Clipped wings

Grounded business executives are discovering new ways to communicate.

The recent cutbacks in business travel have more to do with the state of the economy than with concerns about personal safety, according to this month’s survey of chief financial officers.

Of those whose companies curtailed business travel in the past 12 months, 74.4 percent did so to cut expenses. But 14 percent cut back for reasons of personal safety.

Those who have cut back on travel are not depending on the post office or express services to take up the slack. Rather, they are turning to virtual meetings: 44.4 percent use more telephone conference calls, 28.9 percent have turned to videoconferencing, and 24.4 percent send more e-mails.

Many of those who continue to travel do so less comfortably because rules have tightened. At companies that have cut budgets, almost 5 percent of employees who once had the use of corporate aircraft must now fly commercial. Even there, many have been downgraded: 42.9 percent may no longer fly business class, and 28.6 percent have been bumped a notch from first. Distance matters, because 57.1 percent of travelers must now travel farther or for longer before they may use a higher class of service.

Although less than a quarter , 23.8 percent , of companies have set limits on the permissible cost of hotel rooms, a surprising 12.9 percent have set dollar limits on business entertainment and more than half of those, 6.8 percent, have turned the screw on that limit.

While the weak economy is the reason for much of the belt-tightening, personal safety has become an issue since September 11. An overwhelming number of CFOs, 84.2 percent, say executives have expressed concerns about their safety. If any companies have hired bodyguards, however, they,re not saying. Probably a wise security precaution.

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Has your company curtailed business travel in the past 12 months?

Yes 71.4%

No 28.6

If so, what is the reason?

To reduce expenses 74.4%

Less need for travel because of cheaper alternatives 2.3

Less need for travel because of faster alternatives 0.0

Less need for travel because of a weaker economy 9.3

Concern about personal safety 14.0

If not, what is the reason?

Continuing need for business travel to maintain your business 83.3%

Business is growing in your sector, requiring travel 5.6

Opportunity to gain market share as competitors travel less 0.0

Business travel had already been cut back as much as reasonable 11.1

If your company has cut back on travel, what alternative do you use most often? (Choose one.)

Regular mail 0.0%

Enhanced mail service such as FedEx or UPS 0.0

Courier services 0.0

E-mail 24.4

Telephone conference calls 44.4

Video conferencing 28.9

Less contact 2.2%

Does your corporate travel policy place limits on the class of travel permitted?

Yes 96.8%

No 3.2

If so, have you downgraded permitted travel from (check all that apply):

Private corporate aircraft to commercial airlines 4.8%

First class to business class 28.6

Business class to economy class 42.9

A longer distance or flying time before a higher class of service is permitted 57.1

Have you reduced the length of stay at the destination?

Yes 3.2%

No 96.8

Have you reduced the number of employees attending group meetings?

Yes 59.7%

No 40.3

Have you set class or dollar-per-night limits on permissible hotel stays?

Yes 23.8%

No 76.2

Have you reduced class or dollar-per-night limits on permissible hotel stays?

Yes 7.9%

No 92.1

Have you set dollar limits on personal meals during business trips?

Yes 19.0%

No 81.0%

Have you reduced dollar limits on personal meals during business trips?

Yes 6.5%

No 93.5

Have you set dollar limits on business entertainment?

Yes 12.9%

No 87.1

Have you reduced dollar limits on business entertainment?

Yes 6.8%

No 93.2

To what extent have your executives expressed safety concerns about travel after September 11?

A great deal 4.8%

Some concerns 79.4

No impact 15.9

In the wake of September 11, have you implemented new executive travel rules to enhance security?

The CEO now flies only by corporate jet 3.2%

Key executives are now accompanied by bodyguards 0.0

Key executives may no longer fly together on the same commercial flight 11.1

No change 85.7

Other 0.0

Does your company use an international security firm to plan travel routes?

Yes 4.8%

No 95.2

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