Canadian companies are spending almost twice as much on travel and business expenses as they did nine years ago, according to a survey conducted for American Express.

The Amex 2006 travel management study says Canadian companies now spend about $24 billion annually on travel, compared to $12.9 billion in 1997, the last time Amex conducted a similar survey.

"Turmoil in the travel industry and changes in the corporate environment have transformed business travel and increased emphasis on financial controls and accountability. At the same time, Canada's strong economy is fueling a significant resurgence in travel spending, as companies travel to meet with new customers and grow their businesses," says Shaw Klerer, vice-president and general manager of business travel Canada with American Express.

At the same time, Amex says more and more companies are paying greater attention to travel expenses and making efforts to contain them.

Nearly three-quarters of companies have travel policies, and almost one-third say senior executives are involved in the overall management of travel costs.

"Too often, the systems for maintaining and controlling expenses remain rooted in management practices that are out-of-date," says Amex's Andrew Pilkington.

"Most companies have travel and spending policies in place, but there is no follow through to ensure and reinforce compliance.

For example, the survey found that some companies that have issued corporate cards to their employees for travel and business expenses have failed to make use of the cards mandatory. Companies also seem reluctant to adopt modern systems of travel expense reporting and are hesitant to use online booking.

The American Express study also found that business travel remains high, with 87 per cent of companies either increasing or maintaining the same levels over the past year. Even with increased emphasis on security, Canadian corporations overwhelmingly believe that face-to-face meetings are a crucial part of doing business.

"Over the last few years we've noticed a change in attitude towards business travel," says Mr. Klerer. "Companies have always placed great emphasis on the importance of meeting customers face-to-face. Now they're seeking out and finding ways to better manage the costs associated with these meetings."

The survey involved 500 medium- and large-sized Canadian companies between January and April of this year. Organizations surveyed had annual revenues of $5 million to $250 million or more. The survey is considered accurate within 4.4 percentage points

19 times out of 20.