CWT: Business travel costs to rise
Improving traveller compliance, optimising online adoption, driving air and ground transportation savings, and optimising hotel spend are travel buyers’ top priorities overall for 2011, according to an annual client survey conducted by Carlson Wagonlit Travel (CWT).
Balancing these cost-saving measures, more than 30 percent of travel buyers identified enhancing the traveller experience and/or addressing safety and security needs as additional key areas of focus this year.
The results are available in a CWT report that also highlights major developments in the business travel market and corresponding advice for travel programmes.
Travel Management Priorities 2011: Insights into the Rebound, CWT’s third annual survey gauging travel buyers’ top priorities for the year ahead, presents findings from a survey of nearly 200 managed travel professionals worldwide.
The CWT report also highlights key market developments impacting travel programmes in the coming year. Specifically, increased costs across the main areas of managed travel will present challenges for buyers, including:
− air fares are expected to moderately increase overall, as a result of higher base fares and surcharges, increased and additional ancillary fees, and new “eco-taxes†in some countries.
− hotel rates will increase overall, but the specific amount will vary considerably by region and city, as well as by category of service.
− an upswing in meetings and events (M&E) activity means suppliers are less likely to offer deep discounts to M&E organisers. To achieve savings, more companies will need to implement strategic meetings management programmes.
“The many travel disruptions caused by natural, political, and other external forces last year brought new and unprecedented meaning to the term ‘road warrior,’†said Cathy Voss, executive vice president, Global Program Solutions
CWT anticipates ongoing challenges for travel buyers as recent developments in the distribution landscape leave the future efficiency of access to airline content, and therefore the associated costs, uncertain.
When discussing deals with preferred suppliers, travel buyers are advised to look beyond price and consider aspects such as ancillary fees being charged by many airlines, hoteliers, and ground transportation providers, last-room hotel availability, and suppliers’ sustainability practices.
The full report Travel Management Priorities 2011: Insights into the Rebound is available at www.carlsonwagonlit.com.
Ian Jarrett
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