Travel budgets to be surprisingly bolstered by post-Brexit currency fluctuations

Travel budgets to be surprisingly bolstered by post-Brexit currency fluctuations
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Although there has been much said about how Brexit and the fluctuations it is causing on global currencies will negatively impact the corporate travel industry, it seems now that the opposite is true, at least when it comes to travel budgets.

Research from American Express Global Business Travel (GBT), which spoke to nearly 1,000 travel, HR and procurement professionals, found that travel budgets look set to grow by as much as 2.5 per cent in 2017, reports Buying Business Travel.

Contrary to hampering investment in corporate travel, this percentage growth marks the third year in a row that global travel budgets have increased, despite difficult political and economical times.

This increase in spend is largely coming from small to medium-sized businesses, 67 per cent of which believe Brexit won't have an effect on the corporate travel market, according to the research from GBT.

But why is this? It seems to be because travel managers and Travel Management Companies (TMCs) now very much view business trips as being key to fulfilling their company objectives, instead of seeing them as just another cost to the business.

Instead, corporate travel is now an important area in which companies should invest their money for the benefit of their other business aims.

This feeling is split quite equally throughout Europe but is most prevalent in UK business objectives, as well as in Germany and Scandinavia.

It isn't just important for companies to send their staff on business trips, as they are also keen to ensure that the quality of travel programmes are kept to a high standard. Many businesses in Europe are now turning to TMCs to help build journeys that are not only seamless but also safe and easy to track.

Although there may well be bigger travel costs incurred as a result of Brexit, it seems that companies in Europe are keen to defy these difficulties by investing in retaining valid travel for business by working closely with TMCs and looking into automation to make savings elsewhere.

For information on how to automate your TMC's mid and back-office systems, contact ProCon Solution now.

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