The availability of cheap airplane tickets, discount hotel rooms, and an improving economy are all contributing to business travel growing again. U.S. companies are expected to spend 5 percent more on travel in 2011 than last year, double the growth rate experienced in 2010.
Last years increase in business travel (estimated at $228 billion) played a key role in U.S. carriers achieving their first combined profit in three years.
Corporate retreats that all but vanished during the recession have started to come back. Businesses largely eliminated corporate retreats during the recession to avoid appearing extravagant at a time when the government was bailing out companies and unemployment was increasing.
Executives are spending more on travel because they view travel as critical to their success. Many companies have found that when employees are sent in person to meet with buyers or suppliers the quality of the information transmitted increases significantly.
Even though business travel is rising it is not expected to return to its pre-recession level until the middle of 2013. Part of the reason for this delay is that companies are encouraging their employees to travel more frugally.
The average cost per business trip if the first quarter is forecasted to be $548 which is six percent below the same period in 2008.
Corporate travelers are being asked to spend fewer nights traveling, stay at less expensive hotels, rent smaller cars, and consider purchasing cheaper tickets on routes which are not nonstop.
www.cheapfares.com