Highlights from GBTA Research
Ricardo Crespo
GBTA Advisory Board Member - EMEA
GBTA
© 2019 GBTA. All rights reserved.
Five Business Travel Trends
5 Business Travel Trends
© 2019 GBTA. All rights reserved.
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1) Business Travel Falls Back to Earth
2) One World, Different Policies?
3) The Evolving Travel Programme
4) Will the Happy Traveller Take Flight?
5) New Tech, New Horizons
Trend #1: Business Travel Falls Back to Earth
© 2019 GBTA. All rights reserved.
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4,6%
-7,5%
8,0%
9,3%
3,2%
4,4%
6,1%
3,8% 3,5%
5,8% 5,7%
3,1%4,1%
4,8%
6,0% 5,9%
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Annual Growth in Business Travel Spending: 2008 - 2023
2019 is projected to be weakest year for global business travel
since the Great Recession
Forecast
Source: GBTA, GBTA BTI™ Outlook Annual Report and Global Forecast, 2019
5.7%
5.8%
Trend #1: Business Travel Falls Back to Earth
1) Slow economic growth and low inflation worldwide
2) Trade uncertainty – US and China
3) Emerging markets continue to struggle
4) Mature markets have stalled
© 2019 GBTA. All rights reserved.
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Trend #1: Business Travel Falls Back to Earth
© 2019 GBTA. All rights reserved.
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For Spain:
• Moderate growth of 3.8% projected over next 5 years
• BTS to reach $28.7bn by 2023
8
RankU.S. 2
3Germany
Japan 4
U.K. 5
France 6
India 7
2018
Rank $bilCountry
China 1
South Korea 8
$304
$77
$65
$52
$43
$39
$378
$38
2 $366
3 $94
4 $73
5 $69
7 $52
6 $64
$bil
2023 (f)
Rank
1 $510
8 $43
--
--
--
--
-1
+1
Rank Change
--
--
Brazil 10
11Canada
Spain 12
Australia 13
Netherlands 14
Russia 15
2018
Rank $bilCountry
Italy 9
Indonesia 16
$29
$26
$24
$24
$21
$20
$36
$18
10 $34
11 $31
13 $29
12 $29
15 $26
16 $24
$bil
2023 (f)
Rank
9 $40
14 $29
--
--
-1
+1
-1
-1
Rank Change
--
+2
Trend #1: Business Travel Falls Back to Earth
Source: GBTA, GBTA BTI™ Outlook Annual Report and Global Forecast, 2019
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Trend #1: Business Travel Falls Back to Earth
2,3% 2,4%
1,5%
2,2%
3,2% 3,2%
2,2%
-3,0%
-2,0%
-1,0%
0,0%
1,0%
2,0%
3,0%
Global North America Western Europe Asia Pacific Latin America Eastern Europe Middle East &Africa
2020 Air Price Forecastsin local currencies
Modest
air price
growth
expected
in 2020
Source: GBTA, 2020 Global Travel Forecast, 2019
10
Trend #1: Business Travel Falls Back to Earth
2,3% 2,4%
1,7%2,2%
4,5%4,1%
2,5%
-2,0%
-1,0%
0,0%
1,0%
2,0%
3,0%
4,0%
5,0%
Global North America Western Europe Asia Pacific Latin America Eastern Europe Middle East &Africa
2020 Hotel Price Forecastsin local currencies
Modest
hotel price
growth
expected
in 2020
Source: GBTA, 2020 Global Travel Forecast, 2019
11
Trend #1: Business Travel Falls Back to Earth
What’s the Best Way to Cut Costs But Maintain Productivity?
57%reduce the number of
business trips, but
spend the same
amount per trip
43%reduce the quality of
travel, but travel at
the same frequency
Source: GBTA, GBTA Business Traveler Sentiment Index™, 2019
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Trend #2: One World, Different Policies?
44%
36%
19%
2%
Travel Policy Type-global travel managers Mandated with consequences: Travelers must follow
rules to be reimbursed; consequences for non-
compliance detailed
Mandated without consequences: Stated policy,
but no generally no consequences for non-compliance
Guidelines: Set of rules and guidelines that allows
for exceptions and flexibility
No written policy
More strict
More flexibleSource: GBTA, Fixing the Leak: How Traveler Experience Impacts Hotel Adoption, 2019
14
Trend #2: One World, Different Policies?
% mandated with consequencesby region
% mandated without consequencesby region
38%32%
66%
49%
NorthAmerica
Europe Asia Pacific LatinAmerica
47% 48%
14%
21%
NorthAmerica
Europe Asia Pacific LatinAmerica
Source: GBTA, Fixing the Leak: How Traveler Experience Impacts Hotel Adoption, 2019
More
strict Less
strict
15
Trend #2: One World, Different Policies?
Do U.S. and Canada Travel Programs Have Special Policies in Place for…?% yes
75%
C-suite
41%Senior management
14%Frequent travelers
Source: GBTA, Leveraging Data to Improve Traveler Experience, 2019
71%
73%
78%
78%
78%
75%
62%
57%
64%
72%
71%
75%
Involvement with Risk Management% “moderately” or “very” involved by region
North America Europe Asia Pacific Latin America
Trend #3: The Evolving Travel Programme
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Selecting TRM
providers for travel
Communicating with
travelers in an
emergency
Developing
TRM policyEurope Travel
Managers
slightly less
involved with
risk
management
Source: GBTA, Understanding Stakeholder Engagement with the Travel Program, 2019 (forthcoming)
Trend #3: The Evolving Travel Programme
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43%
48%
58%
56%
41%
40%
11%
Developing travel risk management(TRM) policy
Communicating with travelers in anemergency
Selecting TRM providers
Who Is the Primary Owner of…?-global travel managers
Travel department Other department(s) or team(s) A third party
Source: GBTA, Understanding Stakeholder Engagement with the Travel Program, 2019 (forthcoming)
Travel
programmes
not only
involved with
risk
management.
About half
“own” it
77%
84%
86%
83%
78%
85%
80%
84%
68%
81%
73%
81%
68%
87%
77%
90%
Involvement With Technology% “moderately” or “very” involved by region
North America Europe Asia Pacific Latin America
Trend #3: The Evolving Travel Programme
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Regardless of
region, technology
is a major part of
the Travel
Manager’s role.
Source: GBTA, Understanding Stakeholder Engagement with the Travel Program, 2019 (forthcoming)
Selecting our online
booking tool
Selecting business
intelligence/reporting
Implementing travel
tech
Travel data
privacy/security
Trend #3: The Evolving Travel Programme
20
69%
69%
73%
80%
60%
67%
78%
73%
41%
44%
66%
58%
46%
49%
63%
68%
Involvement With Payment and Expense Management% “moderately” or “very” involved by region
North America Europe Asia Pacific Latin America
Deciding expense
policies for travel
Selecting payment
providers for travel
Selecting expense
management tool
Configuring
expense
management tool
APAC and
LATAM Travel
Managers more
involved with
payment and
expense
Source: GBTA, Understanding Stakeholder Engagement with the Travel Program, 2019 (forthcoming)
Trend #3: The Evolving Travel Programme
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Source: GBTA, Understanding Stakeholder Engagement with the Travel Program, 2019 (forthcoming)
33%
38%
43%
55%
68%
65%
62%
57%
44%
32%
Configuring our expense management tool
Selecting expense management tool
Deciding expense policies for travel
Selecting payment providers for travel
Deciding travel policies
Who Is the Primary Owner of....?
Travel department Other department/team A third party
Trend #4: Will the Happy Traveller Take Flight?
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64%
49%
22%
No
8%
11%
32%
43%
67%
Yes - for some travelers Yes - for all travelers
Fare class utilisation
(e.g., % business)
Hotel quality/type
(e.g., % upscale)
Do U.S. and Canada Travel Programs Track or Report On…?
% non-stop vs.
connecting flights
Source: GBTA, Leveraging Data to Improve Traveler Experience, 2019
Most companies
track cost-
focused data.
Fewer have “trip
experience” data.
Trend #4: Will the Happy Traveller Take Flight?
© 2019 GBTA. All rights reserved.
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88%
85%
68%
No
8%
10%
11%
25%
Yes - for some travelers Yes - for all travelers
Nights individual
travelers spend away
from home
Flight times (e.g.,
% late night)
“Bleisure” (i.e., how
often travelers extend
trips for leisure)
Source: GBTA, Leveraging Data to Improve Traveler Experience, 2019
Do U.S. and Canada Travel Programs Track or Report On…?
Trend #4: Will the Happy Traveller Take Flight?
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81%of U.S. organizations with a
traveler satisfaction program in
place are measuring the
effectiveness of their program
What is the yardstick for effectiveness?
11%
24%
26%
26%
29%
53%
55%
92%
Return on investment per trip
Appeal to potential employees
Employee retention
Return on investment for company
Employee productivity
Policy compliance
Cost savings
Traveler feedback
Source: GBTA, Traveler Satisfaction Outlook: Are Companies Focused on What Matters?, 2019
Trend #5: New Tech, New Horizons?
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Artificial Intelligence (AI) and Machine Learning
• Personalised search: Presenting search results based on traveller preference or
purchase history
• Automated chat: Chatbot assists during booking process
• Audit: Automatically detecting problematic expense reports (e.g., AppZen)
Trend #5: New Tech, New Horizons?
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Buyers and travellers value personalisation when booking hotels
81% 77%76% 71%
Ability to filter results based on travellerpreference
Ability to personalise search results basedon past travel
Travelers Buyers
Source: GBTA, Fixing the Leak: How Traveler Experience Impacts Hotel Adoption, 2019
Trend #5: New Tech, New Horizons?
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New tech, new challenges?
7%
13%
22%
23%
24%
24%
37%
38%
40%
45%
49%
49%
51%
Other
Understanding stakeholder needs
Understanding traveler needs
Vendor compliance
Internal communications with company stakeholders
Providing stakeholders with the information they need
Internal communications with travelers
Availability of travel content
Booking compliance
Travel data integration
Data accuracy
Internal technology integration (such as OBT and Expense, HR data feed)
Traveler technology integration such as apps or tools
Top Challenges FacingTravel Programs – Global Travel Managers
% included in top 5 (out of 12)
Source: GBTA, Understanding Stakeholder Engagement with the Travel Program, 2019 (forthcoming)
Trend #5: New Tech, New Horizons?
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Gamification tech allows companies to reward travelers who save money – but most
U.S. programmes have not adopted
Source: GBTA, Five Business Travel Payment Trends, 2018
Trend #5: New Tech, New Horizons?
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Tech drives payment innovation
• Single-use virtual cards: Will mobile wallets drive greater adoption?
• Blockchain: “Decentralized” ledger