex IT systems in travel management is slightly increasing in the market as a whole. * Most business travellers fly economy on short haul.* About half travel in business on long haul flights.For the survey, Bearing Point interviewed people responsible for travel at 512 German companies.