Tuesday, 02 July 2024 00:21

FCM – Few corporates say they will reduce travel, but FY25 cost savings important

Kelly Thomas Kelly Thomas

Most corporates either plan on increasing the frequency of business travel or keeping it the same for the remainder of 2024, despite less-than-ideal economic conditions. This is according to recent research commissioned by large corporate and government travel management company, FCM.

For most large corporations, the start of July also means the start of a new financial year, and as many will be sitting down and analysing budgets for FY25, it seems travel will not be scrapped from many spreadsheets.

The research shows 60% of those that have travelled for business within the past year expect the frequency of their corporate travel to stay the same this year, while 30% expect to travel more for business.

FCM New Zealand general manager, Kelly Thomas says it seems to be widely acknowledged that travel is not something many businesses can do without.

‘If anything, travel drives business growth,’ Thomas adds.

‘Face-to-face meetings with potential customers, stakeholders or investors are crucial for profit. Likewise, investing in your people to bring them together for events, team building and conferences can result in long-term productivity gains.’

Thomas acknowledges cost saving will still be top of mind while the economy remains stagnant.

‘While we recently moved out of a technical recession, many economists have reported the country is still not completely out of the woods with the economy not expected to move in a more positive direction until 2025.

‘Cutting costs where possible will be important, and that’s something a travel management team can help businesses with, without compromising on the frequency of travel.’

The research showed cost saving was one of the main reasons businesses partnered with a travel management company (41%), only behind peace of mind and time-saving.

Thomas says a travel management company can help corporates improve profitability – by keeping travel costs at a minimum, while still allowing frequent travel to boost all-important business connections.