(Originally published in TOURISM)
Hospitality Trends reports Canadian companies will increase their travel spends by a solid 4.2% next year, while placing greater emphasis on green programs and expressing a stronger interest in the video options of demand management, according to the 2008 Business Travel Outlook.
This analytical white paper was produced jointly by the Association of Corporate Travel Executives (ACTE) and the Conference Board of Canada (CBOC). It formed the basis of a keynote presentation by Alexander Fritsche, Economist for the CBOC, on November 20, 2007, the final day of the ACTE Canada Education Conference in Calgary.
The top three reasons cited for higher travel spending were: a greater number of international trips to destinations other than the US, rising travel prices, and growth in domestic travel. Based on survey responses from 43 major Canadian companies, the report predicted travel managers will face tougher negotiations in 2008 over higher hotel room rates, and to a lesser extent, rental car rates. Corporate airfares for domestic travel and trans-border travel to the US are each expected to edge up by an average of 1.2% over 2007.
"The survey also revealed the growing influence of corporate social responsibility and environmental issues in shaping corporate travel policies. Nearly all the companies interviewed for the report said their organization had embraced corporate social responsibility (CSR) as a corporate goal. This is a remarkable increase from a similar survey conducted two years ago. CSR has been a key ACTE initiative since 2005," notes Hospitality Trends.
"The idea of using video teleconferencing as a travel alternative is also gaining traction in Canada. The motivating factors driving this concept are savings, better technology, and a higher quality of life from the increase in personal time not spent travelling."
The study did confirm that the majority of Canadian organizations continue to recognize the critical role of face-to-face meetings in the way they conduct their business.
Hospitality Trends reports Canadian companies will increase their travel spends by a solid 4.2% next year, while placing greater emphasis on green programs and expressing a stronger interest in the video options of demand management, according to the 2008 Business Travel Outlook.
This analytical white paper was produced jointly by the Association of Corporate Travel Executives (ACTE) and the Conference Board of Canada (CBOC). It formed the basis of a keynote presentation by Alexander Fritsche, Economist for the CBOC, on November 20, 2007, the final day of the ACTE Canada Education Conference in Calgary.
The top three reasons cited for higher travel spending were: a greater number of international trips to destinations other than the US, rising travel prices, and growth in domestic travel. Based on survey responses from 43 major Canadian companies, the report predicted travel managers will face tougher negotiations in 2008 over higher hotel room rates, and to a lesser extent, rental car rates. Corporate airfares for domestic travel and trans-border travel to the US are each expected to edge up by an average of 1.2% over 2007.
"The survey also revealed the growing influence of corporate social responsibility and environmental issues in shaping corporate travel policies. Nearly all the companies interviewed for the report said their organization had embraced corporate social responsibility (CSR) as a corporate goal. This is a remarkable increase from a similar survey conducted two years ago. CSR has been a key ACTE initiative since 2005," notes Hospitality Trends.
"The idea of using video teleconferencing as a travel alternative is also gaining traction in Canada. The motivating factors driving this concept are savings, better technology, and a higher quality of life from the increase in personal time not spent travelling."
The study did confirm that the majority of Canadian organizations continue to recognize the critical role of face-to-face meetings in the way they conduct their business.
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