Businesses Cut Back on Air Travel Expenses
Monday, May 11th, 2009
Airlines have been bracing for fewer business travelers since the town turn in the economy. They are also seeing that the business travel that remains is switching from the higher end travel of business class to economy class. The cost factor is becoming a big issue for many companies struggling to keep afloat during these tough times. The bad news for the travel industry is that if the government succeeds in tightening taxes on business then the reduction of travel is likely to increase.
Not all business have splurged on travel costs in the past. Some figures suggest that around 40% of businesses have been wise with their travel costs. Since the change in the economy that figure has shifted dramatically with almost 60% of companies cutting back on international flights (and around 90% cutting back for domestic flights).
Airline tickets have dropped in cost over the last several months - triggered in part by the falling economy and the drop in demand for services. Businesses have not seemed eager to take advantage of the falling prices and have continued to cut back on travel expenses.
The introduction of technology to allow meetings and conferences to take place with participants around the world has also cut down on the need for business travel. Traditionally it has been business travelers that have helped the airlines out during the work week.
The airline industry has been struggling lately to keep their books out of the red. The falling economy and the drop in business travel have not helped the situation. Airline companies are turning to special promotional packages, reductions in flights and other means to help balance out their budgets. One of the good results of fewer flyers has been an increase in customer service and the resulting customer satisfaction of those who are flying.
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