Press Release

For Immediate Release
9 June 2008

ACTE SURVEY: FLIGHT REDUCTIONS, INCREASED COSTS, AND FEWER OPTIONS CREATE TRIP TIPPING POINTS FOR BUSINESS TRAVEL MANAGERS

Alexandria, VA -- Reductions in flights to U.S. cities by the nation’s airlines, in response to rising fuel costs, will have an adverse effect on accomplishing corporate objectives, according to a recent survey conducted by the Association of Corporate Travel Executives (ACTE).
Furthermore, travel managers expect a dramatic increase in the number of requests for travel alternatives from employees contending with fewer options, more crowded planes, and congested airports. Fifty-nine percent of survey respondents stated that flight cutbacks would limit their company’s ability to meet directly with manufacturers, suppliers, or buyers. Sixty-five percent indicated they expect business travellers to ask for travel alternatives.

Ninety-eight percent of the travel managers who responded indicated that there is a point where the cost of air travel will definitely warrant looking at travel alternatives for non-strategic (non-revenue producing) travel. And sixty-one percent believe that point will be reached in 2008.

“Business travel managers clearly have a point in mind when the cost of travel will determine the viability of each trip,” said ACTE’s Executive Director Susan Gurley. “And nearly two-thirds of those who responded to our survey believe that point will be reached sometime this year.” Gurley added that the need to meet corporate objectives, coupled with a growing demand for travel alternatives by employees looking to reduce the stress from the road, will drive the industry closer to “Demand Management.”

Demand management is a process that weighs revenue return against expense and productivity loss. It relies heavily on technology such as video teleconferencing, which often comes with bundled computer software.  Far more sophisticated software is available, and more is being developed every day.
Eighty-two percent of the survey’s 128 respondents have reported studying video-teleconferencing as a travel alternative, while 49 percent have reported cutting back on travel this year. “We are looking at the confluence of economic pressure, customer need, and technological availability, which generally heralds significant change for an industry,” noted Gurley. She defined that change as “Electronic Travel,” a hybrid philosophy of physical travel and computerized communications designed to serve the travel function.

“It is unrealistic to think that all travel can be reduced to an electronic meeting, but a lot of it can, as some companies have already discovered to their financial advantage,” Gurley concluded. Last week, ACTE issued a statement urging the Federal Aviation Administration (FAA) to step up air traffic control programs that could save the airlines billions of dollars of fuel lost to congestion.

ABOUT ACTE:
The Association of Corporate Travel Executives (ACTE) represents the global business travel industry through its international advocacy efforts, executive level educational programs, and independent industry research. ACTE's membership consists of senior travel industry executives from 82 countries representing the €200 billion business travel industry. With the support of sponsors from every major segment of the business travel industry, ACTE develops and delivers educational programs in key business centers throughout the world. ACTE has offices in Asia, Canada, Europe, Latin America, South Africa, and the United States. For more information on ACTE, please go to www.acte.org.  

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