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September 2022, Virtual
September 29 2022, Virtual
More than two thirds (69%) of travel buyers in the Asia Pacific region (APAC) are failing to track spend on ancillary fees imposed by airlines.
A new study also found that 61% were also not sure when they would track these unbundled fees.
The report is thelatest from the Global Busainess Travel Association (GBTA) Foundation and Egencia, the corporate travel arm of online agency Expedia.
They quizzed 421 buyers based in the region on policy mandates, booking procedures, class of service, advance purchases, pre-trip approval and ancillary fees.
The study concluded that their replies on ancillary fees indicated “uncertainty on how to capture and report on ancillary spending within their current programmes.
The 31% who did track these charges said they would re-imburse air travellers on baggage fees, itinerary changes, meals and Internet access.
On hotels, they would re-imburse fees for Internet access, airport shuttles, parking and late check-out.
The study also found that buyers were clamping down on premium travel with 52% refusing to sanction business class or above.
Of those who did allow premium travel, 38% permitted it to Europe, 34% to North America, 30% to South America and 25% to the Middle East.
But the buyers who said their main aims were to cut costs and maximise savings, took a more reaxed view on travel policy with nearly half (48%) saying policy was more a matter of guidelines.
The study found that larger companies were “more likely” to have a written policy but 11% of corporates had no written guidelines at all.
Cecilia Routledge, managing director for Egencia APAC, said: “Controlling travel associated costs and maximising savings are key travel management objectives.
“Our study reveals industry insights for APAC travel managers that will allow companies to benchmark themselves against both APAC and global companies in order to drive maximum cost savings through custom-tailored travel programmes that offer, among other benefits, preferred rate hotels.”