Making travel dollars go farther.

AuthorRichardson, Jeffrey
PositionCorporate travel planners looking for cheap but superior services

Corporate travel planners are pursuing superior services and lower costs.

Despite breathtaking advances in telecommunications and computer technology, American enterprise still depends heavily on travel to conduct business. Particularly in the 49th state, executives often must travel in dealings with distant suppliers and in search of diversification opportunities.

Companies around the state are seeking new ways to control travel costs and make planning easier. They know from experience that booking flights, car rentals and other accommodations can be complex and time consuming. After all, arranging travel cost-effectively taxes even the travel professionals on whom many businesses rely for help in making trip arrangements.

"It's a scary world out there, with computers and fares changing all the time," says Sherry McGuire, sales manager of the Regal Alaskan Hotel in Anchorage.

Kathy McKibben, director of sales for USTravel in Anchorage, agrees: "What might be true today might be totally different six months from now. What would be true in one market wouldn't necessarily be true in another market."

McKibben says business trip buyers are increasingly asking for money-saving information beyond air fares; they're looking for more comprehensive strategies. "Two years ago, the bulk of business travelers were primarily concerned with service, dependable schedules and in-flight benefits. The primary change I've seen is that now the economy is a much stronger factor. Price is much more of a consideration," she explains.

Statistics show how much is at stake in coming to grips with travel costs. Nearly 16 percent of the trips Americans took in 1990 were for business, including trips to sell products and services; carry out operations; consult and manage companies; or attend conventions, meetings and trade shows.

In 1990, U.S. business travelers accounted for 210 million business-person trips, according to data published by the U.S. Travel and Tourism Administration, a federal agency in Washington, D.C. Although this figure is down somewhat from the year before, the trend of the last 10 years has been steady, sometimes substantial, growth in business travel.

Travel cost American companies $115 billion in 1990. Of that amount, 41 percent went to airline fares, 22 percent to lodging, 16 percent to meals, 11 percent to entertainment, 8 percent to car rentals and 2 percent to miscellaneous expenses, according to a biennial study conducted by American Express.

Clearly, when times are tough, even cutting back substantially on entertainment could benefit some companies. But with nearly 80 percent of business travel costs attributable to essentials, companies either have to travel less -- which may or may not be an option -- or get smarter about booking their trips.

With travel costs projected to continue rising and no end to the bewildering complexity of trip planning in sight, many executives, business owners and administrative officers are opting for smarter travel management. They are seeking strategies to cut costs and increase value.

Cost-Conscious. Because air fare is the largest business travel expense category, austerity measures frequently begin in that arena -- one in which the uninitiated can quickly lose their...

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