Amex Survey Reveals Sources Of Rising Business Travel Cost

NEW YORK Business travel costs for companies have skyrocketed in the past four to five years, according to a survey carried out by American Express. Over the past four and a half years, the average airfare bought by U.S. business travelers has risen by 40%, putting the average cost of travel and entertainment (T&E) second only to that of salaries as a controllable business expense, according to the survey. In 424 phone interviews conducted earlier this year for the American Express Survey of Business Travel Management 2000-2001, major companies with minimum annual revenue of $50 million reported using new strategies and technology to rein in the T&E costs incurred by employees. Amex estimates that by the end of this year, large and mid-size businesses in the U.S. will spend $157.1 billion on managed T&E expenses, up 8% from $145.4 billion in 1998. The survey reveals that air travel consumes 45% of the average company s T&E budget, while 17% is devoted to lodging expenses. (11/30/00)