How to Combat the Fragmentation of Business Travel Content
a summary of the BTA's "Navigating Fragmentation in Corporate Travel" whitepaperThe Business Travel Industry is Constantly Changing…
In other words, as the business travel world expands and new technology (including AI) continues to offer the industry bigger and better tools to inspire innovation, travel management companies (TMCs) will need to work smarter to maintain a consistent service offering that gives their clients all the content they could ever need, all in one place.
Fragmentation is unavoidable. Suppliers want to choose their channels and distribution platforms. We should be striving for a fair, balanced relationship to make content available, with parity and accessibility to maximise efficiency throughout the whole value chain and support business travel.” – Marcel Forns Bernhardt, Director General of the Guild of European Business Travel (GEBTA).
To address the challenges of content fragmentation and offer insights into a potential solution, the BTA alongside GEBTA in Spain and the Association of Travel Management Companies (ATMC) in Australia worked with the impartial support of Black Box Partnerships to commission a whitepaper titled “Navigation Fragmentation in Corporate Travel.
In this article, we identify the report’s key findings and discover how the future of the business travel sector might look.
What are the Main Challenges of
Content Fragmentation?
The whitepaper describes content fragmentation as having reached “unprecedented levels”, a conclusion backed by a consensus of perspectives gathered from business travel suppliers, TMCs, and corporate buyers. These insights enabled researchers to identify the key challenges of content fragmentation: technology & data integration, operational complexity, New Distribution Capability (NDC) consistency, and the uniqueness of small and medium enterprises (SMEs).
1. Technology & Data Integration
The report highlights a critical need for data to be standardised, for travel content management processes to be improved, and for technology to complement different content sources better, irrespective of location or whether users are a TMC, a supplier, or a corporate buyer.
2. Operational Challenges
for TMCs
Fragmented content is putting significant pressure on TMCs, both financially and in terms of service, as it complicates reporting, traveller tracking, and risk management – all of which are crucial for ensuring traveller safety.
3. NDC and Airline Practices
A recent poll, conducted by GBTA shows how TMCs continue to encounter technical hurdles, with only 38% saying that their company has started to make NDC content available.
It is frustrating for travellers too. The impact of NDC on content availability has created obvious discrepancies between options accessible online and via a travel agency, leaving many travellers dissatisfied.
4. The Unique Impact on SMEs
SME clients in the business travel space often face unique challenges, particularly when it comes to managing leakage within travel programmes and leveraging the best deals. Missing content is one of the biggest drivers of leakage – if travellers have a negative experience using an online booking tool (OBT) they are likely to revert to their personally preferred solutions, even if that means purchasing outside of travel policy.
SMEs, like corporate travellers, want ease, simplicity, and to feel valued. They require consistent travel fares (particularly from airlines and rail operators) to be available through all providers. If they feel they are not on a level playing field they will likely vote with their feet and seek alternatives.
The Value of a TMC
The paper identified some of the key areas in which TMCs provide expert support across the globe, highlighting the benefits of a traveller booking with a TMC as opposed to booking directly.
Cost Management
Travellers get access to negotiated rates, terms and values. Other components of a trip are also managed under one service provision, rather than a single supplier source.
Time Savings
Travellers are offered a streamlined booking process and the ability to search for fares, easily book trips, and manage expenses in the most time-efficient way.
Policy Compliance
Duty of Care
TMCs offer 24/7 (or Always On) real-time support and traveller tracking before, during, and after every trip. Conversely, the support available to those booking directly can be limited or non-existent.
Reporting & Analysis
TMCS offer bespoke, detailed reporting with analysis on spend, CO2
emissions, savings and benchmarking, with overall visibility of spend. Those who book directly lack the “bigger picture”.
The Importance of Data Customisation, Clarity, and Consistency
Phrases such as “selling out fast” or “someone else is looking at this product” are used in these environments to create a sense of urgency and consumers’ behaviours have adapted in response. We’ve become accustomed to making quick, impulsive purchases and this is seeping into corporate buying decisions – travellers might be tempted to make out-of-policy bookings if they think they have found a better deal.
However, these direct bookings often come with restrictions or complications (such as alternative payment methods) which can lead to additional costs and stress. Furthermore, the lack of clarity and consistency in travel options poses significant challenges.
Our "High Content" Promise
The Impact of Sustainable Travel on Content Fragmentation
While this is a net positive to society, it adds additional layers of complexity to the sourcing of travel content. Buyers now expect to be able to make booking choices based on sustainability, whether that be through using greener transport or staying in sustainable hotels.
However, sustainability standards are far from universal, with travel suppliers conforming to different benchmarks and certifications. The inconsistency of information makes it difficult for TMCs to keep up with the sustainability demands of their clients or support wider macro requirements such as Climate-Related Financial Disclosure (CRFD) reporting.
The Role of TMCs in Supporting Sustainable Travel
Consolidation of Content
Certification Standards
Advanced Technology
Customised Policies
Education & Advocacy
Sustainable Partnerships
Cross-Border, Geopolitical, and
Regulatory Influences
In terms of geography, factors such as the proximity to politically unstable regions or regions prone to natural disasters can impact a travel programme. If travel restrictions are in place for a certain area, the content is affected as available destinations are reduced.
Beyond the bureaucratic side of government, TMCs and travel buyers need to consider the general political climate. The relative levels of government stability, periods of civil unrest, or changing diplomatic relations can affect the safety of a trip and the feasibility of travelling to certain regions. Content access becomes more complex in situations that require risk assessments, travel advisories, or exclusions for high-risk locations.
The Pros & Cons of AI Content
In some way, shape or form the travel industry has been on the Artificial Intelligence (AI) ladder for the past 20 years plus. In terms of Robotic Process Automation (repetitive processes (RPA)) and content biasing, based on corporate policy and traveller profiling. With AI picking up pace in terms of learning, relevance and process mapping this also brings challenges, as well as benefits
Content
Pro
Con
Pricing
Pro
Con
Service
Pro
Con
Knowledge
Pro
Con
Recommendations
The whitepaper concludes by offering its recommendations for combating the challenges that content fragmentation can pose to TMCs and travel programmes.
Transparency & Consistency
TMCs need to build trust with their clients by focusing on transparency and customer satisfaction. This can be achieved through providing a consistent content experience featuring accurate information. It is also important to maintain a uniform global standard of operations.
Investment in Technology
TMCS need to embrace new technology to streamline their operations. New innovations should allow travel providers to offer a broader range of services, while automation tools and data analytic software can enhance efficiency and service delivery.
Strengthen Partnerships
TMCs must continue to foster close relationships with all stakeholders, from suppliers to technology providers. A collaborative effort can help address the challenges posed by content fragmentation and improve the overall travel experience.
Focus on Sustainability
TMCs must ensure that travel practices align with a client’s sustainability goals by incorporating environmentally and socially conscious policies. Focusing on these targets can ensure data is consistent, regulated, and reliably sourced.
Enhanced Integration
TMCs should prioritise the development of systems that work with each other to provide seamless travel content and a unified booking experience. Personalisation is key – leveraging data should allow for tailored travel solutions that address the preferences of individual travellers.
Improved Risk Management
As the importance of traveller safety grows, so too does the need for TMCs to provide a robust risk management framework. This includes real-time support, adherence to ever-changing regulations, and emergency response plans. Such measures can ensure travel policies align with corporate goals.
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