Now, any economic instability in the investment market could threaten the financial lives of millions of workers, businesses and taxpayers. The current global financial crisis, which is enduring worldwide, has caused many financial barriers for many businesses that have had to start economies and cut costs.
Thus, many luxury services have been cut to overcome the crisis and the resulting losses. As a result, the tourism industry has suffered from travel shortages caused by the global financial crisis and is due in particular to the decline in travel requirements by travelers and regular travelers.
Current statistics show that a third of companies have actually stopped all their business trips as they seek to reduce their travel expenses, which is considered a high cost of doing business. According to a new survey by the Business Travel Coalition (BTC), which surveyed more than 200 companies, one in four firms approved emergency reductions in their total travel expenses in response to the current global financial downturn.
The survey was initially submitted to BT in response to members & # 39; Concerns about the prospect of a new decline. About 40% of companies surveyed from 14 different countries said they had created a complete and total travel freeze, and about 25% said that only air travel had stopped. Almost 75% of firms that approve reductions have acknowledged that reductions will remain in place until further notice or even a change in the situation.
Completed research has also found that travel budget cuts are good news for most low-cost carriers in the United States today. The BTC spokesman announced that we had entered an atmosphere similar to the cyclical downturn that occurred in the fall of 2000. However, there is an increase in order of magnitude in the present situation and in corporate responses to travel expenses.
Many businesses began lowering airline costs at the beginning of the year as financial data points deteriorated. The inquiries made in the first quarter of the financial year did not identify a repayment trend. However, by the end of the year it was widely based. BTC wanted to definitely capture the firms & # 39; response to the economic crisis to prepare for next year.
As the need for travel has increased with the growth of business, travel cuts have certainly brought bad news to big businesses. As a result, alternatives have been adopted to replace this basic need. Half of the companies surveyed stated that they were looking for alternatives such as videoconferencing, canceling night trips and even train trips.
Meanwhile, other firms have set out a new policy that will limit staffing and travel needs and force them to use some non-performing airlines, such as Easyjet or even Ryanair.
Another study, backed by the BTC, also suggests that about half of the businesses surveyed aim to cut their travel budget by the end of the financial year preceding March 2009.
A survey by KDS, a DS travel company, found that nearly 40% of corporations actually had to recall previously booked trips, with the other third having to stop multiple international meetings and replace them with alternatives such as video conferencing. .
These travel cuts that the current financial crisis is worsening in tourism sectors and have resulted in numerous losses, numerous international airlines. Some airlines have had to reduce the number of annual flights, especially in places where travel costs have been reduced. The new policy remains in place until further studies of the upcoming financial crisis are made.
The current economic downturn has certainly had bad news for thousands of sectors and corporations. While travel cuts could have helped some low budget businesses cut costs, it has certainly hampered high-income businesses that are largely dependent on travel.
The next financial year will certainly present the accuracy of any further responses and policies that will be followed by corporations. The current policy will certainly remain in place for some time until the financial crisis begins to overcome.