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Business / Companies

Survey shows companies' travel and entertainment budgets increase in 2015

By Shi Jing in Shanghai (chinadaily.com.cn) Updated: 2015-11-26 16:54

Despite a continued economic slowdown in China, company executives have indicated that their travel and entertainment budgets have grown 4.79 percent year-on-year in 2015, exceeding the 3.1 percent predicted at the beginning of this year, according to the survey released by business travel service provider CITS American Express Global Business Travel.

About 43 percent of surveyed companies said that they have increased their budgets this year, up from the 34 percent in 2014. Besides, 45 percent of the polled organizations reported keeping their travel and entertainment budget stable year-on-year. Only 12 percent of the companies reported a reduction in their budgets, which is down from the 17 percent reported one year earlier.

Meanwhile, 49 percent of the companies consider travel as "investment" rather than a "necessary cost", up 11 percent from that two years ago.

"Business leaders recognize the importance of travel as a contributor to revenue growth. As conditions get tougher, they seem to be sharpening their focus on driving top-line growth and making more efficient and effective usage of their business travel budgets," said Marco Pellizzer, vice president of American Express Global Business Travel Chinese Mainland and Hong Kong.

The survey consulted opinions of 188 executives in China coming from both smaller companies with a headcount of less than 100 and large-size enterprises with a headcount above 500. These respondents mainly come from manufacturing, technology, financial and pharmaceutical industries.

Established in 2002, CITS American Express Global Business Travel was the first China-US business travel joint venture set up in China.

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