American Estimates $1.5B Loss in 2024 Due to Corp. Strategy
The recent BTN Group article by Donna M. Airoldi on American Airlines' earnings call serves as a sobering reminder for all companies about the essential role that corporate travel buyers play in the business travel ecosystem.
A sales and marketing strategy that aims to directly influence business travelers' buying behaviors while bypassing their company's travel policies is fundamentally flawed. Here’s why:
1 - Travel policies are more than just tools for securing volume discounts and savings.
2- These policies are designed to protect travelers, incorporating Duty of Care considerations to ensure their safety and well-being.
3- Corporate business travelers do not pay out of pocket for their travel expenses; their companies do. Therefore, companies and travel managers have every right to influence and guide travel purchasing decisions based on established guidelines and risk mitigation strategies.
4 - Perceiving corporate travel buyers merely as gatekeepers to achieving market share goals overlooks the fact that these professionals are diligently fulfilling their roles.
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Unlocking the Power of AI Innovation in Airline Retailing
Today’s travelers want customizable options, greater pricing transparency, and more convenient ways to manage their travel plans. As the airline industry adapts to meet these expectations, the shift toward a more personalized and efficient retailing strategy has become paramount.
Driven by offer and order management, modern airline retailing is transforming how carriers market their services and how passengers experience air travel. At the heart of this transformation is the integration of artificial intelligence (AI), a technology that is not only reshaping the fundamentals of airline bookings but also redefining the possibilities within the travel ecosystem.
“Offer management, powered by AI, allows airlines to present the right offer to the right customer at the right time,” said Surain Adyanthaya, president of PROS, an AI-powered airline retailing platform. “Instead of a one-size-fits-all approach, airlines can now offer bundles and ancillary services more likely to resonate with each passenger.”
SkiftX recently sat down with Adyanthaya and Jonas Rauch, principal scientist at PROS, to explore how AI-powered retailing can help airlines drive revenue and profitability while increasing customer satisfaction and loyalty.
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Global Business Travel Industry Spending Expected to Hit Record $1.48 Trillion in 2024
The business travel industry has proven itself resilient as it leaves the global pandemic behind and moves into a new era of post-pandemic stabilization. The forecast for 2024 predicts global business travel spending will reach $1.48 trillion USD by the end of the year, an increase on 2019 spending which was a previous record at $1.43 trillion. Additionally, by 2028, it is projected to exceed $2.0 trillion, highlighting a robust path ahead for the business travel sector in terms of spending.
Relative stability in the global economy has continued to drive growth which, along with lingering pent-up demand, has provided reassurance for CEOs and CFOs to get their people back on the road for business meetings. Many top business travel markets around the world have returned to or are nearing pre-pandemic levels, reinforcing the momentum of the recovery and boosting spending. However, the outlook for economic and business travel growth presents a balance of both potential upside factors and downside risks.
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