The Corporate Housing Network Blog

We’re back in business baby–business travel, that is!

Posted on 24. Jul, 2010 by Kat Schneider Fotheringham in Blog, Business Travel, Uncategorized, corporate housing, executive accommodations, international business travel

Business travel, which feeds corporate housing, extended stay hotels and the economies that depend upon them are all moving in a positive direction, making the much-feared and discussed double dip recession virtually not a factor for business and corporate travel professionals.

The evidence is pretty compelling. Reports out this week confirm that the number of people traveling on business has recovered much faster than expected, according to one of Great Britain’s leading travel management companies.

Carlson Wagonlit Travel (CWT) had expected 2010 to be relatively flat in terms of year-on-year transaction volumes.

But instead, air transactions overall were up 8%, with the number of rail journeys booked also up 8%.

Transatlantic air travel was also up by a whopping 30%, and long haul up 22%.

American Express also grew global corporate travel sales nearly 28 percent, to an impressive $4.6 billion during the second quarter from the same recorded period in 2009, representing growth in transactions and strengthening of airline pricing.

Corporate travel sales outpaced the company’s overall travel sales, which grew by a slightly more modest 25 percent during the second quarter, totaling $5.7 billion, from $4.5 billion in the second quarter of 2009.

There is no doubt that corporate travel is benefiting from a growth in transactions as well as higher fares from airlines.

Billed business for American Express’ commercial card segment grew 21 percent to $32.9 billion, with the average cardholder spending an average of 26 percent more, up to $4,712 during the quarter.

Global Commercial Services, the American Express division that houses both the travel management company and the commercial card business, reported net income of $117 million for the quarter, compared with the $67 million it reported 2009’s second quarter. The division reported revenues increased 9 percent, reflecting increased spending by corporate card members and higher travel commissions and fees.

This is really great news for all of us, corporate housing providers, hoteliers, restaurant owners, travel agents, car rental managers and all of the other service providers who rely so heavily upon a healthy economy and an improved business climate. The wait is over–we’re back on the grow. Time to dust off those business plans and retool for a much brighter future.

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