Runzheimer International Cites an Increase in US Business Travel and Entertainment Spending

WATERFORD, Wis., Nov. 9, 2010 /PRNewswire/ -- According to a new survey being released by Runzheimer International (http://runzheimer.com) today, U.S. organizations are spending more on travel than last year, while continuing to manage costs and support traveler needs.  The Runzheimer Business Travel Policies and Costs study represents data collected from more than 70 organizations across the country.  The full report can be found here.

Business Travel Expenditures Increasing

The Runzheimer study cites that nearly half (49%) of organizations are increasing travel expenses in 2010. Of those respondents, 48% report an increase in the number of domestic trips as the primary reason for the rise in costs. Costs related to air travel represent 43% of total travel, while lodging expenses are reported at 24% of overall business travel expenses.  

Cost Control Remains a High Priority

When asked what actions were being emphasized to control travel costs, the majority of respondents reported encouraging use of preferred vendors (88%) to control costs and improve their future negotiation power. Seventy-five percent (75%) encourage use of travel alternatives, such as web, telephone or video conferencing. A drastic increase in respondents reducing attendance at conferences and conventions was seen, as 72% reported their use of this tactic to control travel costs versus 27% in the past. Another noteworthy increase was seen in the number of respondents (62%) currently reporting that they are strengthening expense reporting and expense auditing procedures.

Traveler Satisfaction Mixed While Compliance Remains High

The Runzheimer survey cited traveler's satisfaction with policy as being rated 'Excellent' by 20% of respondents and an additional 61% rated traveler's satisfaction as 'Good.' These ratings have decreased since 2008, which can be significant because traveler satisfaction with policy is often the basis for travel compliance.  However, compliance overall is rated at 84% when looking at 'Excellent' and 'Good' ratings (2% higher than in 2008) and indicates travel program management has kept compliance high despite the drop in traveler satisfaction.

"Travel is a significant force in business growth and these indicators are essential to monitor," said Greg Harper, president of Runzheimer International. "Organizations that support business traveler needs, while appropriately using data and policy to manage costs, have an edge in the new economy.  The data we offer through our proprietary Travel Management Network includes a wealth of business travel-related information that companies can use to drive business and operational success."

Other Key Survey Findings:

• When business travel is required, more organizations are developing cost guidelines for hotels and meals in major destinations (up from only 6% in 2008 to 30%) to help control trip costs. The average domestic trip cost is now $983, an increase of 5% from 2008. The average direct spend per traveler per year is $10,475, up from $9,751 in 2009 but still lower than the 2008 annual direct spend per traveler of $10,740.
• Business trips have decreased in duration, as a two-day trip is the current average length reported by 46% of respondents. A three-day business trip follows closely behind at 40%.
• Forty-two percent (42%) of respondents report that their frequent travelers are on business trips between 31 and 75 days annually, which is up from 29% in 2008
• Vendor negotiation and use of approved agencies continues to be important. Of respondents that mandate specific vendor use 72% mandate use of their designated travel agency/in-house travel office and 80% require use of corporate-approved car rental firms.
• Thirty-three percent (33%) of respondent organizations refuse to reimburse out-of-policy expenses in an effort to enforce travel policy.

Survey Methodology

Seventy-one organizations from various business classifications, company sizes, and geographic regions participated in the Runzheimer Survey & Analysis of Business Travel Policies & Costs study. The majority of responses are reported from U.S. locations; therefore travel costs are uniformly shown in U.S. dollars. All percentages are rounded to the nearest whole number unless otherwise indicated. Runzheimer has published 14 previous editions of this study providing users with trend data covering more than two decades of rapid change and continuous new challenges.

About Travel Management Network

The Runzheimer International Travel Management Network provides the industry's most accurate and objective travel information, including hotels, meals and car rental for 200 domestic, 100 international cities and airfare for over 1,000 city pairs.  The service helps procurement and finance leaders improve negotiation results, reduce audit risk and set policy to manage spending.

About Runzheimer International

Founded in 1933, Runzheimer International serves 60 percent of the Fortune 500 and numerous government agencies. The company is recognized for providing innovative solutions relating to Total Employee Mobility®. Runzheimer International is the global leader in workforce mobility programs including business vehicle, business travel, logistics, corporate aircraft, employee relocation and compensation, and virtual office.

SOURCE Runzheimer International