Corporate travel buyers in 2008 wrestled with the necessity of cutting travel costs in an a recessionary environment as prices—at least for a good part of the year—rose, in some cases dramatically. With no economic recovery in sight, buyers are expected to experience price decreases, a more receptive negotiating environment and a strong shift to what could truly be a buyer's market. Here are the stories
Business Travel News has identified as the top travel management stories of the year:
Financial Fallout Flips ForecastsIndustry forecasts expected early 2009 prices to rise significantly with a relatively tough negotiating environment for most supplier categories as oil prices remained high and air capacity came out of the market. As the economy worsened, Wall Street continued to melt down, oil prices took a nosedive and corporate travel demand plummeted, revised and newer forecasts painted a far different picture.
Oil Price PerspectivesBy mid-summer, oil prices reached record highs, airlines were struggling to stay alive, demand was slowing and suppliers and buyers alike were feeling the weight of oil's heavy price tag.
BTN documented fuel's effect the time, including perspectives of some of the industry's top executives. Since then, oil prices have plummeted to their lowest levels in five years and airlines could return to profitability in 2009, but the oil price reprieve hasn't necessarily wrought a healthier corporate travel industry.
Corp. Cutbacks Reach Outside Financial Cos.In early 2008, travel management companies and other suppliers were beginning to disclose weakening demand and transaction data, especially by the corporate travel sector. For months, they claimed corporate travel cutbacks were relatively confined to financial services and pharmaceuticals industries, but by mid-year it became clear that the cost cutting initiatives seeped outside of those vertical market walls. Demand management efforts accelerated at most corporations in nearly all industries and appear to be carrying over into 2009.
Buyers Seek Bag-Fee FixesAirline unbundling efforts and other revenue-building strategies saw bag-fee charges become ubiquitous among U.S. legacy carriers, leaving travel buyers scratching their heads as to how to account for them in reporting and budgets. There is no comprehensive solution yet, but airlines and technology providers are starting to release some new capabilities that should enable buyers to cope somewhat with the new line items in 2009.
U.K. Corporate Manslaughter LawPrior to April's enactment of the U.K. Corporate Manslaughter and Corporate Homicide Act, many corporations were left scurrying to reassess their internal health, safety and travel policies and practices. As a result, many travel buyers changed their travel policies, altered supplier agreements and formed cross-departmental teams to ensure their companies came into compliance with the legislation.