{"id":26416,"date":"2024-01-03T07:45:07","date_gmt":"2024-01-03T07:45:07","guid":{"rendered":"https:\/\/reedmackay.com\/the-outlook-for-corporate-travel-in-2024"},"modified":"2024-05-06T22:37:40","modified_gmt":"2024-05-06T21:37:40","slug":"the-outlook-for-corporate-travel-in-2024","status":"publish","type":"post","link":"https:\/\/reedmackay.com\/au\/the-outlook-for-corporate-travel-in-2024","title":{"rendered":"What will affect corporate travel in 2024"},"content":{"rendered":"\n

An appetite for travel and the need to meet face-to-face contributed to global corporate travel enjoying a strong 2023.<\/p>\n\n\n\n

And the latest Global Business Travel Association’s (GBTA) Business Travel Outlook Poll<\/a> reflects how the sector could enjoy an ‘even stronger year’ in 2024, while most buyers expect their corporate budgets to rise next year, according to a report by Morgan Stanley<\/a>. <\/p>\n\n\n\n

Nevertheless, the sector did experience challenges and many of those are still on the horizon. GBTA\u2019s report cites that, globally, the main barriers to business travel in 2023 were keeping up with price increases, inflation and recession concerns and geopolitical events.<\/p>\n\n\n\n

As well as these key issues, what are the other drivers of change that travel managers need to be aware of to ensure their travel programs deliver maximum results for their organizations and drive business efficiency?<\/p>\n\n\n\n

Here we share the top three predictions from our Business Travel Trends: Predictions 2024 report<\/a>, made by Reed & Mackay\u2019s global leadership team on what they think will impact travel management over the next year.<\/p>\n\n\n\n

1) Artificial intelligence will increasingly enhance and streamline travel processes<\/h2>\n\n\n\n

The hype around artificial intelligence in travel in recent months has been loud. As much as there is excitement growing around its potential, concerns \u2013 and some apathy \u2013 remain, particularly from travel buyers, as the GBTA\u2019s Business Travel Outlook poll<\/a> revealed. Around a third (32%) of respondents are excited about AI, while another third (33%) feel it\u2019s too early to predict its full impact. And some travel buyers, in the year ahead, view implementing AI applications\/tools in their corporate travel program as important in 2024 (34%), but others say it is a low or a non-priority (37%).<\/p>\n\n\n\n

While ensuring the right guard rails are in place around AI-powered technology, it is an innovation that can potentially bring some positive benefits to corporate travel buyers, Reed & Mackay Group CEO Fred Stratford believes.<\/p>\n\n\n\n

\u201cAI will speed up some of the processes we currently have in place, get us to the answers more quickly and provide opportunities that are faster paced. From our industry point of view, we should embrace it,\u201d Stratford says.<\/p>\n\n\n\n

Reed & Mackay CEO US John Keichline agrees, predicting the use of AI will create more efficiency for the traveller, booker and consultant, leading to more time to focus on dedicated service.<\/p>\n\n\n\n

\u201cAI can take on the day-to-day elements of booking travel. And it can help categorize those clients who use it, identifying \u2013 to TMCs \u2013 which clients require more dedicated service for complex trips,\u201d Keichline says.<\/p>\n\n\n\n

\u201cThe key word that should be associated with AI and its positive impact on travel is efficiency. Business travel can be stressful so, if it can help workloads become more streamlined, that will help the travellers, the bookers and the consultants. Furthermore, that contributes to improved employee wellbeing.\u201d<\/p>\n\n\n\n

And it\u2019s chatbot technology that will enhance communication and provide timely information to travellers, reducing the burden on travel buyers and TMCs, believes Reed & Mackay CEO Asia Pacific Jane Warren. \u201cImagine having an executive assistant in every traveller\u2019s pocket, leveraging AI to provide a seamless travel experience from booking to reconciliation,\u201d Warren says.<\/p>\n\n\n\n

\u201cWe\u2019re exploring the benefits it could bring as a forward-thinking business,\u201d Stratford adds. \u201cOur tech team have been working on this in conjunction with our parent company Navan, who has been using AI for several years already.\u201d<\/p>\n\n\n\n

2) New Distribution Capability (NDC) will be a game changer in the travel tech space<\/h2>\n\n\n\n
\"\"<\/figure>\n\n\n\n

Almost half of travel buyer respondents of GBTA\u2019s Business Outlook poll stated new industry technologies, such as NDC, will pose the most significant technological challenges in 2024.<\/a><\/p>\n\n\n\n

When asked to rank their risk-related priorities for 2024, one in five surveyed (22%) ‘expect integrating NDC distribution channels will be most prioritised by their company’. <\/p>\n\n\n\n

Most buyers (71%) strongly feel they still need more information and education on NDC (although this is a decrease from April 2023\u2019s poll, which sat at 81%) \u2013 and half (50%) say they have not started to implement NDC. And 36% feel that third parties, such as travel management companies (TMCs), should now be ready to handle NDC bookings \u2013 up from a figure of 29% in April.<\/p>\n\n\n\n

Whatever the concerns and benefits around it, NDC will remain a game changer in the travel tech space going into 2024.<\/p>\n\n\n\n

“That’s because access to really rich content across different platforms is going to become increasingly important next year,\u201d Keichline explains. \u201cParticularly as business travellers are getting more savvy, looking up things on their own, saying \u2018I found a cheaper ticket\u2019. So being able to provide them with rich content that works best for them and their organizations will be crucial.\u201d<\/p>\n\n\n\n

Reed & Mackay COO and CEO Europe Julie Oliver points out that while NDC is, arguably, still on a journey, it\u2019s here to stay and buyers and TMCs alike need to get on board with it. \u201cHowever, as we head into 2024, it\u2019s going to make TMCs rethink how we respond to our clients\u2019 needs,\u201d she adds. \u201cWhen you get to the nuances of the fare buckets NDC produces, this is where a business travel consultant will be trained to understand and decipher what those mean for the clients \u2013 resulting in enhanced dedicated service.<\/p>\n\n\n\n

\u201cPlus, with good partner relationships with airlines, we have the opportunity to feedback to them where there are challenges. For example, business class and corporate clients aren\u2019t going for the $100 fares so they can\u2019t sit in an airline queue with a query about their ticket for three hours and neither can we as the TMC looking to serve them. This needs to be looked into.\u201d<\/p>\n\n\n\n

3) There’ll be increased calls for tracking and reporting on traveller wellbeing <\/h2>\n\n\n\n
\"\"<\/figure>\n\n\n\n

If global business travel is expected to recover to its pre-pandemic total of $1.4 trillion in 2024<\/a>, and grow to nearly $1.8 trillion by the end of 2027 (two years earlier than previously forecasted), will this signal a rise in business trips? And how will that, in turn, have an effect on traveller wellbeing?<\/p>\n\n\n\n

Oliver believes that recruiting and retaining the best people \u2013 and providing the best working environment for them \u2013 will be the number one priority for companies in 2024. Which understandably includes looking after their travellers\u2019 wellbeing, an area TMCs will increasingly be asked to monitor.<\/p>\n\n\n\n

\u201cOrganizations need look at how many nights people have been travelling, how many days they\u2019re not with their family,\u201d Oliver says. \u201cLooking after your travellers\u2019 wellbeing all points to employee productivity and better performance and, subsequently, business efficiency.\u201d<\/p>\n\n\n\n

Warren agrees, predicting that the focus of TMC programs is shifting from cost reduction and compliance to prioritizing employee wellbeing.<\/p>\n\n\n\n

\u201cBehavioural management is crucial to understanding how to retain talent and, in turn, drive the most savings for employees who travel extensively,\u201d she says. \u201cThis could come in the form of a report or a dashboard, which will help identify travellers who might be burning out, allowing change to their travel patterns accordingly.\u201d<\/p>\n\n\n\n

Read the full report here<\/a><\/p>\n\n\n\n

What do you think will affect corporate travel trends in 2024? Share your thoughts with us at hello@reedandmackay.com<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

An appetite for travel and the need to meet face-to-face contributed to global corporate travel enjoying a strong 2023. And the latest Global Business Travel Association’s (GBTA) Business Travel Outlook Poll reflects how the sector could enjoy an ‘even stronger year’ in 2024, while most buyers expect their corporate budgets to rise next year, according… Read More »What will affect corporate travel in 2024<\/span><\/a><\/p>\n","protected":false},"author":19,"featured_media":19801,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"neve_meta_sidebar":"","neve_meta_container":"","neve_meta_enable_content_width":"","neve_meta_content_width":0,"neve_meta_title_alignment":"","neve_meta_author_avatar":"","neve_post_elements_order":"","neve_meta_disable_header":"","neve_meta_disable_footer":"","neve_meta_disable_title":"","footnotes":""},"categories":[168],"tags":[923,743,924],"class_list":["post-26416","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-articles-au","tag-ai-au","tag-corporate-travel-au","tag-ndc-2-au"],"yoast_head":"\nCorporate travel trends 2024<\/title>\n<meta name=\"description\" content=\"Read our latest blog as Reed and Mackay Corporate travel experts reflect on how the sector could enjoy an \u2018even stronger year\u2019 in 2024\" \/>\n<meta name=\"robots\" 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