A global travel manager for one of the world’s leading mining
companies believes that by 2030 there will be fewer than 50 per cent of people
currently in traditional travel management roles that will still be doing them.
Speaking at the recent CAPA Live event, Mike Molloy, global category
leader for travel and expense for Rio Tinto, said that 10 per cent of travel
managers would drop out of that role in the next five years but this would increase
to 50 per cent by 2030.
However, it is not all bad news. Molloy said: “When I say drop out, I mean move to something
else, another area of expertise.” He cited the example of switchboard operators.
“After World War Two, one of the big industries was
telecommunications and one of the biggest employers in the world was AT&T who
employed 350,000 switchboard operators. They moved a plug from one hole to
another and then you had a connection. At that time, it was a critical industry.
It was what some people aspired to do and it was seen as a solid career move.”
He added: “I am not saying corporate travel is going the way
of the switchboard, but there is a lot of technology advancement [in corporate
travel]. All of the switchboard operators found new careers, they developed and
learned new things. Nobody is really
worse off because of the death of the switchboard industry.”
“The technology will be an enabler,” said Molloy. “It will
allow people to do more, to do it more safely and more easily and some of the
more traditional roles will evolve.”
He said: “I still believe there is place for the strategic management
of travel and for the efficient management of policy, systems and related activities.
People will be needed to accomplish this. It will become more strategic [and] there
will be growing tactical use of professional consultants who can advise the
best fit for companies on their corporate travel needs. We have seen this
pattern historically in other corporate professions such as HR, real estate,
facilities and IT.”
Many have said Covid is a watershed moment for business
travel and that it has cut demand forever. Molloy is not convinced.
He said: “I have seen a lot of ups and downs in this industry.
It seems every few years something comes along that says it will be the end of
corporate travel or that it will never be the same. But I am broadly optimistic
about the corporate travel industry.”
Molloy continues: “First, people have the desire to meet and interact with others
– we are social beings. We want to explore other cultures, we want to sell and trade
and interact and learn from others.”
“Second, we have the power of demographics on our side.
China, India, Indonesia and Africa all have growing populations, growing middle
class populations who have disposable income who want to travel for leisure and
who will need to travel for business.”
Molloy added: “Whether it’s 9/11, SARS, the global financial
crisis or the unpronounceable Icelandic volcano, each and every time, corporate
travel has come back in higher numbers than ever before and I have every
expectation it will do so again.”