Travel spending in 2010 has so far performed better than initially predicted and Canadian corporate travel managers expect both travel volumes and expenses will further increase in the coming year, according to a study conducted by the Association of Corporate Travel Executives (ACTE) and The Conference Board of Canada.
“While survey results from the same time last year were pessimistic, there is now an upbeat attitude in the industry as fears of a further reduction in business travel volumes in 2010 did not materialize,” said Monica Hailstone, Regional Director, Canada, ACTE.
Nearly half of the 56 organizations polled reported an increase in spending in 2010, particularly on domestic air travel and hotels. The vast majority of respondents to the ‘Canadian Business Travel Outlook’ survey - 89% - are anticipating the same or greater travel volumes in 2011.
According to the survey, business travel volumes in 2011 are expected to rise by close to 5% with travel expenses tracking closely behind.
A higher volume of domestic trips was the most common reason cited for higher travel expenses, followed by rising airfares. While hotel and car rental rates are expected to see some gain, travel managers project increases to remain below 2%.
“We are feeling this renewed confidence across the industry,” said Hailstone. “This is not only good news for the Canadian economy but the global economy as well.”
Now in its fourth year, the Canadian Business Travel Outlook survey tracks business travel trends to provide a benchmarking tool for travel management professionals and the travel suppliers that serve them.
Detailed results of the survey are available via ACTE Connect.
