Business travel practices in China are fast catching up with patterns in the west, with corporate travel policies becoming more structured and 55 per cent of companies now following written travel and entertainment (T&E) policies.

American Express (Amex) global travel services president, Mr Charles Petruccelli, told the China Business Travel Forum in Shanghai from April 13 to 14, 23 per cent of organisations were expected to use interactive online booking tools within a year. Now about four-fifths of T&E is paid for in cash.

He was announcing the results of the second survey of corporate travel practices in China at the conference, organised by Amex in partnership with the Shanghai Municipal Tourism Administrative Commission.

The barometer of business travel in China showed most spending was on food and entertainment, followed by air fares and hotels. The 150 firms with more than 50 employees surveyed said they spent 25 per cent more on T&E in 2004 compared to 2003, when the first survey was conducted. And 42 per cent expect to spend significantly more in the future. Finance, insurance and real estate executives spend three times more on T&E compared to those employed in retail, wholesaling and distribution.

Mr Petruccelli and other speakers pointed to trends showing Chinese corporations were turning to online travel management solutions to control costs and to track more accurately how money was spent.

In another survey of 1,000 travellers in 10 countries conducted by Amex to chart global business traveller preferences, results showed reward programmes offered by suppliers were successful in winning loyalty.

The majority of survey participants take advantage of reward programmes when travelling for business. When it comes to the types of programmes they utilise, 63 per cent participate in frequent flyer programmes. The most preferred types of rewards are airline tickets (67 per cent), followed by hotel stay (52 per cent) and car rental (36 per cent).

When selecting an airline, global business travellers rated flight schedules (34 per cent) and price (30 per cent) as most important. Japanese travellers felt schedules were most important, while Germans and Canadians were the most price-sensitive travellers. In China, an airline’s safety record was most important.

Flat beds were the most important service to everyone surveyed. Food service and inflight entertainment tied for second place.

Fifty-one per cent of interviewees said sightseeing was their most relaxing activity while travelling on business, 28 per cent pointed to socialising with colleagues and clients, and 15 per cent identified shopping as the most relaxing activity.

The survey revealed travellers found in-room Internet access the most important service they looked for in a hotel followed by free breakfast, business facilities and VIP checkout.