In a November paper that otherwise favored optimizing indirect procurement over outsourcing it, McKinsey & Co. suggested companies consider outsourcing travel procurement. It’s debatable whether outsourcing purchasing in indirect categories such as travel saves money. Nevertheless, some industry pros figured current cost pressures in certain industries would prompt more companies to look at outsourcing travel…
The near future of employment in business travel looks grim. The frontline lodging, dining or transportation worker, the corporate travel agent nearing retirement, the hotel salesperson 10 years into a dream job — they’re furloughed; they’re unemployed; they’re in limbo. For many, there’s no longer a good argument for holding out hope. They should grieve,…
Different industry verticals will restart business travel at different velocities. According to a McKinsey & Company analysis, that will mean a slower recovery for Europe and the United States than for China. Comparing business travel spending data in China for March 2020 to March 2019, the consultancy identified “early rebounder” sectors. They included construction, food…
Travel management companies are trying to make the most of a time when bookings remain feeble. In addition to staff right-sizing, relocating and retraining, some are trying new technology. A more efficient operation could improve margins. For some, that means accelerating artificial intelligence, which may shift client service propositions and performance measurement. An area of…
“Green shoots” are nice but transaction counts for most travel management companies as of last week remained between 3 percent and 15 percent of last year’s levels. Emotionally, that is a million times better than cancellations outstripping bookings. TMCs are seeing gains every week. More than a dozen of their executives speaking with The Company…
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