Travel benchmarks point to behaviour massively driving costs in 2017

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AlanLow_2013.jpgThe domestic corporate travel market is set to undergo many subtle changes in 2017, says Alan Low of category benchmarking company Pi. With a forecast of stagnant economic growth, downgrades and political uncertainty, organisations will be looking for more savings and greater efficiency.

The interplay between travellers, travel managers and service providers, such as Travel Management Companies (TMCs) will become vital to managing traveller behaviour and travel processes.

Travel behaviour and organisational cost

How does traveller behaviour affect the organisation’s costs?

Highlights from the 2015 air travel benchmark underlined the savings opportunities (low vs high) on the busiest route (Jhb – Cpt):

Low-cost_carriers_vs_traditional_carriers.pngUse of low-cost carriers vs traditional carriers - 36% saving

 

 

Ticket price variance = 20%

Booking timelines (48 hours vs 14 days) - 19% saving

Flight_booking_timelines_(48hr_vs_14days).pngBooking timelines varied significantly between the air travel benchmark participants, with Co.P having almost half their domestic air tickets booked more than 14 days in advance:

Will travellers be able to manage their trips better in 2017? Will there be less changes to tickets?

Group B car rentals varied by 36%

Will this still be the case in 2017?

If most of your car hires are for one day, should you be using Uber, taxi or shuttle services? Does your policy allow car hire for staff going on out-of-town training courses? Do you have a travel policy for Uber yet? What are the restrictions?

Accommodation

According to the 2015 accommodation benchmark report, across commonly used hotels room prices varied between 13% - 23%.

According to the benchmark study, the demand for B&B and Lodge accommodation has increased significantly. The following questions could be relevant during 2017:

- Does your organisation have a policy of approving non-hotel establishments?
- Are travellers booking these through your TMC or reclaiming through expenses?
- What is the difference in price between hotels and B&Bs?
- Are there B&Bs who are offering special packages for regular travellers?

If you are interested in participating in Pi’s domestic travel benchmark service, or finding out how your organisation compares and where there may be savings opportunities, please contact Alan Low on 084 890 0005 and Alan.Low@p-i.net.

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