Luxury Coach & Transportation

September 2018

Magazine for the professional limousine, charter and tour industry.

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BUSINESS TRAVEL L enore D'Anzieri, director of travel industry partner- ships for Dav El | BostonCoach with 34 years of expe- rience in the travel industry, shared valued insights during LCT's "Travel Trends You Should Know" webi- nar held July 19. Here are just a few takeaway points to help you prepare for what's coming. Good News, Bad News Travel spend is up overall, based on several factors. U.S. analysts at- tribute this growth to the healthy economy. Many corporations are adding travel benefits for employees to attract and retain talent. Airlines have increased capacity during the past few years, and trends indicate further growth. However, much of this spend is not coming from pricier airline tick- ets because they haven't really risen that much. It's more about capacity and supply and demand. Hotels have boosted capacity to accommodate those travelers. ey've raised their average room rates because there are so many people. "You would think Airbnb would have had a negative effect on that, but in fact, it has not," D'Anzieri said. Technology is obviously at the forefront because it's so much easier for people to go out and book their travel and know exactly what they're going to be spending, so that has contributed to the rise in travel. Unfortunately, the corporate travel industry is having a hard time keeping up with evolving technologies and the de- mands of travelers. "Just like those of us who are not Millenni- als and have to deal with Millennials, it's an entirely different culture than what we grew up with. Many of the corporate travel management companies are having a difficult time un- derstanding and adapting to this." Sharing Economy Impacts All e sharing-model businesses aren't just disrupting luxury ground transportation companies; they've roiled the entire economy. "ere's a trickle-down effect. Just think about Airbnb and the lodging sector. When they start to lose money, the food and beverage people get laid off, housekeeping jobs are lost, travel agent commissions go away, and so on," she explained. "It's not just our industry that's being affected." One of the key factors often talked about in corporate trav- el is duty of care. But is it really an important factor anymore? "In spite of the focus on safety and security, it's no secret corporations and leisure travelers are ignoring these in ex- change for cost and convenience. ey understand the risks, yet they continue to use Uber and Lyft." D'Anzieri said. It's important to have a thorough understanding of what duty of care means to each person operators talk to about the term. "Many corporations are under the assumption chauffeured transportation is a lot more expensive than the TNCs. If you do the math, and if you look at an extended period of time for those expenditures, often you're going to find the pricing is not that different. Uber and Lyft do not give away their surge 34 WWW.LCTMAG.COM LUXURY COACH & TRANSPORTATION SEPTEMBER 2018 Lenore D'Anzieri, director of travel industry partnerships for Dav El | BostonCoach, equipped webinar attendees with the knowledge they need to succeed in the world of business travel. How To Handle A Corporate Travel Market Catering to mobile- minded travelers while using tech to enhance their experiences will propel your operations, expert Lenore D'Anzieri says. By Lexi Tucker, LCT associate editor Disrupte D ILLUSTRATION: ISTOCK.COM/AKINDO

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