Travel program trends: Key insights from btTB Travel Conference 2023

In August, Corporate Travel Management (CTM) participated in the 23rd Annual btTB Business Travel Conference & Awards in Australia. This event provides a vital platform for in-depth discussions within the ever-evolving travel industry, covering the latest product innovations, technology, and service offerings.

With this year’s theme being “What now?” the conference delved into the future of the travel industry and its complex supply chain. CTM actively contributed to the discussions, with John Balloch, CTM’s Chief Partnership Officer Global Air & GDS, and Peter Wiseman, CTM’s General Manager Sales, joining panels to share their expertise on topics like accommodation procurement and cultivating relationships with online booking tools (OBTs).

Given these events’ valuable insights, we spoke with John Balloch to highlight the key takeaways from this year’s conference.

Demand for extended stay solutions is growing

The demand for extended stay options is growing, with businesses exploring private accommodation choices. The flexibility brought about by the rise of hybrid work arrangements has encouraged more business travellers to extend their trips, often blending business with leisure. According to Skift’s State of Travel 2023 report, 22% of surveyed Australian business travellers have extended a business trip in the past year. As travellers spend more time away from home, the need for apartment-style accommodations has surged. “Based upon our experience, we see the strongest demand for private style accommodation requested for long stays or regional areas,” John Balloch notes.

However, integrating home-style accommodation into an online booking tool isn’t always ideal. Each property is unique and often doesn’t align with customers’ travel program policies. Through leveraging strong supplier partnerships, TMCs can help travel managers attain better solutions for those needing private-style accommodations, including apartment-style residences and private residential options that meet policy requirements. John Balloch comments, “Given the intricacies of procuring private accommodation, CTM collaborates closely with specialised experts aligned with corporate policies to source suitable accommodations that meet key requirements.”

Optimising duty of care

Travel managers are focused on enhancing duty of care within their travel programs. John Balloch comments, “Duty of care has become a greater focus over the last few years with world events impacting travel plans.” According to the 2023 International SOS Risk Outlook Report, 86% of surveyed businesses anticipate budgets allocated for traveller safety will increase or remain stable. While risk assessment has long been an integral part of pre-trip approval workflows in many organisations, the pandemic underscored its necessity further. Precise data and streamlined processes empower travel managers to effectively assess and mitigate risks at every stage of their travellers’ journeys. As businesses rebuild traveller confidence, travel managers will continue to require access to risk management technology, that enables them to easily identify travel risks, monitor, and communicate with their travellers across the globe.

Reducing travel program leakage

Reducing travel policy leakage is essential for meeting duty of care obligations and lowering costs. When bookings are made via external channels, travel managers lose visibility into the trip, hindering reporting and risk management efforts. This becomes especially problematic in emergencies, as travel managers cannot effectively locate or communicate with these travellers through their online booking tool.

Additionally, such off-channel travel bookings do not qualify for the discounted supplier rates negotiated by your TMC and may incur penalties or cancellation fees if changes are required.

Results from the 2023 CTM Global Customer Survey revealed that 65% of CTM’s Australian and New Zealand clients are focused on cost reduction, and curbing travel policy leakage has an important role to play. By partnering with a TMC that offers user-friendly travel technology that simplifies the travel booking process, travel managers can negate the need for external booking channels. For example, by using CTM’s online booking tool which consolidates content from various sources, users can compare corporate negotiated deals alongside Global Distribution System (GDS) and non-GDS content, all within a single booking platform. John Balloch adds, “CTM enables a multi-content source strategy that simplifies the complexity in the background, seamlessly allowing our customers to shop for the most appropriate content”.

Effective planning and expert advice are essential

Seeking the expertise of an experienced TMC is vital for developing a travel program that achieves your business travel goals. Organisations should work closely with their TMC to source suitable accommodation strategies, ensuring cost savings and improved traveller satisfaction. This may involve rate negotiations via RFP, overseen by your TMC, or leveraging your TMC’s consortia and aggregator rates. John Balloch emphasises, “A common misconception is that you can only achieve the best rates by going to market. We work with customers to understand their key requirements and establish an agreed approach before going to market.”

In summary, the 23rd Annual btTB Business Travel Conference 2023 provided a valuable platform for industry leaders to address critical topics and challenges shaping the future of travel. For travel managers, the focus remains on extended stay options, reducing leakage, and ensuring duty of care. By engaging a TMC, businesses can navigate these challenges with expert guidance and customised solutions that enhance their travel programs.