Business Travel – René Stegmann from My Residence.Africa

In my line of work, I travel a fair amount for business. Recently, I have been experiencing some things that remind me of the importance of considering the business traveler and the duty of care related to their experience.   

According to the insights shared at the ITM conference I recently attended in Brighton, travel buyers feel that the current travel programmes we have now haven’t improved much in the last 5 years.  

Although I can confidently testify that we are all moving as fast as we can to ensure our businesses operate more effectively through digitisation and automation, some legacy systems like the GDS are not easily adaptable. This is especially a problem as it is a resource that Travel Management Companies (TMC’s) and other bookers rely heavily on. This limits the ability to have innovation of other systems available and consequently, one could argue that progress is somewhat hindered by legacy booking systems.    

This claim is supported by a statistic indicating that only 52% of travel buyers believe there will be satisfactory solutions to the content challenges with airlines, OBTs (Online Booking Tool), and TMCs in the next few years. The reliance of airlines on complex and deeply entrenched legacy systems makes it difficult to transition to new protocols like NDC (New Distribution Capability). Such shifts require significant investments of time and resources over a 10-year period, as well as technical expertise to navigate the complexities of integrating NDC with existing systems.  

On the one hand it is true that our industry sector works closely with various airlines, including Delta Air Lines, Virgin Atlantic, Air France, Emirates, British Airways and KLM. On the other hand, as a business traveler myself, I recently grew frustrated at how these airlines have brilliant booking tools but fall short with regards to getting things done on the ground.   

My area of frustration involved connecting flights that are booked separately to get baggage booked all the way to my final destination, which proved to be impossible. In this respect, I am afraid their digitisation and automation fail the airline industry and causes the traveler undue stress and frustration when traveling.   

I simply needed my British Airways flights to be connected so they could tag my bags from Faro to Cape Town via London. The result was that they simply could not do it, and when flights were delayed, I had no choice but to leave my bag behind in London, with no tag to Cape Town, this was so I would not miss my connecting flight.   

I imagine that this must have cost the airline much more than would have been necessary, had their system been able to support them and me better.    

Fortunately, my bag arrived safely to my door the day after my flight home had landed. While I must admit that I was quite impressed by how quickly my baggage arrived back home, my concern is how differently this situation could have ended if I wasn’t returning home but was set for another business meeting instead.   

Digitisation and automation in business travel still have a long way to go. The issue I encountered could have been easily resolved with minor digital solutions.  

The conference also highlighted the importance of relying on TMCs as essential partners for buyers. Based on my understanding, I wholeheartedly agree. However, it is crucial for TMCs to act as the eyes and ears for their buyers, ensuring they offer products and services that benefit the buyers rather than focusing solely on commission structures.  

I have come to learn that TMCs are compensated through commissions and other incentive mechanisms, which introduces a level of bias into the system. If this bias is transparent and fair to all parties, it is a structure that can work effectively.  

Another interesting and topical statistic that was discussed at the ITM conference is related to carbon emissions. As we know, sustainable aviation fuel is currently not widely available and is expensive. Consequently, 79% of respondents believe we should consider traveling less to achieve carbon reductions. While this is true in simple terms, global travel facilitates global trade of services and products, a reality that is unlikely to change in today’s world. In-person relationships are more valuable than electronic ones, which are less relational in nature. Therefore, we need to find other ways to manage and reduce our carbon footprint.   

Here are some additional suggestions on how we can manage our carbon footprint and ensure we are containing carbon emissions:  

• Get Employees Involved: Encourage employees to find creative ways to reduce travel emissions.  
• Review Travel Policies: Update travel policies to promote direct routing.  
• Allow Flexible Scheduling: Implement flexible scheduling policies that allow employees to combine business trips with personal trips or extend stays to reduce the frequency of trips.  
• Consider Various Accommodation Types: Evaluate different accommodation options, such as serviced apartments versus hotels for longer stays over 7 days.  
• Use Remote/Virtual Meetings: Utilise remote or virtual calls to ensure in-person meetings are necessary and will achieve meaningful results.  
• Ongoing Discussions: Foster ongoing discussions on carbon reduction topics. The more we refine and discuss carbon costs, the better we can reduce them while maintaining effective business operations.  

Top two priorities from the ITM research were evident:   

• Bookers prioritise comfort and quality.  
• Bookers also want value for money.   

This is true for both transportation and accommodation solutions.  

The ITM conference also provided insights into the time management of travel managers, revealing that their roles are so fragmented that prioritising amidst the noise is nearly impossible. Consequently, making sustainable choices or finding the best solutions for corporate buyers can be challenging. Understanding this complexity is crucial for those of us trying to cut through the noise and reach travel buyers effectively.  I had an example of talking to a TMC in Africa recently about a new product offering and they responded that they are no longer (in May) accepting any more suppliers for 2024.   So even if you think your TMC knows all the wonderful solutions and products out in the market – well they probably don’t as they are not even wanting to look at new suppliers 4 months into a new year.  

Another significant thing I learned was around payment tools and options. These include:  

• Corporate Cards: Business payment cards for regular travelers with ad-hoc and on-the-go expense needs.  

• Lodge Cards: A centralised payment solution used by an organisation’s TMC to pay for the business travel they book for their clients.  
• Virtual Cards: Digital payment solutions for travelers, suitable for various spending needs wherever they are.  

Understanding what works best for your travel buyer and travel program is crucial, as it simplifies the booking process and makes reporting more manageable. It is worth exploring the different options to determine what will work best for each travel situation.  

During the ITM conference there was a fun session in which some travel buyers were asked what they would most like from their travel managers. One buyer humorously described their ideal travel manager as having a superpower called “Captain Transparency,” enabling them to navigate through hidden agendas, bribery, and corruption. Although this highlights a negative perception of travel managers, it underscores the importance of transparency. As the industry evolves, these issues will become more evident, guiding us in choosing the right partners. Moving forward on important agendas such as sustainable development and cost rationalisation will require appropriate and trustworthy partnerships.  

Of course, the topic of AI could not be left out of the discussion. While some are apprehensive about this advancement, I believe, as highlighted in the talks, that AI can be an effective tool in fully understanding the expenses of business travelers, providing businesses with a better and more comprehensive view of their data. This is truly exciting for the industry. If we all embrace AI and invest in training, we can empower ourselves, our teams, our businesses, and our clients with effective solutions for the future.  

I regularly attend conferences due to my involvement in multiple businesses, each of them offering unique insights. The ITM conference was particularly enriching, providing a wealth of content, engaging activities, and opportunities for community building. One of my businesses is myresidence.africa, which offers serviced accommodation across Africa, is a growing business in Africa and these insights from a global view are valuable.   

Given the scarcity of relevant content in our region, traveling for learning purposes is crucial for our business. Hence, I find that attending these conferences are most rewarding. At the end of every conference, I leave with beneficial knowledge that I take home with me and attempt to implement in various aspects of my business, as well as my life as a business traveler. Of course, it is my duty to share this knowledge with those around me as well, and I am immensely pleased to do so.    

Click here to learn more about us, and how you can benefit from choosing us as your trusted serviced apartment provider in Africa.