Why some airlines, hotels, rail and car rental suppliers don’t understand the true value of the indirect channel.
Despite the growth in travel avoidance technology, such as video conferencing and Skype, business travel is growing. Global air travel will double to 7.2 billion passengers by 2035. In Europe alone, 580m extra journeys will be made by air.
Business travel delivers £6.5 billion to the UK treasury; a 1% rise in business travel would boost UK GDP by £390m. In a post-Brexit world, the export drive to non-EU countries will drive business travel demand up, forcing corporates to find the most cost-effective means of buying travel products and enhancing the value of the Travel Management Company.
Technology has driven the disintermediation of travel but at the expense of employee productivity and expertise. Business travellers are used to making their own buying decisions and have the tools to do so, bringing them into potential conflict with company travel policy. Enabled by technology, travel providers are actively and consciously targeting the business traveller.