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Image Credit Direct Travel
A recent survey of corporate travel managers in the U.S. and Canada has illuminated major pain points experienced during business travel and the necessary technological solutions to address them. The Global Business Travel Association (GBTA) conducted the research in collaboration with Direct Travel, Spotnana, and Troop.
Identifying the Top Frictions in Business Travel
The study revealed that 57% of travel managers found unprofiled guest travel bookings to be a significant source of friction. This was closely followed by travel disruption management (55%), expense reports (50%), travel management company (TMC) servicing (50%), and event travel bookings (50%).
Rising travel costs have also continued to challenge over half (53%) of the surveyed travel managers. Meanwhile, ‘leakage’ in bookings outside managed channels like TMCs or online booking tools (OBTs) remains a prevalent issue, with 67% of travel managers noting an increase or no change in air travel leakage and 81% reporting the same scenario for hotel bookings.
New Distribution Capability (NDC) Slow to Adopt
Despite its potential to foster a better shopping experience and drive savings, NDC is still experiencing slow adoption. Over a third of buyers (37%) reported that their travel program is not making any NDC bookings, and an additional 22% stated that NDC bookings constitute less than 10% of their overall air bookings. The primary reason for this hesitation is the inadequacy of TMCs to support NDC and the limited NDC content available through their OBTs, as reported by 54% of travel managers.
Openness to TMC Change and Desire for Innovation
The survey also found that 58% of travel buyers are open to changing their TMC within the next year. The top three pain points identified were inconsistent service quality (41%), inferior technology and user experience (36%), and slow or ineffective issue resolution (32%).
Over half of the respondents named proactive disruption management one of the top three desired innovations, followed by risk management capabilities (46%) and the ability to service NDC bookings (35%). 63% of respondents also desired a better integration between TMCs and OBTs, indicating a need for service improvements.
Small Meetings Often Unmanaged
More than half of the respondents (53%) reported that smaller meetings, those with under 25 attendees, are usually planned outside of a managed program. This lack of managed planning leads to various challenges, including cost management, process inefficiencies, and an inadequate understanding of the return on investment of such meetings.
Key Takeaways from the Study
This study provides valuable insights into the evolving landscape of business travel management. The identified challenges and suggested solutions can guide the industry towards achieving a more seamless business travel experience. It underscores the urgent need for innovation in the sector, particularly in disruption management, NDC servicing, and integration between TMCs and OBTs.
View an Infographic.
The full report “The Perfect Business Trip” can be downloaded on Direct Travel’s website here and via the GBTA Hub here for GBTA members.
