The Myth: Any one “trusted” travel provider is capable of always providing you the gamut of available options to choose from, as well as the best price available in the market.

The Reality: There is no such thing as “Provider Dominance”. With the right sourcing strategy, you can make an appreciable saving on budgets. Or better still, you can travel more or enhance the experience of your travellers within the same available budget.

Travel is on the cusp of recovery, aided largely by the vaccination progress across the world, which is expected to help Governments reassess the border restrictions within and between countries. There is a great deal of pent-up demand, as already evident from the spurt in leisure travel. Select airline routes are now running at full capacity, whilst hotel prices are showing an uptick. Markets such as US are already seeing a sharp rise in business travels alongside the “return to office” effected by several corporates.

Travel suppliers such as airlines and hotels, and travel providers who enable distribution, are also getting prepared. They are investing heavily into customer experience and embracing nimble operating models, where technology is becoming the backbone. Further, travel suppliers are being pushed towards getting creative in their pricing models, leveraging data and customer behaviour insights. This is fundamental to extracting the best prices from travel buyers or travellers.

The complicated economics on the travel supply side could now present interesting opportunities for the demand side. Corporate travel buyers and leisure travellers can secure the best deals, as long as they are looking in just the right places. Leisure travellers who are flexible with their schedules can afford to wait and watch for the right prices to show up. Whereas business travel is typically time bound, and buyers target the best deal available “right now”. In such a scenario, the biggest mistake corporates can make is to narrow their horizon of searches and settle on too few providers to source their travel from.

Our research provides ample evidence that “provider dominance” – the assumption that any one trusted travel provider is capable of always providing the most relevant options and the best deal for a specific itinerary – does not exist.

Let us now examine the imperatives for corporate travel buyers to improve bottomline.

1. Ensure that all options available in the market are on your menu

Of the top 8 travel providers covered in our research, the providers on an average missed out on 15% of the total inventory available in the market, i.e. 15 in 100 flight/hotel options were not even displayed to end users of such providers. Whilst this means that a lower cost option may not even have been available for selection, the value of business travel to a company is also dependent on the right timing/duration of flights and right location/amenities of hotels available. Making sure you book the right flight or hotel for your traveller at the right cost would therefore require a wider access to the market!

2. Verify each fare for competing bids from multiple providers

Even for flights and hotels that did show availability with the providers covered in our research, some degree of price disparity (variance in fares across different providers for the same product) existed in 97% of the instances for flights and 99% of the instances for hotels. That means out of every 100 itineraries we studied, only 1-3 options had the same fares across all providers. With travel being a dynamically priced product, this disparity would remain over time, as seats are shifted from one fare class to another and changing demand keeps prices on the move.

For instance, the price leader for international flights in our research offered the best fares around 32% of the time, which means that in 68 of 100 flights even they lost out to other providers. One provider that gave you the best fare once upon a time is not likely to repeat this again the next time around. You need to look far and wide in the market to ensure the best deal for your company.

Price leadership – the ability of a travel provider to offer the best fare in a particular instance – is a tough proposition in the Indian market, as our research shows. But it is quantitative in nature and the extent of the advantage offered is easily measurable. As per our research, the price savings for flights ranged typically from 10-20% with a maximum saving of 48%, whereas the price savings for hotels ranged typically from 15-30% with a maximum saving of 39%.

3. Look beyond prior performance of the provider

In a market with price disparity, an obvious strategy on the demand side is to check each offer with an additional provider to see if they can match or outdo it on a regular basis. Or one may tend to trust the provider who gave the best fare on a previous occasion. However, our research reveals that in the Indian market there is far too much dispersion in pricing, to allow best deals to come from only one or even two providers consistently.

4. Look for intangible advantages beyond the cash fare

Any platform which compares providers strictly on price without any additional variables would rank a fare of $100 as clearly preferable to a fare of $101 without considering any other factor of the itinerary that would make a difference to the corporate or the concerned traveller.

However, a corporate may attach a great degree of value to flights of shorter duration, convenient timings, journey duration, proximity of hotel to place of business, additional amenities, etc. Traveller wellness and convenience may have a direct correlation to the business outcomes intended from the travel. Therefore, it is critical to consider these intangibles alongside the “cash saved” instead of straightaway purchasing the “best fare”.

Conclusion

Clearly, the evidence from our research is strongly against the existence of any significant level of provider dominance in the Indian travel market. To the typical business looking for consistent, predictable and impactful savings on their travel costs, the solution lies in a broader horizon of travel providers.

A travel sourcing strategy, where the travel options are evaluated from across multiple providers, offers the highest chance of success, but poses logistical challenges for effective management. This points to a technology platform capable of collecting data from the right sources and an analytical layer which matches the available inventory to your preferences as a customer. The market is ripe!

Footnote: Research Methodology
The data presented above is the result of a proprietary research study carried out by Catalyca. We profiled some of the largest OTAs and B2B travel aggregators (“travel providers”) in terms of user volume and revenue in the Indian travel market. Inventory availability and prices of flights in approximately 100 unique routes (Indian domestic and international) across multiple date combinations were covered in the study conducted over a period of time.

Business travel was one among the first to taper at the beginning of the Corona virus pandemic. Travel dipped heavily and has started to inch back in small increments recently. It is not a steady climb, but moving up, nevertheless.

A steep downturn in the economic scenario and resultant pressure on company budgets are a deterrent for a smooth travel process. To remain viable, businesses will have to reduce costs including travel. The new normal involves and promotes the use of technology tools such as Zoom. However, these tools are not long-term replacements to trust-inducing in person face-to-face meetings.

Controlling Costs for Business Travel

Business travel holds great importance for most businesses irrespective of size, and the associated costs form a big chunk of the budgetary allocations. Negotiating for best fares becomes meaningful when there is at least a minimum budget to spare; however, when travel allocations are close to none such comparisons become a wasted expense of time.

As per PhocusWire, in the current situation, all new business travel will be scrutinized. Herein lies the importance of cost control measures. Let us take a relevant example, one of travel procurement, to see how cost control post the pandemic can be implemented with lesser impact on business outcomes.

Travel Planning & Procurement

After the travel decision is made, it is important to carry out planning cautiously, so that cost control and safety measures are in place. In the normal circumstance, this includes the travel manager collecting staff member details. They will then initiate procurement by interacting with multiple vendors/ suppliers. Whether a large team of travel managers dealing with 100 travellers or a solo travel admin working for a smaller organization, the situation can be a hassle.

Another challenge is the cost. Multiple calls and emails will not guarantee the lowest prices and good services. Travel prices are seldom the same across suppliers, creating price disparity. Also, the prices quoted by suppliers are not their best rates. In addition to this. quotes from multiple vendors need manual or semi-manual processing that can lead to less than accurate decision making and revenue loss. No single vendor can provide the best fares at all time and a lot of effort needs to be spent on identifying the right combination every time a purchase decision is made.

Fare escalations are also troublesome for companies trying to rein in costs.

Most businesses therefore rely on OTAs which can be a separate task that needs attention and focus for successful execution. Since businesses need to focus on their business more, this kind of an engagement can be a distraction.

Role of Technology

Compare this exercise to the presence of a smart travel management system that can automate travel procurement. Such a system can also accelerate other aspects of travel. However, most importantly, the tool must be able to provide a unified digital marketplace with ample choice, allowing travel managers to choose the right suppliers with matching prices, all within policy framework.

A right choice of suppliers, adoption of technology tools and focused efforts on the travel program can help businesses make considerable savings on costs.

TCat – Travel Management Solution from Catalyca

TCat offers a unique way of solving cost control challenges related to travel, particularly procurement. The system empowers the business to provide wider choices through collective bargaining in a digital marketplace. TCat combines travel procured from multiple vendors into a single unified platform, enriched with intuitive user experience and proactive traveller support.

TCat allows the below benefits for travel managers & other stakeholders.

• Diversity of choices
• Rich content through IATA Standards (NDC)
• Opens hitherto inaccessible suppliers
• Collective bargaining power
• Seamless supplier switching

TCat offers a traveller-first approach, one that is also highly personalized without causing revenue leakage. In TCat, all dimensions of travel are integrated to provide a seamless experience to stakeholders named as One Travel.

To know more about how TCat can save travel costs for your business, reach out to us today.

To a world that was increasingly starting to open up with travel across regional boundaries becoming more and more seam-less, the current COVID scenario has dealt a big blow. Travel has not just become difficult, but it is far riskier than ever before.

Travel restrictions are currently a universal measure and are intended to contain the spread of the virus. International borders are not fully open, and these are the times when we are forced to have a rethink of future travel options. Corporates need to proactively change policies, plans and make prudent decisions. The nature of the pandemic is at an unprecedented scale and needs appropriate safety measures to be taken. However, similar pandemic situations might repeat. What is needed is for businesses to have a fresh approach that prevents stagnation.

The Importance of Travel Risk Management
Corporates need to layout a travel risk management program that can help employees navigate the situation better. Travel risk management comprises of well thought and documented processes and steps that help to mitigate the disruption and risks connected to travel.

How to Manage Travel Risk
Travel risk management starts with a detailed analysis of the travel need. Whenever a travel need comes up the corporate shall analyze it based on a pre-determined framework. This framework will consider whether the

1. Proposed journey is critical for the business or is avoidable
2. Government advisories, regulations and other restrictions that impact the travel and traveller
3. Probability of a risk materializing during the travel
4. Impact to travel or the traveller, if the risk materializes
5. Availability of feasible and viable mitigation plans if the risk materializes
6. Traveller is fully aware and clear about risks and mitigation plans

Once the analysis is completed and the decision made, the next step is to facilitate the travel safely and successfully.

Role of a Travel Management Platform in Facilitating Safe Travel
A travel management platform is vital to facilitate safe business trips for employees. Such a system can direct the course of travel prior to, during and after the business trip. To deliver a safe trip, the system must have features that provide relevant information to all stakeholders to manage all phases of a trip.

Let us see what a travel management system shall do to manage risk during the various phases of a business trip.

Pre-Trip Features

Travel Risk Assessment Analysis

The travel management platform must aid in carrying out an overall travel risk analysis assessment. This would assist the management in making timely and proper decisions on the travel risks involved. The platform shall also provide various travel advisories and alerts to the travellers and other stakeholders. Such advisories shall be made available over multiple channels including mobile devices for easy access at all times and phases of the business trip.

Some examples of information that will facilitate travel risk assessment are:

1. Destination and transit country-specific travel advisories, safety, security, health alerts and other relevant information.
2. Destination city or town specific travel advisories, safety, security and health alerts
   Government and other regulators directions regarding the mode of travel, precautions to be considered before and during the travel.
3. Some of the other pre-trip features that shall be supported by the platform are cited below.

Capture of traveller details: Full information about traveller itinerary for the business trip shall be available in the platform. Data required to communicate with the traveller shall be available in the platform and this information will help to reach out to a possibly distressed traveller or his/her emergency contacts if the need arises.

Availability of Real-time Information: The traveller shall have access latest travel advisories, health alerts, risks associated with a particular destination, as and when such an event occurs at the destination.

In-Trip Features

Trip Monitoring & Safety Tracking

To effectively ensure a safe trip for the employees, an organization needs to be able to pinpoint their employee’s locations anywhere in the world at any time, predicting the risks in those locations, and initiating contact with other staff members at the location to render immediate assistance if the need arises.

When the trip is in progress, the platform should be in a constant risk & safety monitoring mode, enabling the corporate to track the situation as it evolves on a 24×7 basis. A real time dashboard that displays latest travel advisories and alerts for various geo-locations where employees are or will be in a few days, shall enable the corporate to easily locate, communicate and provide support to employees in a risky situation.

Communication Channels

The capability of the platform to be in touch with travellers during an emergency situation is a mandatory requirement. The system shall be capable of using multiple methods to locate and communicate with the traveller.

Once located, the corporate should be able to facilitate bi-directional communication between traveller and the corporate. The various channels that the platform shall support include e-mail, SMS, social media, and mobile app-based chat tools.

Linking Co-Travelers

Linking travellers at a specific destination so that they can coordinate among themselves with ease is a desirable feature of the platform. Buddy or Fellow traveller information can be cross-linked and made easily available to travellers.

Post Trip Features

The post-trip features will include feedback collection and collation from travellers and preparation of analysis reports. This information shall act as the basis for review and improvement of travel risk program.

Conclusion

Technology has a greater role to play in the post COVID world scenario and travellers will insist on systems, services and measures that ensure safety while going on a business trip. Travel Management platform shall enable the corporate to facilitate a safe trip for its employees.

By Team Catalyca

For more information on Travel Risk Management using Catalyca and TCAT, please write to hello@catalyca.com.

Travel is exciting, even when it is for the purpose of business. There is hardly anybody who does not like to roam the world, but in reality, the experience is not always seamless. International and domestic travel come with a number of stringent rules and regulations, resulting in the need for travellers to carry appropriate documents with them. Though rules related to domestic travel are simple, the ones for international travel are complex and dynamic. This can be tricky for travel managers and travellers, as it requires them to validate and recheck document requirements every time, especially when the trip is planned in haste. Sometimes, mistakes can happen to even the most frequent travellers.

One such example comes to mind, cited by a colleague. He was travelling from India to Namibia for business via Dubai and Johannesburg. His travel agent booked tickets without realizing that for transiting Johannesburg, a transit visa was needed for an Indian passport holder. Airline personnel too missed checking for transit visa as he was checking-in from Delhi. However, in Dubai, he was stopped before boarding the flight to Johannesburg. The airline tried to re-route him via other points but couldn’t because he was not vaccinated for yellow fever as mandated for travel in certain African countries. Finally, the trip had to be abandoned. He returned to India after a gruelling eight hour wait at the Dubai airport. You may have had or heard about similar experiences and would agree that the loss of time and money as a result of not being aware of documentation/visa requirements is entirely avoidable.

In a recent survey conducted by Catalyca, it was found that a whopping 84% of business travelers out of 600 plus respondents wanted to have clear visibility into the sufficiency of their travel documents before embarking on a trip.

The list of important documents and artifacts typically required during travel goes like this.

1. Passport
2. Visas
3. National IDs
4. Travel Insurance Documents
5. Flight/ Rail Tickets
6. Hotel Reservation
7. Credit/ Travel/ Forex Cards
8. Vaccination & Other Medical Details
9. Driving Licenses

An IATA analysis of 2016 says that 60,000 travelers are turned back at destinations or transfer points by immigration authorities each year. This cost the world’s airlines a substantial amount of money in fines and associated expenses. At an average of $3,500 per passenger, these fines are colossal. Airlines have to fly the traveller back to their country of origin at their own expense, occupying the seat on a fight that they could have otherwise sold to a revenue generating passenger.

It’s not just the airlines, travellers too end up paying a large price for such mistakes. These breaches, when they occur, could end up being costly for future travels of the traveller. Visa denials to the same destination in future is such a possibility. Hence, it is in the best interest of travellers to verify their documents before commencing a trip.

How can businesses ensure effective document verification for its busy employees?

The traditional method has been to trust the expertise of the travel agent. But as we have seen in the quoted story, this is not always effective.

One way to save the day is to have a smart booking tool fortified with features for identifying travel document requirements of the traveller. The tool can throw up a checklist for the travel and examine available travel documents to flag any risks related to the proposed travel. The challenge with this approach is the required knowledge of applicable rules and regulations. This information is so scattered across multiple sources such as various government repositories that creating a consolidated view is extremely difficult.

Are there any such consolidated sources? The answer is yes. IATA’s TIMATIC database allows travelers to check the document requirements for different global destinations. TravelDoc is another such tool. These tools are used by airlines and travel agents across the world. Considering today’s connected environment and the personal stakes of the traveller in case of a breach, it is time to provide these services direct to the traveller.

A smart corporate travel booking tool should have the provision to validate the existence of all mandatory documents for business travel, flag associated risks, issue applicable reminders and alerts so as to ensure that the traveller and the travel manager are aware of the compliance at all times. Today the cost of integration with such tools can be quite high, making it a challenging proposition for smaller organizations without necessary resources. Models of collective bargaining needs to evolve to make such integrations a reality.

The primary goal of a corporate booking tool is to simplify the travel booking process end to end. When this simplification encompasses even pre-trip checklists such as travel documents, it creates a smooth and seamless path for travelers, making travel happier, assured and all the more exciting.