As businesses continue to tighten spending practices, corporate travel is projected to drop by 15% this year compared with 2008, while overall travel demand could decline by 11%, according to a study by PhoCusWright, a Sherman, Conn., market research firm.

Corporate travel -- defined as business travel managed under strict corporate policies -- has historically represented about 40% of the total travel market, but PhoCusWright predicts that share will drop to 35% next year.

Other business travel -- by smaller firms that do not have a travel policy dictating the types of travel, supplier or rates -- represents about 12% of the market.

Although the PhoCusWright study did not look at what is called "unmanaged business travel," a company spokesman said such travel demand is also down.

Ge the full story at the Los Angeles Times