Traveller Security, Cost Reduction and Budget Control were listed by ITM Buyer Members as their top priorities this year, according to a recent ITM survey.
There is no doubt that 2017 will be an incredibly tricky year for travel managers. We are living in an age of disruption – the triggering of Article 50 post-Brexit, Donald Trump’s first 100-days in office, global economic uncertainty and the rapid evolution of digital technologies.
The results, perhaps surprisingly, show that the majority of buyer members expect an increase in travel in 2017, rather than expect it to stay the same or decrease. When it comes to business confidence, the majority of travel managers are cautiously expecting growth within their organisations this year.
This first outlook report for 2017 focuses on business sentiment, and includes global activity and megatrend insights for the year ahead for planning purposes. The survey highlighted the fact that Travel managers will be challenged to manage cost increases from suppliers, whilst at the same time being expected to rein in travel spend in 2017. This provides an opportunity for travel managers to promote compliance as a sure-fire way on keeping a lid of spending.
• Travel managers place Traveller Security as the number one priority for their organisation (ahead of cost reduction and budget control)
• Travel managers surveyed expect the cost of hotel nights and air tickets to increase as a result of the EU referendum result going forwards
• 80% of Travel Managers plan to conduct targeted renegotiations for their airline programme instead of conducting a full airline RFP
• 64% of respondents plan to conduct a full Hotel RFP
• 89% of respondents believe negotiated fares and room rates will take a precedence in their hotel and airline contracts for 2017 rather than spot buying.
• For Travel Management Companies, it will be a busy year as 47% of respondents confirmed their TMC contracts are due for renewal in 2017
Simone Buckley, CEO of ITM, commented, “ITM’s Outlook reports are designed to educate our members and provide them with the insight to not only evaluate their programme and identify opportunities, but to also assess how it fits in with the world around us.”
Two further reports will be issued in the coming months, and will explore a wide range of travel management topics including: government policy, security, technology. With so many contracts between airlines and GDS’s due for renewal this year, there will also be a focus on content and distribution.
For a copy of the report Volume 1 visit the ITM Resource Centre at www.itm.org.uk