|[January 31, 2017]
Global Travel Management Services: Cost Saving Opportunities by Technavio
According to the latest procurement intelligence report from Technavio,
the global market for travel
management services is expected to grow at a CAGR of 7.3%
over the next five years due to the outsourcing of travel management
services by several large organizations.
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Technavio has published a new report on the global travel management services market from 2016-2020. (Graphic: Business Wire)
The research report titled 'Global
Travel Management Services: Procurement Intelligence Report 2016-2020'
provides an in-depth analysis of category spend, best procurement
practices and cost saving opportunities, aimed at helping organizations
achieve superior business performance. The report also provides insights
on pricing, supplier positioning and top companies, enabling sourcing
professionals to improve their competitive advantage through procurement
"During the forecast period, the travel management services market will
be driven by the rapid growth of business activities in emerging markets
such as India, China, Malaysia, Indonesia, Mexico, and Brazil," says
lead Technavio procurement specialist Angad Singh for category
spend intelligence. "In addition, several large organizations
are increasingly outsourcing their corporate travel management to TMCs,
to achieve cost savings and gain greater visibility on their corporate
travel spend," adds Angad.
Request a sample report: http://www.technavio.com/request-a-sample?report=52905
Technavio sample reports are free of charge and contain multiple
sections of the report including the market size and forecast, drivers,
challenges, trends, and more.
Cost saving opportunities in the travel management services market
The adoption of various cost-optimization levers helps buyers of travel
management services realize direct cost savings and enhance category
management and value benefits (including reduced procurement
Technavio procurement experts have segmented the cost saving
opportunities in the travel management services market into the
following value-enhancement opportunities:
Adoption of technology
Adoption of negotiation strategies
Optimization of procurement practices
Bundling of services
Adoption of technology saving aspects
Implementation of technologies such as mobile applications for booking
and tracking of travel schedules and promotions, automated expense
management, and use of artificial intelligence for predictive analytics,
results in efficiency and cost-savings to the extent of 10%.
Corporate travelers attach considerable importance to travel
convenience. For instance, they prefer having access to real-time,
customized information about their travel schedules. Thus, companies
prefer to engage with suppliers that can offer mobile alerts and
tracking features that provide corporate travelers with real-time
Optimization of supplier competition saving aspects
The key focus of large organizations with respect to corporate travel
services is to reduce spend and eliminate hidden costs associated with
bookings and value-added services. For instance, a single platform for
booking and tracking travel requirements helps organizations centralize
spend and plan travel in a cost-effective manner. Competitive bidding
comprising of price discounts and value-additions helps organizations
realize cost-savings to the extent of 12%.
Buyers look to engage with suppliers that can customize services in
response to travel and hospitality requirements. For instance, suppliers
must be able to address changes in the location of business conferences
and traveling dates at short notice.
Bundling of services saving aspects
One of the most opportunistic strategic cost saving levers in the global
travel management services market is the need for reduction in
management complexities. Organizations prefer to engage with TMCs that
offer one-stop solutions for all their travel needs.
Some value-added services such as concierge assistance, VIP
arrangements, interpreters/translators, virtual payment options, and
visa assistance are becoming increasingly popular among corporate
travelers. Buyers prefer engaging with suppliers that offer such
services and cater to their unique requirements leading to cost-saving
to the extent of 10%.
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is a leading global technology research and advisory company. The
company develops over 2000 pieces of research every year, covering more
than 500 technologies across 80 countries. Technavio has about 300
analysts globally who specialize in customized consulting and business
research assignments across the latest leading edge technologies.
Technavio analysts employ primary as well as secondary research
techniques to ascertain the size and vendor landscape in a range of
markets. Analysts obtain information using a combination of bottom-up
and top-down approaches, besides using in-house market modeling tools
and proprietary databases. They corroborate this data with the data
obtained from various market participants and stakeholders across the
value chain, including vendors, service providers, distributors,
re-sellers, and end-users.
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View source version on businesswire.com: http://www.businesswire.com/news/home/20170131005564/en/
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