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Businesses cutting down on travel expenses

07 March 2009 15:56

Businesses cutting down on travel expenses

Employers are cutting back on expenses such as business travel in order to cope with the recession, it has been suggested.

While those still heading abroad should ensure that they take out travel insurance for business trips, research from the Chartered Institute of Personnel and Development (CIPD) indicated that 38 per cent of employers have reduced travel.

The survey - conducted in association with financial services firm KPMG - indicated that 69 per cent of those who reduced business travel spend did so by allocating a smaller budget for expenses, while 60 per cent cut down on international travel.

Declines in the use of private transport such as taxis (64 per cent) and first-class travel (65 per cent) have also been prevalent.

Commenting, KPMG's head of human resources Tim Payne said: "It's no surprise that organisations are reining back on non-essential spending and scrutinising their policies carefully."

Earlier this month, the Association of Corporate Travel Executives claimed that corporations are looking towards technology such as video conferencing as an alternative to trips, however that does not make travel insurance any less crucial when employees do go overseas.ADNFCR-1320-ID-19044586-ADNFCR

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