What is the market opportunity and outlook for corporate travel management companies (TMCs) in the UK and the US? Our latest report considers business travel, key purchase criteria, the competitive landscape and the impact of Brexit on this sector.
The ‘outsourced’ or managed corporate travel market is worth £27 billion to the UK. Despite its size, it is still relatively immature, representing only 34% of business travel spend and with a fragmented competitor base. The economic slowdown is accelerating the penetration of this market, as organisations seek to manage their travel costs and TMCs look to M&A opportunities to capture scale benefits.
Technology is a key driver. As arranging private travel online becomes more mainstream, employees are increasingly willing to book their business travel online too. As a result, organisations that traditionally managed their travel using dedicated call desks are shifting towards a two-tiered approach – offering online booking tools to the majority of employees and a more bespoke service to a small number of key personnel. Employers are benefiting from both the cost efficiencies of online booking and the better security and risk management processes it offers.
Employers also need to have greater visibility over the travel patterns of their employees to fulfil their various taxation obligations for expatriate workers and short-term business visitors. Using appropriate technology combined with an outsourced service can help with these obligations.
Our strategy team undertook this comparative study; assessing the market opportunity and outlook for corporate TMCs in the UK and the US, with contributions from TMCs, procurement managers and industry associations. It focuses on business travel, key purchase criteria, the competitive landscape and the impact of Brexit on the sector.
Download the attached 12-page report on ‘Going places: A snapshot of the corporate travel industry’ for comparative analysis and the full story.
For more information please contact Ven Balakrishnan, Strategy Group Partner.
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