The Business Travel Association (BTA) sought to address “the growing challenge of content fragmentation” in corporate travel in a white paper published at its conference in Gibraltar at the start of October.
The paper, entitled ‘Navigating Fragmentation in Corporate Travel’, notes the sector faces “significant transformation, increased complexity and content fragmentation . . . [due to] diverse content sources, formats and multiple distribution channels”.
The BTA partnered the Australian Association of Travel Management Companies (ATMC) and Guild of European Business Travel Agents (GEBTA) in Spain to commission the paper from consultancy Black Box Partnerships.
More: Special Report: BTA seeks end to industry ‘civil war’ over NDC
Drawing on contributions from travel management companies (TMCs), corporate buyers and suppliers, the paper concludes “fragmentation in corporate travel has reached unprecedented levels” – with 100% of corporate buyers and 60% of suppliers agreeing this needs to be addressed urgently.
The fragmentation has been driven by airlines developing new distribution capability (NDC) technology and ‘direct connects’, often by-passing traditional global distribution systems (GDSs) and making full content available only via non-GDS channels.
The paper notes: “The corporate travel ecosystem is highly fragmented, with multiple platforms and systems failing to integrate seamlessly. This lack of platform integration leads to inefficiencies and inconsistencies in service delivery.
“There is a critical need for standardised data, integrated technology systems and improved processes to manage travel content.”
It notes “location profiling” has given rise to “biasing”, leading to `personalised pricing “that sees fragmentation in both product and price depending on where fares are booked and where fulfilled”.
The report argues: “Whilst this may be OK for leisure channels – driven by price advantages, the business market is more complex due to the increased scrutiny, currency conversion and data obligations.”
The results “pose significant challenges for TMCs, suppliers and their customers”, with “significant service delivery pressures” on TMCs as well as “increased costs due to fragmented content from multiple sources.”
It adds: “Fragmentation also complicates traveller tracking and risk management”.
The paper also notes growing demand for sustainable travel is contributing to content fragmentation, adding “layers of complexity in sourcing and consolidating travel content, as sustainability metrics and certifications vary widely across suppliers and platforms”.
However, it blames “inconsistent airline pricing structures” for “exacerbating fragmentation”, leading to “discrepancies in content availability, fare comparisons and access to options”.
The paper notes the fragmentation in the sector “is [due to] more than NDC” but argues: “NDC poses several challenges”, with a leading travel buyer highlighting airlines’ “inconsistent adoption of NDC standards”.
Tass Messinis, chair of the Australian Association of Travel Management Companies, explained: “The challenge is every airline has its own NDC strategy.”
The report argues: “To be able to offer more sustainable travel choices, TMCs must have full access to content.”
It calls for “consistent travel fares, availability and rates to be available through all providers” and warns: “Machine learning, automation and AI has the ability to offer industrywide efficiencies [but] equally the scope to make a mockery of travel budgets and preferred rates, using personalisation.”
The paper concludes TMCs “are essential in streamlining fragmented processes”, but notes: “This requires rate parity and complete access to content.”
It suggests the role of TMCs must include providing “solutions to combat pricing surcharges and control personalisation offers”.
BTA chief executive Clive Wratten said: “It’s crucial for suppliers to recognise the TMC community as a valuable distribution partner, capable of bridging the gaps in content.”
More: Special Report: BTA seeks end to industry ‘civil war’ over NDC