Airline corporate travel programs used to operate under a well-defined framework for years. Airlines made contracts with corporations, worked with travel agents, and made sure they were good at maintaining relationships with clients. Metrics for success at the time consisted of the number of contracts signed, their share among travelers, and earnings from them.
Even though these foundations remain relevant in the corporate travel environment today, the circumstances have changed dramatically in comparison to five years ago. The way airlines manage corporate travel programs has become more sophisticated in comparison even to five years ago due to the fact that corporate travel programs today are not about fares negotiated and contracts signed anymore. There is a much larger number of players involved today, travelers’ expectations have changed, and work styles have progressed. Thus, the task airlines have to solve is not about getting corporate clients – it is about retaining them.
The Corporate Travel Environment Has Changed
The return of business travel has been very different for various segments, industries, and areas. Some businesses have gone back to their global travels like they used to, while some firms are still working under limited travel options. Different companies, at the same time, are reassessing how they handle travel budgets, travel movements of their employees, and overall traveling experience.
Thus, the world of corporate travel has become a more diverse sector.
Airlines no longer deal with the same travel patterns that they used to. They now have to support numerous multinational companies together with smaller enterprises and businesses with hybrid working options.
This change brings a new approach to corporate programs where every airline corporate sales and account management department will have its own corporate program.
More Stakeholders, More Complexity
Travel managers do not have the only influence over corporate travel decisions anymore. Nowadays, many departments participate in decision-making concerning travel programs such as procurement teams, finance departments, HR managers, sustainability managers, and heads of business units. Each stakeholder has his/her own priorities. While finance departments are concerned with controlling costs of travel, travel managers care for issues related to the experience of travel and compliance with the policies. Sustainability departments may require emission reports. Business leaders want to create as much flexibility in travel arrangements as possible. Such diversity of requirements complicates the relationships with companies that provide corporate aviation services.
Corporate Expectations Are Evolving
The expectations of corporate customers are also changing.
Corporations progressively want airlines to offer a dependable and trustworthy experience from beginning to end of corporate travel.
This includes:
- Streamlined booking processes
- Clear policy management
- Faster account support
- Better reporting visibility
- Consistent traveler experiences
Corporate clients are holding convenience in doing business in much higher regard.
In various instances, the quality of account management and service can affect the choice of airline for a longer term just like the price or network coverage.
This requires additional effort from airlines to enhance corporate program management and support.
Scaling Relationships Is Becoming More Difficult
Perhaps one of the most fascinating trends in the industry is an increased focus on relationships with companies.
Air carriers are investing in the services of corporate sales teams, account management departments, and partnerships.
These relationships are critical for getting and maintaining lucrative accounts in business travel.
However, with corporate portfolios expanding, much effort is involved in keeping up with the engagement process.
Account managers now have to support larger customer portfolios, manage much more complex demands, communicate with different teams in the organization, and be sensitive to clients’ changing needs.
Building relationships is no longer a main challenge for travelers.
Now, it is about establishing these connections on a large scale while keeping the same visibility and responsiveness.
The Administrative Burden Is Increasing
Behind every corporate travel program is a significant amount of operational coordination.
Airlines must manage:
- Corporate agreements
- Traveler eligibility
- Approval structures
- Account hierarchies
- Program updates
- Performance reporting
Growth in the number of corporate accounts means that the administrative work can be complicated, too. Once, the administration was manageable with a few jumbo accounts, but now the need for operating them in a rational way has grown.
Why Technology Is Becoming an Enabler, Not the Strategy
The airline industry frequently engages in discussions on technology in terms of distribution, retail, or modernization.
But when it comes to corporate travel, technology increasingly gets associated with better account management processes.
Technology never truly takes the place of relationships.
The role of technology is to allow the companies in aviation to make the most of existing relationships.
It is the responsibility of airlines to give their corporate sales and account management teams the visibility, structure, and operational support necessary to carry out their corporate portfolios without the need to increase complexity.
In order to make corporate travel programs more sophisticated, airlines need a space that works both for commercial requirements and the everyday processes of account management.
Supporting the Next Generation of Corporate Programs
In the future, the fate of airline corporate travel will rely on more than just market pricing or network advantages.
The carrier must build the capability to realize complex corporate programs while providing effective and efficient service and support.Â
This is where specialized corporate management solutions such as ADO come into play.
ADO allows carriers to manage corporate accounts in an efficient manner, thus helping increase the effectiveness of corporate dealings.Â
The aim is to not simply digitize corporate travel, but to help airlines combat complexity without compromising quality.
Conclusion
Corporate travel continues to be one of the most lucrative revenue generators for airlines. But the manner in which corporate programs are operated has become much more complex.
More and more parties involved, changes in expectations of customers, more administration tasks, and larger portfolios of corporations are emerging obstacles for the aviation industry all over the globe.
As the corporate travel situation is changing, success will depend not only on obtaining corporate accounts but on proper management of the accounts in the long term.
The next stage in development of aviation will be represented by the success of companies’actions when struggling with relationship management and operational performance.
