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Travel management to gain from budget cuts

Travel management to gain from budget cuts article image
Travel management companies are set to become the service providers of choice following travel budget restructuring stemming from the global economic downturn. American Express has issued the results of a study showing that about two-thirds of companies reduced their business travel budget by more than 30 percent this year, with almost three-quarters opting for cheaper alternatives such as video conferencing. The American Express Business Travel 2009 European Barometer indicated that European companies are being cautious for 2010,  still in a wait-and-see mindset with regard to the after effects of the crisis. Amex senior vice-president and general manager for business travel EMEA David Herrick noted this caution would result in more businesses looking for ways to meet their requirements. "Undoubtedly, the economic crisis has placed a significant strain on companies, who are having to think about their travel spend in a much smarter way and will continue to do so as we move into 2010," he said. "Travel management companies will become increasingly relevant as companies redefine their business travel needs. Travel management companies  play a key role in helping companies maximise savings without sacrificing the tangible benefits of a robust travel and entertainment program."

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