The basic demands of corporate travel have changed very little in over a decade, as businesses and their travelers continue to look for ways to reduce the cost of travel, improve efficiencies and productivity, and maximize traveler safety. Our global outlook highlights some of the key developments in corporate travel for 2017 and how they may impact your travel program.
Looking to the year ahead, the aviation industry expects to see fairly stable airfares in most global regions, however business travelers may see a small increase in their travel spend as airlines continue to:
- limit capacity growth in some regions (specifically North America)
- shift to dynamic pricing, with more sophisticated inventory management systems capable of charging more for travel at periods of peak demand
- drive additional revenue through ancillary services
- expand their premium cabin options with new premium and business class options across a range of airlines
Big Movers in 2017
The big mover in aviation this year is China. Its three national airlines (Air China, China Southern and China Eastern) continue to move aggressively into the international short and long haul markets, delivering new services into every global region in the year ahead. They have big plans, including the development of a large number of new Chinese airports over the coming five years. Much like the progress of the Middle Eastern airlines throughout the last decade, China’s emergence as a major competitor in long haul services and its growing maturity in business travel offerings looks set to keep this market competitive.
China continues to move aggressively into the international short and long haul markets, delivering new services into every global region.
Key Regional Highlights
- Australasia is looking forward to new connections with China and the Middle East, opening up new onward connection opportunities and seat availability
- The US can expect low capacity growth as airlines focus on improved revenue growth
- Europe shows signs of low traffic growth in Western Europe and oversupply meaning airfares should remain competitive; Eastern Europe and Middle East showing larger traffic growth
- Asia will wait to see the impact of emerging long haul services out of China, likely to keep the traditional operators competitive; Low Cost Carriers continue to build market share and accessibility.
To view our global supplier insights, click below:
Additionally, 2016 saw several airlines and hotel chains introduce changes to their loyalty programs, many moving towards greater incentives for high-paying travelers over high-frequency travelers. This will be an area to watch in 2017.
Value Beyond the Supplier
In a highly competitive supplier marketplace, the opportunities to reduce travel costs through supplier discounting certainly exist, but are ultimately finite. And while a proactive and high-value TMC should consistently work with your business to drive supplier negotiations, we believe the TMC value proposition only begins here. Today’s strategic and astute travel buyers and TMCs must look beyond supplier discounting for new and innovative ways to deliver savings.
Today’s strategic and astute travel buyers and TMCs must look beyond supplier discounting for new and innovative ways to deliver savings.
In a recent CTM study conducted in Australia, our Business Analysis & Solutions team identified additional potential savings of up to AU$42k per year for companies with an annual travel spend of AU$500k- $1m, and up to AU$17k per year for companies with an annual travel spend of AU$100k-$500k, simply through the adoption of technology solutions which boost productivity by up to 80%.
To find out how CTM could drive further savings to your corporate travel program in 2017, contact one of our friendly team today on 1800 875 7655 or complete the inquiry form, right.
Travel Resolutions 2017
At CTM, our ongoing resolution to clients in 2017 remains identifying and delivering new strategies and systems which reduce the cost and complexity of business travel. We will continue this through the provision of seamless, intuitive and user-friendly corporate travel solutions which empower people to work and travel smarter.
To identify and deliver new strategies and systems which reduce the cost and complexity of business travel.
Such solutions include:
- high speed, low click travel booking tools which maximize content availability and accessibility, driving better buying decisions and policy compliance, and increasing productivity by up to 80%
- award-winning, localized customer support and dedicated account management experts
- pro-active spend analysis and benchmarking reports to enable tailored, tactical travel policy developments which continually drive savings – not a one size fits all approach
- leveraging CTM’s global buying power to drive supplier negotiations which reduce the cost of travel services
- industry-leading traveler tracking and communications software to maximize traveler safety pre and in-trip.
CTM is committed to delivering travel solutions which deliver a return on investment for every business, no matter how large or small. Find out how today.