BTN's annual list of the biggest corporate travel spenders
in the U.S., isn't just a "top 100" list. It's a microcosm for
exploring trends and innovation in the managed travel industry. These companies
not only spend major dollars on travel but they also often are the companies
that signal shifts in deal-making strategies, traction with new technologies
and even current moods in travel management priorities. For example, are
companies doubling down on cost-optimization or are they focused on traveler
experience and productivity?
The companies on this list, for which BTN's David Meyer spearheaded our research, have never been "all-in"
on a particular strategy or priority. Often, trends run through industry
verticals driven by economic realities, regulatory requirements, perception
issues or competition for talent. Some are the result of new management
capabilities—i.e., new technology. Following are six of the top trends running
through BTN's 2018 Corporate Travel 100.
Virtual Travel
Alternatives: At least a dozen companies in the 2018 Corporate Travel 100
have taken a hard turn toward virtual meeting technology, videoconferencing and
desktop video-calling like Skype, often to replace internal travel. While the
tech has been available for a long time, acceptance as a travel alternative
seems to be getting traction. That said, virtual travel and screen-mediated
meetings aren't necessarily putting a major dent in overall travel spend.
Three-quarters of the companies that specifically noted their investment in
such technologies also saw their 2017 travel spend increase, at least slightly,
over 2016 levels. This suggests that virtual travel may be freeing up resources
for more client visits and business building that in the past might have busted
the budget.
Employee Experience:
Another group of companies referred specifically to their efforts around
traveler engagement, experience or personalization in 2017 and 2018. Half the
companies in that group have something in common: They are big technology names
like IBM, Dell, Microsoft and Oracle. This, informed by BTN's reporting outside
the CT 100, underscores a couple major drivers. First, the strength of the
economy and continued growth of these tech businesses. Second, the fierce
competition among these companies for talent.
Mobile Tech Strategy:
That brings us to another trend, the continued "digitalization" of
travel management processes with a mobile-first strategy. IBM is actually
building its own mobile travel platform and plans to release it as a product in
the near future. Microsoft is relying on some outside suppliers and continues
to push the industry toward a more digital future that includes deep
personalization. German automotive manufacturer Daimler has similar ambitions
but has focused more on process.
Pretrip Approval:
This is a point of difference among the CT 100 and yet also a point of common
consideration. Nearly a dozen companies cited changing their stance on pretrip
approval, signaling its critical position in controlling costs and contributing
to traveler safety and security procedures but also its drawbacks as a
bottleneck and frustration point for travelers.
Price Assurance
Technology: A relative newcomer to travel management but one that is taking
hold in the CT 100 are technologies that reshop both air and hotel bookings to
ensure companies get the best possible price on business travel. Part of their
growing usage tracks back to partnerships these technology providers have made
with travel management companies to incorporate price assurance into their own
offerings. But many of the larger companies go direct to the tech providers and
customize the "if/then" rebooking scenarios to fit their programs and
travelers' needs. The larger impact of these technologies, particularly in the
hotel space, may be the effect they have on the willingness of companies to
move toward dynamic pricing agreements.
Business Intelligence
Tools: The holiest grail for travel management programs is the
consolidation of data into that "one true source" or "total trip
cost." More companies are moving in this direction and implementing better
data tools around travel management. The power of machine learning will push
this effort forward, and some companies are taking advantage. UBS is a standout
in this regard.