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CWT launches 2013 Travel Management Priorities report

Key Findings:

News Release

CWT Travel Manager Survey Shows Cost Control Continues to Drive Buyer Behaviour

CWT report highlights travel buyers’ priorities are identical regardless of company size, industry type, travel spend or program scope


SYDNEY January 25 – CWT today published its CWT Travel Management Priorities report based on an international survey of nearly 800 travel managers. The scope of the survey includes companies with mid-sized national programs and an annual travel spend in the range of US$2 million as well as companies with large, international travel programs with an annual travel spend of more than US$100 million.

Travel managers concentrate efforts on further savings


The report shows that the overall ranking of priorities for 2013 remains very similar to the order of priorities for 2012. Travel buyers intend to focus on areas representing the greatest savings opportunities rather than those associated with the traveller experience. This is true regardless of the size of the company, the industry type, the budget spent on travel or the scope of the travel program.

“The challenging economic climate means that there is continued pressure on buyers to both reduce costs and manage travel in a more cost-effective way,” commented Christophe Renard, CWT vice president marketing, communications and business intelligence. “As air and ground travel represents the majority of spend within a travel program, it is not surprising that it is the number one priority for most travel buyers, even though it is an area that is already well advanced in terms of optimisation.”

The measures that travel managers plan to take to achieve these objectives vary according to region. While North American travel buyers are aiming to further consolidate their programs and standardise processes, their counterparts in Asia-Pacific are intending to focus more on improving travel compliance and mandating preferred booking channels; Latin American travel buyers are concentrating on implementing advanced booking rules and strengthening car rental policies, whereas travel buyers from Europe, the Middle East and Africa are tightening air and rail policies to drive down air and ground costs.

Travel buyers with global responsibility are the only category of buyers to tackle traveller compliance with technology 2.0. Their top three actions to achieve this target include offering mobile services to travellers, implementing a social media tool or apps and providing their travellers with a web-based traveller portal. To achieve the same objective, regional travel buyers are looking at more traditional actions such as communication and training on policy.

“Travel managers with a global scope are more likely to test new procedures and techniques. They tend to be very advanced in optimising their travel programs and as a result, they are often looking to address new challenges with innovative methods,” continued Renard.

Business travel trends indicate the challenges for 2013


The second part of the report covers the Business Travel Trends for 2013 and digs into the changes that travel buyers are likely to see over the year and the challenges they will be faced with in the current economic climate and evolving business travel landscape.

From a pricing perspective it is likely that global inflation will hit travel prices modestly overall, with increases of under 5 percent; in addition, travel managers will need to monitor programs and suppliers closely, paying particular attention to areas such as rising ancillary fees and fuel surcharges.


Changes in technology will affect the travel process with consumer-influenced technology increasingly finding its way into corporate travel through services such as travel review sites and mobile apps specifically designed for business travellers.

Travel management 2.0 will also be a major theme in 2013 as companies seek to find the right balance between exercising the right level of control over traveller booking behaviours while ensuring that travel is still “managed” for budgetary, and safety and security reasons.

Finally, risk management will also play a key role as companies send travellers to increasingly high risk areas and duty of care during business travel becomes an integral part of a company’s legal responsibility to its employees.

Read the full report here.

Associated resources
CWT Travel Management Institute Mastering the Maze: A Practical Guide to Air and Ground Savings

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About Carlson Wagonlit Travel
CWT is a global leader specialised in managing business travel and meetings and events. CWT serves companies, government institutions and non-governmental organisations of all sizes in more than 150 countries and territories. By leveraging both the expertise of its people and leading-edge technology, CWT helps clients derive the greatest value from their travel program in terms of savings, service, security and sustainability. The company is also committed to providing best-in-class service and assistance to travellers. CWT services and solutions comprise Traveller & Transaction Services, Program Optimisation, Safety & Security, Meetings & Events and Energy Services. In 2011, sales volume for wholly owned operations and joint ventures totalled US$28.0 billion. As part of its commitment to responsible business, CWT is a signatory of the United Nations Global Compact Ten Principles. For more information about CWT, please visit our global website at www.carlsonwagonlit.com. Follow us on Twitter @CarlsonWagonlit.


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Business Travel Trends A-Z 2013



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Traveller Scorecard 2013


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2013 KEY PRIORITIES
1. The #1 priority for travel managers in the APAC region is improving traveller compliance, pushing air and ground savings to 2nd place (Pg. 10-11)
2. Air and ground savings
3. Hotel savings
KEY BUSINESS TRAVEL TRENDS
• Australian business travel spend is expected to grow by 4.6% in 2013 (Pg. 36)
• Air ticket prices should increase by approx. 2.5% in APAC (Pg. 41)
• Average daily hotel rates will likely increase by approx. 3.5% in APAC (Pg. 41)
• Meetings and events spending is likely to increase by 6% in APAC (Pg. 41)
• Low cost carriers (LCCs) will be used increasingly by business travellers in 2013. In 2012, the APAC region had a 24.1% share of capacity, up 5 percentage points from 2011 (Pg. 49)
• Car rental rates in APAC will likely experience the world’s highest inflation, with a 5.9% increase in 2013. Rates in Australia and NZ will rise sharply due to increased demand and more tightly managed fleets (Pg. 41)
SOCIAL MEDIA & GEN Y
• Travel managers in APAC are adopting social media at a quicker pace compared to other regions (32% compared to 28% in North America, 32% in Europe, Middle East and Africa, and 14 % in Latin America).
- Qantas has adapted to this trend, using Facebook and Twitter to communicate with passengers during crises (Pg. 61)
• Gen Y is emerging as the new breed of travellers who are social by nature, mobile and keen to manage their travel expenses on the go. This has implications on travel management programs that increasingly need to reflect customisation and the introduction of new apps and services (Pg. 70)

ENDS

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