| Nowadays, any economical instability in the market of | | | | based. BTC wanted to unequivocally capture the |
| investments may threaten the financial lives of | | | | firms' reaction to the economical crisis in order to be |
| millions of employees, businessmen and tax payers. | | | | prepared for next year. |
| The current global financial crisis, the whole world in | | | | As the need of travel increased with the grow of |
| enduring, has caused numerous financial setbacks to | | | | businesses, the travel cuts have surely brought bad |
| many businesses that were forced to start | | | | news to big firms. As a result, alternatives were |
| economizing and cutting back on expenses. | | | | admitted to replace this essential need. Half of the |
| Thus, many luxurious services have been cut back to | | | | firms that were surveyed stated that they are |
| overcome the crisis and the losses that resulted. As | | | | seeking alternatives such as video conferences, |
| a result, the travel industry has suffered from travel | | | | cancelling overnight trips and even train travels. |
| cuts induced by the global financial crisis itself and | | | | Whereas other firms have established new policies |
| caused by the decrease in travel demands especially | | | | that limit the staff's traveling needs and force them |
| by businessman and regular travelers. | | | | to use some no-frills airlines like Easyjet or even |
| Current statistics show that the third of companies | | | | Ryanair. |
| have actually halted all their business trips as they | | | | Another survey that supported the BTC one has also |
| seek to cut their travel spending which is considered | | | | suggested that about half of the corporations polled |
| a high business expense. According to a new survey | | | | have the goal of reducing their travel budgets before |
| made by Business Travel Coalition (BTC) that polled | | | | the ending of the economical year that is in March |
| over 200 companies, one in four firms have | | | | 2009. |
| established emergency cuts to their overall travel | | | | A poll also made by KDS, travel management |
| spending in response to the current global financial | | | | company, stated that almost 40% of corporations |
| downturn. | | | | have been actually obligated to call off |
| The survey was initially commissioned by the BTC in | | | | previously-reserved business trips while the other |
| response to members' concerns about the prospect | | | | third had to call off many international meetings and |
| of a new recession. About 40% of the companies | | | | replace them with alternatives like video conference |
| surveyed from 14 different countries said they have | | | | calls. |
| established a complete and total travel freeze, while | | | | These travel cuts that the current financial crisis have |
| about 25% said they have cut air travel only. Almost | | | | deteriorated the travel industries and led to many |
| 75% of the firms that established the cuts have | | | | losses to numerous international airlines. Some airlines |
| admitted that the measures about cutbacks will stay | | | | were actually forced to decrease their number of |
| in place until further notice or even until a certain | | | | annual flights especially from places that have |
| change in the current situation. | | | | encountered a decrease in travel expenses. The new |
| The researches completed also found that the cuts | | | | policies are to stay in place until further studies are |
| in travel budgets have been fine news for most of | | | | made about the upcoming financial crisis. |
| the low-cost carriers present in the USA. BTC | | | | The current economical crisis has surely been of bad |
| spokesman stated that we have entered an eerie | | | | news to thousands of industries and corporations. |
| similar to the cyclical downturn that happened in | | | | Though the travel cuts might have helped some |
| Autumn 2000. However, there is an increase in the | | | | low-budget businesses decrease expenses, but it |
| order-of-magnitude in the significance of the present | | | | surely have disrupted the high-income businesses that |
| condition and in corporate reactions concerning travel | | | | depend mainly on traveling. |
| expenses. | | | | The next financial year will surely state the precision |
| Many firms began cutting back on air travel expenses | | | | of any further responses and policies that the |
| at the beginning of the year due to the worsening of | | | | corporations will follow. The current policies will surely |
| financial data points. Surveys made in the first quarter | | | | remain running for quite some time until the financial |
| of the financial year did not recognize a pullback | | | | crisis starts to vanquish. |
| trend. However, by middle of the year, it was broad | | | | |