Five Business Travel Trends - Congreso IBTA 2020 · Trend #3: The Evolving Travel Programme 19 Regardless of region, technology is a major part of the Travel Manager’s role. Source:

Highlights from GBTA Research

Ricardo Crespo

GBTA Advisory Board Member - EMEA

GBTA

© 2019 GBTA. All rights reserved.

Five Business Travel Trends

5 Business Travel Trends


2

1) Business Travel Falls Back to Earth

2) One World, Different Policies?

3) The Evolving Travel Programme

4) Will the Happy Traveller Take Flight?

5) New Tech, New Horizons

Trend #1: Business Travel Falls Back to Earth


3



4

4,6%

-7,5%

8,0%

9,3%

3,2%

4,4%

6,1%

3,8% 3,5%

5,8% 5,7%

3,1%4,1%

4,8%

6,0% 5,9%

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Annual Growth in Business Travel Spending: 2008 - 2023

2019 is projected to be weakest year for global business travel

since the Great Recession

Forecast

Source: GBTA, GBTA BTI™ Outlook Annual Report and Global Forecast, 2019

5.7%

5.8%


1) Slow economic growth and low inflation worldwide

2) Trade uncertainty – US and China

3) Emerging markets continue to struggle

4) Mature markets have stalled


5



6

For Spain:

• Moderate growth of 3.8% projected over next 5 years

• BTS to reach $28.7bn by 2023

7

8

RankU.S. 2

3Germany

Japan 4

U.K. 5

France 6

India 7

2018

Rank $bilCountry

China 1

South Korea 8

$304

$77

$65

$52

$43

$39

$378

$38

2 $366

3 $94

4 $73

5 $69

7 $52

6 $64

$bil

2023 (f)

Rank

1 $510

8 $43

--

--

--

--

-1

+1

Rank Change

--

--

Brazil 10

11Canada

Spain 12

Australia 13

Netherlands 14

Russia 15

2018

Rank $bilCountry

Italy 9

Indonesia 16

$29

$26

$24

$24

$21

$20

$36

$18

10 $34

11 $31

13 $29

12 $29

15 $26

16 $24

$bil

2023 (f)

Rank

9 $40

14 $29

--

--

-1

+1

-1

-1

Rank Change

--

+2


Source: GBTA, GBTA BTI™ Outlook Annual Report and Global Forecast, 2019

9


2,3% 2,4%

1,5%

2,2%

3,2% 3,2%

2,2%

-3,0%

-2,0%

-1,0%

0,0%

1,0%

2,0%

3,0%

Global North America Western Europe Asia Pacific Latin America Eastern Europe Middle East &Africa

2020 Air Price Forecastsin local currencies

Modest

air price

growth

expected

in 2020

Source: GBTA, 2020 Global Travel Forecast, 2019

10


2,3% 2,4%

1,7%2,2%

4,5%4,1%

2,5%

-2,0%

-1,0%

0,0%

1,0%

2,0%

3,0%

4,0%

5,0%

Global North America Western Europe Asia Pacific Latin America Eastern Europe Middle East &Africa

2020 Hotel Price Forecastsin local currencies

Modest

hotel price

growth

expected

in 2020

Source: GBTA, 2020 Global Travel Forecast, 2019

11


What’s the Best Way to Cut Costs But Maintain Productivity?

57%reduce the number of

business trips, but

spend the same

amount per trip

43%reduce the quality of

travel, but travel at

the same frequency

Source: GBTA, GBTA Business Traveler Sentiment Index™, 2019

12

Trend #2: One World, Different Policies?

13


44%

36%

19%

2%

Travel Policy Type-global travel managers Mandated with consequences: Travelers must follow

rules to be reimbursed; consequences for non-

compliance detailed

Mandated without consequences: Stated policy,

but no generally no consequences for non-compliance

Guidelines: Set of rules and guidelines that allows

for exceptions and flexibility

No written policy

More strict

More flexibleSource: GBTA, Fixing the Leak: How Traveler Experience Impacts Hotel Adoption, 2019

14


% mandated with consequencesby region

% mandated without consequencesby region

38%32%

66%

49%

NorthAmerica

Europe Asia Pacific LatinAmerica

47% 48%

14%

21%

NorthAmerica

Europe Asia Pacific LatinAmerica

Source: GBTA, Fixing the Leak: How Traveler Experience Impacts Hotel Adoption, 2019

More

strict Less

strict

15


Do U.S. and Canada Travel Programs Have Special Policies in Place for…?% yes

75%

C-suite

41%Senior management

14%Frequent travelers

Source: GBTA, Leveraging Data to Improve Traveler Experience, 2019

Trend #3: The Evolving Travel Programme


16

71%

73%

78%

78%

78%

75%

62%

57%

64%

72%

71%

75%

Involvement with Risk Management% “moderately” or “very” involved by region

North America Europe Asia Pacific Latin America


17

Selecting TRM

providers for travel

Communicating with

travelers in an

emergency

Developing

TRM policyEurope Travel

Managers

slightly less

involved with

risk

management

Source: GBTA, Understanding Stakeholder Engagement with the Travel Program, 2019 (forthcoming)



18

43%

48%

58%

56%

41%

40%

11%

Developing travel risk management(TRM) policy

Communicating with travelers in anemergency

Selecting TRM providers

Who Is the Primary Owner of…?-global travel managers

Travel department Other department(s) or team(s) A third party


Travel

programmes

not only

involved with

risk

management.

About half

“own” it

77%

84%

86%

83%

78%

85%

80%

84%

68%

81%

73%

81%

68%

87%

77%

90%

Involvement With Technology% “moderately” or “very” involved by region



19

Regardless of

region, technology

is a major part of

the Travel

Manager’s role.


Selecting our online

booking tool

Selecting business

intelligence/reporting

Implementing travel

tech

Travel data

privacy/security


20

69%

69%

73%

80%

60%

67%

78%

73%

41%

44%

66%

58%

46%

49%

63%

68%

Involvement With Payment and Expense Management% “moderately” or “very” involved by region


Deciding expense

policies for travel

Selecting payment

providers for travel

Selecting expense

management tool

Configuring

expense

management tool

APAC and

LATAM Travel

Managers more

involved with

payment and

expense



21


33%

38%

43%

55%

68%

65%

62%

57%

44%

32%

Configuring our expense management tool

Selecting expense management tool

Deciding expense policies for travel

Selecting payment providers for travel

Deciding travel policies

Who Is the Primary Owner of....?

Travel department Other department/team A third party

Trend #4: Will the Happy Traveller Take Flight?


22



23

64%

49%

22%

No

8%

11%

32%

43%

67%

Yes - for some travelers Yes - for all travelers

Fare class utilisation

(e.g., % business)

Hotel quality/type

(e.g., % upscale)

Do U.S. and Canada Travel Programs Track or Report On…?

% non-stop vs.

connecting flights


Most companies

track cost-

focused data.

Fewer have “trip

experience” data.



24

88%

85%

68%

No

8%

10%

11%

25%

Yes - for some travelers Yes - for all travelers

Nights individual

travelers spend away

from home

Flight times (e.g.,

% late night)

“Bleisure” (i.e., how

often travelers extend

trips for leisure)


Do U.S. and Canada Travel Programs Track or Report On…?



25

81%of U.S. organizations with a

traveler satisfaction program in

place are measuring the

effectiveness of their program

What is the yardstick for effectiveness?

11%

24%

26%

26%

29%

53%

55%

92%

Return on investment per trip

Appeal to potential employees

Employee retention

Return on investment for company

Employee productivity

Policy compliance

Cost savings

Traveler feedback

Source: GBTA, Traveler Satisfaction Outlook: Are Companies Focused on What Matters?, 2019

Trend #5: New Tech, New Horizons?


26



27

Artificial Intelligence (AI) and Machine Learning

• Personalised search: Presenting search results based on traveller preference or

purchase history

• Automated chat: Chatbot assists during booking process

• Audit: Automatically detecting problematic expense reports (e.g., AppZen)



28

Buyers and travellers value personalisation when booking hotels

81% 77%76% 71%

Ability to filter results based on travellerpreference

Ability to personalise search results basedon past travel

Travelers Buyers

Source: GBTA, Fixing the Leak: How Traveler Experience Impacts Hotel Adoption, 2019



29

New tech, new challenges?

7%

13%

22%

23%

24%

24%

37%

38%

40%

45%

49%

49%

51%

Other

Understanding stakeholder needs

Understanding traveler needs

Vendor compliance

Internal communications with company stakeholders

Providing stakeholders with the information they need

Internal communications with travelers

Availability of travel content

Booking compliance

Travel data integration

Data accuracy

Internal technology integration (such as OBT and Expense, HR data feed)

Traveler technology integration such as apps or tools

Top Challenges FacingTravel Programs – Global Travel Managers

% included in top 5 (out of 12)




30

Gamification tech allows companies to reward travelers who save money – but most

U.S. programmes have not adopted

Source: GBTA, Five Business Travel Payment Trends, 2018



31

Tech drives payment innovation

• Single-use virtual cards: Will mobile wallets drive greater adoption?

• Blockchain: “Decentralized” ledger


32

Thank You!

Documents

Five Business Travel Trends - Congreso IBTA 2020 · Trend #3: The Evolving Travel Programme 19 Regardless of region, technology is a major part of the Travel Manager’s role. Source: