77% firms expect to increase travel budget in 2023: American Express Survey

Corporate travel is expected to rebound with as many as 77 per cent of Indian businesses expecting a rise in their travel budget in 2023 as compared to 2022, said a survey commissioned by American Express.

In terms of the practical methods used to pay for travel expenses, the most common way, used by two-thirds of companies (66 per cent), is that the business has company accounts with third party booking systems.

However, most businesses reported using multiple methods, with 61 per cent saying they let employees pay and expense, and 57 per cent saying they provide employees with access to a company credit card, the survey said.

The survey Revival of business travel: An India perspective' commissioned by American Express, India with the Centre for Economics and Business Research (Cebr) indicates that 79 per cent of Indian businesses are using business travel data analytics to assist with travel booking and expenditure.

"The sentiment is upbeat for corporate travel in India. While the past two years resulted in a temporary decline in business travel, domestic travel has resumed, and almost surpassed pre-pandemic level. International travel is also picking up and we can expect a sustained recovery.

"With increased average ticket prices expected to remain high in the medium term, Indian companies will be exploring technologies, and should adopt smarter solutions for better cost efficiencies, said Manish Kapoor, Vice President and Head, Global Commercial Services (GCS), American Express Banking Corp, India.

The survey was conducted amongst over 500 Indian businesses across cities in India. It focusses on larger businesses, with half of the respondents seeing annual revenues greater than Rs 600 crore. About 82 per cent of businesses in the survey report have 250 employees or more.

With business travel across domestic and international markets showing a rebound post pandemic, it said, "majority of Indian businesses (67 per cent) expect a rise in business travel in 2023 and 77 per cent of businesses are expecting to increase their travel budget in 2023 as compared to 2022".

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