Organisations adopting cost cutting travel policies: survey

33% decline in domestic and international business trips has been witnessed, says a TripAdvisor study

The annual 'India Business Travel Survey' by TripAdvisor, reports a mixed outlook for business travel for 2012. The survey was taken by over 1300 respondents working as self employed, in government, public, private  and multinational companies.

Domestic business trips in 2012 have declined for 33%, where as 32% witnessed a dip in international business trips as well.

“While overall business travel has been strong and stable despite the current economic environment, there are signs of a potential impact on travel frequency and cost. Respondents confirmed a decline in work trips this year from 2011, amid organizations growing careful and vigilant of their travel spends,” says Nikhil Ganju, Country Manager, TripAdvisor India.

Organisations are adopting cost cutting travel policies like, taking lesser employees, reducing duration of offsite, cancelling an offsite, changing international offsite to a domestic destination and at times even opting for lower star rated hotels/resorts.

Around 20% respondents who were flying business or first class for most trips in 2011 had to fly economy class on most work trips this year. In addition, 18% respondents said, they had to stay in a lower star rated hotel due to company’s cost cutting policies.

He further adds, “59% respondents acknowledged that their company has introduced some form of travel cost reduction measures like lowering grade of airline travel or fall in the average room night allowance. In fact 35% respondents among those who saw a drop in business trips in 2012 attributed it to cost cutting travel policies put in place by their organisation.”

The report further indicates that, the travel privileges and allowances see a downgrade for a sizeable number of business travelers.

Even though most respondents thought business travel gives them a break from usual office grind, surprisingly a higher percentage of male respondents said they found travel stressful or disrupting compared to female respondents.