The push for making sustainable choices in business travel continues to gain momentum, but price sensitivity continues to impact decision-making, according to speakers on the All Change: Sustainability at the core of the modern TMC panel at ITB Berlin on March 5.
“Price is still the number one driver, but sustainability is coming up as a close second,” stated Robert Loeschke, vice president sales, ATG Travel Worldwide. He highlighted the dual pressure companies face, balancing financial constraints with increasing expectations to meet sustainability targets.
“Large enterprises are already doing this, but the (price point) will hit a lot of the smaller-sized companies pretty hard. We need to understand the company’s (sustainability) requirements before (proposing a solution),” noted Loeschke.
Data shows that translating sustainability goals into tangible actions proves challenging.
Sesilia Kalss, senior manager consulting, American Express Global Business Travel, noted that companies require more guidance on sustainable choices.
Panellists also discussed the potential of carbon pricing to incentivise sustainable travel choices.
Jonas Hammes, senior director, strategy and operations, EMEA at Navan, shared that his company has seen a six per cent increase in rail bookings on intra-Europe routes, suggesting a growing willingness among travellers to opt for sustainable alternatives when presented with viable options.
However, Hammes also saw a “four-times increase in bleisure trips”, which often meant increased carbon emissions due to extended travel.
To achieve meaningful sustainability in business travel, customers need clear baseline comparisons across the different modes of travel to facilitate informed choices.
Hammes added that simply stating emission numbers is not enough. “We need to contextualise the data and make it relatable. For example, we equate emissions to things like the equivalent of planting x number of trees, to make the impact tangible.”
