With the pandemic finally in the rear-view mirror, business travel continues to rebound in leaps and bounds. The past six months however, has been nothing short of a roller coaster ride for the thousands of Australian SMEs eager to get back on a plane for business.
According to our corporate travel consulting division’s latest Global Quarterly Trend Report - jet fuel prices are peaking and the world is seeing the highest inflation since the 1970s. In terms of air travel, demand is currently outstripping supply. Forecasts indicate there will be 832 million fewer seats globally in 2022 than in 2019, a 15% decline.
Rising jet fuel prices have further complicated business travel with ticket prices on some key routes rising sharply. On the flip side, average corporate airfares on some inter-city domestic routes such as Brisbane to Sydney and Melbourne to Sydney dropped dramatically.
Accommodation rates are also on the upward tick with average room rates in Australia and New Zealand rising on average $28 compared to 2019 prices.
With demand outstripping supply, rising costs and labour shortage facing many sectors, the travel industry is facing the perfect storm. In the face of these challenges, a knee-jerk reaction could be to cut out business travel altogether. Especially as organisations have come under pressure to drastically reduce their carbon footprint.
However travel statistics prove quite the contrary, with the Australian corporate travel market tracking at 75% - 80% of pre-pandemic levels. Despite the challenging conditions – where there is a way to travel there is a will to travel, particularly for SMEs focused on growing their networks, restoring customer confidence and rebuilding workplace cultures.
In addition, the re-emergence of face-to-face meetings have proven time and time again how greatly beneficial a personal connection is when it comes to making decisions and signing important deals.
To travel smarter make sure you’re tapping into the expertise of your business travel provider or business travel consultant. There are plenty of ways to save money, travel efficiently and overcome some of the post-pandemic challenges.
Here’s Corporate Traveller’s advice for smarter business travel:
- Cap your hotel rates: Hotel rate caps are a great way to keep your budget in check – especially in cities where accommodation rates are on the rise.
- Automate approvals: Approval processes take time and energy. The easy solution? Automation. By automating approvals though an online booking tool, like Savi, you can take the hassle out of pre-trip approvals.
- Restricted Vs flexible rates and fares: Flexibility is important. But when you know your business travel plans aren’t going to change, it makes sense to buy restricted rather than flexible rates or fares. Talk to your travel consultant if you’re unsure what is the best booking practice when it comes to restricted and flexible fares and rates.
- Be flexible with travel times: Don’t limit yourself to the normal ‘peak’ travel times. Explore alternative times during the day, or travel the afternoon before (if you’re allowed) and fly different days of the week to source cheaper options.
- Plan ahead: Advance bookings are undoubtedly the best way to save right now. So, chat to your TMC and let them know what kind of business travel and the volume of trips your business has in the pipeline. They will advise on how far ahead you or your travellers need to book.
- Know your Ts from your Cs: What does it cost you to change (or cancel) your travel plans? Know your preferred suppliers’ change and cancellation policies and pre-empt any issues.
- Be credit savvy: If you find it difficult to keep track of air credits, it’s time to start using an online booking tool (if you’re not already). Corporate Traveller’s Savi OBT uses a traffic light system to monitor airfare credit and ensures no fares expire.
- On the ground: Air and accommodation are by far your biggest cost items. But what about your ground transportation? Should you use a transfer company, share ride with Uber, corporate rates with a hire car or recommend your staff use public transport? It’s important to know the difference in cost between the different ground transport options but also understand what your employees are comfortable with. This is definitely a conversation best had with an expert in business travel!
- Go the extra mile (for car hire): For car rentals of more than a few days, it’s worth going the extra mile – literally – and use a city location for your car rental rather than a hire car pick-up at the airport.
Travel might have its challenges at the moment, but the good news is there’s no reason to be grounded! There are smart and easy ways to save on rates and fares when they’re on the upward trend. You just need an export onboard!
