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T&E spend squeezed as sky-high air fares take toll
The cost of business travel has sky-rocketed to a seven-year high, according to a new study.
The American Express Business Travel Monitor found that rising oil prices, capacity constraints and ticketing restrictions sent the cost of air travel soaring in the second quarter of 2008, forcing procurement to tighten travel and entertainment (T&E) spend policies.
The average international one-way airfare hit its highest level since the inception of the company’s Business Travel Monitor in 1999, with a second quarter rise of 11 per cent sending them to an average of $1980.
“External market forces continue to pressure business travel budgets at the same time that high fuel costs push travel prices to new highs,” says Hervé Sedky, vice president and general manager, Global Advisory Services, American Express Business Travel in New York.
“During times when economic conditions are volatile, companies step up efforts to stress the importance of purchasing tickets in advance in order to use discount tickets in a negotiated travel program,” he added.
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