12.2 C
Cape Town
Sun, May 24, 2020
Home Retail travel Behaviour Economics to influence corporate travel choices in 2019

Behaviour Economics to influence corporate travel choices in 2019


2 min read

The science behind why corporate travellers make specific travel decisions will be a key focus for leading Travel Management Company, FCM Travel Solutions, in 2019.

Combining insights from psychology, judgement, decision making and economics, the field of Behavioural Economics considers why individuals make purchasing decisions, what they will buy and how much they are willing to spend.

“In corporate travel, decisions that are made daily can have a significant impact on a company’s bottom line and on the wellbeing, productivity and morale of the corporate traveller,” explains Nicole Adonis, FCM Travel Solutions South Africa GM.

“By understanding Behavioural Economics, subtle changes to travel policies can be implemented to ‘nudge’ employees to behave and choose travel options that fit within the company’s travel policy.”

An example, cited by Adonis, is providing travellers with a choice of three hotels at three different price points, instead of only two. “In this scenario, most people would choose the middle-ranged price option, not the most expensive or the cheapest. This theory is dubbed the ‘decoy effect’, so introducing a third decoy option influences a person’s behaviour to choose the option you want.”

At a time when corporate travel budgets are being slashed, encouraging staff to comply with corporate travel policy and efforts to save travel costs is critical. “Companies have to get creative and do things differently if they want to succeed,” says Adonis.

An understanding and application of Behavioural Economics into corporate travel decision-making can deliver not only on achieving compliance, but also reduce traveller friction, which occurs when business people travel too much or have poor travel experiences.

Your TMC, as the corporate travel expert, should be in a strong position to assist you proactively to achieve this compliance as well as mitigate the negative impact of travel friction on your staff and your company.

“At FCM Travel Solutions, we’ve spent some time researching what travellers can expect in 2019 and have compiled a paper on such trends as Behavioural Economics, traveller friction, personalisation and streamlined payment options. The paper is available on our website to anyone who has an interest in corporate travel and where it is heading in 2019,” concludes Adonis.

Jeanette Briedenhann
Jeanette Briedenhann
Jeanette Phillips joined the team in 2016. She developed a passion and love for all things-travel related in her role as travel journalist, a position she held for over seven years. A brief exodus into the corporate marketing sphere proved that there is no better industry than the travel industry. Research and writing are two of Jeanette’s greatest passions, but she is always open to new challenges and different ways of doing things.

Must Read

Qatar to introduce temporary additional safety measures onboard

Qatar Airways has further enhanced its onboard safety measures for passengers and cabin crew. The airline is implementing several changes, including the...

Emirates resumes passenger flights to 9 destinations

Starting 21 May, Emirates plans to operate scheduled flight services from 21 May to nine destinations: London Heathrow Frankfurt, Paris, Milan, Madrid,...

Don’t make a slow recovery more difficult with quarantine measures – IATA

The International Air Transport Association (IATA) released new analysis showing that the damage to air travel from COVID-19 extends into the medium-term,...

ASATA Makes Recommendations On Air Ticket Refunds And Vouchers Policies

While the COVID-19 crisis has had a critical impact on global air travel, airlines and its distribution partners, including travel agents, are...

Travelling in a post-pandemic world – new instabook challenges us to do better

The Covid-19 pandemic has brought the global travel industry to a complete standstill and it is unlikely to ever be the same...