Step 2 Introductory text

British businessmen spend an estimated 20 bn - the equivalent of 5 per cent of gross national product - each year on travel and entertainment. Travel and entertainment costs outstrip the national bill for corporation tax and rates.

Keeping travel costs under control is a never-ending struggle for many corporations.

Companies want to be able to keep management control over expenses as tight as possible, monitor and understand expenditure patterns and identify opportunities for cost savings.

Finding ways to make more accurate budget forecasts is a prime objective.

Twenty years ago, the travelling business executive was hardly given a second thought by the airlines - having to put up with cramped seats, screaming children and poor food. Now business travellers are the most wooed market, courted by airlines not only because demand by executives for airline seats remains steady but also because they tend to pay close to the full fare.

British Airways spent 25 min upgrading its business class services.

The BA revamp, which created two distinct products - Club World and Club Europe - was the most significant development in business class travel.

The new service galvanised most of BA’s competitors into radically upgrading their business class services - so much that virtually every week sees some improvement amiounced by a main airline as each seeks to gain competitive advantage.

The main benefit for passengers of the Club World service was significantly increased leg-room and seat recline, as well as new contour­shaped seats replacing the previous rather uncomfortable seats. Club World also offers a fixed cabin space to divide passengers paying a higher fare from economy, as well as significantly improved food and wines. Airlines are also looking closely at the question of in-flight catering and whether executives actually want ever more elabourate food. Some believe the trend will be towards more snacking arrangements for business class passengers, which they eat when they wish.