Slowing Economy Brings Travel Mgmt. Into Prominence

<B>Slowing Economy Brings Travel Mgmt. Into Prominence</B>

By Erika S. Warcholak

While Web-mania fueled the country last year, a prosperous Corporate America gorged on the Internet's largesse--that is, until 2001 limped in. Enter the dawn of the dot-coma and the demise of a slew of startups, culminating in a slackening economy and low corporate confidence, bringing the costs of doing business directly into the spotlight.

With senior management's increasingly intimate scrutiny on the bottom line, this has been and will continue to be an auspicious year for business travel buyers to strut their cost-savings stuff.

Paralleling the slowing economy, travel buyers' salaries on average rose a mere 3 percent this year, a drop of two points from last year's 5 percent increase. Still--fortunately for senior management--the majority of this year's 591 respondents said they were adequately compensated and duly recognized for their efforts, at 58 percent and 55 percent, respectively. Additionally, 84.9 percent were content with their current employers, and only 10.8 percent expect to change companies within the next two years.

Perhaps contributing to buyers' satisfaction with their companies was the fact that more of them were able to earn bonuses this year than last. While less than one-third of travel buyers last year were able to do so, 41 percent this year reported their eligibility, partly attributable to the general healthiness of corporations' 2000 year-end results. However, some buyers fear the current economic predicament may alter the bonus landscape (see story, page 34).

Along with the downward spiral of the air and hotel sectors this year (BTN, June 25)--proving that corporations are taking aggressive measures to reduce travel--buyers also have had their hands full with startups flopping, online booking/GDS alterations, rampant airline labor strike scares and the realization of American Airlines' acquisition of Trans World Airlines--all of which have wreaked havoc on corporate travel policies.

Rising fuel costs, added hotel surcharges, nightmarish on-time performances, data privacy issues and the threat of more major airline consolidation will continue to keep buyers on their toes.

Not surprising, then, is the fact that more of them this year see "much greater" opportunity in their profession than was available two years ago, at nearly 23 percent this year compared with 19 percent in 2000.

Also not surprising, given this year's economics, is the number-one reason cited for the increase in opportunity: more attention to travel management by senior management, at 77 percent. Advancing travel technology was a close second, at 64 percent.

Technology, which played a prominent role in travel management last year, has proven instrumental in slashing costs. In fact, the majority of this year's respondents said they currently are evaluating travel automation products.

Further implicating the validity of technology's cost-cutting potential, 43 percent of buyers said that while travel management will become more important to corporations in the next two years, corporations will seek alternatives to employing travel managers.

The 591 travel professionals who responded to this year's survey, as in years past, hail from all walks of corporate life, and the diversity of their titles attests to that.

To clarify, they are classified as follows: 55 percent are travel managers/supervisors; 24 percent are travel specialists/advisors/coordinators; 8.5 percent are travel vice presidents/directors; 2.2 percent are purchasing managers/transportation managers/supervisors; 1.7 percent are meeting/conference planners/coordinators; 1.5 percent are meetings managers/supervisors; and 6.6 percent fall into the "other" category.

Throughout this survey, "travel manager" refers only to respondents with the titles of travel manager, supervisor, travel vice president or director. "Travel buyers" applies to the aforementioned as well as the other 36 percent of travel professionals who were kind enough to respond to Business Travel News.

A brief snapshot of the typical travel buyer this year is similar to last year: A 45-year-old female, with nearly 11 years of experience under her belt. Though they comprised 72 percent of the travel management profession, female buyers continued to have slimmer wallets than their male counterparts. On average, male buyers earned 34 percent more than female buyers.