How would you characterise your members’ sales in the second half of 2022? Marcel Forns, GEBTA: Business travel experienced a strong recovery during the second half of 2022. In terms of the number of trips, the figures from September to December 2022 recorded a significant increase and closed at 82 per cent compared with the figures of 2019 – or 75 per cent for the whole year. In terms of sales, the figures equalled those of 2019 due to the average price increase of products and services, mainly accommodation and air tickets. James Stevenson, GlobalStar: Positive. Business has either returned to 2019 levels or in some cases has extended beyond to create a new, higher level for the latter half of 2022. There are of course some exceptions, notably in Asia due to the late lifting of travel and quarantine restrictions. Also, SME travel came back far quicker than that of the large, multinational corporations. Outside of transient travel we experienced significant uplift in meetings and events volume. Guy Snelgar, Advantage: On average, members have reported that while the number of transactions may still have been 10 to 20 per cent below 2019 levels [in the second half of 2022], revenue levels had returned, or in some cases, exceeded 2019. This has come from a combination of higher fares and rates, but also from TMCs being asked to book more elements of the trip, especially around accommodation and ground transport or transfers. Clive Wratten, BTA: We are seeing a strong recovery of business travel. Most of our members gained around 80 to 90 per cent of 2019 revenue levels by the close of 2022.
What’s your assessment of TMCs’ staffing levels right now?
Marcel Forns, GEBTA: In Spain, the situation around staffing problems experienced some improvement by the end of last year. The current situation is much better than it was six months ago. According to our TMCs, the
Clive Wratten, BTA: The majority of the BTA’s members are at approximately 90 per cent of pre-pandemic staffing levels although recruiting continues. The general feedback we’ve received tells us that service levels are now back within acceptable levels as the industry returns to normality. In which areas do you think TMCs are investing the most at the moment? James Stevenson, GlobalStar: There are four key areas enjoying TMC investment right now. Firstly, technology, and specifically single booking platforms that provide a consistent source of content for both agents and travellers. TMCs have to invest in this to ensure access and full servicing capabilities for both GDS and non-GDS content, including NDC. Secondly, people, from wellbeing and development initiatives through to signing bonuses. Every tactic to attract and retain people is enjoying TMC investment. Thirdly, ESG unsurprisingly remains a focus for investment as clients demand more support for their company initiatives. Lastly, meetings and events and live availability venue finders. In today’s world of remote and hybrid working, canny TMCs are investing to speed up client requests for meeting spaces that enable teams to be brought together.
situation differs depending on the company. In most cases the staffing problems seem to affect predominantly frontline consultants. James Stevenson, GlobalStar: The biggest challenge right now is resourcing. Staffing levels are woefully low. We saw so many brilliant people laid off during the pandemic. Some of our partners kept their staff on during the pandemic, sometimes outsourcing them to provide resource to Covid-related call centres, pivoting their businesses to survive. As a result they have highly trained, experienced and knowledgeable teams in play. It comes as no surprise to see the competition for staff right now. There are signing bonuses being offered as normal and candidates are receiving multiple offers and taking their time to make a decision. Guy Snelgar, Advantage: Our members tell us that this certainly remains an ongoing challenge, but not at the critical level it was in the second half of 2022. We are seeing some old colleagues deciding to return to the industry, having left during the pandemic, and some TMCs are starting to benefit from trainee and apprenticeship schemes that have brought in new, young talent. However, competition for good, experienced staff remains high, as does the cost of recruiting them.
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SPRING 2023 | businesstravelnewseurope.com
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