Several cost-control measures on the upswing for the past several years in China have declined, according to American Express Business Travel's 2008 China Business Travel Survey, released last month.
Meanwhile, the travel management company announced the introduction to China of its pre-trip reporting, Ticket Trax unused ticket tracking and ECO carbon-emissions measurement tools and a new version of the Trackpoint traveler tracking system.
Last year, 79 percent of respondents reported the use of post-trip spending analysis tools, whereas this year, 55 percent did. This year, about half of respondents are using pre-trip analysis tools, while two-thirds reported doing so in 2007. There also is a reduction in contractual adherence control from about one-quarter of respondents in 2007 to one-fifth this year. The survey also showed reductions in the use of specific methods for controlling expenditures, such as annual reporting.
Despite rising costs and declines in passenger traffic and economic growth, 58 percent of 265 responding "executives with relevant responsibilities" reported that their travel and entertainment budgets did not increase from July 2007 through July 2008. While 37 percent of Chinese companies reported an increase in spending, 51 percent of foreign-owned organizations said their budgets rose during the 12-month period. Respondents said, on average, Chinese domestic airfares increased 5 percent, hotel expenditures rose 4.8 percent and international airfares increased 3.3 percent.
In this year's fifth annual survey, only 70 percent of the Chinese and foreign-owned company respondents said they have a formal T&E policy, down from 81 percent last year.
Policy compliance remains relatively stable with just over half of respondents' companies achieving rates of more than 50 percent. Last year, 47 percent reported surpassing that benchmark. Compliance among foreign-owned companies average 62 percent, up from 45 percent in 2007. Chinese-owned company average compliance rates were down 6 percentage points to 44 percent.
Respondents worked for companies that have at least 100 employees, with offices in the three main Chinese economic regions of Beijing, Guangzhou and Shanghai and are across six industry sectors. Ninety-eight respondents have at least some foreign ownership. Eighty-seven percent of the 69 respondents that worked for companies with more than 500 employees had a dedicated travel manager.
Amex attributes an increase in the use of premium class fares to the "slight increase in budget spend overseas and Hong Kong destinations." Negotiated airfare use declined from 70 percent of respondents last year to 64 percent this year.
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