Artificial Intelligence in Business Travel is a much-discussed topic in Corporate Management circles today. It is about to completely change the face of Business Travel. There is even talk, that Travel Management Companies (TMCs) could become extinct by 2030. I do not believe that. There will always be a role for the innovative TMC to play, but the time has come for TMCs to once again innovate to survive.
Emirates posts record profit of US$ 3 Billion for the financial year 2022-23. The Group’s revenue was US$ 32.6 Billion during the same period. The question that immediately comes to mind is how did they do it when so many airlines are struggling around the world with some having closed down and others going through very difficult times. There are many factors that contribute to the Airline’s success. Let’s take a look at the how and why of Emirates’ success – as a former insider, I have had the pleasure to play in the actual arena.
The International Air Transport Association (IATA) and the Netherlands government appear to be at loggerheads. The Dutch Government wants to reduce Amsterdam Schiphol Airport flight capacity. Their principal reason is noise pollution. IATA and the Airline Industry are preparing to mount a legal challenge to the planned Dutch reduction. (Read about the Court’s reprieve as
Suddenly this summer, when it comes to air travel, everything appears to be almost back to normal even though some reports claim that only 60% is back. However, fewer flights than in a normal pre Covid-19 summer, and fewer staff are creating desperate situations at many passenger touch points. People are jostling for availability of airline seats and holiday opportunities. At airports, It is a busy time once again, and some Travel companies are already proclaiming their best year ever!
Corporate Travel as we know, is about to be turned on its head. A lot in the commercial side of air travel has probably remained static since the invention of the Global Distribution System (GDS). Now, major changes are in the pipeline. Airline Inventory Control and Pricing will undergo dramatic change. I write as a prophet would. Change is at our doorstep.
One document that is very important for smooth business travel, and the safety and comfort of employees, is the Corporate Travel Policy document. It is the central document that dictates how different parts of the company adhere to the policies and guidelines of the company when it comes to travel for and on behalf of the company. It can make all the difference between a successful business trip, and a frustrated traveller who just wants to get home. Let us look into how we can write an effective Corporate Travel Policy, in detail.
Post-pandemic, the shape of TMCs (Travel Management Companies), is set for major change. The International Air Transport Association (IATA) forecast for Travel in 2021 is 52% of 2019 levels. The estimate for 2022 is 88% of 2019. Only by the end of 2023 will it be 105% of 2019 levels. The demand for Air Travel in June 2021 was just 60.1% compared to June 2019.
The onslaught of Covid-19 has been relentless. Air Travel has taken its mightiest blow ever in the history of post-war Civil Aviation. It created an almost complete lockdown for the Industry in terms of International Travel. The good news is that all of these effects will peak, and eventually when they find the vaccine, disappear. Post Covid-19 challenges will impact Travel Management Companies.
The Airline industry has been one of the worst hit by the Coronavirus pandemic. It will be several years before airlines around the world recover from the damage. The International Air Transport Association (IATA), estimates lost revenue for 2020 will be 314 Billion US dollars. IATA also estimates that 4.5 Million flights will be cancelled by June 30, 2020. Never before has the Industry been hit so badly by a pandemic virus.
Every now and then, checked baggage seem to develop a mind of their own to go off on a jaunt. The truant piece of luggage, decides to take a route different from that of its owner. What was destined for Medicine Hat, Alberta could end up in Melbourne, Australia; or in Dublin, Ireland, instead of Dubai in the UAE. A lost checked-in bag can become a painful experience. It is one of those happenings that comes with air travel. There often is no rhyme or reason for the phenomenon. 2017 saw 4.08 Billion Air travellers; 22.7 Million bags were mishandled. Fortunately, 78% of all mishandled bags were only delayed; not lost.
