With new technology proliferating and business traveller needs and expectations evolving, travel managers are struggling to manage complex, multi-layered travel programmes. According to new research from the Association of Corporate Travel Executives (ACTE), underwritten by HRS, travel managers recognize this challenge and understand that simplifying their programmes could yield benefits—but simplification initiatives face competing priorities.
The new study, Simplifying Managed Travel, finds that traveller safety trumps the agenda: Most buyers (94 per cent) say duty of care is a key priority; 82 per cent say it is their top priority. With 72 per cent rating it a key priority for their managed travel program, simplification follows behind cost reduction (88 per cent), data security (84 per cent) and improving traveller satisfaction (75 per cent).
However, travel managers recognize that simplification initiatives can support their other strategic priorities. For example, 47 per cent of travel managers say that simplification will improve duty of care, and 39 per cent believe it will reduce the overall cost of their travel policy.
Travel Managers Struggle to Translate Priority into Action
Despite recognizing the importance of simplification, travel managers see a gap between intention and execution. Reflecting the strategic importance placed on traveller safety, duty of care is the travel buyer’s top priority for simplification: A majority (83 per cent) say duty of care requires immediate action (62 per cent). Data security appears second on buyers’ list of simplification targets.
Disconnects between buyers’ simplification priorities and their actual behaviour, however, indicate barriers to pursuing strategic goals. The execution gaps for duty of care and data security are large relative to other priorities, with more than one-in-five buyers saying they are not currently translating their traveller safety (23 per cent) and data security (24 per cent) concerns into action.
Suppliers and Internal Stakeholders Must Become Partners in Simplification
Today’s complex travel programmes encompass multiple partners and stakeholders—internally and externally. To be effective, simplification initiatives often require support from these parties. While nearly one-in-five buyers do not get support from peers in other departments, most report that internal stakeholders are on board with simplification initiatives:
- Procurement is most often regarded as a partner in simplification (57 per cent);
- Internal risk/security and communications staff follow (40 per cent);
- IT support (36 per cent) and human resources (28 per cent) lag other departments.
Third parties can supply relevant tools and expertise, providing support to travel buyers’ simplification initiatives. Buyers welcome this assistance: More than half of buyers not currently receiving help from travel providers say they want it. Internally and externally, the data suggests that the travel buyers who say simplification is a top strategic priority are better at collaborating to reach their simplification goals.
“The value travel management provides to a company is increasingly measured in optimised processes and cross-department collaboration,” explained HRS CEO Tobias Ragge. “The study shows this close collaboration is vital and that leading companies build on their internal stakeholder network, but they also rely on the data, advice and support of external partners to reach their strategic goals.”
Driving Effective Simplification
Simplification is a key route for travel managers to achieve their business objectives. However, facing the hurdles of limited resources and differing levels of support from internal and external stakeholders, buyers must ramp up communication with suppliers, other departments within the organization and with the travellers themselves.
The study can be downloaded https://corporate.hrs.com/int/simplify.
Swiss-Belsuites Pounamu Queenstown
Sheraton Petaling Jaya
Fairfield by Marriott, Coimbatore
While Malaysia’s new tourism tax may be the answer to the tourism ministry’s reduced
promotional budget and the need for infastructural development funds, it has burdened agents with teething costs and compromised the competitiveness of the budget travel segment.
With 1,015 luxurious rooms and suites, and 2,700 sq. m. of flexible meeting space, JW Marriott Hotel Macau is Asia’s largest JW Marriott. The ballroom on the ground floor boasts 1,920 sq. m., which can accommodate up to 1,600 guests; while six meeting rooms provide intimate spaces for personalized meetings.
Situated within Galaxy Macau – one of the world’s most spectacular entertainment and leisure destinations – JW Marriott Hotel Macau is redefining the standard of meetings in Asia. The dazzling array of state-of-the-art meeting facilities in these hotels allow you to unleash endless possibilities at your next event, be it an imaginative team-building adventure or a stylish high-profile launch – our hotel let you dictate a bespoke experience where the only limit is your imagination.
With 1,015 luxurious rooms and suites exquisitely styled and furnished, as well as 2,700 sq. m. of flexible meeting space, JW Marriott Hotel Macau is Asia’s largest JW Marriott and the brand’s flagship property in Macau. The ballroom on the ground floor boasts 1,920 sq. m., which can accommodate up to 1,600 guests; while six meeting rooms on the 2nd floor provide intimate spaces for personalized meetings or breakout sessions.
JW Marriott Hotel Macau’s ballrooms are equipped with the latest high-tech facilities to ensure that your conference or social gathering is a success. With our audio and visual equipment, operators can coordinate a flawless event without the hassle. For example, at the JW Marriott Hotel Macau’s Grand Ballroom lighting, colors and other stage effects can be controlled effortlessly and seamlessly with just a click on an iPad.
In response to German National Tourist Board’s (GNTB) promotions in South-east Asia, agents are optimistic that Germany can become a viable off-the-beaten-track mono-destination for the region’s travellers.
However, it is held back by the lack of awareness and a more exciting image in the region, opined both agents and stakeholders in the Germany tourism industry.
A main grouse is that the country is limited by common associations such as business, Oktoberfest and beer, when other aspects of the country can be marketed.
Alan Ang, managing director of EU Holidays, said: “Singaporeans’ perception of Germany is very skewed towards Bavaria, Munich and Berlin.”
He added that not many know about Germany’s “hidden gems”, which can be better marketed and have the potential to draw in bigger crowds from South-east Asia.
Examples of this are the historic operational Roman baths of Wiesbaden and the country’s oldest beer brewery, located 35 minutes and 40 minutes respectively by train from Frankfurt Airport.
Deeming awareness of the country insufficient, tourism stakeholders have taken marketing into their own hands. Frankfurt Airport has stepped up to exhibit at roadshows to promote the city and its surrounds, said its director of international tourism markets, Stefan M Kopp, and also launched an online portal to engage with travel agents and familiarise them with the airport’s services.
However, things are starting to look up for trade players with GNTB’s latest efforts, said Hanne Lim, deputy general manager, operation centre, travel business division, Kaytrip.
The Munich-based agency, which specialises in bringing Chinese-speaking tourists into Europe, has begun developing Germany-specific tours that ply routes like Southern Germany.
Lim said that although the country has to vie with crowd favourites like Iceland and Northern Europe, Germany can woo customers who are looking for “in-depth sight-seeing”, and that more needs to be done to build awareness in Asia.
The board in late-October wrapped up a week-long South-east Asian Roadshow, which stopped in Bangkok, Kuala Lumpur, Jakarta and Singapore, and connected local agents with German tourism operators.
The board earlier identified these four markets as South-east Asian economies with the most growth potential, and will be increasing mono-destination promotions in these markets.
By 2030, GNTB hopes to grow its overnight stays in Germany by two million to 3.2 million.