| 01 Dec 2008 |
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ACCORDING to 2008 Barometre of Business Travel Management, a survey which was commissioned by Amex Business Travel, travel and entertainment (T&E) spending has consolidated its position as the second largest controllable cost for companies within China in 2008. The Chinese business travel market continues to be largely driven by demand for domestic travel and is becoming better managed with more controls and methods to monitor travel expenses. The survey also showed that travel policy compliance has improved and is reinforced with new concerns regarding environmental issues and employee safety and security.
The results were announced at the opening ceremony of the China Business Travel Forum held in Shanghai. The Barometre has become an annual fixture at this forum, offering insight to attending companies into the business travel market in China. Previous surveys were conducted in 2003, 2004, 2006 and 2007.
The results were based on the responses of 265 participants from organisations with 100 or more employees representing six key industry sectors across Shanghai, Beijing and Guangzhou. The survey was conducted between July 2007 to July 2008.
“The most recent events have accelerated the economic slowdown. And this will no doubt have a major impact on the figures shown,” said Gregor Lochtie, VP and GM for Greater China, Amex Business Travel and GM China, CITS Amex Business Travel.
Lochtie, who presented the results, summed up these up with six key conclusions:
• First, the vast majority of spent takes place domestically.
• Second, the reinforcement of travel policies with new concerns regarding environmental issues and safety and security will only increase.
• Third, business travel is becoming a lot more managed with more controls, measures and monitoring.
• Fourth, the use of online for business travel is becoming more and more common.
• Fifth, cash prevails as main means of payment. The next step to Chinese businesses is really to move to a cardbased or centrally-build product that control travel and entertainment.
• Finally, the slow down in the economy in China and in the global market will definitely have an impact on travel. Companies will intensify their controls and the monitoring of costs |
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