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Ground Monitor 2019 Ground Monitor 2019 Powered by Global Business Consulting GROUND MONITOR REPORT Global Business Consulting WELCOME TO THE GROUND MONITOR 2019 This report, analyzing the factors that WHO WE ARE will impact how you buy ground transport services, is produced by the American Express Global Business Travel and Expense (T&E) Global Business Consulting team at Travel (GBT) is the world’s leading Management: American Express Global Business business partner for managed travel. Analyzing and benchmarking clients’ Travel (GBT). It is one of a series The Global Business Consulting (GBC) T&E processes. Managing T&E projects designed by our consultants and team at GBT works with companies and related to online booking tools, expense analysts to help you optimize your organizations to help them create travel environments, card payment solutions, travel policy and program. programs tailored to achieve specific integration between client systems and The team has analyzed seven years of goals. Our extensive capabilities and GBT systems. Optimizing the T&E GBT car rental data, combining it with results-oriented approach allow us to environment based on agreed KPIs, key macroeconomic variables including build and implement strategies that supporting clients with maintenance of local GDP, inflation, and employment streamline processes, deliver savings, T&E tools. rates to predict how car rental costs will improve compliance and reduce risk. evolve into 2020. Business Intelligence (BI) We base our approach around six and Data Advisory: To complement the car rental rate strategic consulting solutions that help modeling, GBT experts around the Providing differentiated insight plus clients implement a best-in-class travel world have contributed insights on local actionable recommendations by management program: factors, including regulatory issues, analyzing client travel behavior and that affect how you source ground performance using GBC’s proprietary Supplier Management – Air, transport. The local view includes analytics, GBT’s rich supply of T&E Accommodation, Ground Transport: information on topics including data, and powerful BI and visualization rideshare and rail, where relevant. As Targeted analytics to evaluate your tools. Through data advisory, we can well as impacting cost, these factors travel program with KPI (key help you to make informed decisions in will have implications for the traveler performance indicator) reviews of your your travel management activities. We experience and for how you fulfill duty supplier contract management, travel utilize the datasets available to us to of care obligations to your travelers. spend, traveler behaviors, compliance identify behavioral trends, enhance and more. traveler experience and generate Traditionally, ground has not always savings, delivering value throughout featured fully as part of managed travel Change Management: the organization. programs. By offering insights into Advising on strategy, predictive analysis ground providers and a global basis for of impacts linked to expected changes, GBC Travel Program Management: making price comparisons, this report communication, program design and Clients benefit from an experienced, is designed to help you take a more training plans. Piloting implementation single point of contact to provide a strategic approach to buying ground of change programs, including holistic, strategic approach; driving transport. Additionally, the price organization, technology and processes. day-to-day activities with project predictions will support your ownership, operational support, conversations with suppliers. Program and Process Optimization, escalation management and process Policy Design and Review: The Ground Monitor concludes with five improvement, deploying savings considerations for travel buyers, aimed Assessment and benchmarking of opportunities and efficiency initiatives. at helping them incorporate ground deployed end-to-end travel processes, within their managed programs. Given including mission order, booking, For more information, visit: the diverse and particular nature of validation process and accounting https://www. ground, one report cannot cover all the interface. Project management and amexglobalbusinesstravel.com/ specifics as they affect your business. integration support when implementing corporate-travel-services/global- For strategic advice, configured for your new technology solutions, such as business-consulting/ travel program, please get in touch with single sign-on and HR feeds. our Global Business Consulting team. Joakim Johansson Vice President, Global Business Consulting 2 AMERICAN EXPRESS GLOBAL BUSINESS TRAVEL GROUND MONITOR REPORT 3 Managing Global Trends in Ground Unlike air and hotel spend, ground transportation is often overlooked. But it’s a sector on which travel buyers need to keep a watchful eye – not least to keep up with their travelers. Ground is one of the most innovative Making ride-hail part of the program Mobility is a moving target and fast-evolving areas in travel, with Travelers are increasingly making Innovation defines the dynamic ground disruptive new platforms and players app-based ground transport, such as transport sector – but regulation plays emerging all the time, from almost ride-hail, car clubs and ride share, part an increasing role. Around the globe, every corner of the world. It accounts of their travel toolkit. Corporations have local authorities have tightened legal for a significant – and less visible – kept pace with traveler behavior by controls over ride-hail providers. Higher ‘‘proportion of corporate travel budgets. including ride-hail services, such as fares are the immediate consequence. Lyft, Uber and Didi Chuxing, in policy. In Most business trips begin and end with GBT’s experience, many corporations In the longer term, regulatory concerns ground segments: it’s a core part of the allow travelers to use approved ride-hail about congestion and the environment traveler experience. And it’s a sector in services, but do not mandate their use. will drive innovation in the direction of which the traveler is increasingly setting green transportation technologies. the agenda. As they become comfortable with Hundreds of cities across the world ride-share, it is likely corporations will operate congestion charging and low Car rental rates steady move rapidly to allow the use of other emission zone schemes, which have Car rentals are a major focus for app-based services. Car clubs offer spurred the introduction of low and Ground Monitor 2019: this remains a tremendous flexibility: a driver can pick ultra-low emission vehicles, key topic of interest for GBT clients. The up a car and use it for a period as short autonomous vehicles and bicycle-share Monitor’s predictive model draws on as 30 minutes. Another factor that will schemes. Over time, Mobility as a seven years of client data to generate spur adoption: car clubs are often Service (MaaS) platforms will emerge price forecasts. backed by big car rental companies. to allow travelers to easily manage the These companies have brands, systems growing set of ground services from Looking at the price forecasts, and and interfaces that are familiar to travel their smartphones, from ride-hail and combining them with insights from GBT buyers. The car rental companies electric scooters to local rail services. subject matter experts, the traditional already pitch their fleet management car rental model appears to be under propositions to travel buyers. Will travel buyers embrace MaaS? As pressure across much of the world. Integrating car clubs into the program with ride-hail, this is a decision likely to Costs are rising but the car rental does not feel like a big step. be driven by travelers. The best companies are restricted in their ability outcome for the program – in terms of to respond by raising rates: Ride share may be a less attractive productive, happy and safe travelers overcapacity – and competition proposition for travel buyers. Traveler – will be for buyers to provide the between the rental companies – means safety is one area of concern; privacy is required policy and safety rules. there is little scope to push up Average another, particularly where travelers Daily Rates (ADRs). need to talk business or take part in calls while on the move. As with the adoption of ride-hail, this may be an area in which travelers lead and the corporation ends up following while finding ways to manage the situation. 4 AMERICAN EXPRESS GLOBAL BUSINESS TRAVEL GROUND MONITOR REPORT 5 Argentina Chile LATIN AND Following almost two years of With solid domestic demand and Americas CENTRAL AMERICA recession, modest economic growth is renewed activity in the mining sector, expected to return to Argentina later in Chile is projected to continue its strong The big story for Latin 2019.3 The shallow recovery will see car growth to 2020.5 Despite rising demand, and Central America is rental rates largely remain stable, with strong competition between the ride-hail. Across the predicted growth of less than 1%. international brands and home-grown region, ride-hail companies are car rental companies should keep rates experiencing double-digit Challenging driver conditions make stable through 2019 and into 2020. Canada growth. Providing convenient NORTH AMERICA ride-hail an attractive option for The Organization for Economic Ride-hail is flourishing, as indicated by and affordable mobility in international business travelers. The As elsewhere, ride-hail has grown
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