Business travel in the US is likely to drop by 15% this year amid declines in demand and revenue, a report from PhoCusWrite has shown.

The report has found what it calls “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% decline in the US corporate travel market to US$85bn,” the company said.

“While corporate travel has historically comprised approximately 40% 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.”

The share of corporate travel in the US will also drop markedly, from 39% in 2007 to 35% in 2010.

With the current economic situation, companies are tightening their belts on business travel, with many opting to not fly premium class, and to fly economy instead.

“Sharply curtailed corporate travel budgets will mean not only less travel in 2009, but stricter policies and tougher policing when spending does occur.”

But Ms Steinbrink said the recession would drive innovation as corporate and travel management companies (TMCs) improve travel programs.

More spend management, better travel value integration and new technologies “would bolster the bottom line,” she said.

Thanks to abtn.co.uk for the above quotes.  For more information visit their website.