It's on the cards

Somehow, I don't think that people are jetting off to Acapulco, but there's news that the UK's small businesses (SMEs) have been spending more on travel recently, according to Visa.

The credit card company says its Business card, designed for SMEs, saw usage return to pre-September levels. Spending on Visa went up in two areas – travel and recruitment of temporary staff. Maybe there's a green shoot in sight...

Although the travel industry has been hard hit in the recession, the number of transactions increased by 10% in June this year, compared with last year. But SMEs still have a tight grip on their purse strings, because the value of those transactions is on average 3% lower compared to the same period in 2008.

Small businesses also spent more on hiring temporary staff - the number of transactions increased 72% in Q2 compared to Q1 this year.

However, it's not all sweetness and light. Visa figures show that many businesses are minding their costs on office supplies, printing, advertising and on computer equipment and services. That's even more reason for them to shop around for the best deals in these areas.

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Comments

The Saint
(25 August 2009)

We have been watching our spending on the extras that we used to buy. Some we have missed and some not so much. I guess when we start spending again on our "little extras" we may get more of the things we missed and less of the things we did not.

Max Power
(26 August 2009)

I don't think that people really choose to cut out going on holiday completely. The may downsize from their annual "no expense spared" trip to Barbados, but chances are they will still go somewhere like Spain or another European country.When the recession first hit, Spain (for example) experienced a sharp drop in their tourist revenue figures of such magnitude that they sent a 30 page dossier to their Taxi companys advising them on how to "Come across more friendly to the tourists". I think this emphasized how bad the recession first was, would you chose not to go to a country because the taxi drivers were gruff and appeared miserable? I think not! That panic is over for Spain but id hazard a guess that the tourist board in Barbados are not having the best of times! Its seems like a case of swings and roundabouts, people will not cut out things entirely, simply find a cheaper alternative. Its great example of human ingenuity in difficult times, we don't collapse we just make do, holidays, clothes, food and office supplies they all go up for tender to the cheapest supplier. Its they way it should be really.