Technology & Innovation

Disruption hub: Landing innovation in Asia’s corporate travel industry

October 24, 2019

Asia

Disruption hub: Landing innovation in Asia’s corporate travel industry

October 24, 2019

Asia
Charles Ross

Asia editorial director

Charles Ross is Principal of Policy and Insights in Asia-Pacific and leads the region's technology and society practice. Prior to this role, he was editorial director for The Economist Intelligence Unit overseeing all thought leadership research in Asia. Charles combines a deep understanding of how technology trends are reshaping business and society with excellent research and editorial skills, to create impactful and award-winning research programmes for clients. Charles is currently based in Australia and has led many projects analysing the implications for business of new technology trends such as blockchain, fintech, smart cities, cloud computing, sustainability and the internet of things, for Google, Stripe, SAP, Telstra, Microsoft, Prudential, Westpac and the Singapore government. He is a contributing industry expert to the UN Science Policy and Business Forum on the Environment and a frequent speaker at finance and technology events across the region. Charles holds a master of business administration, focusing on strategy and organisational change, from the University of Oxford and a certificate in public policy analysis from the London School of Economics and Political Science.

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Asia-Pacific is a region of great diversity in travel environments, where booking and payment methods, industry structure and business culture differ markedly from country to country. Adding to the complexity this creates for travel managers are the advances in digital technology that are leaving no industry or sphere of activity in the region untouched.

This report explores the impact of digitisation and wider travel industry change on how companies manage corporate travel in the APAC region.

For most travel managers, however, the impact of digital change is hugely positive. Employees using their mobile devices for all manner of transactions, approved or otherwise, may be disquieting to some, but the research conducted for this Economist Intelligence Unit study shows that digitisation is also bringing more standardisation as well as control and monitoring capabilities than had existed previously. It is also creating unprecedented opportunities to understand employee travel and spending behaviours and adapt travel and entertainment (T&E) conditions accordingly.

Key findings: 

  • Digitisation, automation and analytics are combining to give companies in the region the ability to manage staff travel much more efficiently
  • Many firms accord employees considerable autonomy to book travel, but 40% report a significant increase in corporate travel costs as a result
  • The biggest challenge in granting autonomy is ensuring employee safety, say 31% of survey respondents

This report is based on a survey of 210 travel managers and other senior executives in Asia Pacific, as well as in-depth interviews with travel managers and other industry experts.

The value of the data being generated is such that companies prefer to analyse it internally, rather than outsource analysis. Travel managers obtain transaction data from a wide variety of sources today, including their travel management companies (TMCs), but managers often struggle to get consolidated data from any one external partner, say interviewed executives.

Digitisation, while giving employees more options to book travel and pay expenses in different ways, is also enabling companies to make travel policy more specific and to ensure tighter compliance and cost control, the study finds. Similarly, the detailed data now available to companies enhances their ability to ensure employee safety when travelling.

The report also finds considerable innovation in payment practices in the region. E-wallets, mobile payment apps and virtual cards, for example, are coming into wider use. At the same time, T&E is becoming more tightly controlled, thanks partly to the wider use of corporate cards. At over 60% of surveyed firms, the latter is the main method used to procure airlines and hotels and pay in-travel expenses.

Disruption hub cover

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