Thirty percent of employers reduced business travel last year, according to a recent survey. However, in 2011, fewer employers plan to cut back on business trips.
Negative Impact on Business
Nearly 40 percent of organization who decreased the number of buiness trips reported that it adversely affected their business. Organizations were impacted the following ways:
- 12 % reported less effective internal communication
- 11 % reported fewer sales
- 10 % reported less effective execution on internal business initiatives
- 8 % reported less customer loyalty
Business Travel in 2011
Business travel is expected to see a slight increase in 2011. Eleven percent of employers reported that their organization will take more business trips this year than last year. Seven-seven percent reported that levels will stay the same as 2010. While 30 percent of employers decreased business travel last year, only 13 percent plan on doing so in 2011.
Decreasing the number of trips is not the only cost-cutting action employers are taking. According to the survey 32 percent of employers said they are also placing restrictions on business travel employee expenses, such as booking coach seats, lowering entertainment budgets, and limiting trips to domestic travel. Employers are also utilizing web and phone conferencing as an alternative to travel.
BLR’s 2011 Fringe Benefit Survey Series--Business Travel and Relocation Benefits reported similar findings. Nearly all respondents reported taking at least one action to control business travel expenses during the recession. Of those employers, 62 percent took at least two actions to cut back spending.