Always on the Go? That’s Good News for the Economy BY FRANCESCA FENZI
Small business owners are spending much more on travel than their corporate counterparts.
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This year, jet-setting professionals will spend an estimated $273.3 billion on travel–a 4.3 percent increase over last year, New York Times reported on Tuesday.
Perhaps more surprising: Those who own or work for small to medium businesses–those with 100 employees or less–are the bulk of this new spending, according to the travel expense management firm Concur.
After taking a look at the travel expense accounts of nearly 18,000 clients last year, Concur found that travelers at small and medium sized companies filed more individual expenses than those at larger companies–purchasing 37 percent more airline tickets, 29 percent more meals, 67 percent more entertainment expenses and 65 percent more car rentals than their corporate counterparts.
Robson Grieve, Concur’s executive vice president of marketing, attributes the trend to “aggressive regional business activity” on the part of small business owners looking to bolster growth.
“A sales rep in a large corporation…has a much smaller territory to cover and naturally spends fewer nights in fewer places, whereas at a small company, say in the Pacific Northwest, that rep makes a lot more individual trips–Portland, Seattle, into Montana. That means more dinners out, more airplane flights, more room nights,” he told the Times.
Grieve added that most businesses in the small-to-medium-size category were also operating out of a single location, meaning they have more ground to cover–even in their immediate viscinity. This may explain why they spend dramatically more on car rentals than larger companies with multiple business locations.