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.
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.
Given the advancement of Information Technology, VAT Recovery automation should have happened in many countries. However, it has not yet happened. Why?
We explore the question in some detail, in this article.
Many people may consider Travel Insurance to be an instrument sold by peddlers of doom. That indeed is a matter of personal opinion. Personally, I think Travel Insurance is a necessary part of every trip. It provides the traveller with a certain amount of comfort, and more – especially when things go wrong.
The Contact Centre for corporate travel is the engine around which the whole business revolves. If you don’t have a smoothly operating Contact Centre, you do not have a product. The Unit can be quite a beast when it comes to Technology. The secret of success in a Contact Centre lies in the manager’s skill and ability to harness the entire offering of the various technologies employed and make them work together, to deliver a best-in-class product.
The Contact Centre is the heart of the Corporate Travel service to clients. It is the engine; everything else will revolve around it. Without it, there can be no service. Where then, would be the ideal location for your all-important Corporate Travel Contact Centre? Many a diehard traditionalist would tell you that it should be located where the head office is. In other words, the Managing Director or CEO, would like it where he is located. Such a notion, I presume, would come from a desire to show off one’s empire to every visitor. Some others would argue for it to be located in their own building, wherever that may be. Their main argument would be that with such an arrangement, they will have no rental costs. My own views on the subject are very different.
