|June 08, 2010|
Egencia Releases 2010 Benchmarking Study
|Egencia unveiled its 2010 Corporate Travel Global Benchmarking Study that evaluates the current business travel landscape and corresponding supply environment for air, hotel and car inventory. Focusing on top domestic and international business destinations in North America, Europe and Asia-Pacific, Egencia analyzed industry trends, supplier research and capacity implications in Q1 2010. The study validates themes uncovered in Egencia's 2010 Forecast and Hotel Negotiability Index, including that the hotel market for corporate travel has experienced significant decreases in Q1. In addition, Egencia also surveyed more than 400 travel buyers in North America and Europe regarding travel program expectations, policies and challenges.|
"We are seeing changes in corporate travel purchasing and management behavior by customers. We're seeing a different pricing picture compared to this time last year," said Gaurav Sundaram, Country Director, Egencia India. "While corporate travel spending is certainly on the upswing, companies seek to control spend and buy smart . While their air programs are quite structured and disciplined, the greatest incremental saving opportunity for corporations is found with hotels."
According to respondents of Egencia's survey of more than 400 travel buyers in North America and Europe, 56 percent of North American buyers and 45 percent of European buyers expect their travel volumes to increase during the remainder of 2010, with 20 percent (North America) and 15 percent (Europe) planning to change their travel policies during the year. Additionally, 40 percent of North American travel buyers and 49 percent of European travel buyers said they will negotiate more this year than they did in 2009.
"Quality and frequency of reporting on travel spend & continued evaluation of supplier contracts are some of the key areas that travel managers focused on , in the current economic climate," said Gaurav. "Indian travel buyers can derive incremental efficiency's in managing corporate travel spend through implementation of technology allowing greater control &reporting systems apart from a stronger hotel program".
Travel Managers universally identified cost control/reducing spending as the greatest challenge facing travel programs. Specific rankings of travel program challenges are as follows:
- Cost control/reducing expenses (59% Europe, 49% North America)
- Traveler satisfaction (11% Europe, 23% North America)
- Traveler compliance/policy enforcement (12% Europe, 13% North America)
- Capturing a full view of travel spend (9% Europe, 7% North America)