What were the big corporate travel trends in 2013? And what might the major stories be in 2014? Four senior BCD Travel executives share their insights in our annual roundup.
2013 Review
What was the biggest breakthrough for business travel or travel management?
It was the year of the traveler.
The industry has learned to re-engage with the traveler. Products and tools aren’t perfect yet, but they’re good stepping stones toward a program that is better for both the traveler and the company alike.
Torsten Kriedt, Vice-President, Product Planning & Corporate Intelligence
Travelers became even more connected.
Ever-improving connectivity was a major travel innovation trend. In-flight wifi gets my vote as one of the most important developments for the business traveler.
Ilona De March, President—EMEA
Behavioral economics was linked to business traveler management.
Looking at business travelers’ buying decisions through the prism of behavioral economics gives us a new way to understand—and shape—those choices. Companies are finding ways to gain influence by going through the traveler, instead of just going through B2B channels.
Chris Crowley, Senior Vice President, Global Client Team—EMEA
Distribution improved in Asia Pacific.
Content keeps increasing in our GDSs, which simplifies the booking process and access to fares. We’re often seeing the same fares, even for low-cost carriers, being distributed through GDSs and online channels. Importantly, China has embraced competitive GDS bookings. Interest in traveler safety and traveler tracking tools is catching up with more mature markets.
Greg O’Neil, President—Asia Pacific
What was the greatest challenge for business travel and travel management?
Online adoption grew slowly in Asia Pacific.
Self-service adoption rates still haven’t hit the levels they could be in Asia Pacific. The region is ripe for online and mobile service. But many travelers continue to expect high-touch treatment, even though their companies are looking to reduce service costs.
Greg O’Neil
Business conditions were tough in EMEA.
The lengthy economic downturn in EMEA hit companies even harder than expected. But, encouragingly, indicators strongly suggest 2014 will be the year business travel finally returns to pre-crisis levels.
Ilona De March
Travel managers juggled conflicting priorities.
It was one of those years where companies tried to grow their sales but at the same time reduce travel costs. Travel managers were caught in the middle.
Torsten Kriedt
Market uncertainty led to slower decision-making.
2013 was a difficult year because the climate of austerity and uncertainty, especially in the first three quarters. Many of our customers were forced into aggressive cost-control measures. Our clients tell us that decisions are taking longer. Whether it’s an RFP process for TMC or other travel suppliers, or simply a decision to implement a new innovative service, most companies are not moving quickly. Innovating in economies this volatile is a huge challenge, but even bigger opportunity.
Chris Crowley
2014
Name an important development travel managers should watch out for next year.
Business travel could be on the upswing.
While we know a surge is coming, where and when we’ll see it first is the question. I’m optimistic that some major markets will see that uptick in 2014; we may even see a worldwide surge of modest proportions. As volume comes back, that could cause problems with supply, so travel buyers need to be ready for this. Watch out, too, for attempts at greater regulation, such as starting to treat mileage points as a taxable expense in more countries. And we’ll see more moves by our customers to integrate travel, meetings and expense management. We’re receiving many more customer inquiries around this.
Chris Crowley
Low-cost carriers will gain traction in Asia Pacific.
There are now 50 or so low-cost carriers in Asia Pacific, and most of them are very good. The challenge is for companies to persuade employees to use them, because they can create major savings. TMCs and low-cost carriers will need to improve coordination to make this workable for companies.
Greg O’Neil
Travel disruptions will worsen.
Travel disruptions caused by strikes, political unrest and severe weather conditions will become even more frequent in EMEA. Europe is still the largest business travel market, with close to 40% of all international arrivals. Any large airport or international rail system shut down by a strike causes major disruptions. We’re dealing with this reality by preparing to roll out in Europe a solution that’s been very successful in North America; it makes travel disruptions more manageable for companies and less painful for their travelers. Disruption Services monitors trips and proactively re-accommodates travelers when flight or rail delays and cancellations happen.
Ilona De March
Business intelligence will become standard practice.
We’ll see better, more user-friendly analytics that allow travel managers to explore travel spend and saving opportunities. Those tools will continue the trend of business intelligence becoming mainstream in corporate travel.
Torsten Kriedt
What would you like to happen next year (even if you think it is unlikely to happen) that would improve business travel and/or travel management?
Speed up open technology platforms.
I want travel technology providers to move faster toward open platforms that make it much easier to integrate different systems and tools.
Torsten Kriedt
Boost policy compliance in Asia Pacific.
It would be a real breakthrough if more multinational corporations could achieve the same policy compliance in Asia Pacific that they do in the rest of their global travel programs. Duty of care could be a real driver here, as companies educate travelers on the fact thatcompliance isn’t just good for the company and the program, it’s good for the travelers themselves.
Greg O’Neil
Speak up on behalf of business travel.
I would like the business travel industry to come together to advocate for ourselves because I fear we are going to become more heavily regulated. We need a stronger voice on issues like taxation, airport expansion and security.
Chris Crowley
Zip through security.
I’d love to see shorter lines at security—at any airport in the world. This undoubtedly would improve the lives of many business travelers, but it’s unlikely to happen!
Ilona De March
