Are we there yet?
Since Covid threw a wrench into the delicate machinery that is the business of business travel, there have been numerous guesses, predictions and prognostications as to when and how we would return to pre-Covid levels. It is nice to know that small to mid-size enterprises (SMEs) are leading the recovery since those tend to be our customers. Lorraine Sileo of Business Travel News reported these observations:
Six in 10 travel manager respondents projected their organizations’ 2023 business travel spending would match or exceed 2019 levels. With that move toward “back to normal” status, 58 percent indicated no changes in company travel policy rules during the past 12 months. But for those 41 percent who did report changes in the past year, rules for 70 percent were tightened versus 30 percent who now have fewer or less strict rules. According to one travel manager with travel compliance above 80 percent, “there is always room for improvement.”
Travel is in the spotlight as finance and upper management seek more cost control, especially considering inflation and economic concerns. Nearly half of respondents said their organization is managing travel more closely than before the pandemic, while only 3 percent have a looser policy. When asked about their travel management policy goals or plans for 2023, tighter management was high on the list. “We need to drive compliance and implement cost saving technologies and tools,” said one. Others mentioned new travel policies with “more oversight on spend,” especially for international travel or “high-cost tickets.” Another implemented “executive leadership dashboards on travel.”
However, a tighter policy doesn’t necessarily limit traveler perks, as there can be trade-offs and compromise. “We permitted reimbursement of ancillary services, such as priority boarding and paid seats. We limited the use of private car services and launched Uber for Business,” one travel manager explained.
Some SMEs are putting TMCs on notice and are looking to renegotiate, consolidate or replace their current TMCs and online booking tools. Faster turnaround, better self-service, New Distribution Capability connectivity and synching with mobile apps are among some of the imperatives they are looking for in a partner. Many mentioned plans to consolidate their TMCs, and one said it was time for “OBT refinements or replacement.” Another planned to “switch to a new TMC and deliver new key performance indicators to budget owners.”
SMEs must provide greater service in some cases with fewer staff, raising the importance of effective automation. SMEs reviewing their travel policies often are seeking more self-serve options and easy-to-use tools so they can manage effectively with smaller teams, Corwin said. He mentioned implementing AI offerings, including Navan’s AI-powered chatbot, Ava, as an example of a ways SMEs can gain efficiency through self-service. Lazzaro agreed, adding Globus is looking to incorporate AI into its offerings to make self-service “easy and seamless.”
Other respondent travel policy goals for 2023 include improved duty of care, increased sustainability efforts, and preparedness for NDC. “We need to source a TMC that can fully operate with NDC changes,” one manager wrote.
More companies are traveling to bring their teams together during a shift to hybrid work. The BTN survey found that 84 percent of responding companies had some sort of flexible work policy, and only 10 percent required all employees to work on site every day. These new patterns of travel, in which remote employees often meet at headquarters or other central locations, have driven many changes to the travel program. “We are more flexible with flight locations in the remote work environment,” wrote one respondent.
SMEs are broad and diverse, and their travel management goals vary widely based on size, industry, and other variables. However, SMEs often share a common desire to build robust travel programs that empower better decision-making. It’s all about “control, visibility, efficiency and self-service,” said Corwin. SMEs have sharpened their vision for travel’s role in the organization and are now better prepared for the next phases of travel management.
It's nice to know that most travel agency corporate customers are SMEs and that they are getting healthy; however, the landscape has changed and we need to stay current and keep up with what these customers now expect of us during this recovery.
Mark Altman
Forte Business Travel Solutions
516-624-0500 x5072
maltman@travelsavers.com
Source: BTN, https://www.businesstravelnews.com/, Small & Midsize Firms Hitting Refresh on Travel Management posted by Lorraine Sileo, read on October 27, 2023. Click here for a direct link to the full article.
