Amadeus survey unlocks impact of ancillary services
A survey of corporate travel managers in Hong Kong and Singapore has identified cost control through improved management of travel processes and duty of care as top priorities for 2011.
The survey was carried out by Amadeus at recent breakfast seminars hosted in the two cities.
Lisa Akeroyd, regional director, corporate solutions, Amadeus, Asia Pacific said, “According to our recent Travel Gold Rush 2020 report, there has been a shift in business spending habits.
“Premium travel is declining and travel for business is occurring at a lower cost.
“In this new economic reality, many travel managers are being more prudent to maximise their travel budgets.
“Making these new policies a permanent reality will rely on improved travel policy compliance, process efficiency and transparent up-to-date reporting.â€
When asked about their main focus area for 2011, almost half of respondents surveyed (47 percent) indicated cost reduction, while more than one third (37 percent) indicated improved management of travel processes.
Just three percent of corporate travel managers surveyed indicated that reducing travel is their top priority.
Ancillary services are an emerging trend, and will have a long-term impact on corporate travel programmes. Twenty percent of respondents in Hong Kong recognise the impact, compared to at least half of the respondents in Singapore.
Amadeus said this reflects a higher level of awareness of the impact of ancillary services in Singapore, which can be attributed to the expansion of low cost carriers (LCCs) in Southeast Asia.
AirAsia and Jetstar are noticeably targeting business travellers for both short and long haul routes.
“It’s interesting to note both countries’ responses. Without a doubt, we see ancillary revenue generation spreading from LCCs to major carriers, with projections seeing it account for up to 35 percent of airline revenues in the future.
“To support corporate travel managers in preparing for this change, we are integrating ancillary services into our solutions,†Akeroyd said.
Ian Jarrett
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