Business travel spending increasing

Business travel spending is on the rise, according to travel and expense management company Concur.

It found that all travel sectors experienced a boost, with air travel growing by an impressive 9.3 per cent year-on-year. Accommodation spending was also up, as hotels yielded a 5.6 per cent growth.

Although slight, business car hire rates also rose by 0.3 per cent, while other forms of ground transportation and entertainment rose this quarter; by 5.9 per cent and 4.9 per cent respectively.

Barry Padgett, Concur senior vice principle and general manager for Europe, told Air and Business Travel News the data "suggests businesses are taking a more relaxed approach to expense spending compared with last year".

"In spite of the global economy, organisations are re-investing more money in sending their employees around the world to meet and entertain customers, prospects and each other," he added in an E-tid.com report.

Padgett claims that the results show that the corporate world still feels that face-to-face interaction and social engagement with customers is an important part of business.

"These activities are integral to doing business in any country, and whilst the austerity of recent years has taken its toll, it's encouraging to see them rekindling," he said.

Concurs report also revealed that New York is the most visited city as well as the most expensive city ranked by average nightly room rate and dining spend for business travellers.