OUTLOOK
pressure on the low-cost, long-haul sector, with one of the pioneers of this sector, Norwegian, the subject of a takeover bid from British Airways’ parent company IAG. The decision by several airlines to axe or reduce first class cabins may also help fuel demand for private jets, says Declan Halton- Woodward, executive assistant at Heartwood Investment Management. “This leaves a gap in the market for senior executives. I think there are many charter companies popping up that will take advantage of this and we will see use of private charter jets become more common,” he explains. Next year will also see another key battle in the plan to build a third runway at Heathrow – high court judges are due to assess five legal challenges to the airport’s expansion during a hearing in March, which could potentially delay the project.
GROUND TRANSPORT The once-neglected sector of ground transport has come into the spotlight in recent years as ride-hailing technology firms, notably Uber, have continued to gain a significant presence in the corporate market.
One outcome of this seismic change is the consolidation of ground transport operators, including Hailo’s transformation into the Daimler-owned Mytaxi brand, Gett’s acquisition of One Transport and the purchase of Cabfind by CMAC Group. That’s not to say it’s been a
smooth ride for Uber – it has only been granted a 15-month licence renewal in London, which runs out in September 2019, meaning the ride-hailing innovator is effectively on probation. Uber could also continue to face regulatory issues in other major cities. As for wider trends, expect more technology integration
70 NOVEMBER/DECEMBER 2018
from the ground transport providers, both within their own tools and through third parties, including TMCs and expense management platforms. Dave Smither, head of marketing at Cabfind, says its focus is on offering an “improved customer experience across every touchpoint” following its acquisition by CMAC Group.
“Being part of a new group on such a scale brings a lot of exciting opportunities to accelerate our product development,” says Smither. “We expect people to consume ground travel in a smarter way – tech and managed services will allow business travellers to choose the most appropriate mode of transport based on cost, quality, service or any criteria they choose, working within their travel policies rather than feeling restricted by them.”
As for prices, CWT foresees UK ground transport costs
WE WILL
SEE USE OF PRIVATE CHARTER JETS BECOME MORE COMMON
rising by around 2 per cent in 2019, which will be higher than the global average increase of 0.6 per cent. Looking further into the future, the development of self-driving vehicles will also be worth watching as the likes of Google’s Waymo and Uber continue to test the technology which could further transform ground transport.
ACCOMMODATION The impact of the wave of consolidation sweeping the hotel industry is starting to be felt in the corporate travel market as Marriott completes its integration of Starwood and French group Accorhotels has gobbled up other smaller hotel chains, including Movenpick and Mantra Group. Earlier this year, Marriott moved to cut sales commission for group bookings at properties in North America from 10 per cent to 7 per cent. The move was was swiftly followed by rivals
buyingbusinesstravel.com
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