Intercontinental airfares are dropping. Hotel rates are going up in Europe, Latin America and South Africa. And the global economy will limp along at a slightly slower pace than last year. These are the findings in Advito’s latest Industry Forecast Update, a graphical snapshot of what’s ahead for the business travel industry.
The report from Advito, the consulting arm of BCD Travel, also highlights three key industry trends:
- “Geofence” tracking gains ground: Traveler tracking that limits monitoring to employees inside a defined area—a “geofence”—is on the rise as companies address concerns around active tracking. For example, during the terrorist attacks in Brussels, a company equipped with geofence technology could have limited tracking only to employees in the city and surrounding areas. Companies are honing their use of active tracking to times when they really need it, such as when a high-profile traveler is in a very high-risk location.
- Companies take a supplier’s approach to hotel data: Companies are tapping up-to-date pricing and yield-management data just like hoteliers do. The data allows businesses to constantly monitor and adjust their travel program performance; benchmark prices against other hotels; and hold preferred suppliers accountable when market rates are consistently better than the negotiated price. Advito advises corporate travel programs to use these data streams to monitor preferred-rate availability; find gaps in compliance-to-contract terms; and add or remove hotels as travel patterns change. Working with up-to-date data all year long—rather than just during negotiating season—best ensures companies get the savings they deserve.
- Messaging technology supports live and automated digital interactions: Airlines and agencies are investing in technology that enables agents to direct travelers toward smart booking choices, reducing time spent on shopping and booking. The latest messaging technology frees travel management company agents to spend more time and attention on travelers most in need—such as during a disruption.
Dive deeper into what’s ahead for business travel by downloading the full 2016 Industry Forecast. And take a five-minute survey to give Advito your feedback.