BCD Survey: Procurement Gains Sway

Nearly half of travel buyers now are reporting through procurement divisions at the same time that half see their budgets increasing, according to BCD Travel's seventh annual client benchmark survey, which also focused on reducing expenses, implementing stricter travel policies and concentrating preferred vendor compliance in a seller's market.

According to the survey of 219 respondents, 44 percent report into procurement, up from 34 percent last year. Another 25 percent report to finance and 12 percent roll into corporate services. "This trend started three or four years ago and continues on into this past year," BCD Travel president and COO of the Americas John Snyder said.

While 48 percent of respondents said travel budgets were increasing, that number was down from 55 percent in the prior year's survey. Respondents cited reducing travel expenses as their top priority.

"We are seeing more and more companies have air carrier compliance levels higher than normal," Mary Ellen George, general manager of BCD Travel's consulting subsidiary Advito. "The hotel side is where the struggle is."

The survey showed 47 percent of the respondent companies with less than 70 percent preferred preferred hotel compliance levels. The survey reported that 46 percent of respondents have a hotel policy that requires travelers to book through the preferred agency channel. "There just isn't any room left at the preferred inn. There just isn't any space available and so we see this affecting the bookings going through the preferred agency," George said.

The survey highlighted a decline in the area of improving expense management and auditing processes, which dropped as a priority to seventh from fourth. "There was a huge focus in 2006 with Sarbanes-Oxley and getting everyone's house in order," Snyder said. "A lot of people got that accomplished in 2006."

This year's survey also debuted corporate social responsibility benchmark results that showed that 50 percent of respondent companies have CSR programs, in which 23 percent have incorporated travel. Sixty-two percent of respondents said they have implemented CO2 emissions reporting. The use of travel alternatives, including remote conferencing, grew from 13 percent to 18 percent since last year.