Expedia says firms spending cautiously

Corporate travel demand is up after a painful recession, but companies likely will curb travel expenses and steer employees away from costly first-class accommodations, the chief executive of Expedia Inc (EXPE.O) said on Monday.

"The phones are ringing again, from what the partners tell us," Dara Khosrowshahi said at the Reuters Travel and Leisure Summit. "Again, it is off of a very low base, but we do see some encouraging signs from our hotel partners."

He said that while demand is improving, U.S. companies remain conservative in their travel spending and are adhering more closely to internal travel policies that may have been neglected in recent years.

The travel industry has been hit in the last year by an economic downturn that eroded travel demand. Travel companies responded by slashing fees and offering promotions to bolster bookings.

Get the full story at: Reuters