Survey: Europeans Cutting Travel Deeper Than U.S. Buyers

The vast majority of corporate travel managers in Europe expect their companies to spend less on travel this year, as buyers take a wide variety of approaches to achieve cuts, from supplier negotiations and managing traveler demand to bolstering compliance, strengthening policy and furthering automation. The findings, released this week in a survey conducted by Association of Corporate Travel Executives and the Belgian Association of Corporate Travel Management, show that 93 percent of 66 respondents based in Europe see a reduction in travel spend this year.

ACTE executive director Susan Gurley said European respondents are cutting travel at a higher rate than U.S. travel managers, according to a U.S.-focused survey conducted in February. "Regardless of recent market rebounds, these figures are a clear indication that companies are preparing for a long financial siege," Gurley said.

According to the survey, 59 percent of respondents expect to achieve spend reductions through "a combination of supplier negotiations and the application of demand management, while 39 percent will rely on demand management alone."

ACTE said senior managers at companies in Europe are "relying heavily on travel management executives to find cost savings and enforce cost-cutting measures," as 68 percent of the respondents claim their companies are putting a higher priority on travel policy compliance.

"One of the more significant aspects of this survey is that 65 percent of the travel manager respondents stated that they had made changes to their existing travel policy to reflect specific spend limitations, either representing changes among preferred vendors and suppliers inclined to discount, or defining the justification required for making a trip," ACTE reported.

Respondents are looking at all segments of travel to facilitate expense reductions, though 85 percent said they were reviewing airline policies, and 59 percent were reviewing hotel programs. A smaller portion—46 percent—is examining online booking tools and meetings management.

Even areas of spend outside of those big-ticket items that typically comprise the majority of travel managers' efforts are gaining heightened scrutiny at some companies, as 41 percent "are making changes in procurement strategies to include additional levels of travel spend," including airport parking, meals and ground transportation.

In addition to policy, European travel buyers also are looking at streamlining travel management processes, with 51 percent saying their companies have increased travel management automation and 23 percent claiming their processes already are fully automated.