Rising fuel and airfare costs are beginning to reshape how companies approach business travel, Fortune writes.
Fuel transaction costs jumped 14% in a single month, while airfare, hotels and rental cars also moved higher, squeezing corporate travel budgets, according to new data from SAP Concur, which tracks expense activity for millions of business travelers worldwide. The result: Many companies are spending roughly the same on travel but getting fewer trips in return.
Average domestic airfare climbed about 15% in April, prompting some businesses to reassess which meetings truly require face time. Some travelers are also changing how they get around, with rail bookings rising as car rentals decline.
The shift comes as the broader economic fallout from rising energy prices continues to ripple through corporate operations. For businesses that rely on in-person sales, client relationships or multistate operations, higher travel costs could create difficult trade-offs between controlling expenses and maintaining growth.
