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Our Vision of Business Travel
We have seen significant changes in the way people travel
Price volatility
The introduction of Yield Management in hotels and transport companies several years ago has changed cost management. Prices are no longer fixed over a period. They are volatile and subject to change. There is constant variation; prices can change from day to day, or even from minute to minute. Service providers adjust their prices based on several criteria. So, the same hotel might display a different price online, within a booking system or in a different country. The same applies to transport companies. Negotiated rates are quickly becoming obsolete and are usually replaced by the “Best Available Rate”.
A multitude of sources
A GDS has many limitations, as certain hotels or car rental companies are often overlooked, as are other types of service. All they are able to find are airlines. Globalisation is also forcing airlines to offer different prices in different countries in order to remain competitive. Not to mention low cost companies, which can bypass GDS’s. As a result, these systems are proving unsatisfactory when it comes to finding the best offer. Diversification and the use of local service providers are required.
Partnership limitations
Generally, a fixed number of bookings have to be made in order to obtain any discount. This means companies have to limit the number of suppliers and thus impose limits on products and pricing. Negotiation is based on a fixed price which does not reflect price changes that the service provider may make. Furthermore, a single service provider cannot influence prices overall. They are often the leader in a specific area.
The booking process is further complicated by the number of partners involved, and booking systems are unable to handle accounting tasks. This means the service providers have to be grouped together using a specific system.
The downside of travel policies
Travel policies are subject to strict spending restrictions, as they set limits using approval processes which are not monitored by travel experts. It is even more difficult to monitor expenses other than accommodation and transport.
Our business vision is based on a complete offer which relies on technology, multisourcing and sound business travel expertise. Collaboration can be based on both ROI and agency fees.
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