Corporate Travel on Its Way Back?

If first-class ticket sales are any indication, business travel is rebounding. According to International Air Transport Association, the first quarter of 2010 saw a 7.6 percent rise in the sales of business or first class tickets sold compared to the first quarter of 2009. This signals growing business optimism over the economy.

Typically business travel is the first to take a hit when a company is looking to trim budgets. Airline tickets, corporate housing, and business entertainment expenses are cut. The sales force sticks closer to home and more business is conducted over the phone than through face-to-face meetings. Also, in lean times, high profile publicly-held companies would rather avoid the bad press that comes with what are perceived as extravagant business expenses such as private jet travel, expensive limos, and pricey hotel suites.

So that business travel numbers are up is truly a heartening sign. As a lagging indicator of a company’s fiscal health, increased corporate travel signifies a deeper willingness in the corporate community to invest in its future. (Of course, the added benefit is that this will help the perpetually-ailing airline industry.) Just another data point to suggest an economic recovery is well on its way.