Carlson Wagonlit Reports 22.8 Percent Drop in 2009 Sales

Carlson Wagonlit Travel (CWT), the global business travel management company, said key performance indicators reveal the unusual challenges the travel industry and most other businesses confronted during the global recession of 2009.

Sales volume, which totaled $21.4 billion, fell 22.8 percent year over year. Total CWT transactions for 2009 were down 9.3 percent compared to 2008.

CWT said the higher drop in volume versus transactions demonstrates the aggressive cost-cutting measures companies took to reduce their travel spend and was seen in all regions. Volume in Asia Pacific and EMEA (Europe, Middle East and Africa) was impacted most, declining by 27.6 percent and 27.1 percent respectively. In Latin America, volume declined 21.2 percent year over year, while North America saw a 17.4-percent decrease over the same period.

CWT reported annualized new sales, excluding renewals, of $1.86 billion for 2009, a year that saw an unusually high number of companies ascertain competitive market conditions by putting their managed travel programs out for bid. CWT said it also enjoyed a 96 percent client retention rate. Furthermore, the proportion of “satisfied” and “very satisfied” travel managers increased to 94 percent in 2009 from 90 percent one year earlier.

“Carlson Wagonlit Travel, like every other company in the travel industry, confronted unique challenges in 2009,” said Douglas Anderson, CWT president & CEO. “We successfully managed unprecedented change and worked our way through a global recession the likes of which none of us has ever seen. Our commitment to excellence and the highest levels of customer service never wavered. We also enhanced our offering to respond to clients’ evolving needs. These efforts will serve us well in the year ahead and enable CWT to reinforce its global leadership in what will continue to be a challenging business environment.”

Having seen CWT’s business stabilize at the end of 2009, Anderson said he remains “cautiously optimistic” about the next 12 months. He pointed to lingering economic uncertainty in some countries and potentially ³soft² GDP growth overall. “Many of our clients tell us they will increase their travel this year to drive their business development,” he said. “But they will remain cost-conscious and place great importance on ‘productive’ travel. CWT will do everything it takes to successfully accompany them in this value-driven effort.”