Travel Ground Transportation Strategies, According To New Research

Tuesday, September 17, 2024

As corporate travel continues to evolve, ground transportation is becoming a key focus for travel managers aiming to enhance employee satisfaction, reduce risk, and manage costs and carbon emissions. A new report titled, “In the Fast Lane: How Do Travel Programs Manage Ground Transportation?” from the National Limousine Association (NLA) and the Global Business Travel Association (GBTA) provides fresh insights into how businesses are handling this often-overlooked element of travel.

The report, based on surveys from U.S. and Canadian travel managers, explores how companies are addressing ground transportation in an increasingly complex and fast-changing travel environment. It highlights major trends, challenges, and best practices for improving corporate ground transportation management, shedding light on areas where companies can improve their policies to better align with safety, cost, and sustainability goals.

Key Insights from the Report:

1. Growing Importance of Ground Transportation: Although ground transportation accounts for a modest share of total travel spend—estimated at around 11.5%—it has become a central focus for travel managers due to its impact on safety, cost control, and traveler satisfaction.
2. Limited Awareness of Transportation Options: The report identifies a gap in understanding the full scope of the chauffeured transportation industry. While 86% of respondents associate chauffeured services with black cars and 67% with airport pickups, fewer are aware of services like shuttle vans (39%) or motorcoaches (31%). This suggests opportunities for further education around available options.
3. Shift Toward Maximizing Trip Value: The focus is shifting from simply reducing costs to maximizing the value of business travel. This opens the door to increased use of chauffeured transportation in specific scenarios where comfort, safety, and efficiency are prioritized over price.
4. Safety is a Top Priority: Safety emerged as the leading concern for ground transportation programs, with 73% of travel managers ranking it as the highest priority. In addition, 54% ranked it as their second-highest concern, underscoring the importance of risk management in travel policies.
5. Shuttle and Van Services as Sustainable and Cost-Effective: For group and project travel, shuttle and van services are recognized as both cost-effective (63%) and sustainable (79%) alternatives to individual transportation. However, these services are still underutilized, with many companies opting for separate transportation despite potential cost and environmental benefits.
6. Chauffeured Transportation for Senior Executives: Chauffeured services are commonly permitted for senior leaders, with 76% of companies allowing their use for executives, and 74% for board members. These services are also permitted in specific circumstances, such as travel in high-risk areas, for employees with accessibility needs, and during special events.
7. Increased Ground Transportation Spending: Nearly half (47%) of travel managers reported that their ground transportation spending has increased over the past year, and 42% expect this trend to continue into next year.
8. Carbon Emissions Goals Not Yet Extended to Travel: Although 52% of companies have company-wide carbon emissions targets, only 16% of organizations include business travel in their emissions goals. Even fewer (7%) apply these targets to ground transportation, indicating a gap in sustainability practices related to travel.

Room for Improvement

The findings highlight a significant opportunity for businesses to rethink and optimize their ground transportation policies. As travel programs become more sophisticated, there’s room to improve education about available services, better manage group travel, and increase the integration of sustainability goals into transportation plans.

By focusing on safety, efficiency, and sustainability, companies can build smarter ground transportation strategies that not only enhance employee satisfaction but also minimize costs and reduce environmental impact. The future of business travel will increasingly require travel managers to make strategic decisions that balance these key priorities.

As businesses look ahead, embracing a more comprehensive approach to ground transportation could be a game-changer for corporate travel programs, unlocking both operational efficiencies and long-term value.

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