Business travel proves resilient amid global volatility
TTG Asia’s Rachel AJ Lee on the resilience of global business travel
Global business travel is facing a dual challenge as soaring fuel costs and Middle East airspace closures force a rapid recalculation of corporate travel strategies.
While the industry remains resilient, travel management companies (TMCs) are seeing a shift in how companies prioritize routing and risk management to ensure business continuity.
The closure of Middle Eastern airspace, long a critical transit point between Asia and Europe, has forced travel managers to rethink routing strategies due to limited airline inventory
“Beyond safety considerations, there is limited inventory available on Middle Eastern carriers, as much of the region’s airspace remains closed,” said Sharifah Alhabshi, BCD Travel’s senior director for program management in Asia-Pacific. “As a result, travelers are routing via other carriers.”
Vicki Parris, managing director of FCM Travel, Southeast Asia and Japan, shared that the TMC is “seeing travelers opt for direct flights on carriers” that can provide better connectivity.
Eugene Tan, general manager for Southeast Asia at Trip.Biz, added that travel managers are increasingly requesting platforms that offer “full itinerary visibility” to allow for quick changes or cancellations in response to evolving risks.
“In this environment, travel managers are also comparing a wider range of routing and airline options to maintain policy compliance, cost control and traveler safety,” Eugene said.
Industry leaders also suggest that traveler safety has moved from a secondary priority to an absolute requirement, and is where Asia-Pacific’s stability will prove to be an advantage.
Vicki Parris highlighted that the region’s reputation is a significant factor right now, as companies have always prioritized “destinations with robust health, safety and geopolitical stability measures”.
Sharifah Alhabshi echoed this, describing safety not as a currency, but as an “essential baseline requirement that companies and destinations must meet to sustain trust”. She pointed out that the perception of stability in Asia-Pacific has made the region significantly more attractive for business travel.
Despite fuel prices hitting record highs, the expected downgrade in travel classes or widespread cancellation of events has yet to materialize.
“We have seen in the past that corporates tend to take a wait-and-see approach to events and conferences and are more likely to switch location than simply cancel,” said Vicki Parris. She also noted that while clients are more prudent with spending, they’re not necessarily making class changes, such as dropping from business to premium economy, because companies continue to value traveler well-being.
When asked about fuel price impact on business travel spend, Eugene Tan explained that it varies according to the negotiated rates that companies have with airlines based on minimum volumes. He noted that because fuel surcharge exposure varies, multi-source access to airlines ensures full visibility into available inventory and pricing.
According to Eugene, this is a benchmark for TMC effectiveness. Trip.Biz connects to multiple GDS (global distribution system) platforms, allowing it to offer direct airline connections, more than 34 NDC (new distribution capability) connections, more than 150 Trip.Biz exclusive fares and extensive online travel agency inventory, reaching sources that traditional players cannot access with single-GDS reliance.
Eugene concluded: “Business travel continues to thrive—companies travel where there is a clear business need, but they are paying closer attention to routing, class of travel and overall trip cost.”
TTG Asia at IMEX
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