The world of transient business travel is arguably like no other; while procurement folk attempt to treat it like any other commodity, be it paper clips or toilet rolls, travellers' preferences and predilections do often hold sway and change the dynamic.
This emotional attachment upsets travel policy, which in turn has repercussions on the cost of travel. It takes a strong-willed Travel Manager, backed by top management, to drive through change.
And change is a constant in this industry. The rise in importance of Corporate Social Responsibility in the boardroom means that more employers are now playing hard ball with travellers and non-compliant employees should watch their step. The revision of a new Corporate & Homicide Bill onto our statute books in April 2008 has further strengthened their resolve, ensuring that employers not only know where travellers are at all times - causing a run on the purchase of traveller tracking systems - but also that all precautions have been taken for their safety.
The structure of the business travel industry, not least its distribution model, is changing fast. Travel departments are now cost centres rather than profit centres (when they earned commissions from suppliers), and travel management companies (TMCs) have had to make a 360-degree turn and metamorphose into travel consultancy firms. The adoption of online booking systems has helped this about-turn, as TMCs siphon off simple, point-to-point bookings to the traveller while keeping complex bookings and a more strategic role for themselves and charging per transaction.
Even what business they're left with is being diluted as buyers move away from a one-stop-shop for all their travel purchasing, preferring a best-in-breed approach. This has resulted in the rise of the hotel booking agent (HBA) who can gain access to non-GDS inventory. TMCs are fighting back by opening hotel divisions. Online systems for rail and other ground transportation are allowing corporates to extend a tighter grip on these two areas of spend.
The economic climate is another major influence, currently forcing through tighter policy compliance and the same disciplines to the management of meetings and conferences. It is also hitting the supply chain hard, most notably in the airline sector, with closure, mergers and takeovers being the order of the day.
As ever, watch this space!
