Businesses cutting down 'unnecessary travel'
18 February 2009 06:42
Managers are cutting down on unnecessary business trips in order to save money, according to the Association of Corporate Travel Executives (ACTE) - but that doesn't make Business travel insurance any less important.
As expense accounts dry up and the purse strings on budgets are tightened, travel insurance for business trips may seem like something that can be cut back on, however the cost of being under-insured can far outweigh that of any premiums.
One way businesses are trying to reign in their travel expenses is by only approving trips that are sales related and have the potential to actually generate new revenue, the ACTE suggests.
Caroline Allen, regional director for the ACTE in northern and east central Europe and Russia, cited statistics from the organisation indicating that four in five (79 per cent) businesses anticipate that travel will be restricted in the year ahead.
"Corporations will look to demand management as travel alternatives, telephone conferencing and video conferencing and so on," she added.
ACTE claims that 62 per cent of firms now have a corporate social responsibility charter - which lays out the ways in which they manage the economic, social and environmental impacts of their businesses.