Corporate travel is expected to decline 15 percent this year, according to a new report from PhoCusWright, the travel industry research company.
In contrast, the total U.S. travel market is projected to decline only 11 percent in 2009, dipping below 2006 levels, PhoCusWright’s “U.S. Corporate Travel Distribution.” report said.
Historically, corporate travel has comprised about 40 percent of the total U.S. travel market, but that share is expected to shrink to 35 percent in 2010, the PhoCusWright report said.
“Current economic challenges and public scrutiny of travel and entertainment spending has placed corporate travel on the chopping block,” said Susan Steinbrink, PhoCusWright’s senior research and corporate market analyst.
She said not only will there be less corporate travel, but there will be “stricter policies and tougher policing when spending does occur.”
On the plus side, she noted that the downturn will “positively affect innovation,” in everything from optimizing value in travel to leveraging new technologies “from mobile to video conferencing.”