Corporate Travel Predicted to Drop Through 2010
Corporate travel, the lucrative sector long sought after by accommodations and food services enterprises, continues to contract this year. And PhoCusWright Inc. predicts that budget woes will extend through 2010. In 2009, the U.S. corporate travel market will end the year with about an $85 billion value, 15% below 2008 levels. Historically, corporate travel comprised as much as 40% of the travel market. PhoCusWright analysts expect that figure to decrease to 35% in 2010.
Susan Steinbrink, PhoCusWright analyst, points out that general economic conditions have caused many consumers and companies to question travel and entertainment spending. On the plus side, Steinbrink correctly notes that other industries stand to gain as a result of this new austerity. “This means bringing more spend under management, accelerating integration efforts across the corporate travel value chain, and leveraging new technologies—from mobile to video conferencing—to bolster the bottom line.”[Source: PhoCusWright Inc. release]