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The gravy train is about to run dry
From the Swindon Advertiser, first published Tuesday 4th Feb 2003.
New research suggests that public limited companies in the South West are wasting millions of pounds each year on excessive and unnecessary travel expenses.
British businesses are currently spending an astonishing £5.67 billion on UK hotel accommodation every year.
Given that business travel accounts for 20 per cent of annual company expenditure, the independent report by budget hotel company Premier Lodge, which has one hotel based in Swindon, reveals that nearly three-quarters of all private comanies in the South West are worried about the business cost of travel.
Yet despite this, more than half of those companies interviewed admitted they did not specify what grade of hotel their employees should stay in.
Which, claims the report, has allowed `unscrupulous employees to waste millions of pounds on expensive hotels with jac-uzzis, swimming pools and health clubs that they don't even use.'
Abuse however, would appear to be worse higher up the chain of command, with more than 60 per cent of company bosses proving to be the worst offenders, opting for expensive four and five star hotels where similarly, the extra facilities are rarely used.
Graham Leach, chief economist for the Institute of Directors said: "Economic growth in the UK is weakening, bringing with it a squeeze on profit margins.
"Across all sectors of the economy, companies are examining their cost base to see where the fat can be cut.
"Travel and accommodation budgets are likely to come under the spot-light very quickly and unnecessary expenses killed off."
Louise Fleming, spokeswoman for Swindon's Premier Lodge on Ermin Street, agreed.
"We are seeing an increasing number of senior managers come through our doors in Swindon," she explained.
"The combination of tough trading conditions and the increased interest in corporate governance must lead to the purse strings being tightened for all companies as they are increasingly put under the magnifying glass."
However, according to some of Swindon's home-based businesses, exorbitant expenses for travel and hotel accommodation are keenly scrutinised.
Jane Hewin of Zurich Finan-cial Services in Station Road, added: "Zurich has clear pro-cesses and systems to ensure we only undertake necessary business travel, and use cost-effective measures to book approved hotels.
"In addition, as part of our commitment to Corporate Social Responsibility with environment improvement objectives and targets we have installed state-of-the art video-conferencing facilities in key locations to help cut down on travel between our major administration centres."
Jeremy Del Strother, divisional director of personnel and development at Nationwide added: "As a mutual building society owned by its members, Nationwide seeks to obtain best value at all times.
"For example, travel arrangements are made principally through a central point to gain the benefits of negotiated discounts."
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