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CLIENT SURVEY & FORUM SUMMARYMAY 2020

CLIENT SURVEY & FORUM SUMMARY

In April and early May 2020, we conducted a client survey and also a market-facing survey to gather views on what travel may look like as we go forward and learn to live and work with COVID-19 restrictions.

A series of client forums explored some of these areas in more detail and we are pleased to share an overview of findings and thoughts with you.

SUMMARY

Over the course of the surveys and forums, a total of just under three weeks, it became obvious the extent to which people’s mindsets are already changing. Restrictions and social distancing remaining around the globe, in some form or another, well into 2021, have become an accepted concept.

Through the client discussions, it’s clear the focus at this point is on establishing what the new ‘normal’ looks like in terms of where people work and how they commute. Once this is embedded over the coming weeks and various countries begin to edge out of lockdown, it is more likely that travel will move up the business agenda again.

SPEED & VOLUME OF RETURN TO TRAVEL

Overall, it was agreed that domestic travel would return quickly but that mode of transport may change. Generally, people will feel more comfortable travelling in a private vehicle rather than by train for example. But a recurring question was simply – will anyone be wanting to meet face-to-face?

40 010203050 0 10 20 30 40 50

VSCLIENT INDUSTRY

Immediately

Within 1-3 months

Within 3-6 months

Within 6-12 months

12 months +

%

Broadly speaking, industry respondents were more cautious in their views on both speed and volume of travel returning.

However, it is worth noting that the industry survey was carried out two weeks later than the client survey.

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CLIENT SURVEY & FORUM SUMMARYMAY 2020

As a general consensus, a ‘return to office’ is anticipated around the month of September, but even then, most of the clients we spoke to suggested that would only be at 25-30% of staff.

With many people remaining home based, it is likely that inter-office travel and even in-person client meetings will not return to pre-COVID-19 levels, with 79% belief that video conferencing will be adopted on an ongoing basis, now that it’s proven to work.

79%

Video conferencing is here to stay

agree

TRAVELLER CONFIDENCE

Again, clients appear to be more optimistic overall in their views on how confident people are to travel. That said, there was a very strong message that this would be largely dependent on how airlines and airports manage the flow of passengers.

A critical factor in business travel returning is the willingness of individuals to travel. This will only happen when they regain confidence that the whole travel infrastructure can support them as well as the risks to health being minimised in wider terms.

INDUSTRY

CLIENTS

43

50

Reluctant to travel Confident to travel

0 20 40 60 80 100

Immediately

Within 1-3 months

Within 3-6 months

Within 6-12 months

12 months +

INDUSTRY

CLIENTS

%

Generally speaking, it was felt there is too little information in this area right now. Travellers would like to see a degree of consistency to help them adhere to guidelines and manage their expectations when they return to travel.

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CLIENT SURVEY & FORUM SUMMARYMAY 2020

TRAVELLER WELLBEING

Reed & Mackay clients placed a very strong emphasis on wellbeing with 89% saying they thought their company would allow employees to decline to travel. Industry respondents were 14% less likely to agree to that statement.

75% 89%

CLIENT INDUSTRY

A strikingly different result was shown when we asked if there was a belief companies would require a medical to identify high risk travellers. While only 24% of clients thought that would be the case, a rather large 69% of industry participants thought that we would all be undertaking medicals soon.

69%

24%

INDUSTRY

CLIENTS

CHANGES TO THE TRAVEL PROGRAMME

Clients are again more optimistic that travel budget limitations will not be imposed, however, through discussion this became obvious that this is more to do with it happening as a byproduct of the situation than a conscious restriction.

01020304050607080 0 10 20 30 40 50 60 70 80

VSCLIENT INDUSTRY

A firm wide travel ban

Ban on travel to specific countries

Enhanced approval process

Greater policy restrictions

Increased/ ongoing adoption of video

conferencing

%

Travel budget limitations

While 62% of the industry responses thought there would be greater policy restrictions, only 47% of clients agreed. Forum participants felt their companies may be more likely to relax policy if anything, for example to potentially allow travel in a higher-class cabin for more personal space.

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CLIENT SURVEY & FORUM SUMMARYMAY 2020

WHERE SUPPORT IS REQUIRED

Clients very clearly ranked increased duty of care data, visibility of information and country risk data at the top priority, followed by updating traveller profiles to allow for greater disclosure to border control. A greater degree of pre- and post-trip traveller tracking and a review of travel policy were also thought to be extremely important.

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FORUM DISCUSSIONS

There was general agreement on the survey results reflecting the current mood, although we do expect to see a degree of movement as travel restrictions become clearer over time. Advance booking will be less likely and although there was some discussion on price point, the priority is very much around understanding how the traveller will be protected and supported from the initial travel enquiry through to completion of the journey.

There is a clear need for a stronger approval process, with some form of pre-trip questionnaire to assess if the individual can travel to a particular location, including looking at what the implications are for future travel plans.

The single biggest takeaway is that both data and shared information is critical. Given the plethora of data already available, even while schedules and travel itself are severely limited, it will be hugely challenging to understand, filter and apply the data in a timely fashion.

We believe it’s critical therefore that reliable and authenticated information feeds into our consultants’ reservation system as well as being surfaced in a meaningful way to R&M/Portal. We are actively working with our risk intelligence partner to achieve this.

We are shortly publishing a Return to Travel Handbook which gives further information on what Reed & Mackay are doing to support clients at this time.