cbtf barometer 2018 · cbtf barometer 2018 with research and insights from cits american express...
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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.
CBTF 2018 B a r o m et e r 2CHINA BUSINESS TRAVEL MARKET
$292bn
$346bn
$64bn
$72bn
China
JapanUSA
Germany
2017
2018
2019
2020
2021
2022
$346
$385
$408
$430
$448
$476Source: Global Business Travel Association, 2018.
USD $ Billions
CBTF 2018 B a r o m et e r 3NEW APPROACH TO RESEARCH
Literature scan
Longlist of trends
Business leader interviews and survey
Prioritise trends and analyse impact
Survey respondents
35%Small firms (<200 employees) 18%
Mid-sized firms(200-499
employees)
46% Large firms(>500
employees)
CBTF 2018 B a r o m et e r 4OUR JOURNEY TOGETHER
The New China
The New Chinese Firm
The New Chinese Business Traveler
Supplier
Traveller
Enabler
MEGATRENDS IMPACT CONCLUSION
Need for efficiency
21st travel manager
CBTF 2018 B a r o m et e r 5
MEGATRENDS IN CHINA
CBTF 2018 B a r o m et e r 6THE NEW CHINA:
MOVING INLAND AND GOING GLOBALInland and emerging cities to outpace top tierAverage annual growth in real GDP, 2018-2022 (%)
Lanzhou6.7%
Wuhan7.1%
Chongqing7.9%
Zhengzhou7.4%
7.1%Chengdu
Hefei6.4%
Beijing5.3%
Shanghai5.9%
Suzhou5.95%
Source: Economist Intelligence Unit.
China outbound investment ($bn)
0
50
100
150
200
250
12 13 14 15 16 17 18 19 20 21 22 23
CBTF 2018 B a r o m et e r
International Connectivity growing, particularly in Central & Western cities
• 2018: 78 new international routes• 2020: 74 new civil airports
100
150
200
250
2010 2015 2020
Civil airports in China
7IMPROVED INFRASTRUCTURE
2015 2030
1,0
00
km
s
20.7
45
• 2030: All provincial capitals and cities with population >500,000 will have HSR
High-speed rail (HSR) development
CBTF 2018 B a r o m et e r 8THE NEW CHINESE FIRM: INNOVATION-FOCUSED
Diversifying & moving up the value chain
Investing in R&D
EfficiencyMarket Driven Growth
Management Driven Growth
Innovation Driven Growth
Last Decade
Future Decade
The New Chinese Firm
CBTF 2018 B a r o m et e r 9THE NEW CHINESE FIRM: INNOVATION-FOCUSED
53
61
55
54
51
Global
Japan
India
US
China
China's young business leadersMedian age of new CEOs, 2016
Source: PwC's and Strategy& survey, Thomson Reuters, McKinsey, University of Exeter Business School.
21%
14%
19%
Singapore
USA
UK
Women in C-suite positions, 2017*listed companies
29%China
CBTF 2018 B a r o m et e r 10THE NEW CHINESE BUSINESS TRAVELER
Straight to business• Convenience is most important• Direct flights, quality hotels is a priority
All-round travel experience
• Values brand, services and facilities• Comfort and safety is a priority
Value for money• Price sensitive and seeking best deals• Frequent flyer with tight budgets
1
2
320% discount
CBTF 2018 B a r o m et e r 11TRAVELLERS ARE MORE TECH-SAVVY
71%97.5% city dwellers mobile internet
45%use mobile to arrange travel
AI industry in China
Mobile payment 2021
2030
China US Germany
Source: eMarketer, Tsinghua University..
2017
$3.5bn
$150bn
15%23%79%
CBTF 2018 B a r o m et e r 12
IMPACT ON BUSINESS TRAVEL
CBTF 2018 B a r o m et e r
DEMAND
13THE BUSINESS TRAVEL ECOSYSTEM
• Transportation• Accommodation
SUPPLY
SUPPLIERTRAVELER
• Travel manager• TMCs
ENABLER
CBTF 2018 B a r o m et e r 14IMPACT ON BUSINESS TRAVELLER
Traveler
Sharing economy and alternate travel options
App-based and use of mobile for travel
Demand international travel from inland cities
Convenience of travel arrangement
More flexibility, less bureaucracy
N e e d f o r e f f i c i e nc y
CBTF 2018 B a r o m et e r 15FRUSTRATED BY BUREAUCRACY AND INFLEXIBILITY
Traveler
40%
of firms still use traditional
approval and reimbursement
procedures.3%
10%
35%
37%
49%Reimbursement
process too complex
Pre trip validation process too complex
Travel conditions not flexible
Poor hotel & accommodation options
Poor air travel option
CBTF 2018 B a r o m et e r 16IMPACT ON TRAVEL SUPPLIER
Supplier
N e e d f o r e f f i c i e nc y
New cities for operations
More transport options
Cater to sophisticated clientele
Use of digital platforms to support new needs
Integrated offering / safety
Use of mobility payment methods overseas
CBTF 2018 B a r o m et e r 17IMPACT ON TRAVEL MANAGERS
EnablerN e e d f o r e f f i c i e n c y
More travel demand with companies going global
Traveller demand for flexibility and use of technology
Diverse group of travellerswith specific needs
Explore value and efficiency
Innovate and flexibility in new tech adoption
Compliance and safety key
Travel services to travel management
CBTF 2018 B a r o m et e r 18TRAVEL POLICY MUST BALANCE COMPLIANCE,
SAFETY AND COSTEnabler
Source: CITS Amex Barometer 2018
2.9%
13%
46%
57%
62%
CostSaving
TravellerSatisfaction
CompanyCompliance
Talent Retention
Employee Safety
CBTF 2018 B a r o m et e r 19NEEDS FOR KNOWLEDGE AND TOOL
Source: CITS Amex Barometer 2018
Enabler
47%
24%
17%
Travellers are influential and difficult to control
Need more support to manage travel programme
Too many stakeholders and internal bureaucracy to
drive travel management efficiency
CBTF 2018 B a r o m et e r 2021ST CENTURY TRAVEL MANAGER SKILL
Enabler
CreativityCollaboration
Communication
Information literacy
Technology Savvy
Flexibility
Critical thinking
CBTF 2018 B a r o m et e r 21IMPACTS ON TRAVEL MANAGEMENT COMPANIES
Enabler
Collaborative Approach
Source of knowledge Open Minded Evolve Fast
CBTF 2018 B a r o m et e r 22
LOOKING AHEAD:WILL T&E SPEND INCREASE IN THE NEXT 12 MONTHS?
Source: CITS Amex Barometer 2018
48.4%41.4% Increase
Stable
CBTF 2018 B a r o m et e r 23
CBTF 2018 B a r o m et e r 24EFFICIENCY WILL DRIVE THE FUTURE
OF BUSINESS TRAVEL IN CHINA
New geographies Technologies and Innovation
New leadership 21st Century travel manager
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.