Jason Dunderdale, global head of agency sales for luxury transport company Blacklane discusses the growth of driver services and the changing needs of business travellers.
With over 300 employees, Blacklane has become the premium global chauffeur service operator and a staple for business travellers across the globe. In addition to its airport transfers, the company has introduced new services in over 50 countries globally to meet the changing demands of business travellers post-pandemic.
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How has the landscape of global business travel changed since the pandemic?
Business travel’s bounce-back has exceeded expectations. Industry bodies such as the Global Business Travel Association (GBTA) have identified that the global business travel sector is due to set a new spending record by the end of 2024, and that spending will exceed US$2 trillion by 2028. The World Travel and Tourism Council has also highlighted that corporate travel is back and set to exceed 2019 levels this year (2024) by 6.2 per cent.
In addition, business travel consistently reports a post-pandemic increase in the blending of corporate travel with personal holidays. At Blacklane our research supports this trend – in our 2024 Travel Trends Report we found that globally nine out of 10 business travellers have combined business and leisure trips, with 54 per cent stating this combination boosts their productivity. In fact, half of respondents highlighted that they work harder when there are exciting things available for them to do such as sightseeing and visiting museums or renowned restaurants. I know from personal experience that simply building in time to walk around a new city is a great inclusion on any business trip.
Have you seen a significant change in the volume of global business travellers post-pandemic? If so, in what way?
Pre-pandemic, much of our business was focused on airport transfers. We have introduced new services to meet the evolving demands of business executives and luxury travellers around the world. Our City-to-City option has grown significantly, with business travellers choosing Blacklane to provide a comfortable journey without interruption instead of, for example, short-haul flights and rail journeys. In particular, the journeys between major metropolitan areas such as Miami to Fort Lauderdale and London to Manchester have been exceptionally well received. Thanks to popular demand we’re expanding these options with City-to-Vineyard and City-to-Slopes routes to offer more services in line with discerning traveller habits.
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Our In-City service – newly introduced during the pandemic – is also extremely popular, particularly in cities such as New York, Los Angeles, Miami, Dubai and London. Blacklane moves executives around cities to and from offices, between meetings and events 24/7.
As corporates become more acutely aware of their duty of care responsibilities, ground transportation is increasingly part of a managed travel program so this sector is a growth area for us.
Airport transfers remain the core of our business and are performing in line with business travel’s strong recovery post-Covid. Business travellers are demanding comfortable and reliable journey options at all stages of a business trip – if you fly business class and have a busy travel schedule, bundling onto public transport or into an unknown taxi doesn’t really help to keep stress levels at bay.
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What new travel policies and regulations have been implemented globally that business travellers should be aware of?
In the EU, the Corporate Sustainability Reporting Directive (CSRD) is expanding its reporting requirements. As part of Environmental, Social, and Governance (ESG) obligations, large organisations must report on scope-3 emissions – essentially the emissions by third-party contractors. For travel buyers, this means being able to accurately record data on the carbon footprint of all business travel to meet the broader sustainability reporting requirements of their organisation.
“Pre-pandemic, much of our business was focused on airport transfers. We have introduced new services to meet the evolving demands of business executives and luxury travellers around the world.”
Travel buyers therefore need greater visibility of transport elements sometimes left to chance, such as ground transport journeys, so that they can be booked in line with overall corporate policies, and accurately tracked and monitored. Travel buyers tell us that sustainability is a major consideration in all travel policies and buying decisions.
Industry data suggests that the ground element of a business trip is commonly not part of a managed travel program for around 30-40 percent of journeys. Corporates are starting to monitor spends and trends in this area, often driven by a requirement for accurate sustainability data and cost control. We work hand in hand with organisations to better understand travel patterns so that policies can align with corporate goals and traveller well-being demands.
What are the key changes in business traveller expectations post-pandemic?
Business travellers expect flexibility, the ability to combine work and leisure and that their wellbeing will be protected. Blacklane’s 2024 Travel Trends Report outlined that during dedicated business trips, roughly two in every three research participants (65 per cent) prioritised time for personal activities and relaxation to remain productive when on the road. I might have a chauffeur for my airport transfers, but it is not yet commonplace that access to a reliable chauffeur is available across other elements of a business trip. Getting between meetings and events while in-destination could be so much smoother if this was the case, and the trip would be really elevated if that chauffeur helped me squeeze in some personal errands like ensuring I pick up some gifts for my family.
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We see more relaxed approaches to remote working in travel policies globally, and greater attention by corporates to the wellbeing of their people. Ironing out the pain-points in business travel makes for more engaged and productive people so it’s an important consideration for us all. Travel buyers outline that reliability and professionalism are absolutely key, so it’s important we’re able to support all these needs.
“Business travellers expect flexibility, the ability to combine work and leisure and that their wellbeing will be protected”
Are global business travellers placing more emphasis on premium experiences and wellness during their trips? How are these expectations being met?
Absolutely. A focus on wellbeing and premium amenities increases work success according to Blacklane’s research. Almost all C-Level executives (96 per cent) stated that premium experiences positively contribute towards their productivity and success. It’s a very important consideration for travel buyers. Almost half (45 per cent) of the most senior business travellers reported losing up to a whole day – between four and eight hours – of productive time due to the stress of fragmented business travel. Meeting travel expectations has huge implications on the success of a business trip, in all senses.
As a frequent traveller myself I’m really aware that it is the little touches that really make a trip feel effortless, and make a difference. These things that are often thought of as luxury extras are in fact integral to a smooth experience. For example, simply having wifi access throughout a journey means you have the choice of relaxation such as watching a film, or to work from your devices.
What are the needs of global business travellers in 2024, and how are those needs being met?
We see that global business travellers look for uninterrupted Wi-Fi for all of the journey, private chauffeurs in-city for travel and personal errands, pre-booked airport transfers with English-speaking chauffeurs, the option to fly premium or business class, extra luggage allowances and even the chance to travel with a family member to best manage stress when travelling.
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It is important to note that cost-cutting in travel is a concern for business travellers according to our research. Two-thirds (66 per cent) of business travellers flag that cuts negatively impact their productivity on business trips, highlighting that travel managers need to carefully consider how they best meet the expectations of today’s business travellers.
How are global travel companies adapting to meet the new expectations of business travellers? What trends do you foresee in the future of global business travel?
Global business travel has aggressive targets in areas of sustainability, and there is work to do on all sides to meet these demands. Increasing traveller education about the choices they make, ensuring travel programs accurately report and measure all segments of a journey, and suppliers working to evolve and invest in greener options are important parts of the puzzle.
Travellers are also demanding more sustainable choices, and we see some travel policies rewarding business travellers for making better environmental choices. These changes are making sustainability a larger part of the travel buying decision-making process and helping corporates to ensure that all elements of a journey are managed by a partner with sustainability top of mind.
“It is important to note that cost-cutting in travel is a concern for business travellers according to our research”
Blacklane’s research in the 2024 Travel Trends Report clearly highlights the importance of embracing the increasingly blurred lines between business and leisure travel. As such, there are areas where business travel services will need to evolve to be more geared up to flexible usage. For example, hotels with co-working or hot desking spaces are a consideration when I travel. A traveller may want high-quality leisure facilities such as a gym with state-of-the-art equipment and easy access to the global virtual classes they enjoy at home, rather than the ‘functional’ features often associated with a business hotel. The industry also needs to rethink its approach to luxury amenities so that they become necessities for those on the road the most
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