TRAVEL EXPENSES INCREASING FOR BUSINESSES
By Adnews Staff
Business travel expenses doubled during the 1990s as more Canadian companies vied for a global market, according to a survey done by American Express of Markham, Ont. Annual travel related costs during 1997 were $13 billion. This compares to $6.2 billion in 1987. The survey also showed a 40% increase over 1994 in spending on business travel to the U.S. International spending grew 29% during the same period. Business travel is no longer limited to senior managers. Forty per cent of employees take at least one business trip per year, compared to 28% in 1994. Canadian companies spend an average of $9,500 per traveler annually on travel and entertainment. The highest average expenditures by industry were found in manufacturing at $15,400. Mining/forestry/agriculture came in second at $12,200 and business services such as engineering and management consulting followed at $11,500. The lowest expenditures were found in educational and government services. Only 4% of companies use online travel booking services, while 93% of companies book their travel by phone. More than 70% of respondents have not automated any steps of the expense management process. Fifty-six per cent of companies use one designated travel agency for all their business locations and 25% of respondents have switched travel agencies in the last two years. Seventy-five per cent of those companies surveyed said they switched because of the quality of service and 43% said pricing was the factor. Fifty-five per cent of companies expect all employees other than senior executives to travel economy class. This compares to 46% in 1994. Twenty-two per cent of companies with corporate cards require their employees to use them for all chargeable business expenses. The survey was conducted in association with the Conference Board of Canada.