Business growth in 2017 is expected to prompt a rise in overall travel spending, air spending, as well as boost the number of trips and air transactions, according to a poll of 63 travel managers conducted for ARC by the BTN Group in Novermber and December. About 70 percent of those polled expect their organization’s air spending to increase in 2017, while 30 percent expect such spending to decrease. About one-third of those polled expect air spending in their managed travel programs to increase by 2 percent to 5 percent this year, while 11 percent expect less than a 2 percent rise. More than 20 percent of respondents expect air spending increases of 8.1 percent or more in 2017.
Beyond business growth, travel managers cited the following as reasons for higher spending: industry price increases, company mergers/acquisitions, “spending in a growth market that has less supply” and loss of an airline contract. Of those who expect spending declines in their travel programs, most predicted modest reductions of less than 5 percent.
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PAST ISSUES
Issue 1 - Quality Data Acquisition Grows In Importance
Issue 2 - More Than Half Of Companies Benchmark Against Others & Industries
To assess how their own travel costs, policies and performance metrics stack up, many companies have long sought ways to benchmark against others.
More than half of companies recently surveyed for ARC by The BTN Group said they benchmark against other companies in their industry or others served by their travel management company. About 45 percent said they benchmark against other companies or organizations with similar spend or travel patterns, while 28 percent benchmark against other companies or organizations in their geographic area. Nearly one-quarter said they don’t benchmark externally.
Airfares were the most frequently benchmarked cost component on a quarterly basis, as 36 percent of respondents said they compare such figures, while 27 percent compare airfare costs of peers on an “as needed” basis.
More than half of companies recently surveyed for ARC by The BTN Group said they benchmark against other companies in their industry or others served by their travel management company. About 45 percent said they benchmark against other companies or organizations with similar spend or travel patterns, while 28 percent benchmark against other companies or organizations in their geographic area. Nearly one-quarter said they don’t benchmark externally.
Airfares were the most frequently benchmarked cost component on a quarterly basis, as 36 percent of respondents said they compare such figures, while 27 percent compare airfare costs of peers on an “as needed” basis.
Issue 3 - Internally, Companies Most Often Benchmark Against Departments & Business Units
Less frequently, organizations benchmark against geographic regions, comparisons of like travelers, senior executives/board members or other business entities owned by a parent company, according to a survey of 143 corporate decision-makers conducted for ARC by The BTN Group.
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