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Newstrack
Amadeus study explores corporate travel in India
EAW Staff - Mumbai
A survey commissioned by Amadeus has revealed that Indian corporations and
travel management companies are ready to step up technology adoption to manage
the escalating costs and inefficiencies in the booming corporate travel sector,
which is an industry now worth US$ 3 billion.
According to the research, there is growing demand for technology solutions
in India by both corporations and travel management companies (TMC), particularly
in relation to online travel management, or Self Booking Tools (SBT).
The survey, carried out among corporations and TMCs in India, revealed that
while Indian corporations have yet to embrace SBTs, 57 per cent of the corporations
surveyed recognise the benefits that SBTs could offer their corporation.The
research revealed the top three considerations for adoption of a SBT among the
corporate respondents were:
• Policy compliance 28 per cent
• Ease of use 22 per cent
• Cost control 20 per cent
Although most respondents realised the benefits of an online SBT to simplify
and manage travel processes, 73 per cent had yet to explore the option of rolling
out an online programme. One key benefit for corporations using SBT is access
to Low Cost Carrier (LCC) content. While many companies globally do not use
LCCs for corporate travel, India is somewhat of an exception, with 60 per cent
of respondents indicating their company does use LCCs.
TMCs surveyed also recognised the benefits of offering an online corporate solution
in their portfolio, viewing it as a competitive advantage in the notoriously
tight Indian travel market. 75 per cent of TMCs surveyed indicated they felt
that the Indian market is ready for SBTs.
Ankur Bhatia, executive director, Bird Group & MD Amadeus India feels that
it's only a matter of time before more Indians begin using self-booking tools.
"Indians are very rational and meticulous in consumer behaviour and as
soon as a value is identified with a certain trait, efforts will be made to
gain maximum utility. While Indians, with easier access to lower cost labour,
are not in the habit of self-service, increase in the number of LCCs, OLTAs
and online services provided by full-service carriers and their efforts to promote
this functionality has increased public awareness of the advantages of SBT."
"We are constantly looking at ways of utilising and developing technology
to increase the flexibility, and convenience of travel in India. The ability
to book and buy online as well as reserve seats, meals, special requirements
from anywhere and at anytime is one of the most flexible and convenient methods
available to passengers," said Bhatia.
The Indian market research follows a recent global study conducted by Cranfield
University in collaboration with Amadeus that revealed companies could save
an average of 25.6 per cent on external travel management costs and up to 9.1
per cent on airline ticket spendings through the adoption of SBTs.
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