GUEST BLOG: 2018 Outlook – the impact of Brexit, traveller safety and geopolitical

Brexit will have positive effect on business travel

Travel managers need to start focusing on the direction their company’s business may have to move towards in terms of trading post-Brexit. Now is the time to start reviewing their travel programmes and think about how they will look at the end of 2018.  They need to be asking questions about which markets their company will be able to sell in, should they be opening up new markets, can we sell in existing markets? 

However, after a slow start to the year, once major decisions concerning borders and ‘passporting’ have been confirmed, Brexit will have a positive effect on global business travel as companies consider new markets, or seek to bolster existing contracts. UK domestic travel also has potential to increase off the back of the government’s plans to establish technology, research and development projects post-Brexit. Many UK manufacturers are looking at potentially expanding their exports in the USA and China, or they will need to meet face to face with current clients to ensure business continuity. Corporates need to cover all bases which potentially means more business travel. As decisions are made by the government and plans become clearer, we could see business travel growth in the second half of 2018.

Even greater focus on traveller safety

The business travel sector will see an even greater emphasis on traveller safety not only due to the ongoing threat of terrorism, but also geopolitical instability which will add to the complexities of business travel in 2018, making personal safety and duty of care a top priority for companies. The recent laptop ban on certain flights to the US, for example, and increased border controls, all make business travel more challenging for the traveller and could make companies think twice about whether an employee really needs to make a trip. Personal safety will also be an increased priority for corporates if they are having to travel to new markets in order to generate new business deals post-Brexit. Hence we are encouraging clients to make use of traveller safety solutions such as our goSecure risk management technology and VIMA mobile app.

Oil prices will continue to climb meaning more travel in energy sector

In the UK, around 20% of our clients are in the energy sector, so we are keeping a close eye on oil prices. Barring any major disruptive geopolitical influences, we are forecasting that oil prices will continue to climb steadily in 2018. This would reignite investment in oil and gas exploration, which our energy clients put on hold at the start of the energy sector downturn in 2014. As a result, travel spend by oil and gas clients should increase by 2019. President Trump’s decision to pull out of the Paris climate change agreement could also impact on refineries in the US. With less of a priority on greener energy, production by refineries could increase, impacting on supply and demand. In addition, Trump has controversially signed executive orders to allow the construction of new pipelines, creating more jobs in the oil sector. Whilst these are unpopular in terms of their impact on the environment and climate change, ultimately they could create more jobs in the oil sector, and generate more business travel.

This post was written by Paul East, chief operating officer, UK/Europe & Americas, Wings Travel Management (www.wings.travel). The TMC is unveiling additional travel risk management services at the Business Travel Show, including traveller evacuation and disaster response support.

GUEST BLOG: IN CONVERSATION WITH PAUL EAST, WINGS TRAVEL MANAGEMENT

What will be the top three priorities for business travel in 2017?

• Safety: traveller security will remain a key focus for corporates as random, indiscriminate attacks seem to have become the latest terrorism tactic.
• Cost control:  whilst some companies are experiencing growth, business confidence could fade quickly given the general air of economic and trade uncertainty concerning Brexit, US political changes, and other global factors.
• Legislation: we are all waiting to hear if and when Article 50 will be triggered, and what it will mean for trade. Companies may need to keep a close eye on how new legislation will impact on their business

What effect has terrorism had on business travellers?

A recent business travel survey revealed 49% of travellers feel less safe on business trips than they did 12 months ago. 94% would opt for GPS tracking if travelling to a high-risk market. 

How can TMCs help companies fulfil their duty of care? Can technology help?

It’s important that your TMC takes a holistic approach to supporting clients with traveller safety, risk management and traveller tracking in times of emergency. It’s not just about providing travellers with a mobile app. It’s also about your TMC’s staff having the knowledge and expertise to make the best use of traveller tracking tools so that they provide accurate, timely and relevant support. Many of our clients are travelling to high risk destinations, so traveller safety is at the core of our operations. Our new GoSecure™ technology is a sophisticated risk and alert portal that allows Wings’ consultants to locate travellers and send high level, personal notifications to travellers and bookers – for example telling a traveller to stay in his or her hotel due to a terrorist threat outside. However it’s also important that all parties involved in traveller safety work closely together: TMC, client’s travel manager/buyer, the corporate’s insurance provider and security firm, so that we are all aligned in terms of the crisis management process.

What can make a difference in a crisis?

• Work with a TMC that has wholly owned and managed global offices in key high risk markets, and doesn’t just have partnership agreements with local agents, to ensure you get consistency of service
• Also check that your TMC operates off a single global technology platform in each market where you are sending your travellers. This means the TMC can access a client’s travel records instantly worldwide which is crucial for tracking and re-routing travellers

Can most corporates reduce their travel budget?

Absolutely. Around 60% of our clients are in the energy sector. When the price of oil fell dramatically last year, many of these clients were forced to reduce costs across-the-board, including travel and asked us to generate savings of as much as 20 per cent. We were able to identify, communicate and implement vital savings for them during this difficult time, by reviewing travel authorisation, setting up new airline deals, consolidating hotel spend and changing rail travel policy, all without comprising on traveller safety.

What do you think will be the big trend for 2017?

Rollercoasters!  We will see months where UK PLC shows positive numbers and growth followed by months where business confidence will diminish and the economy could stall.

Wings Travel Management (www.wings.travel) will be demonstrating GoSecure, its new risk management portal, on stand B144 at the Business Travel Show. You can hear more from Paul East on the conference panel discussing how to build a crisis management plan.

Register for a free visitor pass at www.businesstravelshow.com.