BUSINESSES anxious to trim costs have set severe restrictions on travel budgets and have asked staff to minimise T&E expenses since the start of the Asian financial crisis in 1997. Despite improved economic scenarios in many parts of Asia, many of these restrictions remain in place.
A survey of travel managers and leading corporations shows the lessons of the global turndown have not been forgotten.
It is not uncommon to see trips replaced by hi-tech video-conferencing, according to some.
Leading corporate travel agent in Hong Kong, American International Travel (AIT) national leader, Mr Jonathan Kao, said all his clients were concerned about controlling travel expenses.
He said: “Some finance directors have had to measure the ROI (return on investments) on travel. It is important for them to lower their travel spend and increase the effectiveness of what they spend on travel.
“They want more deals from suppliers such as airlines and hotels than ever before. We have also noticed that a lot of our corporate clients have been tightening up their travel policies.”
The trends included an overall increase in demand for direct deals with airlines and hotels, a decrease for business and first-class fares and increased demand for special fares.
In addition, clients have also largely cut down on the use of limousine services.
Mr Kao added businesses were also trying to lower the fees they pay TMCs.
“I do not really see much uptake on transaction fee-based arrangements in the Hong Kong market. Most prefer rebate models,” he said.
AIT also finds that corporate clients are not asking for online booking solutions. “There are only some demands for posting general information like flight schedules, airport information, etc, online. Some have asked for the ability to check travel itineraries online.”
To help clients manage T&E expenses better, AIT has increased the supply of fare options to clients as more special fares are available in the market. “We also analyse travel patterns and provide suggestions or arrangements between clients and suppliers,” he said.
