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Business travel waltzes around Eurozone crisis

While the economies of European states still grapple with the impact of the last financial crisis, companies have not been deterred from business travel.

While the economies of European states still grapple with the impact of the last financial crisis, companies have not been deterred from business travel.

The impact of the 2008 Global Financial Crisis, which left several European states in economic and political turmoil, is still squeezing the pockets of governments attempting to repay their burgeoning debt.
Currently, the Euro is headed for the worst quarter on record since 2012, when the eurozone crisis was at its peak.
The collective European debt is also at levels that are prompting experts to warn of a new finical crisis.
The recent Geneva report claims that urgent policy measures are needed to deter “the resurgence of pressures on the sustainability of the eurozone itself.”
However, this pessimistic outlook has had little impact on companies seeking to strike business deals on the old continent.
The latest version of the 3mundi/Déplacements Pros barometer has shown a three per cent increase in business travel to Europe this year.
“Europe still represents 60 per cent of business travel,” they said.
The report, which surveyed hundreds of employees from large and small companies, also cited that more than half of those who travel for business did not experience a decline in activity from 2013.

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Nonetheless, the financial crisis has tightened the belts of companies that are dependant on travel.
Forty one per cent of business travellers opted to travel with low-cost carriers for short and medium-haul trips. Over 40 per cent travelled in economy class. Only 38 per cent opted for the luxury of business class.

“As for the duration of travel, it is only one day for 59 per cent of them, and only 15 per cent of travellers exceed three days,” they said.

The GFC has also had an impact on the travel policies of companies. Travellers have claimed that that company policies have become more restrictive over the last year. This is particularly apparent in, what 35 per cent claim to be, 10-15 day travel notices.
“Companies have favoured lower prices rather than last-minute travel,” 3Mundi said.
Positive gains for business travellers have also been acknowledged.
“The small advantages appreciated by business travellers include accumulating frequent traveler miles for their personal accounts, discovering a new destination and possibly extending their trip to spend a weekend there,” they said.
The most stressful elements during travel for 85 per cent of those surveyed include negotiating important contracts and the lack of punctuality experienced by those opting to train by plane or train.

What do you think of the contrasting increase in business travel during a potential resurgence of a eurozone crisis?