Most travel buyers expect more ‘uncertainty’ during 2023

Travel buyers are expecting another year of uncertainty during 2023 while also expressing concern about the “lack of readiness” from TMCs for changes to airline distribution.

A survey of 100 corporate travel buyers carried out by the Institute of Travel Management (ITM) found that 61 per cent were prepared to “expect the unexpected” during 2023, while 24 per cent were optimistic and 14 per cent described themselves as concerned or anxious about the year ahead.

The results of the survey of buyers, managers and heads of travel, with a mixture of global, EMEA, and UK and Ireland responsibilities, was released at the ITM’s annual conference in Brighton on Wednesday (26 April).

The majority (60 per cent) felt that their TMCs have not been adapting to the changes in the “distribution landscape” and were not ready for the imminent onset of NDC-based airfares. This was in stark contrast to the findings of a separate poll of 250 European buyers for Business Travel Show Europe where most buyers seemed generally happy that their TMCs were ready for NDC.

The ITM’s buyer members expressed worries that there would be a rise in leakage from their programmes if their TMC was not ready to provide access to new NDC-enabled fares.

Some 90 per cent said their current policy did not allow travellers to book outside the TMC and they were concerned that more travellers could ask for policy exemptions or just book outside policy if NDC fares were not available through corporate booking channels.

Sustainability is becoming more of a priority for buyers with 82 per cent saying business travel was now part of their organisation’s roadmap to achieving net zero carbon emissions. The majority of respondents (57 per cent) also said their organisation planned to invest in sustainable aviation fuel (SAF) during the next 12 months.

Scott Davies, CEO of the ITM, said: “As always buyers have a huge amount on their ‘to do’ list and are having to adapt and pivot to deal with many expected or unexpected challenges.

“Air distribution and modern retailing continue to dominate their agenda, as well as sustainable travel.

“This is another reason why ITM has established two dedicated taskforces recently – an Air Distribution Taskforce and also a separate Sustainability Taskforce – to support buyers with practical guidance in managing both these areas.”

source: BTN Europe