Technology such as Amadeus Cytric is allowing corporations to have a more direct role in managing business travel. Where does that leave the business travel agent? Contributing editor Martin Cowen takes a look.
Business travel is back. The recently released GBTA Business Travel Index (BTI ) predicts that 2024 will outperform pre-pandemic levels, with this year’s business travel spend predicted to reach close to $1.5 trillion dollars, the highest ever annual total. Looking ahead, 2028 is tipped to exceed $2 trillion. That’s a lot of business trips to book, service and expense.
Amadeus’ Travel Technology Investment Trends (TTiT) series included separate reports looking at corporations and business travel agencies and found that both sectors are, on average, increasing their tech spend by 13% this year.
In this article, we will have a look at some trends to see how the tech requirements from corporations and business travel agents compare.
Stronger together
Technology is empowering business travel agents to serve better their corporate customers, regardless of size, but at the same time changing the established dynamics of how they collaborate - particularly with larger corporations. More and more, we are seeing that technology empowers a redefined relationship, driven by the reality that an increasing number of corporations today have access to sophisticated self-service solutions – such asAmadeus Cytric – through which employees can book and manage their travel and expenses.
Similarly, the ability to manage disruption in real-time is dependent on the tech stack of the airline concerned. As airlines move more towards modern retailing, will we be able to support travelers through self-service capabilities.
Hence the continued need for corporations to work with business travel agents, albeit in a different way than in the past. For example, corporations are leveraging the domain expertise of business travel agents to ensure that their tool of choice is customized and configured accordingly.
The TTiT study also revealed that nearly half (47%) of business travel agents have identified becoming resellers of corporate technology and online booking tools as a potential new revenue stream.
Mixed and matched
Adding a few days of leisure travel onto a business trip has been around for a long time and isn’t going anywhere any time soon. Business travel sellers need to look at how to deliver blended trips because the demand is there. Research suggests that two-in-five business travelers want it as an option, so there’s an employee satisfaction driver in play. Meanwhile, the fact that the blended travel market was worth just shy of $500 billion in 2022 is quite a strong financial incentive. A majority of business travel agents have identified the blended trip as a potential new revenue stream, with 62% wanting technology to help them sell and service mixed itineraries.
For corporations, issues identified in TTiT around the blended trip are absorbed into other concerns about personalization, duty of care and work-life balance, expensing flows and budget allocations.
Also, blended trips are just as subject to disruption as business trips, and are another example of how access to a specified business travel agent adds value to an integrated travel and expense self-booking tool.
For good measure
Reporting on the environmental impact of business travel is becoming a regulatory requirement for many businesses.
TTiT confirms that this need is front of mind for corporations. When looking at trip management, technology to help meet sustainability goals tops the list of priorities. The study shows that many corporations are already on board with this – with 54% already having invested in systems to manage transparent data reporting, and 36% planning to do so.
Elsewhere, 39% have invested in generative Al (Gen AI) interfaces to suggest more sustainable travel options to travelers, with 43% planning to add this option.
Whilst the pressure to report on environmental impact is often stronger for larger corporations, many mid-sized companies will reach the threshold where they too must report on sustainability. This growing need across the board is seen as a potential new revenue stream for business travel agents, with 55% looking to offer consultancy services on more sustainable travel options.
Gen AI isn’t as big a part of their thinking as it is for corporates, although a quarter of business travel agents are considering investing in Gen AI interfaces to surface more sustainable options for travelers.
Conclusion
The GBTA BTI outlook projects strong potential for business travel over the next few years, with the sector poised for steady recovery and growth. The evolving travel ecosystem will play a key role in driving this recovery and offering innovative solutions that align with corporate demand for flexibility, collaboration and sustainability.
At the same time, corporations are further embracing the ever more sophisticated self-booking tools and expense management systems for their travelers. This not only provides an effective and employee-friendly process for corporate travelers, but it also frees up employee time and employer resources with the travel agency, allowing them to be laser-focused on the specific value-add functions of a highly skilled business travel agent.
Amadeus’ Travel Technology Investment Trends (TTiT) series explores a variety of trends for corporations and BTAs, however, overall, the future of business travel is based on partnerships and co-operation amongst all players, facilitated by technology.
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