Buyers highlight ground transport issues at ITM event

Car rental supply chain issues, driver shortages and rising ground transportation costs were highlighted as key areas of concern for travel managers at the Institute of Travel Management’s latest Buyer Knowledge Exchange event.

According to the ITM, global, EMEA and UK travel managers attending the event said their programmes have faced a shortage of vehicles available to hire because car rental has become a preferred, ‘Covid-safe’ option for both business and leisure travel. The trend has particularly caused issues with finding cars available for one-way hire.

In addition, attendees said suppliers cannot guarantee availability of electric vehicles as the demand for more sustainable travel options increases.

Elsewhere in ground transport, buyers attending the ITM event said their travellers are finding it difficult to secure chauffeured cars due to a shortage of drivers. Some buyers are urging travellers to book their ground transport as far in advance as possible, ideally at the same time as their flight booking.

With these operational challenges has come a rise in ground transportation costs, with some buyers reporting that suppliers require a minimum three or four-day rental, even when a traveller only needs the car for 24 hours. The shortage of vehicles means travellers are also turning to non-preferred suppliers, which the ITM says can increase costs by as much as four times. Buyers said they are also turning to secondary providers to support fleet availability and alleviate cost challenges, with some saying incumbent suppliers have raised prices significantly across all markets.

Other business travel trends discussed at the event include concern regarding the readiness of online booking tools to handle ongoing complex travel requirements as a result of Covid-19, as well as their ability to steer travellers towards sustainable travel choices.

Meanwhile, travel management company staff shortages are causing ongoing service issues, with bookers reporting long call waiting times and slow email responses. Buyers say the problem is exacerbated by the fact that bookers are seeking reassurance by speaking to their TMC over the phone.

In keeping with the industry’s renewed focus on sustainability in the wake of disruption caused by the pandemic, buyers said stakeholders are increasingly questioning the value of work trips and face-to-face meetings. As such, the role of the travel buyer is shifting to become a consultant to stakeholders within their organisation, supporting the decision-making process as to what constitutes the ‘right’ level of travel from the perspective of sustainability, traveller wellbeing and cost, according to the ITM.

And contrary to data from other sources, most of the buyers attending the event still have policies in place that forbid international travel unless essential. Most reported no marked increase in transatlantic business travel bookings since the US reopened its borders to vaccinated foreign nationals earlier this month. Instead, these buyers’ organisations are focusing on getting employees back into the office before returning to travel.

Scott Davies, chief executive of the ITM, commented: “Our ITM buyer members are at the coalface of what’s really happening in terms of whether business travel is returning in any significant way and the challenges that their bookers and travellers are facing.

“There’s been a lot of talk in the industry about air travel volumes and the transatlantic corridor reopening with TMCs and airlines reporting a surge in bookings to the US. However, it’s interesting to see that our buyer members’ biggest challenges at the moment are with ground transport, and in fact they haven’t seen any notable change yet in international travel to the US.

“The role of the travel manager has also been elevated within their respective organisations as they consistently engaged with senior stakeholders throughout the pandemic. Now as travel returns, buyers are becoming even more influential in the decision-making process as to what type of meeting or collaboration justifies the need to travel in the post-pandemic era.”