Corporate travel, to a large extent, drives the whole airline and hotel industry. After the events of 9/11 in 2002, we saw a huge decrease in corporate travel here in the United States, which basically bankrupt many of our top airlines. Corporate travel is back in a big way, however. Our largest corporations spend nearly half a billion dollars a year on travel. IBM alone spent over $400 million in 2004. For this reason, all of the airlines, the hotels, and the ground transportation companies work hard to lure and keep corporate customers.
All of the major airlines, hotels, and rental car companies have rewards programs. They not only create incentives for the companies they do business with, they create incentives for the individual employees to choose them over their competitors. Airlines or hotel chains may offer double mileage or points for group travel, or other special circumstances.
Airlines like Southwest and Jet Blue, which offer no frills but reliable service, are taking a big chunk out of the corporate airline business. Companies have realized that travel expense are controllable, and have in many cases implemented policies to save money by using discount carriers, economy class tickets, and travel management companies.
Travel Management
Many corporations have turned to travel management companies to reduce their travel costs. Smart travel management policies can save a company as much as 20 percent on their travel costs without significantly reducing the level of service or amenities. The worst travel policy a company can have is no policy. Travel management companies have made it easy for corporate clients in different divisions to book flights and other travel arrangements online, while at the same time being accountable to their parent companies.
Read Next 5 Articles
Serviced Apartments
Grand Canyon Tours
Grand Canyon Helicopter Tours
Las Vegas Grand Canyon Tours
Grand Canyon Rafting