CBTF Barometer With research and insights from

Transcription

1 CBTF Barometer 2018 With research and insights from CITS American Express Global Business Trav el (CITS GBT) is a joint v enture that is not wholly owned by American Express Company or any of its subsidiaries (American Express). American Express Global Business Trav el, American Express and the American Express logo are trademarks of American Expres s, and are used under limited license.

2 CHINA BUSINESS TRAVEL MARKET B a r o m et e r 2 USD $ Billions $346bn China $346 $ $408 $292bn USA $64bn Japan $430 $448 $72bn Germany 2022 Source: Global Business Travel Association, $476

3 NEW APPROACH TO RESEARCH Longlist of trends B a r o m et e r 3 Prioritise trends and analyse impact Literature scan Business leader interviews and survey Survey respondents 35% Small firms (<200 employees) 18% Mid-sized firms ( employees) 46% Large firms (>500 employees)

4 OUR JOURNEY TOGETHER B a r o m et e r 4 MEGATRENDS IMPACT CONCLUSION The New China Supplier Need for efficiency The New Chinese Firm Traveller 21st travel manager The New Chinese Business Traveler Enabler

5 MEGATRENDS IN CHINA B a r o m et e r 5

6 THE NEW CHINA: MOVING INLAND AND GOING GLOBAL Inland and emerging cities to outpace top tier Average annual growth in real GDP, (%) Lanzhou 6.7% Zhengzhou 7.4% Beijing 5.3% Suzhou 5.95% B a r o m et e r 6 China outbound investment ($bn) Shanghai 5.9% % Chengdu Chongqing 7.9% Wuhan 7.1% Hefei 6.4% Source: Economist Intelligence Unit.

7 1,000 kms IMPROVED INFRASTRUCTURE International Connectivity growing, particularly in Central & Western cities B a r o m et e r 7 Civil airports in China High-speed rail (HSR) development : 78 new international routes 2020: 74 new civil airports 2030: All provincial capitals and cities with population >500,000 will have HSR

8 THE NEW CHINESE FIRM: INNOVATION-FOCUSED B a r o m et e r 8 Future Decade The New Chinese Firm Diversifying & moving up the value chain Last Decade Market Driven Growth Management Driven Growth Innovation Driven Growth Investing in R&D Efficiency

9 THE NEW CHINESE FIRM: INNOVATION-FOCUSED China's young business leaders Median age of new CEOs, 2016 B a r o m et e r 9 Women in C-suite positions, 2017 *listed companies China 51 29% China US 54 India Japan 55 21% 61 USA Global 53 19% UK 14% Singapore Source: PwC's and Strategy& survey, Thomson Reuters, McKinsey, University of Exeter Business School.

10 THE NEW CHINESE BUSINESS TRAVELER B a r o m et e r 10 1 Straight to business Convenience is most important Direct flights, quality hotels is a priority 2 All-round travel experience Values brand, services and facilities Comfort and safety is a priority 20% discount 3 Value for money Price sensitive and seeking best deals Frequent flyer with tight budgets

11 TRAVELLERS ARE MORE TECH-SAVVY B a r o m et e r 11 Mobile payment % 97.5% city dwellers mobile internet 79% 23% 15% China US Germany 45% use mobile to arrange travel $3.5 bn 2017 $150 bn 2030 AI industry in China Source: emarketer, Tsinghua University..

12 B a r o m et e r 12 IMPACT ON BUSINESS TRAVEL

13 THE BUSINESS TRAVEL ECOSYSTEM B a r o m et e r 13 DEMAND SUPPLY TRAVELER SUPPLIER ENABLER Transportation Accommodation Travel manager TMCs

14 IMPACT ON BUSINESS TRAVELLER N e e d f o r e f f i ci e nc y B a r o m et e r 14 Traveler Demand international travel from inland cities Sharing economy and alternate travel options Convenience of travel arrangement App-based and use of mobile for travel More flexibility, less bureaucracy

15 FRUSTRATED BY BUREAUCRACY AND INFLEXIBILITY B a r o m et e r 15 Traveler Reimbursement process too complex Pre trip validation process too complex 37% 49% 40% Travel conditions not flexible Poor hotel & accommodation options Poor air travel option 3% 10% 35% of firms still use traditional approval and reimbursement procedures.

16 IMPACT ON TRAVEL SUPPLIER N e e d f o r e f f i ci e nc y B a r o m et e r 16 Supplier New cities for operations Use of digital platforms to support new needs More transport options Integrated offering / safety Cater to sophisticated clientele Use of mobility payment methods overseas

17 IMPACT ON TRAVEL MANAGERS N e e d f o r e f f i c i e n c y B a r o m et e r 17 Enabler More travel demand with companies going global Traveller demand for flexibility and use of technology Diverse group of travellers with specific needs Explore value and efficiency Innovate and flexibility in new tech adoption Compliance and safety key Travel services to travel management

18 TRAVEL POLICY MUST BALANCE COMPLIANCE, SAFETY AND COST B a r o m et e r 18 Enabler 62% 57% 46% 13% 2.9% Cost Saving Company Compliance Employee Safety Talent Retention Traveller Satisfaction Source: CITS Amex Barometer 2018

19 NEEDS FOR KNOWLEDGE AND TOOL B a r o m et e r 19 Enabler 47% 24% Need more support to manage travel programme Too many stakeholders and internal bureaucracy to drive travel management efficiency 17% Travellers are influential and difficult to control Source: CITS Amex Barometer 2018

20 21ST CENTURY TRAVEL MANAGER SKILL B a r o m et e r 20 Enabler Critical thinking Creativity Collaboration Communication Information literacy Technology Savvy Flexibility

21 IMPACTS ON TRAVEL MANAGEMENT COMPANIES B a r o m et e r 21 Enabler Collaborative Approach Source of knowledge Open Minded Evolve Fast

22 LOOKING AHEAD: WILL T&E SPEND INCREASE IN THE NEXT 12 MONTHS? B a r o m et e r % Stable 48.4% Increase Source: CITS Amex Barometer 2018

23 B a r o m et e r 23

24 EFFICIENCY WILL DRIVE THE FUTURE OF BUSINESS TRAVEL IN CHINA B a r o m et e r 24 New geographies Technologies and Innovation New leadership 21st Century travel manager

25 CBTF Barometer 2018 With research and insights from CITS American Express Global Business Trav el (CITS GBT) is a joint v enture that is not wholly owned by American Express Company or any of its subsidiaries (American Express). American Express Global Business Trav el, American Express and the American Express logo are trademarks of American Expres s, and are used under limited license.