European Corporate Travel Priorities Create Opportunities for Industry Partners

Thanks largely to European companies’ international development plans, their travel budgets are also expanding. Research from American Express Global Business Travel (GBT) shows that business travel spending in Europe increased 1.42% in 2015, more than twice the anticipated rates. But what’s impacting the spending decisions of businesses, and where are the opportunities for the suppliers, technology and service providers who support them?

Let’s take a look at what’s most important to corporate travel managers as they set and spend their budgets—and plan for next year’s—so travel partners can best meet their needs.

Safety & Security

The results of American Express GBT’s 2015 “EVP Barometer” reveal a shift in priorities. Safety and security has risen about cost control as executives’ top concern when considering business travel. This is likely a result of ongoing uncertainty in today’s global geopolitical environment, including crises like migration and terrorism. It explains why 96% of companies surveyed have implemented safety procedures and 24% provide training to travelers.

Opportunity for Travel Industry Partners: Companies serving corporate travel programs need to address safety and security in their marketing and even customer service efforts so that customers can get the peace of mind they need to invest in their solutions.

Cost Control

As budgets are always a primary concern, cost control remains an important goal for European corporate travel managers. Over half (52%) of survey respondents believe that they can still optimize management costs, even though 50% of them have taken action to improve their processes. These efforts include making a more thorough evaluation of trips’ purpose and related costs before booking, and taking advantage of online and payment and expense management tools.

Opportunity for Travel Industry Partners: Suppliers and technology vendors need to work closely with corporate travel managers to ensure they’re maximizing their spend on their solution(s) and using the tools at their disposal to make the most of them.

Traveler Satisfaction

The business traveler’s “experience” with their trips and travel brands is getting its due time in the sun. The focus on traveler satisfaction, therefore, is getting more attention at a strategic level. Half (50%) of the survey respondents currently measure the satisfaction of their business travelers, compared to 45% in 2014; and 22% use this feedback to improve their travel policies.

For more insights, see Service Reigns For Tomorrow’s Corporate Travel Managers.

Opportunity for Travel Industry Partners: Travel partners can help corporate travel managers (and their business travelers) adopt their solutions’ tools and processes that can positively impact travelers’ experiences. Today, that might include mobile apps, web-based/SaaS productivity and collaboration tools, and digital payment and expense options.

Measuring ROI

The survey also revealed insights pertaining to the all-important factor of ROI: over three-quarters (76%) of survey respondents say they perceive business travel as a cost, not an investment (24%). Business travel spending may indeed be on the rise, but its real value has yet to reach its potential. That’s because business leaders are not necessarily making the connection between what they spend on their travel programs and the revenue it generates.

Opportunity for Travel Industry Partners: One-fifth (21%) of respondents say they would be interested in being more informed on how they can measure the return-on-investment of their business travel. It’s in this area that industry partners can help corporate travel managers—get down to the bottom-line and demonstrate the value (actual or potential) of their solutions.