Black Car News
According to a report recently published in a joint venture by the National Limousine Association (NLA) and the Global Business Travel Association (GBTA), it’s becoming increasingly important for travel managers to implement effective policies and processes to reduce risk, promote employee satisfaction and limit cost and carbon emissions. Data from the report, “In the Fast Lane: How Do Travel Programs Manage Ground Transportation?” came from 121 U.S. and Canada-based travel managers, surveyed in June. It provided critical insights into how companies are currently managing their ground transportation programs – highlighting key trends, challenges and best practices.
Highlights from the report include:
- There’s an opportunity for education and awareness. When asked which products/services come to mind when chauffeured transportation is mentioned, the two highest responses 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 makes up a relatively small percentage of travel spend. Only 63% of travel managers surveyed knew how much their companies spend on ground transportation. Those that did estimated it at 11.5%, on average.
- Companies are increasingly focused on value. Travel managers are shifting from prioritizing cost reduction to maximizing the value and impact of business trips, which could lead to increased use of chauffeured transportation – including pre- and post-trip assessments to track value.
- Safety is the top priority for managed ground transportation. Research showed 73% of travel managers chose safety as their top priority.
- Shuttle/van service is viewed as cost-effective and sustainable.The majority (63%) of travel managers said shuttles/vans are more cost-effective for group/project travel than separate transportation for individual employees, and 79% believe they are more sustainable.
- Chauffeured transportation is commonly permitted for senior executives, board members, and under special circumstances. A majority of travel managers (82%) said their companies sometimes permit chauffeured transportation. Over three-fourths (76%) said chauffeured transportation was often permitted for executives, and 74% for board members. Chauffeured transportation is also sometimes allowed for additional scenarios – including 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 the travel managers polled (47%) said their company’s overall spending on ground transportation increased in the past year, 42% expect their ground spend to increase again in the next year.
- Corporate carbon emissions targets do not typically extend to business travel or ground transportation. More than half of travel managers (52%) reported they have company-wide carbon emissions targets, but only 16% said there are defined emissions targets for business travel specifically, and only 7% have targets for ground transportation.
“It’s a new era for business travel and it’s a new era for chauffeured ground transportation,” said Brett Barenholtz, President of the NLA. “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.”
Source: National Limousine Association