Discover the key challenges facing corporate travel managers today—rising costs, booking issues, and inefficiencies—and how innovative solutions like NDC integrations and AI-backed platforms can streamline travel management.
The growing challenges in corporate travel management
Business travel is essential for growth and collaboration, but it comes with significant challenges. Travel managers are under increasing pressure due to rising costs, operational inefficiencies, and evolving technology demands. According to recent research by Spotnana, Direct Travel, TROOP, and GBTA , 57% of travel managers struggle with complex booking systems and lack of self-service options, which makes travel management more time-consuming. However, the landscape is shifting, and opportunities for improvement are emerging to make travel management more seamless.
This article explores the biggest pain points in travel management identified by the research and highlights innovative solutions that are helping to reduce friction and optimize corporate travel programs.
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What are the top sources of friction in travel programs?
Recent research from Spotnana, Direct Travel, TROOP, and GBTA reveals some key headaches travel managers are facing.
From booking issues to expense management and dealing with TMCs, these pain points make corporate travel more difficult than it needs to be. Let’s take a closer look at the biggest challenges.
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Rising costs put pressure on travel budgets
Rising prices for flights and hotels are making it harder for travel managers to stay within budget. With fluctuating prices and unpredictable costs, it’s tough to plan ahead. On top of that, when employees book travel outside of the approved channels to find cheaper options, it creates "leakage", which means the company loses track of spending and misses out on negotiating better rates. These challenges lead to inefficiencies and higher costs overall.
The impact of rising prices
Rising hotel and air travel prices are a major concern for 89% of travel managers. Price hikes, driven by fluctuating demand, labor costs, and dynamic pricing models, make it harder to stay within budget. The research emphasizes how these external factors are putting pressure on travel programs and requiring more proactive cost management.
Unpredictability and compliance obstacles
55% of travel managers report feeling ill-equipped to predict price changes, and limited compliance enforcement is skewing budgets. Unmanaged travel channels further complicate the situation. This leads to inefficiencies and creates challenges in keeping costs under control.
Leakage issues drive up costs
Leakage refers to bookings made outside of approved channels, often because travelers find better deals through unrelated apps. The research revealed that 82% of travel managers experience hotel leakage, and 71% face flight leakage. This undermines efforts to streamline travel and negotiate better rates, leading to increased costs.
How do we solve compliance and leakage issues?
Progress is being made, primarily led by modern travel platforms, developing tools designed to alleviate these challenges by integrating cutting-edge technologies into the global travel ecosystem:
Advanced NDC integrations
New Distribution Capability (NDC) allows enhanced access to airline data, enabling customisation at a scale previously unavailable. While adoption is slow (6.3% of current bookings are NDC-enabled, and 59% of buyers don’t yet utilise it), the potential is enormous. Acquiring real-time data from multiple sources enhances flexibility and improves the traveller experience.
TMCs and wide content access
TMCs have a vital role to play in making wide-ranging travel options, including budget flights and rail options, available within a single unified platform. Paired with innovative platforms that provide NDC integrations, managers gain greater control over both cost management and the user booking experience. Modern new content-enabled travel management platforms like Goodwings merge traditional GDS content with contemporary NDC and LCC options, allowing you to book flights, rail, cars, and hotels seamlessly.
What stands in the way of companies adopting these innovations?While innovations like NDC show promise, their adoption is hindered by several factors. The study points out that 28% of travel managers face challenges with TMC and Online Booking Tool (OBT) support, and 26% report limited availability of NDC-enabled flights. Smaller companies, in particular, are cautious about disrupting their current processes without clear operational or financial benefits. |
What travel buyers want: Key innovations
The research shows that travel managers are prioritizing proactive disruption management (54%) and real-time data insights (31%). These tools will be crucial in reducing friction, improving crisis management, and enhancing the travel experience for businesses moving forward.
How to Unlock the Future of Frictionless Travel
The future of corporate travel management hinges on adopting modern technologies, fostering strong partnerships, and focusing on user-centric designs. The study emphasizes the need for integrated, AI-backed solutions and better TMC relationships to streamline travel programs and reduce friction.
Conclusion: Transform Your Travel Program Today
As the research shows, rising challenges in corporate travel require businesses to invest in the right tools and partners. Modern platforms like Goodwings, that integrate innovative technologies can help manage issues like leakage, rising costs, and inefficiencies. By selecting the right TMS, businesses can transform the way they handle corporate travel and ensure smoother, more cost-effective programs.
Explore Goodwings and learn how to revolutionize your corporate travel. Book a demo today.
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