A new report by Amadeus and PhoCusWright titled "Corporate Travel Management and Practices in China, which is based on interviews with 112 corporate executives in China, paints a picture of the huge opportunities available for the travel and tourism industry in the market.
Key findings of the Amadeus report include:
- Use of IT remains limited: “A lack of IT penetration is a key challenge for those companies working in China. The report reveals that use of automated IT systems remains limited, with more than 80 percent of companies interviewed continuing to use paper forms to some extent within their travel management processes. Similarly corporate credit cards are not widely used and cash remains the dominant form of payment; more than 90 percent of respondents give employees cash advances to cover travel expenses.”
- Travel defined by government: Amadeus says a key issue facing any corporation operating in China today is the role of the State. “The study reveals that travel management is highly complex and defined by the government, translating to the need for corporations to have a detailed understanding of the domestic regulatory environment. Indeed, a strong working relationship with Travelsky, China’s sole government-approved computer reservation system (CRS) provider, is a prerequisite for all travel management companies in the country.”
- Localized processes are a must: Localized processes, operations and technology capabilities are all also indispensable, Amadeus says. “Due to the insular nature of much of the national industry, it has been necessary for travel management companies to create bespoke systems in order to interface with domestic technology. Such systems are rarely compatible with existing global technologies and are subject to complex licensing processes. All systems must also be built to interface in double byte Chinese characters.”
No comments:
Post a Comment