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Business travel not generating ROI

11 May 2009 06:58

Business travel not generating ROI

It is difficult for organisations to generate any return on investment (ROI) in their corporate travel spending - though this should not require them to cut back on their business travel insurance policies.

The Guild of Travel Management Companies (GTMC) has claimed that business travel is an area of spending that companies will cut back on in times of financial hardship.

However, the leading representative of the industry did draw a distinction between the types of corporate journeys being reduced, with customer attraction increasingly seen as an "essential" reason to travel.

Phillip Carlisle, chief executive of the GTMC, said: "I think that is what they are focusing on now and therefore that focus will continue. I don't think that focus ever goes away. The trouble is getting a return on investment and that will continue."

He added that the rate of decline in business trips is understandable, as companies are "suffering".

Earlier this year, the Association of Corporate Travel Executives claimed that managers are putting an end to unnecessary business trips in order to save money. ADNFCR-1320-ID-19150471-ADNFCR

Martin Rothwell, Senior Partner World First Travel Insurances, says:

World First specialises in arranging corporate travel insurance and can arrange block policies for companies who are looking to save money and buy cheaper travel insurance without cutting the cover.

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