In the survey, 78% reported that their companies would spend the same or less on hotels in 2002, compared to 2001.  This is possible because close to 40% reported that they expect no hotel rate increases next year, and approximately 40% expect rates less than in 2001.  However, despite reduced hotel expenditures during the remainder of 2001 and 2002, most corporations (57%) expect to use the same amount of hotel rooms in 2002 compared to 2001.  In its 2002 Travel Cost Forecast released this week, NBTA projects that hotels will offer corporations favorable rates in the first half of 2002, but will need to recoup losses in the second half of the year.  This will result in an overall increase in hotel rates of 3% for the year, lower than the traditional 5-8% increase.

�In these challenging times, it is very important for corporations and travel suppliers to work together,� stated Marianne McInerney, Executive Director of NBTA.  �These survey results point to cooperation in the industry, which is a very positive sign in the long-term.�

Meetings

While some meetings were cancelled due to the events of 9-11 and a slowing economy, NBTA�s survey indicates that demand could return in the first and second quarters.  Of meetings that were postponed, 40% were rescheduled for later in 2001, 36% were rescheduled for the first quarter of 2002, and the remainder were being moved to the second, third or fourth quarters of 2002.  More importantly, survey respondents reported that attendance levels at future meetings were not expected to decline as a result of the events of 9-11 or the slowing economy.

�Corporations are beginning to resume travel and scheduled meetings,� concluded McInerney.  �They are recognizing the importance and value of ongoing face-to-face contact when doing business.�

Finally, the survey asked what must occur before corporate travel expenditures would return to historic (1999-2000) levels.  58% of respondents cited revised airport security/safety systems, while 51% said improved corporate financial conditions are necessary for a return to previous spending levels.

The National Business Travel Association, established in 1968, represents over 2,400 corporate travel managers and travel service providers.