More than 40 percent of
655 finance executives surveyed in April by CFO Research Services and American
Express expected their organizations to increase travel spending during the
coming year, up from 26 percent in the same survey last year. Another 23
percent this year expected no change, down from 31 percent in 2010, which,
according to a report on the results, "suggests that some of those who
were in a holding pattern last year are now seeing enough positive signs to
increase their budgets for travel."
The CFO Research/Amex
research included responses from executives in 11 countries, representing
organizations of all sizes in various industry sectors.
Researchers found that
those organizations are more likely to increase spending on travel for meetings
with new or potential clients than any other category, with more than one in
three respondents indicating such increases. It was followed by spending on international
travel (28 percent indicating an increase) and travel for meetings with current
clients (20 percent). "In the minds of finance executives, the value of
travel spending is tied to its purpose," according to the report.
"Revenue-supporting trips are clearly a priority."
The types of travel most
likely to experience spending reductions in the coming year—as indicated by
about a third of all respondents—are travel for staff meetings/other internal
business and travel for industry conferences, management retreats and
professional development.
'Brighter Economic Prospects'
Overall, the report's
authors concluded that "finance executives around the world see brighter economic
prospects for the coming year." Fully three-quarters of survey respondents
said they expect their countries' economies during the next 12 months to
expand, up from 71 percent a year earlier.
"Respondents in the
emerging markets of Argentina, India and Mexico are more likely to anticipate
economic expansion than their peers in the mature markets of Europe and United
States," according to the report. "Respondents working in emerging
markets also expect the pace of recovery to pick up sooner than their counterparts
in mature markets."
Globally, 22 percent of
respondents anticipated an acceleration of economic growth during the current
quarter. Thirty-two percent anticipated such acceleration in this year's third
quarter and another 17 percent in this year's fourth quarter. Fifteen percent
anticipated economic acceleration to occur later.
Among U.S. respondents,
79 percent said they expect economic expansion during the next year, up from
the 62 percent who held that view a year earlier, "as U.S. companies
factor positive indicators, such as strong corporate profits, into their
outlooks," according the CFO Research/Amex report.
Respondents from Latin
America had "the most aggressive outlook on economic prospects," with
35 percent anticipating "substantial expansion" in their local
economies.
Meanwhile, among all
respondents, 54 percent indicated their organizations would expand market
access by increasing sales and marketing activities, and 43 percent were
interested in "increasing investment in new production capacity this
year," up from 38 percent last year.
"Finance executives
are finally moving away from budget cuts and opening up the company coffers to
drive growth,” according to a statement attributed to American Express
Corporate Payment Solutions senior vice president Janey Whiteside. "We
will see a frothier deal-making environment and greater spending to win and
retain customers as businesses jockey for position in a recovering economy."