CFO Survey Shows Rising Travel Costs, Natural Disasters and World Events Top List of Business Travel Concerns for Executives Fi
May 08 2006 - 6:00AM
Business Wire
A recent survey of financial executives conducted in February, 2006
indicates that nearly 92 percent of respondents plan to spend the
same or more on travel, primarily because they are traveling more
often, but also due to higher business travel costs this year. The
findings are from a fourth-annual independent survey conducted for
the Association of Corporate Travel Executives (ACTE), an
organization dedicated to the science of business travel
management, and GetThere(R) and Travelocity Business(SM), leading
providers of corporate travel solutions and part of Sabre Holdings
Corporation. While "rising air, car and hotel costs" and "getting
good value for the money spent on travel" top the list of concerns
for financial executives, nearly 68 percent are also worried about
the potential for natural disasters and world events to affect
their business and the safety of their travelers. And 77 percent
are still concerned about their ability to track and locate
travelers while on the road, even though the number has dropped
from 86 percent in 2005. "As more business travelers hit the road
this year, companies need to understand that there are a lot of
proactive measures they can take to prepare -- and even avert --
the impact of unexpected events on their travelers," said Greeley
Koch, president of ACTE. "ACTE works closely with companies to
provide tools and information that enable them to proactively deal
with these pressing issues." How Financial Executives Keep a Lid on
Company Travel Costs Survey findings show that executives prefer to
use a preventative approach when it comes to keeping company travel
costs down. Sixty-five percent of executives require that travelers
have their itineraries approved before trips are booked, also known
as a "Pre-Trip Approval" process. Limiting travel came in as the
second way to control costs at 62 percent, but continued to drop in
popularity, down 5 percent from 2005, and dropping nearly 16
percent from 2003 survey data. Use of corporate online booking
tools continued to grow as an effective way to cut travel costs,
with nearly 48 percent of executives using online booking within
their companies, a 5 percent increase over 2005, and up from 31
percent in 2003. "Online booking continues to gain momentum, not
only due to its cost savings benefits, but also because individual
business travelers are embracing the online experience," said Ellen
Keszler, president of Corporate Solutions for Sabre Holdings
Corporation. "That's because corporate booking tools have evolved
to include the best features from vacation travel sites -- with
enhancements like improved search options, more descriptions, and
better photos." Financial Executives Get Good Grades for Their
Business Travel Habits New questions added to this year's survey
reflect the travel habits of financial executives themselves.
Results show that while executives are cost conscious travelers,
productivity on the road is equally important, if sometimes even
more critical. Results include: -- 72 percent of executives
typically fly coach class when traveling domestically -- Nearly 47
percent book their trips two weeks to one month in advance of their
travel date -- More than 47 percent would be willing to pay extra
for in-flight Internet access, with in-flight meals as a second
priority at 36 percent -- 56 percent would choose a direct flight
or a flight option that works best for their business schedule over
the cheapest airfare Additional Corporate Travel Management Trends
Other significant trends gained from the survey in regards to
corporate travel management include: -- Online meeting planning is
growing in popularity. More than 84 percent are considering the use
of online technology to plan and manage corporate meetings, up from
76 percent in 2005. -- Online agency service is improving. Nearly
62 percent of executives believe that online agencies effectively
support business travelers on the road, up from 49 percent in 2005.
-- Financial executives think online agencies offer better deals.
More than 82 percent believe online agencies get the best business
travel deals, up from 78 percent in 2005. -- Mandates for online
booking continue to rise. More than 84 percent of executives
require that some or all company trips be booked online, in the
form of full or partial mandates, up from 81 percent in 2005.
Survey Methodology The proprietary survey was conducted from
February 14 - March 10, 2006 for ACTE (Association of Corporate
Travel Executives), by GetThere and Travelocity Business, leading
providers of corporate travel solutions and part of Sabre Holdings
Corporation. Results are based on a poll of BusinessWeek
subscribers and were limited to senior executives with financial
and procurement responsibilities (CFOs, senior VPs, executive VPs
and presidents) that work for companies with more than 1,000
employees. A total of 385 online surveys were completed on a secure
Web site, managed by InsightExpress, Inc., an independent market
research firm. Three previous surveys were conducted using the same
methodology in January 2005, September 2003 and March 2002 for
GetThere, Travelocity Business and ACTE. About ACTE The Association
of Corporate Travel Executives was founded in 1988 as the education
and research resource for the global business travel industry. ACTE
conducts three international conferences, plus more than 60
executive forums, PowerTalks, and webcasts annually. With 2,500
members in 37 countries, the association is best known for its
studies, position statements, and industry wide surveys. About
GetThere GetThere is the leading global online corporate travel
reservation technology, surpassing $6.3 billion in gross travel
bookings in 2005. An established innovator in the global travel
arena, GetThere enables global corporations and government agencies
to provide a convenient way for employees to book travel and plan
meetings online while significantly reducing costs. GetThere's
advanced technology works with all major global distribution
systems (GDS) and all travel management companies. More than 3,000
corporations, including a majority of Fortune 200 companies that
have online booking sites, use GetThere. More information is
available at www.getthere.com. Sabre Holdings Corporation
(NYSE:TSG) is a world leader in travel commerce, retailing travel
products and providing distribution and technology solutions for
the travel industry. More information about Sabre Holdings is
available at http://www.sabre-holdings.com. About Travelocity
Business Travelocity Business is a full-service corporate travel
agency that helps companies easily manage travel and reduce costs,
while providing more choices to travelers. Travelocity Business
combines the savings and convenience of online with the full
service of dedicated agents available 24/7 who typically answer the
phone in 20 seconds, and within 60 seconds guaranteed (see site for
guarantee details). Travelocity Business combines the expertise,
service and travel choices of Travelocity(R) with corporate
experience gained from serving more than half of the Fortune 200
companies. For more information, companies can visit
www.travelocitybusiness.com. Sabre Holdings Corporation (NYSE:TSG)
is a world leader in travel commerce, retailing travel products and
providing distribution and technology solutions for the travel
industry. More information about Sabre Holdings is available at
http://www.sabre-holdings.com.
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