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Current factors that are affecting the business travel environment

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Benedite Kayeye

on 16 June 2016

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Transcript of Current factors that are affecting the business travel environment

Current Factors affecting Business Travel
Booking their business travel through an online booking tool will affect the TMC as they will have less contact with the customers personally.
This could also effect global economy as technology is effecting the business travel because meeting and conferences are now being done over the internet and over social sites such as web and telephone conferencing, e-meetings and web based seminars. This could also effect the global economy of different countries as less are choosing to travel to attend meets which means less income coming in to governements.
TMC will need licenses from ATOC and IATA in order for clients to book train and air tickets. This means that TMC keeps track of client budget.
The Zika Virus
the global economy
In South America it is said tha 500,00 to 1.5 million of people are being infected in the country.
The Zika Virus has now spreaded over 20 more countries in the region.
This could affect changes on comapnies travel budget because less are interesed in visting thes decrease sales for business travel such as flights and hotels within this destination.
It increases the use of web conferencing for comapnies such as WebEx and SABA
Exchange Rates
Most british people are looking to book summer hoildays. Holidaymakers that booking now could take advantage of the new exchange rate that now takes upto two thirds of better value compared to last year. Zambia now offers 65% worth more of pound spendings. This could have a good impact towards TMC's as the percetage of business travel cleients will rise as more clients will be interested in buying tickets for a small rate
Growth and Recession
In the beginning of 2012, the UK went through a double dip of recession which resulted in a massive effect and issue towards the travel and tourism industry. This increased unemplyment, price rises and redundancies as the UK's population satrtaed yearly holidays within the residing country or not at all, instaed of travelling aboard. This will be effective towards the global economy as most job will be cut down resulting less business clients looking forward to travel as less earning are made and things becoming expensive to improve the growth from the recession for the country.
The table above shows the current best destinations in 2016 that has the best value money. Brazil and Argentina offers 42- 43 % better value. As well as Canada, Turkey and Malaysia, that was featurd in the top 12 destinations that has the best value based from the current exchange rates.
Explain how factors are currently affecting the business travel environment and operational practise.
Technology could affect conferencing as most people are starting to use technoogy to do web conferencing instead of travelling aboard for meetings, SABA and WebEx are companies which businesses use to communicate through web conferencing, this rsults in an decrease in sales as most people wouldnt need to buy tickets or book accommodation to stay in whilst baoard. This becomes more competitive for budget airlines and rail business as they are now losing profit on business clients not choosing to travel due to the fact that there is an increase in technology and budget airlines offereing special offers and deals to try attract new customers.
Web conferencing has to work with the passenger profile when dealing with technology as they need to satisfy the customers needs in order to gain repeat business with their services and service level agreements as a form of contract of agrrements of bisiness clients using their products and services.
SABA and WebEx has to work with the Data Protection Act legislation im order to keeps clients details private whilst registering with their sites.
Health Epidemic
Health epidemics is alos affecting the business trave environment as this recent virus outbreak in South America which is knwn as the Zika virus, this disease is spread from mosquitoes bites. This virus has already affected south america and could affect the northern part of americas as it already affected over 10,000 people. This has affected business travel as this has become a scare for people as they are scared of getting affected. This means an increase for tecehnology as they are choosing to web conference as a form of safety from the virus as they dont want to travel.
For health epidemics, this could have an change within the procedures and documentation for selling products and services as TMC's need to alert clients of what is happening and make sure that they are protected this also puts them under the legislation of EU Package Travel Regulation 1992 as it is their role to provide the correct information to customers about destinations.
Global Economy
Growth and Recession has also affected business travel as travel agencies are increasing their prices for holiday package due to the fact that they are not reaching their annual target because most people are choosing to not travel as prices are becoming more expensive and not afforable for them to take more than one holiday per year as there is no jobs or work in travel industry as they were all redounded. The recession has affected travel budget as there was a change to prices for flights and accommodation, as it was lowed to a affordable price that is beneficial to customers and they can make money from the holiday being sold. From this recession people might not be able to afford some first class facilites and five star hotels as the GDP has decreased resulting people to chose economy or to stay in a three star accommodation or apartments.
This provides budget airlines with competition as people are starting to chose airlines such as Ryanair and EasyJet because prices are much cheaper than airlines such as British Airways and Virgin Atlantic, also if business trips are near to home such as Europe, they prefer to take rail such as Eurostar to travel. From this recession most people are not travelling for business meetings but instaed choosing to web conference which increases technology usage because companies are now doing their meeting without having to travel. Without an ATOC licence some business travellers could be affected especially during recession, as ATOC protects cutomers from airline collapsion, for example in 2008 XL airlines collapsed.
Discuss the current business travel environment and how business travel agents are responding to current challenges.
Technology has had a impact on business agents as it has now become advance because there is now web based meetings happening where travel agents can commuicate through internet to talk other business agents worldwide.With web meetings you could record meeting and send it to other business meetings. there is also now self booking which means business travellers can book their own package like choosing their own flights, accommodation and transfers without having to visit a business travel agent. Another advance of technology will be rail and travel apps where you will not need to visit a ticket desk or phone the train service in order to book, you could do it yourselves via app.
Business agents are responding to these changes by creating online websites for the company clients to be able to browse through choices themselves and chose what suits them better, there also put the option for the clelient to provide their contact details such as emails, fax and phone number, as a form of way so that the agents could be in touch with the clients without having them to visit the agency. On thier websites businesses put a payment section which is available for clients to pay online using their card once they have chosen what they want.
This means as business clients dont have enough money, BTA's will need to work with the clients to provide cost saving techniques in order satisfy the customers needs but also work to the company profile, This could involve sales targets being reduced and promotional schemes becoming knowledgeable to save money. For example global air traffic increasing 6.5 percent over years, including an increase of 6.3 percent in domestic air travel and also an rise of 6.5 percent for international air travel.
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