Survey: PE, downgrades and LCCs to fore in biz travel cost cutting

Survey: PE, downgrades and LCCs to fore in biz travel cost cutting

Sixty five percent of respondents in a Sabre Corporate Travel Survey say that premium economy continues to gain ground in the region.
One travel manager in three has recorded an increase of close to 5% in premium economy bookings over the last year. As travel-related expenses become a central consideration for companies, the survey also reveals that downgrades, shifting reservations from business to economy class, account for close

to 40% of their bookings. Almost one in four have identified a significant increase in their LCC share of volume.
Sabre has revealed insights from more than 70 corporate travel management companies (TMCs) from across Asia Pacific, revealing the latest trends in terms of regional bookings.
The survey discloses that more companies are expecting their corporate travel managers to contribute to their success, asking them to look for door to door travel booking solutions, demanding expense integration and expecting them to identify cost saving opportunities.
The survey also shows that robust travel policies and better visibility of the total cost of trips are likely to become much more important in the next two years.
‘Travel policy compliance remains an important cause for concern, with 76% of respondents indicating their travellers are using online consumer sites offering lower fares and rates to shop for their travel.’
The survey shows that 32% of respondents think solutions that enable mobile booking capacities will become mainstream over the next two years but only 10% believe that virtual payment solutions will gain widespread acceptance.
Sabre says the latter is an unfortunate conclusion, as virtual payments are a tremendous asset for TMCs looking to optimise their reporting capabilities through rich data capturing, and help to better manage revenue.
‘More than ever, members of the travel industry need to work closely together to enable a smooth, relevant shopping experience for their traveller,’ says Todd Arthur, vice president, Sabre Travel Network.
www.sabre.com

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