BETTER BUYER ENGAGEMENT REQUIRED FOR ALL
Supplier Product Changes Need Greater Consultation
The Institute of Travel & Meetings (ITM) UK & Ireland has released the results of its latest research across members who buy and manage travel and meetings for their companies, representing expenditure in excess of £34 billion worldwide. The latest survey, focusing on the impact of supplier product changes such as airline unbundling, has identified an overwhelming call by the buyer community for greater collaboration on standards and processes between suppliers and technology providers.
The research found that:-
- Over 65% of buyers felt that all supply sectors failed to consider the impact of any product changes on the buying community
- 64% said that product changes led to more programme work to find work-around or alternative solutions
- 70% of buyers felt that TMC's were wholly or somewhat effective at providing solutions support for issues created by product changes
- 98% of buyers felt that airlines and Global Distribution Service providers should work closer to ensure that systems provided true comparative fare data in the face of unbundling
Paul Tilstone, Chief Executive of ITM, said about the research, "Data capture, process flows and cost appeared as the top three buyer impacts from the continuing unbundling trend within the aviation industry. Whilst there appears to be some real potential positives from unbundling, you can't help but think that greater consultation could result in a more positive environment for all."
The research appears to support the recently stated goal of Jamie Hindhaugh, ITM Chairman, for suppliers and buyers to work closer together for the sake of an improved industry.
Colin Goldney, MD of ITM's research partner, Argate, added, "There's definitely an understanding of the reasons why airlines are changing products and services and in general the opportunity for greater transparency is being greeted positively, but without a collaborative approach there appears to be a cost and time impact on the buyer and TMC community which is going unnoticed by suppliers."
The report can be purchased via the ITM Publications area and will become free to members in 6 months.
