The Future of Business Travel - In 2021 and beyond - The BTA
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The Future of Business Travel In 2021 and beyond
Contents
01
Introduction from BTA CEO,
02
Trends to unpick
Clive Wratten Page 2
Page 1
03
The views of the industry
04
The shape of the industry
Page 4-7 Page 8
05
Who will travel and when?
06
Building confidence
Page 9-18 Page 19
07
Conclusion from Amadeus
Page 20-2101
Dear Members and Partners,
As we continue to fight the As an industry, we have worked together
and supported each other through the
Covid-19 pandemic, despite
crisis. Our shared community will be
numerous setbacks, I believe invaluable as we navigate unforeseen
there are reasons to hope for challenges as this year progresses.
our industry and business
travel’s recovery. The BTA continue to collaborate with all our
members and partners to bring our sector
The UK’s vaccine rollout has now reached to Government attention and to ensure our
over 20 million people, the crucial first industry is leading the contribution to UK plc
step in recovering confidence. as we recover and to help us keep future fit.
We can look beyond our borders to the East I offer many thanks to our partners at
and see domestic travel rapidly reaching Amadeus for their support and generosity
pre-pandemic levels in countries such as in bringing this paper to life.
China.
With best wishes,
In this paper, we have used global data
from Amadeus coupled with interviews with
eight of our Board members to look at how
travel can recover in 2021. Clive Wratten
CEO, The BTA
From the shape of the industry to the shape clivew@thebta.org.uk
of recovery, I hope that you will join me in
feeling cautiously optimistic and return to
this paper in moments of doubt.
102
Trends to Unpick
Throughout our conversations,
and backed-up by Amadeus
data, there have been key trends
that will drive business travel
and the concerns of the TMC
community into 2022.
Throughout this paper, we have unpicked
them to look at opportunities and threats to
our sector:
International
Standards
Duty of Care
Technology
Talent Gap
Mindful Travel
203
The Views of the Industry
- The Good News
Showing our Value The increased value recognition and ability
to meet these newest demands has led to
The good news for TMCs emerging from the cross-industry discussion around pricing
latest peak of the pandemic is that, according models enabling us to futureproof our
to all our interviewees, Covid-19 has led to sector against further disruption.
greater recognition amongst corporate
customers of the value of their TMC. To date, most TMCs have operated on a
transaction fee model. During Covid-19
Throughout 2021, duty of care is expected to revenues have been at 10% or less of
be on all corporates’ minds, therefore making pre-pandemic levels, but refunds have
the TMC invaluable to any business travel been processed and complex negotiations
plans. Amadeus research shows that 74% of managed without fee and with staff levels
corporate respondents will now demand stripped back to the bare minimum.
a duty of care and risk management
procedure before making a booking. Today, we look towards a
“new normal” with three
This is good news for TMCs who are pricing models recommended
uniquely placed to offer those travelling and industry cohesion around
for work, and their employers, peace of customer negotiations.
mind as well as working with established
Government programmes such as Track
and Trace to prioritise public health.
TAXI
303
Accelerating Change Our interviewees described this as having
travel managers who could deliver
TMCs have been undergoing a programme that involved minimal
interaction with others from door to door.
a technological revolution for
From paperless travel to airports, to the
at least the last three years, demand for technology driven check-in.
but Covid-19 has thrust these
changes to the forefront. It’s clear that the business
Our interviewees suggested that 2-3 years of
traveller is looking for new
technological transformation took place in
levels of sophistication but the
the first six months of the pandemic. security of a manager on the
end of the phone to navigate
This transformation will meet the returning last minute changes or
travellers’ demands for contactless and disruptions remains a priority.
risk managed travel. However, it does not
mean that the human element of managed For TMCs, there is further new opportunity in
business travel is extinct. meeting an increased demand for beyond-
air packages. Amadeus data suggests that
51% of business travel specialists see in EMEA there is expected to be an 89%
human interaction as the number one growth in need for cars and trains which
success factor in both winning new clients is considerably more than the global
and delivering effective travel programmes. average of 66%.
In the new normal, the blending of human
and technological touches will be crucial As business travel returns, it will be with
to bringing back business travellers and higher value itineraries that require careful
rebuilding confidence. management and flexibility to respond to
the latest Covid-19 updates.
403
Minding the Environment The UK Government has made a clear net
zero carbon commitment by 2050, and is
Prior to the pandemic, caring hosting the G7 in Cornwall later in 2021 to
discuss how to reach these targets and tackle
for the environment was rising
climate change on an international level.
up the priority list for business
travellers. Alongside health security and
This has been rapidly accelerated by
technology, the information
Covid-19. From cleaner air statistics due to a TMC can provide their
lower emission levels to a growing awareness corporate clients on the
of the ability to conduct business remotely, a impact of their travel will be a
more mindful return to travel is inevitable. key differentiator in late 2021
and beyond.
There is consensus from our interviewees
that many younger employees will be
quicker to return to travel. However, they are
also the most environmentally conscious.
This will inevitably result in fewer business
trips, but those that are undertaken will
want a clear commitment to greener travel.
Corporates identified wanting the ability to
track their carbon, partnership with carbon
offsetting schemes and information on the
cleanest ways to travel for different itineraries.
504 Tech
The Shape of the Industry
Collapse, Consolidation The Talent Gap
and Investment
Having identified the clear Talen
trends that will drive the return
to business travel, we examined
data and interviewed our Board
to look at the predicted shape of The most pressing concern for all our
the TMC community in late 2021. interviewees is the talent gap that will
be exposed as travel returns. Furlough
The unanimous view is that the industry confusion, the collapse of business travel Mindfu
has gone through a seismic change. demand and the need to accelerate
The companies that have navigated the technological change has led to a mass
pressures of Covid-19 will emerge leaner exodus of employees from the sector.
but with a deeper understanding of their
corporate customer base. These are not entry level jobs, but skilled
workers who have been snapped up by
In reality, many small companies have either the professional and financial services
sadly been unable to continue trading or industries amongst others. Business owners
have merged with former rivals. This theme now worry about how to compete for the
of consolidation and collapse is expected to best talent with other sectors, with the
continue into 2022 as Covid-19 continues perilous nature of travel exposed.
to evolve and the timing of the effect of the
vaccine rollout can be better determined. Throughout the pandemic,
the BTA has run BTACares
Foreign interest and investment in the UK events to keep talent engaged
TMC community can also be anticipated with the industry. As a sector,
as big names from the US and Middle East we will need to come together
look to expand their presence in post-Brexit
Britain. They will be looking for advanced
to show-off the benefits and
businesses with a strong corporate
security given the high level of
customer base that can be rapidly scaled- job losses during Covid.
up and give good penetration into the UK
business travel market.
605
Who Will Travel and When?
The key question for our As confidence in domestic travel resumes,
national business travel will pick-up and
industry is when will business
people will start to want to conduct
travel begin to show signs of business face-to-face.
recovery?
This will be closely followed by a limited
The Amadeus data from Senior Executives summer season in which staycations and
in the global business travel industry shows some European holidays are expected.
37% looking to a 2022 growth start with 46% Greece has already confirmed it will be
looking to 2023. This is backed by IATA who open to vaccinated tourists and other
have suggested that we won’t reach countries can be expected to follow suit.
pre-pandemic travel levels until at least 2024.
The TMC community should welcome the
However, throughout the pandemic there tentative return of leisure travel as its peak
have been people who have had to travel occurs before the normal peak in business
for work and our interviewees see this travel. Whilst Q3 and Q4 of 2021 can be
number beginning to increase in Q3 2021. expected to be a fraction of normal levels of
This was driven by: activity, there will be business travel demand.
Increased domestic travel as When asked who would travel first, our
lockdown eases interviewees spoke of ambitious younger
employees and sectors that have not ceased
Early vaccine confidence in some travelling ramping up activity. Amadeus
key markets e.g. Asia research backs this up, predicting marine
and energy firms to lead the process with
A leisure boost after a short summer large corporations quickly following:
season
Marine 51%
The vital part of recovery is travel confidence. Large corporations/
multinationals 37%
This will start with domestic trips to
Energy 36%
visit friends and family after our cycle of Small/medium
enterprises 36%
lockdowns. This is borne out by China which Others 30%
has seen a domestic travel boom as they Medium
corporations 12%
emerge from the grip of Covid-19. Humanitarian 7%
706
Building Confidence
The speed of the return to
business travel ultimately rests Evolution of business traveller be-
in travellers’ confidence. 80% haviour and sentiments
of business travel executives 1 Trust and safety 64%
indicate that health and safety 2 Last minute change 39%
or cancellation/flexibility
will drive their return, with
most willing to pay more for 3 Last minute booking 29%
the highest quality regimes.
To make this a reality, the BTA has The TMC community can aid this
been and continues to campaignin for campaign by highlighting the measures
international standards to be introduced. taken by the operators they work with,
These could include: increasing the conversation around Covid-
secure itineraries and displaying their
Vaccine certificates expertise in working flexibly with the very
e.g. through an app latest information.
A unified approach to The UK needs to take its place on
pre-departure testing the international trade stage and this
will ultimately lead to scrutiny and
Covid-19 hygiene standards implementation of legislation that allows
for all operators companies to resume business travel.
With the evolution of business traveller
demands increasing such huge demand on
safety, the TMC community has reasons to be
optimistic as we go into the second half of 2021.
807
Conclusion from Amadeus
By Liz Emmott
As the first wave of COVID-19 More than ever, duty of care and risk
management will take centre stage in every
hit in early 2020, its impact on
corporate travel program so that travellers
business demand was more can make informed decisions.
severe and prolonged than
anyone could have imagined. This is where the expertise of TMCs’ travel
consultants will prove invaluable. But first, all
Many businesses faced cash flow concerns stakeholders need to work unitedly to restore
and an urgent need to rein in costs, while traveller confidence. This is one of the keys to
health, safety, and traveller well-being unlocking the industry’s recovery.
remained paramount. The road to
economic recovery is challenging, but with Technology and innovation will undoubtedly
challenges come opportunities. be an important component and enabler of
change. Here we can expect to see quantum
As we engaged in conversations with our leaps sooner than you may think – with early
Business travel customers around the globe, adopters already trialling contactless and
they shared valuable insights on their touchless solutions, biometrics and digital
current situation and plans moving forward: traveller IDs. Our traveller research highlights
some are expanding into new verticals, that collecting all the necessary information
others are reshaping their operations to tap at the point of search, booking and just
new sources of revenue. prior to departure, is one of the biggest pain
points and a deterrent to travelling.
The new world of business travel
will see increased demands for Imagine if we could eliminate friction in the
a broader range of content, journey and rebuild travel to deliver a fully
greater personalisation and end- harmonised cross-border digitalised flow?
to-end trip servicing. This stresses the need to think of travel as
an ecosystem.
907
Conclusion from Amadeus
As the industry contemplates No one is saying that 2021 will be plain
sailing, but for travel to restart, it will require
and explores new ways to
the biggest collaboration exercise ever. At
recover, we believe it will take a Amadeus, we’re already engaging with
community response to get the industry stakeholders on various initiatives.
world travelling again.
Our partnership with The BTA
Collaboration will help us understand and
shape the future of business travel – which
is one important example of
is essential for accelerating recovery and
that. It allows us to engage with
building a more resilient and sustainable BTA’s community of business
industry. It is perhaps, one of the more positive travel professionals, which is
legacies to come out of this pandemic. a collaboration that will help
shape the future of business
However, travellers are likely to become travel in 2021 and beyond.
more demanding than ever. To meet these
expectations, it will be important to focus on Best wishes,
our core strengths and partner with others
to complement any areas that are beyond
our specialism. By working together, we can
help solve and standardise the key issues Liz Elmott
across borders (i.e. testing approach for General Manager UK & Commercial
travellers, touchless processes across the Director Business Travel Accounts, UK,
travel experience and travel chain). Ireland & Italy.
10theBTA.org.uk amadeus.com
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