Corporate Travel to Skid as Much as 15 Percent in 2009

The travel industry is reeling from the economic recession, but few segments are as challenged as corporate travel. Amid double-digit declines in traveler demand and revenue, the corporate travel landscape is undergoing a major realignment.

Corporations are pulling back across the board and all players-from airlines to hotels to travel management companies-are under pressure. Travel industry research authority, PhoCusWright Inc., has released a new report that measures the current composition of the corporate travel market and shines a spotlight on fundamental shifts that will change the business travel landscape over the next three years.

Recessionary trends are driving a steep contraction in business travel in 2009, resulting in a 15 percent decline in the U.S. corporate travel market to $85 billion according to PhoCusWright’s U.S. Corporate Travel Distribution Fourth Edition.

In contrast, the total U.S. travel market is projected to decline only 11 percent in 2009, dipping below 2006 levels. While corporate travel has historically comprised approximately 40 percent of the total travel market, this share will decrease as the fall-off in corporate travel demand far outpaces the decline in leisure/unmanaged business travel. Corporate travel share of the total travel market will drop markedly from 39 percent in 2007 to 35 percent in 2010.