Wednesday, August 06, 2008
AMEX Biz Travel Highlights Findings in Asia Pacific Industry
The 2nd quarter 2008 American Express Asia Pacific Business Travel Monitor provides little relief to corporations struggling to keep control of rising travel costs. Asia Pacific published fares were up 3% overall quarter over quarter and 9% year over year. Fuelling this increase were flights originating in Asia Pacific going to Intra Asia Pacific destinations which rose 5% quarter over quarter. Both full business class and full economy class saw increases of 3% quarter over quarter.
Kurt Knackstedt, head of Advisory Services for American Express Business Travel, Japan, Asia Pacific and Australia commented, 'Economic pressures and the simple equation of supply and demand continue to force base airfares up, meaning corporations have to act smartly to keep travel budgets in check.
'Increasingly, companies view business travel as an investment in their business and are interested in doing everything they can to maximize their return. Many companies are still keen to travel despite rising costs, so they need to evaluate all aspects of their travel programs and work harder at finding reasonably priced options.'
'One other outcome of rising airfares is that many companies are finally putting greater emphasis on encouraging and promoting traveler compliance with corporate travel policies. On average 20% of travel and entertainment spend is out of policy' so this represents a huge opportunity for corporations to regain control of the purse strings.'
'To help corporations improve policy compliance, we've recently introduced Change Management as a consulting competency to defray the rising cost of travel. Depending on the methods used, incremental cost savings made possible through this new practice area can range between 11 percent and 33 percent of a company's total air spend.'
The second quarter 2008 report tracks data for the quarter ending 30 June 2008.
The American Express Business Travel Monitor, Asia Pacific is available on a subscription basis.