SpendEdge has been monitoring the global Travel management market and the market is poised to experience spend growth of more than USD over 600 billion between 2019-2024 at a CAGR of over more than 7%.
Travel management service providers are partnering with technology providers which, apart from improving their service, is sustaining cost savings with lower workforce requirements and limited management efforts by the stakeholders. This is favoring a large-scale travel management procurement across the globe.
High GDP growth across the APAC countries is inviting large business players to invest in the region. This is increasing the requirement and frequency of corporate travel which is driving airline companies to optimize air traffic routes and improve frequency of flights between major business routes.
Insights into the market price trends
- Airline companies are gradually shifting from price-based differentiation to value-based differentiation because of the consolidated air travel market. This is driving will peak the cost of air travel to a large extent during the forecast period.
- Airline ticket prices are expected to further spiral owing to the possibilities of a hike in fuel prices which is currently accounting for over 20% of the overall cost structure of airline organizations. This will significantly add to travel management procurement expenditure for buyers.
Insights into strategies that will help buyers optimize their procurement spend
- Bundling of services allows buyers to mitigate the risks involved in managing multiple stakeholders for various aspects of travel management. It also offers buyers spend visibility and allows them to negotiate for better pricing during travel management procurement.
- Buyers are advised to collaborate with TMCs to identify employees’ travel patterns. This includes data sets for the time of booking, duration of flight, and time and day of flight. This will help buyers build a comprehensive corporate travel guideline for their employees and ensure that a specific set of airline carriers are used for services. these data sets are used to identify cost-saving opportunities. For instance, companies with large volumes of long-duration flights can split the number of flights to achieve higher cost savings.
COVID-19 Impact Assessment and Market Insights
SpendEdge’s reports now include an in-depth complimentary analysis of the COVID-19 impact on procurement and latest market data to help your company overcome sourcing challenges. Our Travel management Market Procurement Intelligence Report offers actionable procurement intelligence insights, sourcing strategies, and action plans to mitigate risks arising out of the current pandemic situation. The insights offered by our reports will help procurement professionals streamline supply chain operations and gain insights in the best procurement practices to mitigate losses.
Some of the top Travel management suppliers enlisted in this report
This Travel management market procurement intelligence report has enlisted the top suppliers and their cost structures, SLA terms, best selection criteria, and negotiation strategies.
- GBT Travel Services UK Ltd
- CWT Global BV
- BCD Group
- Booking Holdings Inc
- Expedia Group Inc
- Flight Centre Travel Group Ltd
Some of the key topics covered in this report are:
- Travel management market spend segmentation by region
- Travel management supply market analysis
- Regional spend opportunity for Travel management suppliers
- Travel management suppliers cost structure
- Total cost of ownership analysis in the Travel management market
- Travel management pricing models analysis
- Category management objectives
- Cost saving opportunities in the Travel management market
