August 9, 2005
Corporate strategies and initiatives for 2005 indicate a resurgence and need to travel, according to a recent survey by Runzheimer International, a Wisconsin-based consulting firm specializing in transportation, travel and living cost information.
A survey of organizations’ business travel costs and budgets and found that travel expenditures are increasing at rates reminiscent of years past. Of the 78 organizations surveyed, 62% report an increase in travel expenditures between 2003 and 2004, a notable increase when compared to the only 33% who reported an increase in travel between 2000 and 2001.
Travel managers prepared for the upswing by beefing up their travel budgets. Forty-three percent of 2005 travel budgets are greater than actual 2004 travel spend.
There are several reasons for the increase. More than half reported an increase in the number of domestic and international trips and an increase in domestic travelers. Trip costs are up as well. The average 2004 domestic trip is up more than $100 from 2003 from $800 to $904, and the average international trip cost increased from $2,375 in 2003 to $3,083 in 2004.
"As business travel increases, companies are taking specific actions to control travel costs,” says Phyllis Schumann, Travel Management Consultant with Runzheimer International, “they are tightening adherence to travel policies, encouraging the use of preferred vendors, and promoting the use of lowest logical fares.”
About Runzheimer International
Founded in 1933, Runzheimer International serves 60 percent of the Fortune 500. Recognized for providing innovative solutions relating to employee mobility, Runzheimer is a global leader in employee-provided business vehicle reimbursement programs, employee compensation and relocation, and travel management.
For more information contact Luella Dooley at Runzheimer International, Runzheimer Park, Rochester, Wisconsin 53167, 262-971-2271, ljd@runzheimer.com, www.runzheimer.com.
