Factors in the recovery of business travel spending

The travel item is very complicated to budget, since the costs are not known in advance. The main item of travel expense is the aérea, as of today, there are no flat rates, therefore, the budget is approximate.

A company can calculate the number of trips to a destination and the average price for the previous year, however, the price of those tickets depends on a number of factors beyond the company's control, such as the competition between airlines on that route;competition between airlines on that route

The factors in the recovery of corporate travel spending are several. The first is the more favorable domestic and international economic environment. Corporate travel is closely aligned to the economic cycle, in fact, it is a sector that anticipates and serves as a prelude to other sectors. This more favorable climate encourages companies to travel in search of business and to expand their existing business. In addition, corporate travel providers are raising prices to recover the levels they have lost in recent years.

The second aspect is the mix of countries in which companies operate. During the crisis, many corporations have sought customers outside our borders and now much of their revenue comes from international branches. This business situation forces managers to move to more transcontinental destinations with the increase in costs, especially flights.

The third aspect is the shift of the company towards the quality of travel. During the crisis, the traveler has suffered restrictions in his travel budget, the balance between travel conditions and cost had shifted towards the latter. With the economic recovery, companies are regaining the balance where the traveler has a greater weight. The traveling employee is an asset of the company and talent must be retained, travel conditions can be a further contributing aspect.

Companies very focused on the Spanish market are going to recover their travel spend more slowly. On the other hand, multinationals with greater activity outside Spain will potentially increase their travel spending at a faster rate. In fact, they have recognized this trend and are already globalizing the travel account to take advantage of potential synergies and contain spending.