APAC corporate travel agents focused on optimising costs and efficiencies – new business priorities

19 October, 2022

Respondents to a regional survey across the Asia Pacific (APAC) region have pointed to a growing need for the corporate travel industry to tailor service offerings for new workforce realities, such as remote and blended working arrangements, while embracing technology to capitalise on, and drive, ongoing recovery.

The observation comes from the results of a new survey of travel agents and travel management companies (TMCs) in APAC by Sabre Corporation, a software and technology provider that powers the global travel industry software and technology provider

The research was carried out with respondents across APAC, in five languages in 21 countries, to gain insight into the evolving expectations of business travellers, and how corporate sellers in the region are adapting to service these new demands.

It discovered a shifting shape of corporate travel with an increase in bookings, a switch to low-cost carriers, and a focus on new technology.

Corporate travel agents have changed their business priorities

The responses show a high majority of corporate travel agents (84%) have changed their business priorities as a result of the pandemic, and are now focused on optimising costs and efficiencies, while meeting customer and business demands with fewer employees.

A similar number have also adopted new technological solutions to manage COVID-19 related risk over the past two years. And, of those who haven't, approaching half (42%) plan to do so within the next two years. The most popular solutions are travel risk management tools, automated workflows and virtual payment tools.

Rise in internal corporate travel will create recovery opportunities

According to the research, half of agents expect a rise in internal corporate travel, to bring remote workers together, will create recovery opportunities, while 45% said emerging corporate travel markets are important for growth.

There's strong optimism in the market, with 82% of respondents saying they expect a return to pre-pandemic corporate travel levels, and 15% expecting a boom greater than pre-COVID-19, within the next 12 months.

More than two-thirds of respondents report an increase in bookings in the three months to Aug-2022. Most are reporting an increase of not more than 30% but there's a notable 14% with an increase of more than 50%.

Travel spend is increasing, but costs still remain a key consideration

More than half survey respondents (55%) acknowledged company COVID-19-related travel restrictions are easing, and more than a third (38%) said total travel spend is increasing.

But, cost remains a key consideration.

More than two-thirds have seen a moderate or significant increase in bookings with low-cost carriers. The trend is most prevalent in North Asia where there's been a 42% switch from FSCs to LCCs, according to the survey findings.

Corporate travellers are placing high priority on information, flexibility, and hygiene

Corporate travellers are also placing a high priority on information, flexibility, and hygiene. However, companies are also turning their attention to sustainability as one of the key personalisation priorities for corporate travel, according to the survey results.

Business travel is rebounding, but returning differently

Brett Thorstad, vice president, Sabre Travel Solutions, Agency Sales says Sabre's own booking data is showing that corporate travel "is coming back strong," but while business travel is rebounding, "what is clear is that it is turning differently," he says.