Security key for corporates in 2013 – HRG
Security will be the top priority for companies with regards to their corporate travel policies in 2013, according to Hogg Robinson Group (HRG).
In a new report, the travel management company said it expects its corporate clients to focus on consolidating their travel programmes in an effort to save costs, and also to locate travellers quickly during crises.
“Security is the top issue in all new tenders, literally jumping from the back of the document to the front,” said Stewart Harvey, HRG’s Group Commercial Director. “In 2012 we saw more clients put security before cost concerns and we expect this trend to continue in 2013. Incidents like the Icelandic volcano eruption and Arab Spring were significant wake-up calls for corporates, who are now more focused on how on to keep track of their employees in the event of an emergency.”
HRG added however, that cost savings will continue to be important to corporates.
“We expect travel costs to increase in 2013, but unbundling will make price increases less transparent. The core ticket price may only rise by 1%, but individual ancillary fees, such as baggage fees and on-board food and services, are likely to rise by 6-8%,” Harvey added.
The corporate travel company also predicted that countries in the Asia Pacific will continue to grow as destinations for business travel, but not as quickly as previous years. It identified Vietnam and South Korea as destinations to watch in 2013, calling them “corporate hot spots”. It also said that the stock of African countries could start to rise.
“Emerging markets will continue to attract business travel, but it is Africa we need to watch. Although Africa is starting from a low base line, many of its markets, such as Nigeria, are poised to grow substantially over the next decade,” Harvey said.
Overall, HRG said it is optimistic about 2013. “As a TMC, we can control base costs but not traveller behaviour. Next year we plan on helping clients manage behaviour by demonstrating how issues such as advanced booking and off-peak tickets can make savings. As clients treading carefully, we have the chance to help them uncover, capture and control more aspects of their travel,” Harvey concluded.