As the travel & tourism industry continues to get its arms around the green movement, it must also consider the impact that environmental awareness will have on corporate travel patterns. Travel involves different degrees of pollution depending on the method used and the distance traveled but nonetheless it is inherently less than green in nature.

A recent article in the Economist reported the results of a World Wildlife Fund study in which 100 FTSE 350 Index companies were asked about their employee travel policies. Of the surveyed companies, 89% noted that they intended to reduce business travel in the next 10 years. While the WWF praised these “green” initiatives, it is equally likely that the motivations behind such policies have less to do with the environment than the bottom line.

Most frequent business travelers would agree that it’s rarely fun being on the road but know that business trips are often unavoidable. That being said, many companies also have an interest in reducing travel for the simple reason that it’s costly.

At first glance therefore, cutting corporate travel certainly seems to be a win-win situation. If companies can get good PR by announcing policies for reduced travel in the name of CSR and the environment, they should certainly take advantage of this. Green advocates should also be pleased with the result as the ends would certainly justify the means.

Whether companies elect to put a green sheen on their cost cutting measures or simply reduce overheads, reductions in corporate travel will reduce hotel room nights and the impact to the global lodging sector could be significant. So how should lodging professionals react? The potential impact will obviously vary by hotel depending on market mix, with properties reliant on corporate travel, meetings and functions likely to be most affected. At present, the United State lodging market is benefiting from foreign leisure travel due to the weak dollar, which is filling rooms where corporate demand is softening. However, this source of alternate demand will not last forever and hoteliers should be planning for these impacts should they arise.