Travel managers continue to look for savings opportunities as a management priority
An international survey of 800 travel managers conducted by Carlson Wagonlit Travel reveals that the number one concern remains the search for travel program savings formulas. While this is a common theme regardless of company size, the larger companies are taking more determined steps toward mobile services.
Carlson Wagonlit Travel's 2013 Travel Management Priorities report is based on the results of an international survey of 800 travel managers.The survey took into account both medium-sized companies with domestic programs and an annual travel spend of around $2 million and companies with international travel programs and an annual travel spend of more than $100 million.
The report shows that the overall ranking of priorities for 2013 is very similar to 2012. Travel buyers will focus on those areas that represent the greatest opportunities for savings, with those associated with the traveler experience taking a back seat. This is true regardless of company size, industry, travel budget or scope of the travel program.
“The economic landscape puts purchasing managers under continuous pressure to cut costs and manage the travel program more cost effectively,”, says Christophe Renard, vice president of marketing, communications and business intelligence at CWT.
The measures that travel managers plan to take to achieve these goals will vary depending on the region. In North America, procurement managers are looking to further consolidate their programs and standardize processes. In Asia Pacific, more emphasis will be placed on travel policy compliance and preferred booking channels. In Latin America, the focus will be on implementing advance booking rules and strengthening policies in the car rental chapter. In Europe, the Middle East and Africa air and rail policies will become more restrictive to reduce costs in air and ground transportation.
Purchasing managers with an international responsibility are the only ones who will manage traveler compliance with travel policy using technology 2.0. The three main actions they will take to achieve this goal are: offer more mobile services to travelers, implement social media tools and provide their travelers with a web traveler portal.
“Travel managers with global responsibility are more likely to try new procedures and techniques. They tend to be very avant-garde when it comes to optimizing their travel programs and, as a result, often seek to meet new challenges using innovative methods," Renard explains.
CHALLENGES OF 2013
The second part of the report looks at business travel trends in 2013 and delves into the changes that are likely to occur this year, as well as the challenges arising from the current economic climate and the constantly evolving business travel landscape.
On the price side, global inflation is likely to affect prices slightly with increases below 5%. In addition, travel managers should closely monitor both programs and suppliers. They should also pay special attention to areas such as ancillary service charges and fuel surcharges.
Technological changes will affect travel processes. Consumer-influenced technology will enter corporate travel in the form of services such as opinion-gathering websites and mobile apps designed specifically for business travelers.
Travel management 2.0 will also be a hot topic in 2013. Companies will be looking to strike a balance between exercising an appropriate level of control over travelers' booking behaviors and managing travel to ensure they are on budget and compliant with preventative and security requirements.
Finally, risk management also plays a key role, as companies increasingly send their travelers to trouble spots and the duty of care during business travel is part of the legal responsibility of companies to their employees.
Finally, risk management also plays a key role, as companies increasingly send their travelers to trouble spots and the duty of care during business travel is part of the legal responsibility of companies to their employees.