Is the company ready to travel when the world is reconnected?

The travel industry, which has carefully returned to normal, will be vital for many companies that are currently supporting life. And during accumulation, travel managers who have reviewed their policies and are available to help suppliers can make the process smooth by helping their own organizations and suppliers.

The travel industry, which has carefully returned to normal, will be vital for many companies that are currently supporting life. And during accumulation, travel managers who have reviewed their policies and are available to help suppliers can make the process smooth by helping their own organizations and suppliers.

“There will be a beginning and a slow start, and I hope we will see policies that pursue when goals can be opened. Policies introduced by large companies will allow people to move around that part of the world or whether regulations prevent people from moving and going somewhere so no shop to reopen the hotel? “said Scott Solombrino, director of the Global Business Travel Association.

The trade organization, which claims to have 9,000 members who manage $ 345 billion annually in travel and business meetings around the world, now asks big brands every day when they think they will boom.

“This is slow bleeding and has caused regional structural problems in the long run … But one thing we know from talking to companies is that there is very limited demand. Many companies have just recently closed down. This means there is one going to there has been a lot of movement from people trying to get out soon, all of this business has been stopped and needed.

However, there are concerns that airlines and hotels may not be able to meet the increasing demand for business trips. On the other hand, what happens when the flight resumes and the hotel reopens, but nothing appears because the travel guidelines don’t allow it?

RESPONSIBLE PURCHASES

Responsible public procurement can play a key role in controlling buyer and supplier concerns, while hotels in particular can maintain tariffs to ensure long-term survival.

“At the moment, I want to work with my supplier base and I try to be responsible for helping them overcome strong winds. In this case, I will notify my suppliers early so they can consider restoring their capacity,” said Chris Poney, a consultant contract. “It is almost an obligation to help them secure and manage that capacity.”

Pouney also believes that travel managers should not check fares. “Now is not the time to compete with suppliers because they are desperate. Orders are performing poorly – it’s good to see how responsible orders are being carried out. We need suppliers to stay close,” he said adding that now could be the right time to change the writing tool This automatic reset.

LEARN

It is also not possible for travel managers to see price reductions – “Don’t be in a hurry to go down too fast or too low,” advises the revenue management company.

There are similarities between major events such as September 11, where land airlines have influenced hotel demand. Although this period is much shorter than the corona virus, September 11 is seismic enough to change the pattern of distribution. Hotels in particular panicked and switched from the commission model to a commercial model that agents could use to set their own rates.

“After September 11, online travel agents told hotels: Give us the lowest price. Then they sell it cheap. This gives these agents airtime, the billboard effect they need. Consumers have a closeness with them.” said Michael McCartan, Revenue Management Consultant and former Executive Vice President at RateGain. “It takes four or five years for prices to be normalized again. Power is shifting and online agents are attracting the attention of consumers who are becoming loyal.”

McCartan argues that history will not be repeated and that business travel managers should not expect lower hotel prices. “Hotels are aware that giving up full control is not profitable in the long run. Now they are sacrificing jobs and maintaining slightly higher rates. When people are not traveling, there is only so much demand and price is not the only factor. The theory must be restored quickly.

“But if we behave irrationally, the impact will be severe. We hope there are enough industry people who have lived until September 11 to guide and learn from the past.”

Leave a Reply

Your email address will not be published. Required fields are marked *