Universities could be "squeezed" on travel costs
Key Travel, a leading supplier of travel to the academic sector, is warning that universities could be particularly hard hit by rising travel costs.
Fuel prices recently reached a two and a half year high and Key Travel warns that England’s universities face being “squeezed” as travel prices increase.
The Chancellor of the Exchequer announced in the Budget on Wednesday 23 March that he was deferring an RPI-linked increase in Air Passenger Duty (APD) until April 2012. Despite this, the UK still has the highest rates of air tax in Europe. Fuel prices have also reached their highest levels in the last two and a half years on the back of unrest in the Middle East.
The Higher Education Funding Council for England (HEFCE) announced on Thursday 17 March 2011 that 12.6 per cent will be cut from the university budget, with all but one of England’s 130 universities facing spending reductions in 2011/12.
Travel is essential to universities, with staff and students needing to learn and share knowledge around the globe.
Steve Summers, Chief Executive of Key Travel says:
“While the Chancellor’s decision not to increase Air Passenger Duty will be a temporary reprieve, UK travellers will be facing increasing prices as oil prices remain high. Universities will be particularly hard-hit as their incomes fall in the coming academic year.
“Universities are global institutions and travel is essential to their operations. Whether this is allowing academics to attend international meetings, sending teams on study visits or developing links with business and international universities, travel is at the heart of their work.
“It is essential in this tough economic climate that universities tightly manage their travel spending and get the very best value for their money.”
Donna Ross, Contracts Manager at Queen Mary University and Chairperson of the ‘Business Travel Group’ of the London University Purchasing Consortium, representing 65 higher education institutions, colleges and museums, says:
“Queen Mary University of London has a campus in Beijing where UK-based staff regularly fly to teach. The predicted increase in global travel of 5-8% in 2011, which could rise further if influenced by recent world events, is a great concern.
“By using a travel management company and the unique Queen Mary Asia route deal, we’ve seen savings of 58%. Alongside this, we’ve benefited from the 24 hour support and employee tracking that allows us to keep in touch with staff in the event of a natural disaster or terrorist threat, helping us to meet our duty of care to our staff.”
