Survey: Policies Limit Some Ground Transport, Buyers Prioritize Safety

The managed ground transportation segment of corporate travel spend is relatively small, averaging about 11.5 percent on average of travel budgets—at least among the travel managers who know what their organizations' spend is for the category, according to new research from the Global Business Travel Association and the National Limousine Association, released Wednesday.

Fewer than two-thirds (63 percent) of surveyed travel managers knew what their company's overall ground transportation spend was. Among the reasons why some of it outside of car rentals is not captured is that "unless you are reporting on corporate card data, most companies don't have their [other] ground transportation implemented into their online booking tool," Immunocore global travel and expense services manager Carmen Smith said during a preview of the research at the July GBTA convention in Atlanta. Smith added that she is in the process of having it added into her Concur system.

GBTA and the NLA surveyed 121 travel managers based in the United States and Canada from June 4-14.

Most travel programs have a formal relationship with rental car companies (92 percent), while 63 percent do with ride-hailing companies, 54 percent do with chauffeured transportation providers, and 22 percent do with chauffeured transportation technology platforms, according to the study. 

Travel policy allowances also differ among various ground transportation modes. About 93 percent of policies "always" or "often" permit the use of rental cars, 86 percent do so for rideshare apps, and 84 percent do for taxis. 

Chauffeured transportation, on the other hand, is more often "sometimes" permitted (82 percent). The report noted that there are opportunities for the industry to educate buyers on the definition of chauffeured services. When asked what came to mind when they thought about that segment, 86 percent of respondents said black-car services, and 67 percent cited airport pick-ups and drop-offs. 

But they were less likely to select shuttle or van service (39 percent) and motorcoaches or buses (31 percent), the latter of which are more likely to be used for group or project travel. Chauffeured car companies commonly provide these services.

Key Priorities for Ground Programs

Safety was respondents' highest concern for their managed ground transportation programs, with 72 percent putting it within their top two priorities—54 percent identified it as the top priority and 19 percent put it second. Cost containment and savings were next, with 48 percent of respondents placing it in the top two. (About 22 percent put it first and 26 percent put it as a second priority.) Travel policy compliance and enforcement was cited as a top-two priority by 35 percent, followed by 29 percent who cited traveler experience.

Ground Program Spend Trends

About 47 percent of surveyed travel managers said that their company's overall spend on ground transportation increased in the past year—7 percent significantly and 40 percent somewhat—while 36 percent said it remained the same. Further, even though 45 percent said they expect their ground spend to remain the same in the next year, 42 percent anticipate it will increase somewhat (40 percent) or significantly (2 percent).

Sustainability Opportunities

More than half of surveyed travel managers (52 percent) said their organization had a companywide carbon emissions target, however only 16 percent of respondents said their company had a defined emissions target for business travel specifically, and only 7 percent had a target specific to business travel ground transportation.

And when it comes to ground transportation priorities, just 2 percent of respondents selected sustainability as either their first or second consideration, and just 5 percent thought of electric vehicles when identifying what ground transportation means to them.

The National Limousine Association in 2023 launched its Green Rides initiative, which focuses on several sustainability elements and best practices

"We put together the program to bring awareness to the entire industry," NLA treasurer, Green Rides co-chair and A1A Ground Global president and CEO Rick Versace Sr. told BTN. Versace also was on the GBTA panel in July. "Some industries may be slower to embrace technology. We thought the committee would help the industry stay ahead of the curve."

Still, when it comes to group business travel, most respondents said that hiring shuttle or van services are more cost-effective and sustainable. Nearly four in five respondents (79 percent) said that hiring shuttles and vans had the lowest carbon footprint, while 63 percent said they were the most cost-effective for their companies. 

Yet, on group trips, employees "often" (43 percent) or "sometimes" (46 percent) take separate ground transportation. Further, just 12 percent said they "often" hire shuttles or vans to transport employees together on group business trips, while 55 percent said they use those "sometimes."