CONTACT:
Caleb Tiller
, +1 703-236-1138
Tanya Racz
, +1 403-503-0431
Calgary, AB (December 19, 2007) -- NBTA Canada - the leading provider of education and professional resources for corporate travel professionals in Canada, and a regional affiliate the global National Business Travel Association (NBTA) – this week provided its members with an exclusive report, the NBTA Canada Business Travel Overview and 2008 Cost Forecast. The report anticipates mild growth in business travel by Canadian companies in 2008 driven by an increase in the number of trips taken, while fares are expected to largely remain flat. The report is based on a survey of Canadian corporate travel buyers for 95 corporations from coast to coast.
"Based on a unique survey of business travel purchasers and managers, NBTA Canada projects increased spending on business travel in 2008,” said NBTA Canada President, Tanya Racz, CTE, CCTE. “Forty-two percent of respondents said they expect their companies’ travellers to take more trips in 2008, while only 21 percent said they do not expect more trips. With increased travel as the primary driver of business travel growth, travel managers are looking to contain costs with effective travel policies.”
Airfares
On balance, corporations are paying roughly the same amount for domestic flights in 2007 as last year. Equal numbers of respondents (39%) said their domestic fares had increased or decreased this year, while the remainder said fares stayed the same. Similarly, only slightly more companies (33%) saw increases this year in transborder airfares paid for business travel to and from the United States than saw decreases (28%); the remainder said transborder fares were the same as the previous year. On the other hand, significantly more companies (57%) noted an increase in international fares to destinations other than the United States than saw decreases in those fares (6%).
In 2008, airfares are largely expected to remain flat. Significant numbers of respondents expect their companies to spend more on air travel in 2008, but more attributed that increase to growth in the number of trips (20%) or travellers (24%) than increases in airfares (12%).
Hotels
Two in three respondents (67%) indicated their companies are paying more for hotel stays in 2007 than last year. The remaining thirty-three percent are paying the same rates.
In 2008, hotel rates for business travel are expected to increase only slightly, with thirty-one percent of respondents projecting higher rates.
Car Rentals
More than half of respondents (53%) reported the same car rental rates in 2007 as last year. Four in ten respondents (41%) saw car rental rate increases, while the remaining six percent saw decreases.
In 2008, car rental rates are expected to remain flat, with one in five respondents (22%) projecting an increase in car rental prices.
Travel Policy
With rates remaining flat or increasing only slightly, an increase in volume is the main driver of increased business travel costs for Canadian companies. Travel managers are working to minimize the cost increases by increasing the effectiveness of travel policies.
Travel policies minimize costs by steering bookings to preferred vendors and maximizing the value of those agreements. Travel policies are also central to effective risk management, ensuring that a company can quickly locate travellers in a time of crisis and can proactively evaluate any risks associated with travel.
A majority of NBTA Canada survey respondents said they have recently updated (47%) or will soon be updating (29%) travel policies. Similar numbers are working to make travel policies stronger tools by making them mandated: 36 percent have recently; 29 percent will in 2008.
The report was distributed to all NBTA Canada members; members of the media can obtain the report by contacting pr@nbta.org.
NBTA Canada, the leading organization for corporate travel professionals in Canada, is part of the National Business Travel Association (NBTA), the world’s premier business travel organization. U.S.-based NBTA and its regional subsidiaries – NBTA Asia Pacific, NBTA Canada and NBTA Mexico – serve more than 3,000 members in 30 nations around the globe. NBTA has 42 U.S. Chapters with more than 5,000 members. NBTA members are corporate and government travel and meetings managers, as well as travel service providers, who collectively manage and direct more than US$170 billion of global business travel expenditures annually. The association provides industry-leading networking, education & professional development, research, news & information, and advocacy. For more information, visit www.nbta.org and www.nbtacanada.org.
NBTA Canada, le chef de file de l’organisation des voyages d’affaires pour les professionnels au Canada, fait partie de la National Business Travel Association (NBTA), l’organisme de voyages d’affaires par excellence à l’échelle globale. La NBTA, dont le siège social est aux États-Unis, ainsi que ses filiales régionales – NBTA Asie Pacifique, NBTA Canada et NBTA Mexique – offrent des services à plus de 3 000 membres répartis dans 30 pays à travers le monde. La NBTA a 42 succursales aux États-Unis comptant plus de 5 000 membres. Les membres de la NBTA sont des gestionnaires de voyages et de réunions d’affaires provenant des milieux public et privé, qui, ensemble, gèrent un portefeuille de plus de 170 milliards $ en dépenses liées aux voyages annuellement. L’association offre un réseau parmi les meilleurs de l’industrie, un programme de formation et de perfectionnement professionnel ainsi que des services de recherche, de nouvelles, d’information et de plaidoirie. Pour de plus amples renseignements, veuillez consulter les sites www.nbtacanada.org et www.nbta.org.
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