If you are a part of the big business company one of the things that the part of your work I’m sure travel is the part of it. In the world of the business travel expense management is always the part of it and most of the business people are taking it in the hard way.
Based in the research of Chicago Business Journal, the number of commercial flights is currently declining, not rising, as many industry experts tend to expect. Airline ticket sales have remained fairly stagnant in recent years, and because planes have become larger and more densely packed with small economy-class seats, that means fewer planes. What's causing the decline in air travel? There are many factors to consider, but here are three big ones.
Economic reasons Brancatelli cites the price of crude oil as an example. In 2000, one barrel went for around $25 - that price has since ballooned to just under $100, and since energy costs account for about 40 percent of an airline's budget, the industry has no choice but to adjust. That means fewer planes.
Security concerns Since 9/11, there has been a reluctance to fly planes unless absolutely necessary. Robert Herbst, an independent airline analyst, told the Los Angeles Times that the 10 largest American airlines lost an estimated $29 billion between 2001 and the first six months of 2011.
The internet Companies are looking to cut costs, and one way to do so is meeting with colleagues via video conferencing instead of flying to meet them in person. BizTech magazine reports that almost 50 percent of all information workers will have personal video solutions in place by 2016. The industry is growing 150 percent annually.
Airline travel is enduring lean times, which should mean for a somewhat lessened burden of travel expense management. But software solutions are still a useful way to manage the expenses that remain.
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