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The need for cost savings and stress on the safety and security of jet set executives is driving multi national companies (MNCs) to consolidate their travel planning requirements with one or two companies globally, Peter Muller, chief operating officer of global corporate travel firm ATPI said at a travel event here on Wednesday.
"The main trend in corporate travel is undoubtedly consolidation with companies looking for one main travel management company and perhaps one or two more smaller travel companies to service their travel requirements. That is being driven by changes in world economy as MNCs realise that they need to consolidate travel planning. This drives cost savings and it is also about safety security,'' he said.
Muller said there has been 40% increase in US companies seeking consolidated solutions for their travel planning.
Corporate governance laws in the US and Europe require corporates to take steps to mitigate risk of their employees who travel for work and take risk management measures to protect them. A consolidated travel service provider helps them with such solutions as it is easier to monitor which employee is travelling in which part of the world. This aspect of travel planning came to fore after April's bomb explosions in Boston.
The corporate travel market globally is said to be worth over a trillion dollars and growth is mainly being driven by China, India and Brazil. "As per Global Business Travel Association, the Indian corporate travel market was estimated to be about $ 20.8 billion and the compound annual growth rate of spends on business travel for India is forecasted at 10.8% for the period of 2010- 2015 . The double digit growth of business travel in India is being driven by a developed and diversified economy,'' ATPI's assistant managing director Anna Singh said.
