Safety, Sustainability and Cost Drive Today’s Business Travel Ground Transportation Strategies, According to New Research

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Safety, Sustainability and Cost Drive Today’s Business Travel Ground Transportation Strategies, According to New Research

GBTA and the National Limousine Association explore how corporate travel programs manage and maintain ground transportation policies

ALEXANDRIA, Va., Sept. 11, 2024 /PRNewswire/ — The wheels are constantly turning when it comes to ground transportation as part of a company’s business travel program. Now it’s becoming increasingly important for travel managers to think strategically when implementing effective policies and processes that reduce risk, promote employee satisfaction and limit cost and carbon emissions.

This is according to a report published today called, “In the Fast Lane: How Do Travel Programs Manage Ground Transportation?” from the National Limousine Association (NLA), the leading authority for the chauffeured transportation sector, and the Global Business Travel Association (GBTA), the premiere trade association of the global business travel industry.

Based on a survey of U.S. and Canada-based travel managers, the report provides critical insights into how companies are managing ground transportation amidst a rapidly changing business travel landscape. The new study delves into the current state of ground transportation within corporate travel programs while also highlighting key trends, challenges and best practices for optimizing this essential component of business travel that can also easily be an overlooked source of risk, cost and traveler dissatisfaction.

Key findings reveal that while ground transportation accounts for a relatively small share of overall travel spend, it is an area of increasing focus due to its impact on cost, risk and traveler satisfaction. There’s also an opportunity for the industry to raise awareness about the full scope of its offerings.

Highlights from the report include:

  • There’s an opportunity for education and awareness when it comes to the chauffeured transportation industry’s capabilities. When asked to indicate which products/services come to mind with chauffeured transportation, the two highest mentions were black car service (86%) and airport pickups/drop-offs (67%). Respondents were less likely to indicate shuttle/van service (39%) and motorcoaches/buses (31%).
  • Ground transportation represents a relatively small share of overall travel spend.
    Only 63% of travel managers surveyed knew how much of their company’s overall travel spend was devoted to ground transportation. Of those who did know, they estimated it is 11.5% on average.
  • Companies are increasingly focused on the “value” of business travel. Travel managers are shifting from prioritizing cost reduction to maximizing the value and impact of business trips, which could potentially lead to increased use of chauffeured transportation for key scenarios. The results reveal opportunities for pre- and post-trip assessments to track the value of trips.
  • Safety is the top priority for “managed” ground transportation programs. Travel managers were shown six different priorities and asked to rank them in order of importance for their managed ground program. Almost three-quarters (73%) chose safety as the single greatest priority, (54%) for their program or the second greatest (19%).
  • Shuttle/van service is viewed as cost-effective and sustainable for group and project travel. The majority (63%) of travel managers believe shuttles/vans are more cost -effective for group/project travel than employees taking separate transportation, and 79% believe they are more sustainable than individual transportation.
  • Even though shuttle/van service is viewed as cost-effective and sustainable, it is only sometimes used on group business trips. Almost nine in 10 (89%) buyers said employees sometimes or always take separate transportation on group trips, while 67% said they sometimes or always arrange shuttles or vans to transport the employees as a group. This underscores a weakness of the “self-service” model of travel management where group trips are commonly arranged by individual employees rather than a central travel “planner.”
  • Chauffeured transportation is commonly permitted, especially for senior executives and board members, and under special circumstances. A large majority of travel managers (82%) said their company’s travel policy at least sometimes permits chauffeured transportation. Over three-fourths (76%) of travel managers said chauffeured transportation was often permitted for executives, and 74% for board members.

    Additionally, respondents indicated that chauffeured transportation is at least sometimes allowed in a variety of additional scenarios. These include in high-risk/developing countries (93%), for employees with accessibility needs (90%), transportation of customers/clients (82%), parties/special events (65%) and recruiting (62%).

  • Ground transportation spend is trending upward. While almost half of travel managers (47%) said their company’s overall spending on ground transportation increased in the past year, it was more likely to increase somewhat (40%) than significantly (7%). Meanwhile, 42% expect their ground spend will increase in the next year.
  • When companies have carbon emissions targets, they do not typically extend to business travel or ground transportation. More than half of travel managers (52%) reported their organization has a company-wide carbon emissions target. However, only 16% of buyers said their company has a defined emissions target for business travel specifically, and even fewer (7%) indicated their company has a target for business travel ground transportation specifically.

“Delivering effective, safe, convenient and sustainable ground transportation options and policies continues to be a priority for today’s business travel managers, as this latest report shows,” said Suzanne Neufang, CEO of GBTA. “As companies continue to navigate the complexities of business travel, understanding the nuances and value of ground transportation management is crucial for optimizing cost, safety and traveler satisfaction.”

“It’s a new era for business travel – and it’s a new era for chauffeured ground transportation. We want corporate travel buyers to know that the modern limo industry can cater to their every need – from hitting carbon emissions targets to seamlessly executing large-format group transportation, as we continue to stay true to the core pillars our industry has always been known for: safety, service and reliability.” said Brett Barenholtz, President of the NLA.

GBTA and NLA gathered data through an online survey of 121 U.S. and Canada-based travel managers between June 4-14, 2024, and research experts from both organizations presented the report’s findings during an education session at the GBTA 2024 Convention in July. GBTA members can access the complete report and will be able to watch the recorded education session starting October 31, from the GBTA Member Hub.

About GBTA

The Global Business Travel Association (GBTA) is the world’s premiere business travel and meetings trade organization headquartered in the Washington, D.C. area and serving stakeholders across six continents. GBTA and its 8,000+ members represent and advocate for the $1.48 trillion global travel business and meetings industry. GBTA and the GBTA Foundation deliver world-class education, events, research, advocacy and media to a growing global network of more than 28,000 travel professionals and 125,000 active contacts. For more information visit gbta.org and gbtafoundation.org.

About NLA

The National Limousine Association (NLA) is an organization responsible for and dedicated to representing the interests of the ground transportation industry at the global, national, state and local level. It is the unified voice of this industry – linking transportation industry professionals from owners and operators to suppliers, manufacturers, regional and state limousine associations. With 1,300+ NLA members, the Association is committed to exceeding expectations with regards to professionalism, transportation efficiency and safe riding. For more information about the NLA, please visit www.limo.org.

SOURCE National Limousine Association

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