Businesses are spending more on travel expenses

By Mozo ·

The global financial crisis seriously dented business confidence in Australia and this had a knock-on effect on other industries.

Companies had to take some drastic measures in order to cut down on expenditure, as money became increasingly tight.

Although lenders are still wary about dishing out business loans and corporate credit, things do appear to be picking up.

According to new figures compiled by IBISWorld, taxi and hire car companies are reaping the benefits of Australian firms' new-found optimism.

Business trips have become far more frequent in the past couple of years, following a major downturn when the recession took hold in 2008-09.

IBISWorld industry analyst Caroline Finch said that car companies will see revenue for 2011-12 increase by 3.1 per cent, as corporate travellers start to splash the cash a little more freely.

"Flush consumers and businesspeople supported industry revenue growth in the years leading up to the global financial crisis," she remarked.

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