Most Cos. Cut Quarterly Travel Spend

Two-thirds of travel buyers said their companies have reduced travel spending for the current quarter, according to a study conducted by Equation Research on behalf of Business Travel News and USA Today. The survey, conducted the week ending November 6, revealed that approximately 22 percent of the 640 travel buyers polled said their companies would reduce travel spending by up to 10 percent; 15 percent will cut between 11 percent and 20 percent; 17 percent plan to reduce expenses 21 percent to 50 percent, and another 9 percent said they would reduce by more than 50 percent. More than half of those surveyed said this will come from fewer trips, while one-third of respondents also will book trips further in advance to get cheaper fares. One-quarter of respondents said they are negotiating better hotel and airlines rates.

In anticipating how 2002's travel spend will compare with 2001, 46 percent said their companies would spend the same in 2002, while 27 percent said they would spend less. Domestic travel will survive before overseas trips: Nearly half said their travelers would fly less internationally than they did this year.

Renegotiations are figuring in heavily during this time of depressed travel; 40 percent of those polled said they were in the process of renegotiating with suppliers to avoid getting penalized for not meeting 2001's targeted travel volume.

More than one-third said preparation of 2002's budget has been difficult given the current economic climate.