A recent survey conducted among corporate travel managers across the U.S. and Canada has shed light on significant challenges faced in the realm of business travel. The report, initiated by the Global Business Travel Association (GBTA) in partnership with Direct Travel and others, outlines both the hurdles and potential technological advancements that could pave the way for improved travel experiences.
Identifying Key Challenges in Business Travel
The study highlighted that over half of the travel managers surveyed indicated that unprofiled guest travel bookings posed a substantial issue, with 57% citing it as a major concern. Following closely were challenges related to managing travel disruptions (55%), handling expense reports (50%), providing satisfactory assistance through travel management companies (TMCs) (50%), and organizing event travel bookings (also at 50%).
Additionally, escalating travel costs are a pressing concern for 53% of those surveyed. The phenomenon of leakage—where bookings are made outside of managed channels like TMCs and online booking tools (OBTs)—continues to be prevalent, with 67% of travel managers noting an increase in air travel leakage, while 81% reported similar issues for hotel bookings.
Slow Adoption of New Distribution Capability (NDC)
The report also touched on the slow uptake of the New Distribution Capability (NDC) framework, which promises a more seamless shopping experience and potential savings. Interestingly, 37% of buyers reported their travel programs were not utilizing NDC bookings at all, and a further 22% stated that their NDC bookings made up less than 10% of their overall air bookings. A lack of support from TMCs and limited content available through OBTs played a significant role in this slow adoption, as noted by 54% of respondents.
Desire for Change and Innovation in TMCs
There is an evident readiness for change among travel managers, as the survey found that 58% are open to switching their TMC within the year. The most significant grievances are inconsistent service quality (41%), outdated technology (36%), and slow issue resolution (32%). A call for proactive disruption management emerged as a top priority, with 63% seeking better integration between TMCs and OBTs to improve overall service quality.
Unmanaged Small Meetings
A noteworthy insight from the survey is that more than half of respondents (53%) manage smaller meetings—those gathering under 25 attendees—outside of their formal programs. This often leads to inefficiencies in cost management, hinders processes, and creates challenges in evaluating the return on investment for such gatherings.
Key Takeaways from the Study
This examination of business travel underscores the evolving landscape and outlines crucial areas for improvement. Recognizing the pain points and possible solutions can guide the industry towards creating a more efficient travel experience. Emphasis on innovation is paramount, particularly concerning disruption management, NDC servicing, and enhanced integration processes.
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Ultimately, the value of this report’s findings highlights the critical need for ongoing dialogue and adaptation within the travel industry. Those seeking reliable and personalized transfer options can empower their travel choices through LocalsRide.com, ensuring convenience and affordability at the click of a button—essential during these times of evolving travel dynamics. Book your Ride on LocalsRide.com today!