Amex Canada Predicts Midsize Market Growth

<B>Amex Canada Predicts Midsize Market Growth</B>

By Carolyn Green

Growth in business travel in Canada over the next three years will be driven by midsize companies, according to a recent Amex Canada Inc. poll of more than 300 "growth" companies, which Amex defines as Canadian firms with 20 to 100 travelers who spend between US$136,000 and US$680,000 on travel and entertainment annually. (Only companies with annual sales growth rates at or above 3 percent qualified to participate).

According to the survey, while large businesses have marginally reduced or maintained flat travel budgets, smaller companies, which spend about US$3.1 billion annually, anticipate increased travel as they pursue new business. In fact, growth in business travel by midsize companies, which now accounts for about 35 percent of the total, could reach 50 percent by 2002. More than half the companies polled said they believe corporate jet-setting within their firm could increase between 10 percent and 30 percent in the next three years.

"For many, that means aggressively pursuing opportunities outside their home market," said Bill Stanwick, director of marketing for American Express Business Travel. "These are definitely companies that are hungry for growth and feel that the time is right to spread their wings."

The study also found that e-activity is becoming an increasingly important business tool for the companies polled, with 87 percent using e-mail, 79 percent providing employees with Internet access and 87 percent providing traveling employees with laptop computers.

"We expect this group to take advantage of e-booking tools to help streamline processes like filing expense reports and to provide greater convenience to those who want to book travel or make itinerary changes themselves," Stanwick said.

Although these companies are becoming increasingly sophisticated technologically, the study found they were less structured about T&E management. Only 42 percent had written policies, compared with 61 percent in a 1997 survey. As well, 48 percent have designated a company employee to manage travel versus 59 percent two years ago.