…
Lately, we’ve become accustomed to bracing ourselves for the next economic hit. It’s not hard to understand why – every morning it seems the world awakens to another round of news on the severe challenges confronting the global economy. The business travel industry is no exception. Volumes are down and there is no clarity as to when, if ever, they will return to previous levels. Businesses and cost structures that were built for continuous growth are facing a crisis of confidence. Suppliers across the industry have been forced to recalibrate their business models and determine how to operate more efficiently in order to remain relevant.
Leaders of companies large and small are in a constant struggle to cope with a perpetual state of flux – it can feel like riding a wild bull where all you can do is try your best to just hold on. For any business leader, the first priority in times like these is immediate reduction of non core expenses. Of these non core expenses, travel is one of the major items. Reviewing costs around travel and its associated infrastructure is an imperative in today’s environment. A smart leader can leave no stone unturned in the quest to maximize the return on their travel investment.
These momentous changes have ushered in what we see as the next phase of business travel. At American Express Business Travel, we’ve been working to pave the way for this next phase by adopting a value-based business model, and we’ve started to change the conversation with business leaders towards viewing business travel as a revenue-generator, instead of an expense. This new phase is about creating flexible models that can adapt to a changing environment, eliminating the waste or irrelevant actions and investing in the sources of value – not implementing across-the-board cost-cutting that compromises strength without changing behavior. We want clients to revolutionize the way they think about their travel programs through our five STEPS approach, enabling them to gain deeper insight and achieve best-in-class travel and expense management. Our five STEPS are designed to empower decision-makers to adapt more readily to a rapidly changing business landscape and uncover all areas of opportunity by focusing on Sourcing savvy, Transform the model, Empower the traveler, Precision and control and, Service excellence.
We recently announced plans to transform how we deliver value to our customers by putting these principles into a new consultative service approach. Clients need to look at business travel through an entirely different prism. It’s no longer about managing transactions, but about helping our clients maximize business processes from the business traveler up to the travel manager, and even beyond to the finance officer and chief executive. We are providing companies with higher levels of oversight as they balance travel dollars with the return-on-travel investment by offering tools and platforms based on Web 2.0 technology, reforming our service approach and placing teams in crucial advisory roles. These actions will assist customers manage travel spending in the most efficient and cost-effective way, while still keeping travelers on the road.
Especially relevant in this economic environment, it is paramount that we offer clients even more innovative technology tools, advice and counsel available at each customer touch point. What are some of things we’re doing for our customers?
- We’re offering clients greater insight into their environmental strategies, with carbon emission reporting, development of ECO/CSR tactics across all elements of their business and consulting on offsetting programs;
- We’re using our social networking community to spread the word about new best practices to control spending and maximize ROI;
- We’re broadening control over a wider array of T&E categories through our Intelligent Online Marketplace (aXiom);
- We’ve built flexibility into our Business Intelligence tool, aXis @ Work, and continue to make enhancements to create better precision around measurement and deliver information customers want, when they want it;
- And, we’re launching several innovations, including a small meetings solution to help companies gain greater control over this important area of spending.
While the next phase will call for greater policy oversight, control and belt-tightening, it also will bring opportunities for positive change and innovation that can lead to long-term success for companies willing to step up to the challenge.
The current economic environment is changing the ways of the travel world forever. Those willing to embrace it, ultimately, won’t have to “brace” for it.
Charles Petruccelli is President, Global Travel Services at American Express. Mr. Petruccelli has been in the business travel industry for over 25 years and for the past 8 years, has overseen the Global Business Travel and Foreign Exchange businesses at the Company. Opinions and/or analysis provided by American Express employees on this discussion board represent the opinions and analysis of the individuals providing such content and do not represent the opinions or analysis of American Express Company or any of its affiliates, subsidiaries or divisions (including, without limitation, American Express Business Travel).
Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.
