Travel managers expect crisis to last
Only 20% of travel managers organized in the “Verband Deutsches Reisemanagement e.V.” (VDR – German Travel Management Association) have not yet observed an impact on business trip activity by the financial and economic crisis. While more than 60% were affected in winter of last year, the percentage rose to slightly above 80% by mid-February. This was shown in a survey among travel managers organized in the VDR conducted by Prof. Dr. Ernst-Otto Thiesing of the tourism management department at Karl-Scharfenberg Faculty Salzgitter, Technical College Braunschweig-Wolfenbüttel, in February.
Still, the service-oriented enterprises have, until now, faired somewhat better than average. The crisis hit the sector later than it did the industrial enterprises. Also, the percentage of service providers not yet feeling any impact is significantly higher than that of industrial enterprises with 17%.
More than 90% of the interviewed travel managers expect a cut in expenses for business trip activities in the current year as compared to the previous. About 70% anticipate cuts of more than 10%. Economization of as much as 20% is expected by 44% of the respondents. Only short of 7% of all travel managers anticipate increased expenditures for business trips.
More than 90% of all travel managers – regardless of industry affiliation – still see a general potential for economization in business trips. Nearly 50% of the respondents stated that, according to their assessment, an economization potential of at least 10% is realizable. Almost 10%, however, hold that the economization potential in business trips has been virtually exhausted now.
The visible impact of the economic crisis on the travel management differs per case. 72% of the respondents stated that the actual necessity of business trips has been under increased scrutiny by the companies since the beginning of the crisis, and in 46% of the companies, travel guidelines were tightened in response to the crisis.
The travel managers expect that business trips will be shorter in the future, that flights will be booked earlier in order to save on fees and that flights will more frequently be booked in lower classes. This is far less widely anticipated for accommodation. Travel managers also expect cuts in external meetings and events, with the use video and telephone conferences to increase.
There is not much optimism for an early end to the crisis. More than 60% of the respondents anticipate that it will take at least a year for business trip activity to normalize and reach its old level. More than 20% think that it will take two years or longer, even, or that the old standard will not be reattained at all.
Service providers are comparatively optimistic in regards to the impact of the crisis. “Merely” 20% have been hit hard; a medium or slight decline is anticipated by 30%, respectively. More than 20%, however, project an increase in business trip activity for the current year.
128 members of the German Travel Management Association were interviewed from February 11 to 18.
