Business Travel Expenses on Rise

As business travel expenses have continued to show an increase in the first three months of 2012, companies need to consider offering support to their employees to help them make better-informed decisions, says American Express Global Business Travel, a venture of US-based financial services company, American Express Company.

The company has launched its Business Travel Monitor for the 2012 First Quarter, which highlights that prices across all travel categories of services, including airfares, and hotel room rates, both domestic and international, for trips from North America to domestic and international destinations, have increased compared to those for the first quarter of 2011.

Christa Degnan Manning, the director for Expert Insights Research, American Express Global Business Travel, said, ‘Prices rose in the first quarter as companies put travellers on the road to jumpstart 2012 business goals while supply remained relatively tight.

To optimize travel budgets in this environment, companies should look at how they are encouraging compliance with corporate travel policies with positive motivators, instead of punishments for non-compliance.

Travellers should be rewarded for booking with preferred suppliers and taking cost-saving measures such as advance purchasing in ways that they appreciate. Strategies like these can demonstrate support to travellers throughout their journeys.’

Corporations need to revise their travel policies according to current market scenarios and plan travel routes, whilst also keeping in mind the requirements of their employees. Employees are likely to make smarter travel decisions if their companies help them to understand how they can support the organisation through their decisions, said the report.