What's Happening?
A recent study by Trip.Biz, the business travel brand of Trip.com Group, has highlighted significant challenges in the business travel sector, particularly concerning the use of alternative booking channels. The research, detailed in the whitepaper 'The
Invisible Spend in Business Travel,' found that 53% of business travelers book outside approved corporate channels due to a lack of available content. This issue leads to 'invisible spend,' where travel expenses are not fully accounted for within managed travel programs. The study surveyed corporate travel managers and revealed that nearly one-third of companies using a corporate online booking tool report that 20% or more of their travel spend occurs outside the approved platform. The Asia Pacific (APAC) region was identified as the most fragmented market, with a high reliance on alternative booking arrangements.
Why It's Important?
The findings of this study have significant implications for the business travel industry, particularly in terms of financial management and compliance. Invisible spend not only results in lost savings but also raises concerns about traveler safety and program visibility. The lack of integrated content in corporate booking platforms leads to reduced compliance and increased reconciliation work for travel and finance teams. This situation is exacerbated in the APAC region, where cross-regional trips often require workarounds, further complicating travel management for multinational companies. The study suggests that addressing these issues requires broader access to integrated content sources and the adoption of artificial intelligence to optimize travel management.
What's Next?
To address the challenges identified in the study, organizations may need to enhance their travel management systems by integrating more comprehensive content sources, including New Distribution Capability (NDC), low-cost carriers, and local travel inventory. The adoption of artificial intelligence is also recommended to support functions such as conversational booking assistants and spend optimization. By making invisible spend visible, companies can better manage complexity, optimize supplier performance, and generate strategic insights from travel data. This approach could lead to improved compliance, financial management, and traveler safety.
