Pay for Biz Travel Managers Rises 3.6%

Average Base Pay Reaches $93,937
Travel managers must be doing something right. The average base compensation for corporate travel managers is up 3.6% over 2012, according to the 2013 Travel Management Compensation & Benefits Survey from the Global Business Travel Association. The average base pay this year is $93,937. Most travel managers, 69%, will receive a bonus averaging $13,845, for a total average compensation of $107,782.

Total compensation for travel managers was associated with higher domestic travel by the employing company. Respondents with a domestic travel spend of less than $2.5 million reported an average base salary of $76,080, and those with a domestic travel spend above $10 million took home $108,749 in base pay. Three-quarters of respondents said their employers paid for convention attendance, mileage and professional association dues. The association surveyed 465 corporate travel buyers, including GBTA members and nonmembers, in mid-September.

Buyer-Seller Disconnect in Hotel Negotiations
As 2014 hotel negotiations move into high gear, there is a disconnect between buyer and seller expectations. Hotels are pushing for rate increases of 6.5% to 7.5% and up. But corporate buyers expect to pay no more than 4% to 5% on top of 2013 rates. Buyers also want more value-adds, such as breakfast and Internet service. The disparate expectations surfaced in an annual survey of hoteliers and corporate travel managers by Bjorn Hanson, divisional dean of the Preston Robert Tisch Center for Hospitality, Tourism and Sports Management at the NYU School of Continuing and Professional Studies. The survey predicted that typical contracts for next year will reflect rate increases of 5% to 6% as hotels push to make up for revenue lost during the recession, and as business travel growth continues to drive demand.

Biz Travelers Choose Fast Food Eateries
High-priced expense account meals are more dream than reality for most business travelers. Third quarter expense data submitted to Certify show that fast food outlets such as Starbucks, McDonalds, Subway, Panera and HMS Host are the restaurants most-often expensed by business travelers. Applebee’s (#9), Chili’s (#10) and Outback Steakhouse (#14) are the only sit-down restaurants in the Top 15. Starbucks is used most often for expensed breakfasts ($9.70), Subway the favorite lunch buy ($12.18), and HMS Host, which runs airport eateries, the most common dinner provider ($22.68). The findings are part of the Certify SpendSmart quarterly report. As for road warriors’ top restaurants, Jimmy John’s, Chipotle, Chick-Fil-A, Panera and Dunkin’ Donuts garnered the highest ratings.

7% Jump in Biz Travel Spending Forecast for 2014 . . .
The outlook for business travel spending in 2014 is up, up and up, according to the Global Business Travel Association, provided the federal budget battle doesn’t flare again. The latest GBTA Business Travel Index, published earlier this month, projects a robust 7.2% increase in business travel spending from 2013 to 2014, for a total spend next year of nearly $289 billion. The number of business trips is forecast to grow 1.6% over 2013 to 459 million journeys.

. . . That Is, Unless U.S. Budget Battles Persist
A repeat shutdown of the U.S. federal government in January or February would have a severe impact on business travel, warned Michael McCormick, executive director and chief operating officer of the GBTA. “Another self-destructive U.S. government shutdown will absolutely have negative consequences for business travel and the economy, as it would only further damage our country’s reputation as a place to do business,” McCormick said. “It is critical to this country’s future position as a leader in the global economy that our elected officials work to keep the U.S. open for business.”

Manhattan Hotel Rates Under Downward Pressure?
New-build hotels and conversions in New York City are expected to add about 10% to the Manhattan room supply by the end of 2014, pushing the city’s total available hotel rooms past 90,000. But how the new inventory will affect rates and occupancy isn’t clear, since there are forces pushing rates both up and down. New York’s 10% increase in supply is more than double the growth rate projected for the next-strongest markets, Miami and Washington, D.C., according to Lodging Econometrics. And inbound travel to New York is expected to rise just 4% to 5% next year, which could exert downward pressure on rates. At the same time, strong business growth could fuel business travel demand that exceeds overall growth in inbound travel.

New York Occupancies Top Pre-Recession Levels
New York is one of the strongest hotel markets in the country, with average occupancy about 84% through August. That tops pre-recession levels, according to Smith Travel Research. Average room rates hit $238 for the first eight months of the year, 4% higher than the same period in 2012.

Watch the Young Ones
Younger business travelers are more likely than their older colleagues to splurge on first class air, more expensive meals and vacation time during business trips. That’s the finding from a survey of more than 8,500 travelers across 24 countries sponsored by Egencia. Among business travelers 30 and younger, 42% said they would spend more of their company’s cash on high-end meals than they would spend on their own; that’s compared to 26% of travelers aged 46 to 65. Millennials are also more likely to spend company money on air travel upgrades, and more younger travelers (62%) have extended a business trip into vacation time than older travelers (37%).The results are part of The Future of Travel Study conducted by Harris Interactive for Expedia and Egencia in August and September.