Global Travel Management Industry - Procurement Market Intelligence Report

Travel Management Industry Analysis

Spend growth of this market has the potential to touch a value of over USD 600 billion with spend momentum acceleration at a CAGR of more than 7% between 2019-2024. 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 will contribute to spend growth in the travel management industry. However, the penetration of online travel agencies and complications faced during enforcement of travel policies and compliances will hinder spend growth in this industry.

Top Spending Regions in the Travel Management Industry

Expansion of business and the presence of robust civil aviation infrastructure are some of the factors that will drive spend momentum in the travel management industry across the key geographies.

APAC

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. This is increasing scopes of travel management service providers in the region.

North America

Increase in the demand for corporate travel is one of the major factors that is driving spend growth in the travel management industry in this region. The availability of robust domestic civil aviation infrastructure in mature markets is enabling high connectivity between major cities. The presence of this infrastructure is also facilitating a high level of comfort with reduced travel time and creating the scope for in-flight connectivity options. This is contributing to spend growth in the travel management industry in North America.

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What are the Key Price Trends in this Market?

• Airline companies are gradually shifting from price-based differentiation to value-based differentiation because of the consolidated air travel market. This 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.
   
• Airline taxes and security fees are being hiked to cater to the rising expenditure to implement stringent and fool-proof security measures at airports.
   

Download the free sample of this report to know what the key travel management industry procurement best practices that you must adopt to address price dynamism in this market.

Insights Offered in this Travel management Industry Report

• Global and regional spend potential for the travel management industry for the period of 2018-2023
• Supplier relationship management practices in the travel management industry
• Supplier margins and selection criteria in the travel management industry
• Top travel management service providers and their cost structures
• Top travel management service providers in the US and their cost structures
• Travel management industry spend analysis in the US
• Travel management price trends, and forecasts
• Cost drivers influencing the travel management prices

Insights into Travel Management Supply Market
 

• Global travel management service providers offer a single interface point to buyers for scheduling bookings of travel arrangements for various locations. Buyers with global operations seek global TMCs in order to ensure lower procurement complexity and reduction in management effort irrespective of the travel location
   
• Visa approval is a major focus point for travel management service providers, as they have to deal with a variety of regulations with respect to travelers' countries of origin and destinations. Moreover, changing regulations further strain the approval process management effort and cost
   
• With the development and deployment of new technological tools for streamlining of travel management service providers' business process and strengthening of global communication platforms, the threat of backward integration by buyers will increase during the forecast period, thereby contributing to the decreasing market favorability index for service providers.

Insights into Some of the Leading Travel Management Service Providers

The supply market dynamics hint at a substantial hike in suppliers' OPEX which will drive buyer's procurement spend. Keeping such dynamics in mind, strategic selection of suppliers and maintaining an effective supplier relationship management are observed to facilitate buyers with optimized procurement expenditure and better category management in the travel management industry market. This travel management industry market procurement intelligence report has enlisted the top travel management service providers and their cost structures, SLA terms, best selection criteria, and negotiation strategies for the top travel management service providers. The top service providers highlighted in this report include:

• GBT Travel Services UK Ltd.         
• CWT Global BV 
• BCD Group         
• Booking Holdings Inc.    
• Expedia Group Inc.         
• Flight Centre Travel Group Ltd.  
                 

Criteria to select suppliers in this dynamic travel management industry market is subject to change based on the day-to-day market outlook. Get a free demo of our procurement platform to gain immediate access into real-time insights to the changing suppliers selection criteria.