WEEK 2: CORPORATE TRAVEL MANAGEMENT

WHAT IS CORPORATE TRAVEL MANAGEMENT?

CORPORATE TRAVEL MANAGEMENT ADDRESSES ALL FUNCTIONS ASSOCIATED WITH SUPPORTING
BUSINESS TRAVEL EMPLOYEES, CUSTOMERS, VENDORS AND BUSINESS PARTNERS. COMPANIES MAY RELY
ON IN-HOUSE CORPORATE TRAVEL MANAGEMENT TEAMS, TRAVEL AGENCIES, ONLINE BOOKING TOOLS,
OR ANY COMBINATION OF THOSE OPTIONS TO PERFORM THESE FUNCTIONS. CORPORATE TRAVEL
MANAGEMENT POLICIES CREATE OR ENFORCE MEETING AND TRAVEL PROCEDURES WHILE PASSING
ALONG TRAVEL DATA TO ACCOUNTING AND FINANCE SYSTEMS AND TEAMS.

WHY IS CORPORATE TRAVEL MANAGEMENT IMPORTANT?

Business travel management plays a key role in helping companies get the most out of their travel
budgets by ensuring they are not overpaying for transportation and accommodations. It also establishes
how employees arrange business trips and ensures all travel spend is allocated in the best interest of the
company. A well-managed corporate travel program is also important to ensure traveler safety.

EVOLUTION OF CORPORATE TRAVEL MANAGEMENT

 As mentioned above, the business travel and travel management sector is constantly changing.
But there are also changes in the people travelling, their tastes, needs and even values.
 Personal service, networking and convenience have replaced other values in travel management,
such as luxury or exclusivity.
 One of the most noticeable changes is in the technological evolution. Advances in connectivity
allow corporate travel managers to remain connected 24 hours a day with the teams of
employees they manage, overcoming obstacles such as distance or time zone differences.
 In addition, other platforms also facilitate this communication through specific applications so
that the traveler can make travel requests to the travel manager. This communication channel
allows part of the management process to be automated, for added fluidity and efficiency.
 In addition to the constant contact, there are many technologies to collect more data and of a
higher quality that allow in-depth analysis of information on business trips.
 For example, in managing expenses, having current and detailed data through specialized
platforms allows one to find possible methods of saving, problems in applying expenditure
policies, etc. That is, it allows the improvement and optimization of travel management in
general.
 Solutions can also be found on the market for management of the advances needed for
corporate traveler's allowances. Thus, the potential for improvement is huge, thanks to software,
that brings together all these functionalities.
 Also bear in mind that the evolution of technology needs to move in line the evolution of the
service providers. Working with service providers that use systems from ten years ago, which are
outdated and paper-based, for example, would hinder the management of corporate trips.
 CORPORATE TRAVEL MARKET OVERVIEW

 Travel and tourism is an important sector as it makes a significant contribution to jobs and
global trade.
 It is projected to rise at a rate of 3.8% per annum, from 2018-2028, to reach 11.7% of total
GDP in 2028.
 Business travel spending generated 22.5% of direct* travel and tourism gdp in 2017. it is
expected to grow by 7.1% in 2018 to reach usd 1.4 trillion and further expand to usd 1.7
trillion in 2022.
 This growth is being experienced post an era of uncertainty in business travel spending.
 Early 2000’s witnessed an upswing in business travel expenditure but the great recession of
2008 saw many companies cutting their travel expenses.
 This period witnessed erratically changing travel spends businesses.
 Business travel spend has now been able to reach the pre-recession levels and it seems to
have embarked on an unprecedented growth trajectory in recent years.
 Predominantly been driven by strong growth in emerging markets and modest growth in
north America and Europe.
 The direct contribution reflects the “internal” spending on travel and tourism.
 Total spending within a particular country by residents and non-residents for business and
leisure purposes.
 As well as government “individual” spending – spending by government on services directly
linked to visitors, such as cultural (example: national parks).

CHANGING WORLD DYNAMICS

 Classifying the world’s major business travel markets into segments reveals an impending shift in
the dynamics of the global travel market.
 The stalwarts constitute close to half of thru global market and comprise many of the world’s
major economies.
 India, China, and Indonesia, which were once considered emerging markets, now form their own
segment and continue to grow at an extremely rapid pace.
 This segment is projected toe be the largest in the world by 2035.
 South Asia is expected to be the fastest-growing world region over the next ten by years.

GROWTH DRIVERS FOR BUSINESS TRAVEL

 Tech firms driving outbound business travel

— India has expanded from traditional outsourcing to advanced technology and product
development, alongside many other areas of business.
— The top international destination for India's business travelers are driven largely by the
technology sector, with tech travel flows now stronger than those of financial services.
 Rise of startup’s & SME’s
— The rise in corporate travel can also be attributed to a parallel rise of the start-ups in the
country.
 — Growing expansion of organizations, rising income levels and the growing need to
network are driving business travel further.

 Rise of shared economy services

— Sharing economy services such as Ola, uber, oyo, grab, airbnb have introduced services
that are more efficient, economic and convenient than traditional services providers.
— Companies are exploring this market to reduce costs and increase productivity.
 Technology enhanced travel
— Corporate are now taking to new travel tools that drive savings, efficiencies, compliance
and traveler safety.
— Travel booking tools are solving issues of multiple bookings from different vendors,
reimbursement etc. By deploying technology.
— They are also driving efficiencies by minimizing the amount of time employees spend in
travel management.
 Bleisure
— The average length of stay for business destinations that was 2.5 days come years ago is
now 4 days, which indicative of how business travelers are extending their stay to
explore various places around their work destination, thereby mixing work and leisure.

WEEK 3: CORPORATE TRAVEL MANAGEMENT

CHALLENGES FOR BUSINESS TRAVEL

 Traveler Safety
— Extreme weather events, terrorism, racial tensions, escalating geopolitical rhetoric along
with increase in numbers of solo woman travelers are making traveler safety the
foremost concern for corporates today.
 Rising Hotel Costs
— Hotel room occupancy across the country has recorded a nine-year high.
— this strong upswing in occupancy level is expected to increase average room rates
significantly in the coming years.
 Data Security
— Travel businesses are responsible for vast amounts of traveler information.
— As data passes from corporate clients to TMC and onto suppliers and intermediaries –
many of whom have storage centers- ensuring data security is becoming a challenge.

CORRELATION BETWEEN GLOBAL TRADE VOLUME AND BUSINESS TRAVEL SPEND

 The potential for trade wars is the biggest challenge being faced by global business travel.
 Imposition of increased tariffs and associated retaliatory measures could severely impact the
global economy and the global business travel market in tandem.
 An analysis of the mathematical correlation between the two shows that nearly 60% of the
variability in global business travel spend can be explained by global trade volumes.
RISE OF TERRORISM

 With the rise in political unrest and terrorism around the globe, businesses need to take into
account the safety of their employees who travel for business.
 According to survey 50% of corporate buyers have witnessed an increase in the number of
business travelers reporting heightened personal safety concerns and quarter witnessed more
requests for security training in the last six months.

THE DISCERNING BUSINESS TRAVELER

 Millennials are expected to account for almost half the global workforce since 2020.
 These millennials are intrinsically tech-savvy, socially and environmentally responsible, and
nearly twice as likely to want more business-related travel than previous generations.
 They desire to experience the world and are enabled by rising disposable income levels, a
connected and globalized workforce, and are influenced by social media.
 This is leading to the emergence of trends such as bleisure, value-driven, and mobile-friendly
business travelers, and an increase in women travelers.
 The advent of a millennial workforce amplifies the need for employers to understand the
expectation, and habits of the next generation of employees. This is crucial for attracting and
retaining talent.
 With rapid globalization and technological advances, corporate travel is witnessing an upswing.
 There is an increased in need for business to travel in order to maintain their business
relationships, expand them and deliver enhanced customer experiences.
 Business travelers, in turn, are motivated by personal ambition and desire for recognition.
 They also see it as an opportunity to grow both personally and professionally.
 When they travel, they are looking for convenience, comfort and connectivity to stay productive.

BENEFITS OF BUSINESS TRAVEL TO EMPLOYEES

90% Feel motivated to get more work done when traveling for business.

84% Say they are likely to feel relaxed about having some alone time on the road.

90% Say business travel has taught them skills they can use to solve challenges in their personal life.

95% Say business travel helps them to communicate successfully with different types of people.

91% View business travel as a time to re-energize, professionally and personally.

76% Use shortcuts learned on business travel when planning their personal vacations.

COMBINING BUSINESS WITH LEISURE

 The modern work place is becoming more adaptable and flexible in nature.
 With corporates increasingly adopting “work from home” policies and flexible working hours,
the line between personal and professional lives in blurring.
  Millennials have embraced this flexibility and freedom, especially with respect to travel, and
often extend their business trips to include leisure days or experiences.
 Bleisure is a commonly used term for when employees combine their business trips with leisure
activities.
 Corporate houses are increasingly allowing flexibility in business trips to adapt to this rising
trend.
 Aged 20 to 25 are most likely to merge their business and leisure trips.
 These travelers tend to take one or two such trips a year, regardless of the demographic segment
or travel frequency.
 Destinations with longer flights tend to have a higher likelihood for bleisure.
 Financial and industrial hubs such as Singapore, Malaysia, Dubai, Hong kong, turkey, and London
are growing in popularity as leisure destinations.
 Senior executives of companies are sometimes accompanied by their spouses/families for
business trips to such locations. These travelers often tend to extend their business trip over a
weekend to relax.
 92% of millennials nowadays eagerly look forward to their next business trip and it is a coveted
business perk.
 To ensure this trend has a positive impact, both employer and employee must be able to clearly
articulate where their respective responsibilities lie with respect to policy and insurance.

LEISURE TIME DURING BUSINESS TRAVEL

75% Want to experience something new while traveling.

45% Like to carry their favorite books while on the go.

46% Spend their leisure time in exploring the destination.

22% Carry their work-out gear with them while traveling.

VALUE OF MONEY

 From corporate perspective, providing employees with some flexibility and freedom to make
their own business travel choices, within specific parameters, can be beneficial.
 By pre-negotiating rates with a variety of airlines and hotels, there is greater scope for
employees to select the option that best suits their needs while complying with company policy.
 Millennial have a passion for unique experiences and are not confined to traditional transport
and accommodation options.
 With the evolving landscape of the travel hospitality industry, options beyond traditional hotels
have caught the attention of corporates and business travelers.
 This love for value and freedom of choice are two of the main drivers behind the growth of
shared economy services.
 The rise of sharing economy platforms such as Oyo, airbnb, ola, grab, uber, etc. benefits
employees and organizations alike.
 They enable organizations to be more cost efficient, have success to a range of options and
better locations.
  For business travelers, they help to satiate their craving for unique experiences while fulfilling
their need for comfort.
 Thus, travel managers all over the world is beginning to consider integrating sharing economies
like Oyo into corporate travel programs.
 Leading TMCs have already initiated partnerships with such platforms.
 With the help of TMCs, corporates can further evolve their travel policies and offer their
travelers the ability to book their preferred accommodations. However, there are many
concerns, around safety and security, cost, licensing and taxes, employment practices, and data
security that need to be addressed before such platforms are incorporated into corporate travel
programs.

TMC PARTNERSHIP WITH AIRBNB

INSERT PHOTOOOOOO

MOBILE-FRIENDLY

INSERT PHOTOOOOO

 The business travel industry lags behind leisure travel in terms of mobile booking technology.
 There is a growing demand fro mobile capabilities in business travel.
 These travelers prefer to research and book both fights and accommodations on mobile.
 Millennial travelers rely on technology for the entire travel booking process – from online
reviews to mobile booking and check-in to staying connected with colleagues in a new city.
 Majority of travelers prefer online methods of research as it provides greater information,
occasionally better deals and higher level of convenience.
 Hence providing a seamless and mobile friendly travel experience in a business ecosystem, can
help improve an employee’s over all travel.

GENERATION WISE TRAVELLER CONCERNS

INSERT PHOTOOOOOOO

WEEK 3: CORPORATE TRAVEL MANAGEMENT

WHY BUSINESSES SHOULD USE CORPORATE. TRAVEL MANAGEMENT AGENCIES?

REDUCE COSTS

a major advantage of using corporate travel management agencies is reducing travel costs. This includes
accommodation rates, insurance, airline tickets, and any other related expense. A business travel agent
will have the necessary experience to find or negotiate the best possible deals for the company.

TIME MANAGEMENT

organizing a business trip can take considerable time, so if you manage a medium or large company, you
won’t have time to book your business travel yourself. A dedicated corporate travel manager will take
care of these tasks so you and your staff can focus on everything else.
EFFICIENCY

as corporate travel is on the rise, most businesses opt for a corporate travel management agency to
ensure their employees travel safely whilst adhering to all the relevant travel policies.

CORPORATE CULTURE

WHAT IS COMPANY CULTURE

 Refers toe the set of values, ethics, and belief that define the day-to-day operations and
atmosphere at an organization. It impacts everything from high-level business decisions to the
vibe in the communal kitchen.
 Culture at an organization originates from leadership, but all levels within a company-from
hiring to setting employment policies to interacting within a physical space-play role in defining
it.

COMMON WORDS USED TO DESCRIBE A COMPANY CULTURE

 Friendly: Shows that employees engage with one another in a positive way throughout the
workday. Some other words that can be used to describe this type of culture include “warm,”
“sociable,” or “amicable.”
 Challenging: Indicates that employees are encouraged to explore the full potential of their skill
sets, and that they’re likely to grow through the job experience. You can also use words like
“stretching,” “exacting,” or “resilient.”
 Motivating: Implies that the company is inspiring, and employees will feel compelled to work
hard.
 Engaging: Suggests that employees will feel invested in their work because it speaks to their
interests.
 Nurturing: Conveys that the company is invested in employees’ growth and development.
 Collaborative: Signifies that employees and teams will work well together cross-functionally to
accomplish their goals.
 Autonomous: Expresses that employees are trusted to have ownership over their work and that
they have the individual power to improve results.

Externally-based Corporate Travel Management vs. In-House vs. Agent

IN-HOUSE TRAVEL MANAGEMENY AGENTS

 An in-house travel management agent is an employee you hire for taking responsibility of
booking trips, making last-minute changes to the travel itineraries, and maximizing your savings
whilst finding the best deals for your employees.
 By hiring an in-house travel management agent, you can be sure of working alongside a trusted
employee who’ll make your business travel planning easier. Another advantage of hiring an in-
house agent over an external one is the fee or commission you will avoid paying to that agent.
 An in-house travel agent may not always be available in times of a crisis as they often work solo.

External Corporate Travel Management Agents

  External travel management agents are specialized in the field of corporate travel and have
extensive experience in booking business travel.
 These individuals are available at your request and use online booking tools that will maximize
cost savings.
 The main difference between an external and in-house agent is that you’re not employing the
person to handle your business travel needs; you’re paying them a fee or commission every time
they make a booking for you.
 A dedicated team of external travel management agents will be available 24-hours a day. Should
one of your employees run into difficulty abroad – whether they’ve fallen ill or lost their luggage
– the agents will be on-call 24/7 to assist them.

Automated Travel Management vs. Hiring a Travel Manager