The second Survey of Corporate Travel Management Practices, covering China in conjunction with the first American Express China Business Travel Forum (CBTF) was announced.

Findings from the report were presented at the CBTF and provided research information that assists organizations in conducting a critical review of their Travel & Entertainment (T&E) management practices with a view to achieving more cost-effective solutions. The first American Express Business Travel survey for this market was conducted in 2003.

Chinese market highlights from this year's Barometer included: 

• Meals and entertainment remained the largest expense category accounting for 39% of total T&E expenditure
• Organizations in the large market segment reported a 25% increase in average T&E expenditure over 2003 results
• 42% of organizations surveyed expect their T&E expenses to increase in the coming year, with an average expected increase of 17%
• Of the employees in the organizations surveyed, 36% travel on business trips (both domestic and overseas) versus 25% last year
• According to the survey, the air travel expenditure break down is 65% economy, 25% business class, 10% first class
• According to the surveyed companies, the finance, insurance, real estate and business services expenses are almost three times larger than wholesale, retail trade and distribution sectors

Travel management practices highlights from this year's Barometer included:

• Large companies' travel management practices are becoming more structured
• Travel policies, when they exist, are being reviewed in a more formal manner than before
• 55% of organizations surveyed declare that they follow a formal written T&E policy
• T&E policies are increasingly communicated through new technologies
• 23% of organizations expected to be using interactive online booking tools within 12 months
• Use of cash for payment of T&E expenses remains predominant

"The American Express Business Travel Barometer is the first of its kind and analyzes the various aspects of T&E practices," said Charles Petruccelli, President of American Express Global Travel Services. "Our barometer delivers us the knowledge we need to understand and therefore, grow successfully in the given market. Through our survey, we have learned that Chinese organizations which are structuring their T&E expenses are looking primarily for four major services from their travel management partners: Access to negotiated rates and quality of delivery; one single travel management company across China; Ability to collect data on travel spend and ability to help promote control and compliance."

The Barometer survey was conducted by Jones Donald Strategy Partners and the results are based on the responses of 150 participants from organizations with 50 and more employees, representing five key industry sectors. The sample was designed and responses analyzed to ensure they reflected the distribution of organizations by industry sector and organization size across Shanghai, Beijing and Guangzhou. The sample included organizations representing four major size categories, from organizations with 50-99 employees to organizations with 500 and more employees.

About the American Express China Business Travel Forum and Global Media Forum

The China Business Travel Forum (April 13th and 14th) created and hosted by American Express Business Travel and the Shanghai International Conference Management Organization, is a business-to-business educational conference, designed to showcase the business travel industry, foster business relationships and further business travel in China, both internally and externally.

The Forum is the first-ever event of its kind in China and will feature more than fifty exhibitors including leading airlines, hotel chains, car rental companies, delegates from government bodies, leading travel suppliers and multi-national corporations in China, and regional corporations. In conjunction with the Business Travel Forum, American Express Business Travel will also host its annual Global Media Forum, which will give journalists from around the world the opportunity to visit the Business Travel Forum and get a firsthand perspective on the rapidly-expanding Chinese business travel market.