A new breed of business travellers are emerging, demanding more online access to travel bookings, a new study reveals.
Next gen travel managers demanding more from technology
A new breed of business travellers are emerging, demanding more online access to travel bookings, a new study reveals.
This younger generation of corporate travellers are increasingly using mobile technology to shop, look, amend and book on the move.
But the research into the European corporate travel sector by PhoCusWright for Travelport warns that austerity measures are here for the long-term.
As a result, corporations drive for higher levels of compliance, enforcing a reduction in premium class travel and utilising preferred suppliers.
The total European travel sector grew by 3.9% last year to €218 billion, up 3.9%, and is expected to rise to €230 billion in 2014. The managed European travel sector climbed to €38.9 billion in 2012, up 4.4%.
Bookings by online travel management companies are expected to increase by 16% this year and 13% in 2014
Against a backdrop of austerity, European low cost carriers are expanding their networks while some full-service carriers are contracting. Rail, with often comparatively lower cost fares, has also benefited, capturing a 50% share from air for journeys up to 3.5 hours.
The report says: “Stakeholders all along Europe’s managed travel value chain are grappling with how best to position themselves in light of persistent economic problems, rapid technological advances, changing traveller behaviour and continued fragmentation in the market- place.
“Suppliers intent on wooing and retaining loyal corporate customers are pursuing a variety of distribution channels that enable them to extend their reach and customise their offerings, all while trying to rein in their distribution costs.
“For OTAs and content aggregators, the challenge is to tap into and organise the market’s fragmented inventory in a way that is convenient and compelling for corporate travel agents.”
Travelport UK and Ireland regional director Simon Ferguson said: “These findings reinforce what we are seeing in the UK. Online booking trends are significantly evolved, as is the use of mobile to ‘consumerise’ the business traveller experience.
“Travelport Mobile Agent has achieved more downloads in the UK than any other location, and low-cost carriers such as easyJet are now regularly booked alongside traditional scheduled carriers in the GDS, through Travelport Aggregated Shopping.”
