17 Aug Transformation of Corporate Travel Management
The rapid evolution of customer-focused commercialization and technology paves the way for corporate travel management to evolve seriously. Whether this transformation is a difficult struggle to deal with or a sector that will provide a significant opportunity will determine the response.
Traditionally, companies that manage travel must choose not to submit to the domino effect created by the increasing adoption of technology, or to create new opportunities to keep this wind behind and remain active.
If you ask my personal opinion, the companies that are in charge of corporate travel management need to change now and this need will manifest itself in the future. Living in the digital age means changing the service offered.
According to IBISWorld, in the five-year period from 2015-2016, the corporate travel industry in Australia is expected to grow by 1.8% year-on-year to reach AUS $ 817.5 million. The expected increase for the current year is 7.2% due to the positive volatility in business tourism.
Using market potential means changing price quotations. One way to achieve this change is to negotiate by showing your customers your true value.
Travel managers are looking for companies that can afford the money, and this travel agency is a great opportunity for companies to stay in the industry.
There is also an opportunity around the aviation sector in this period. As technological innovations increase, there is a growing opportunity for consumers to evaluate separately non-transportation options in aviation. Travel management companies are also able to make profits through this area.
How Does it work? Buying airline fees will show transparency between travel management companies and customers. Customers will be able to see more clearly whether the service received is compatible with the price. For firms that offer cost-effective services, it is possible that the service they provide will carry advertising quality as well.
As an example of club or locality access, negotiating a one-entry fee with a travel management company, in partnership with an airline, means that the consumer can easily compare between companies. This eliminates doubts about the importance of the companies that act as intermediaries in travel management.
As a result, it becomes increasingly complex to offer auxiliary services in air transport. Expert support or an outsourcing service seems to be an option for aviation subsidiaries.
This means that business models in travel management evolve. Businesses that underwrite this are waiting for great risks.