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Business travel fixes risk grounding recovery

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The industry of selling expensive plane tickets and hotel rooms to itinerant executives faces a bleak future as firms cut travel budgets. Making ordinary customers pay more would bolster margins but may dampen an already slow revival, says aimeedonnellan

HSBC plans to halve its travel budget this year, according to a person familiar with the matter. The bank is encouraging its workers to take longer trips when they do travel and to opt for virtual alternatives for short trips to save on costs.

InterContinental Hotels said on Aug. 10 that corporate bookings were coming back. However, the owner of Holiday Inn hotels said business trips and group bookings will take time to recover fully.A passenger is pictured at Zaventem international airport near Brussels, Belgium, December 20, 2010.

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