March 2009
FOCUS ON... CHINA
- Research by Amadeus and PhoCusWright takes a first in-depth look at the Chinese Corporate Travel Market
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Research by Amadeus and PhoCusWright takes a first in-depth look at the Chinese Corporate Travel Market
Corporate Travel Management and Travel Practices in China, the joint white paper from Amadeus and travel research authority PhoCusWright, has revealed that more than 80% of companies in the region use paper forms within their travel management processes.
The research brings to light the huge opportunities available for the travel and tourism industry in the market. It also highlights the significant challenges facing companies operating in the country, whether they be multinational corporations with a presence in China, private domestic companies or state owned enterprises.
Our objective in undertaking this report was to foster a better understanding of the travel management industry in China – an area about which little is known despite being widely recognised as a potentially important economy driver.
The research findings clearly reveal both the size of the opportunity and the scale of the challenge facing the travel management industry in China.
David Brett
President
Amadeus Asia Pacific
Key findings of the report conclude:
Use of IT remains limited:
The report revealed the use of automated IT systems remains limited, with more than 80% of companies interviewed continuing to use paper forms to some extent within their travel management processes. Furthermore, cash remains the dominant form of payment as more than 90% of respondents give employees cash advances to cover travel expenses instead of using corporate credit cards.
Travel defined by government:
The study uncovers the complexity of travel management, especially the role of the state with regards to travel. It calls for corporations to have a detailed understanding of the domestic regulatory environment and a strong working relationship with Travelsky, China’s sole Government approved computer reservation system (CRS) provider.
Localised processes are a must:
The isolated nature of much of the national industry has meant that localised processes, operations and technological capabilities are absolutely essential. Travel management companies have had to create bespoke systems in order to comply with domestic technology.
The report, based on interviews with 112 corporate executives in China, also finds that change is forthcoming. It indicates that the domestic corporate travel market has expanded significantly over the last two decades and will continue grow. IT penetration is also expected to proliferate, driven by the growth of credit card adoption and the spread of broadband infrastructure into the regions while the growth of a technologically competent under-35 generation is also forecasted to further increase the use of technology.
“This report makes clear that a detailed understanding of the market is an absolute pre-requisite for any company that is either operating in China or is planning to do so in the future. It shows the unique conditions that they must navigate and confirms that those businesses which simply attempt to translate their global systems across are destined to be unsuccessful.
Policies and programmes which have been tailored to the local environment are essential.”
Ram Badrinathan, General Manager, PhoCusWright, Asia Pacific
Click here to download the full study.
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