Business Travel, 2020 Style
It’s a sobering statistic for those resisting change to accommodate Millennial passengers, but those born between 1980 and 2000 will make up more than half of the global workforce by the beginning of the next decade—just three short years away. We’ve written about their desire for “bleisure” (a blend of business and pleasure travel), their penchant for unique travel experiences, and, of course, connectivity at every turn—making your WiFi hotpots that much more important. However, they are also looking for a killer deal as long as it fits their company policies, budget, and lifestyle. They are value hunters, not high rollers. Think: more flexibility in booking service and less penalties for changing pickup times.
In other words, it’s not business as usual and your terms are negotiable—or else. If your online reservations include speaking with a human for a quote, they may have already moved on to the next site. Millennials still place a high value on face-to-face meetings, according to the Global Business Travel Association (GBTA), so transportation companies that flex with those needs will likely be the future winners.
Surprisingly, they are also ready to reward loyalty, so now might be a great time to create or update a reward program for frequent travelers. They will appreciate building loyalty equity in your company if they see how it will benefit them. Trust us, your Gen X and Boomer travelers will appreciate it, too.
Source: CNBC, goo.gl/aUoVti
Transportation at 2010 Prices
According to the recently released 2018 Global Travel Forecast, compiled by the GBTA Foundation in partnership with Carlson Wagonlit Travel, “prices are expected to rise sharply in the coming year, reaching nearly 4 percent increases in some travel sectors. The annual forecast shows that global airfares are expected to rise 3.5 percent in 2018; hotel prices are expected to be 3.7 percent higher; and ground transportation such as taxis, trains, and buses are expected to rise only 0.6 percent—significantly less than the 3 percent inflation forecast for 2018.” What gives, chauffeured transportation industry?
According to the report, “ground transportation pricing will have the lowest increase of all the travel sectors (but up 5.5 percent by 2022). Industry experts predict record new car sales over the next five years, pushing up per-unit fleet costs, while used car pricing is expected to fall 50 percent, hurting residual value for used rental cars and making current rental car pricing unsustainable. Market-specific regulations for curbing emissions and rising oil prices have suppliers already increasing their availability of ‘green’ rental cars. Sharing economy players such as Uber and Lyft are expected to continue double-digit growth upwards of 10 percent in 2018, before settling down into single-digit growth for 2019.”
Source: GBTA 2018 Global Travel Forecast, goo.gl/9JpRpH
Duty of Care, Pssshh
A recent study by the GBTA Foundation found that three in 10 (or 29 percent of) travel managers say they do not know how long it would take to locate their affected employees in a crisis situation. Enough said. Duty of care is still critical to being a good corporate travel partner and a standout for our industry above TNCs.
Source: GBTA, goo.gl/AgMPCx
News of the U
Uber Wants a Meeting
In the thick of its “180 Days of Change” campaign to restore its once-stellar reputation with drivers, investors, and the traveling public (goo.gl/HUS6A7), the TNC is ramping up its Uber for Business platform by focusing on meetings and events. According to publication Meetings & Events, “Uber for Business is targeting meetings business though two programs: Uber Central, a dispatch tool that allows one arranger to order cars for for multiple customers or employees; and Uber Events, which gives participants the freedom to come and go on demand—and on someone else’s dime.” The TNC also has a leg up, thanks to partnering with Concur.
Source: goo.gl/tWyjUD [CD0817]