Poll: Half Of U.S. Travel Managers See Travel Spend Up In '04

Citigroup Smith Barney last month released the second installment of its monthly Travel Managers Survey, in which 54 percent of respondents indicated they expect travel spending to rise in 2004 over 2003.

Of the several hundred travel managers polled in April, 51 percent said travel spending will be higher in the second half of 2003 versus the first half, assuming a successful resolution of the Iraq conflict.

Respondents said that economic weakness and concerns related to the situation in Iraq are reducing travel to "bare bones" levels and that changes in business practices are occurring that may permanently replace some travel in the future.

According to the survey, more than 67 percent of respondents--which according to Citigroup Smith Barney represent "a significant cross-section of Fortune 1000 companies"--said the economy has led their companies to implement travel restrictions on employees, and nearly 60 percent said their companies are operating at "only essential" business travel levels.

Yet, approximately 85 percent said their companies have not mandated that employees trade down to lower-cost hotels or airlines.

Just over 50 percent said they believe the Sept. 11 terrorist attacks reduced business travel permanently, and nearly 64 percent said their companies have increased their use of teleconferencing or videoconferencing as a substitute for travel. More than 78 percent said they consider this change to be permanent.