Is Luxury Travel Too Much of a Luxury for Business Travel?

Posted by Teresa Shaw Apr 27, 2009

A recent article on CNN.com examines the current state of the luxury travel business and whether it is too much of a luxury for business travel. Many companies are scaling back on their travel expenses and are either choosing less expensive venues or banning travel altogether.

From December 2008 to February 2009, luxury hotel occupancies dropped by more than 15 percent -- a steeper drop than mid-level hotels, according to hotel industry watcher Smith Travel Research Inc. While this might mean more rooms are available at the inn and good deals can be found, it also means that the companies have less money available for investment in renovations and future properties, and have had to let many employees go.

The steep decline can also be attributed to image. No longer does it look good for large companies to wine and dine at fancy resorts -- especially on the shareholders' or even taxpayers' dime. Instead, companies are choosing moderate local hotels to book their meetings and conventions and, in some cases, even asking their employees to sleep at home.

Has your company changed its travel policies to require employees to stay at moderately priced hotels? Leave a comment and let us know!