First lat am business travel barometer by concomitance

LATIN AMERICAN BUSINESS TRAVEL BAROMETER
1st edition – May 2014
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1st edition
of the
Latin American
Business travel barometer
May 2014

Content
Executive summary..................................................................................................................................................................3
Methodology of the barometer................................................................................................................................................4
Part 1: Overview of the Business Travel Market....................................................................................................................5
Quickly growing business travel market in Latin America.............................................................................................................................................5
Business travel between 0.7% and 1.4% of GDP...........................................................................................................................................................5
Dynamic Market due to higher activities ......................................................................................................................................................................6
A strongly domestic market...........................................................................................................................................................................................7
Breakdown of travel budget: importance of Air + Hotel...............................................................................................................................................7
Part 2: Three main priorities for Latin American organizations ...........................................................................................8
Introduction to the three main priorities......................................................................................................................................................................8
Priority #1 = Cost Control ..............................................................................................................................................................................................9
Travel policy.........................................................................................................................................................................................................9
Travellers autonomy..........................................................................................................................................................................................11
Budget optimization needs and levers..............................................................................................................................................................11
Travel agency support in optimization..............................................................................................................................................................13
Priority #2 = Complete View of Expense .....................................................................................................................................................................14
Travel agency usage ..........................................................................................................................................................................................14
Booking practices ..............................................................................................................................................................................................14
Booking solutions ..............................................................................................................................................................................................15
Payment methods .............................................................................................................................................................................................16
Travel management procedures .......................................................................................................................................................................16
Expense management solutions........................................................................................................................................................................17
Priority #3 = Security of travellers ...............................................................................................................................................................................18
Synthesis: several levers for organizations to reach their priorities ...........................................................................................................................19
Perspectives for 2014.............................................................................................................................................................20

Executive summary
The business travel market in Latin America is one of the quickest growing in the world. It made up USD 60 billion in 2013 and has had an average
growth rate of 7.2% since 2000.
The market can be described both cautious and dynamic. The market is cautious because a majority of firms do not want to adjust their travel
budget, but it is also dynamic, because when they do adjust it, firms in Latin America tend to adjust it by a very large margin.
This has led to an average increase in the size of travel budgets of 4.2% in 2014. It is important to note that this in general is not due to inflation,
but rather to actual increases in operating activities. This market is also strongly domestic, with the largest part (75%) of increases resulting
from a developing activity within each country respectively.
Air and hotel expenses account for almost ¾ of an organization’s budget, which is far above their weight in Europe (60%).
Priority #1 = Cost control
 71% of interviewed organizations will be taking measures to enforce their cost control over the next 3 years.
 Several factors explain this level of priority:
o Only 50% of firms have a travel policy in place, and if it is in place, it is not widely implemented;
o Business travellers in Latin America enjoy a high level of autonomy, with 41% having great to complete autonomy when travelling.
 Consequently 82% of organizations declare that they could optimize their budget, and even to a large extent for 24%.
 As in Europe, the preferred lever for cost control is best buy.
Priority #2 = Getting a complete view of expenses
 50% of organizations are willing to enhance their view over their expenses. This priority is higher than in Europe (ranked #3).
o Many organizations use several local travel agencies, rather than 1 agency covering all their needs.
o Direct booking to supplier is high, 50% of firms using it either as their main booking practice or in combination with a travel agency.
o Online corporate booking tools (OBTs), although quite widely used (44%), are often used for a limited share of bookings. As opposed
to Europe, mobile phones are widely used in the booking phase of the travel cycle.
o When in place, standardized procedures tend to be manual.
Priority #3 = Increase travellers security & safety
 Most organizations have now taken security measures, notably during the trip and by subscribing travel insurances.
 An axis of improvement lies into the still low share of them providing pre-trip training & information to their travellers.
Prospects for 2014 are good, with an increase in budgets forecast to reach +5.8%, and a better situation especially in Brazil and Chile.

Methodology of the barometer
480 organizations have been interviewed for the first edition of the Latin
American business travel barometer, either face-to-face or by
telephone. All respondents are travel managers for their company.
Interviewed organizations are from all sectors of the economy with
various sizes of travel budget – from less than USD 50 000 to more
than USD 10 million. The median budget was USD 250 000.
Seeing as this is the first edition of the barometer, at the moment, there
are no comparable statistics for previous years. Thus, comparisons are
made with the current and historical situations in other markets,
especially Europe and China, but also with the respondents’ own
answers regarding their past travel habits and their predictions for
future ones.
Methodology of the LatAm Business Travel barometer
► 480 organizations have been interviewed
All interviews by phone or face-to-face
► Respondents are travel managers
► All sizes of business travel budget
From < USD 50K to > USD 10M
Median budget = USD 250K
► All sectors of the economy
Mexico
80 interviews
Brazil
240 interviews
Chile
80 interviews
Argentina
80 interviews
May 2014Concomitance 2

Part 1: Overview of the Business Travel
Market
Quickly growing business travel market in Latin
America
The business travel market in Latin America looks to be promising.
With USD 60 billion it currently represents roughly 5% of the world’s
USD 1145 billion, with an average positive trend of +7.2% between
2000 and 2012 (vs +4.5% globally). In comparison, during the same
time the European market grew only by an average of 3.7%.
Nevertheless, the countries of the former Eastern Bloc remain the
fastest growing market at 10.3% annually.
Business travel between 0.7% and 1.4% of GDP
While the business travel budgets vary greatly in size within Latin
America – from less than USD 3 billion in Chile and Peru to
approximately USD 30 billion in Brazil – in general, the business travel
budget is between 0.7% and 1.4% of GDP. All of the six major
countries in the region have a comparable ratio.
Interestingly this ratio can also be observed in other regions around the
world, such as in Europe.
Latin America among top growing regions
Yearly growth
2000-2012
+4,5% = World average
+1,5%
+7,5%
<
>
+1,1%
/ year
+7,2%
/ year
+7,5%
/ year
+7,1%
/ year
+10,3%
/ year
+3,7%
/ year
Source: GBTA, WTTC
April 24th, 2014Concomitance 4
Total business
travel market
USD 1145 billion
Total Latin America
USD 60 billion
Business travel always represents between 0,7 and 1,4% of
the country’s GDP
► All major 6 countries in the region have a comparable ratio between their Business travel
market and their GDP: between 0,8% and 1,4%
0,0%
0,5%
1,0%
1,5%
2,0%
1 30
Business travel
amount (USD billions)
Business travel / GDP
ratio
Brazil
Peru
ArgentinaChile
Venezuela
Colombia
Mexico
Business travel
= 0,7% to 1,4%
of GDP
52 3 4 6 7 8 9 10
Total Latin America
USD 60 billion

Dynamic Market due to higher activities
57% of travel budgets within respondents have remained stable, 32%
of budgets have increased, and 11% have decreased.
• When budgets increased, it was by 24% in average;
• When they decreased, it was by 31% in average.
This leads to two conclusions. On the one hand, the fact that 57% of
organizations stabilized their budgets shows that the market is rather
cautious. This trend is also observed in Europe; which also shows that
organizations now tend to better control their costs, which allows them
to keep developing their activity while stabilizing their travel budget.
On the other hand, the market is also very dynamic, because when
firms do change their budget, the percentage of change is very high.
For example, firms who decided to increase their travel budgets did so
by an average of 10% more than in Europe. Similarly, firms who
decreased their budgets decreased them by an average of 10% more
in Latin America than in Europe.
For Latin America, this has led to an average budget increase of 4.2%
in the past year – a positive development when compared to Europe
with an increase of 0.5% in the same time period.
It is also important to note that, with the exception of Argentina, most
organizations have increased their budgets for higher activity volumes
rather than for inflation. This is a positive trend given the high reported
rate increase of +5% per diem in main business areas, according to
the Business Travel News index.
Barometer results: a dynamic and positively oriented
market, and also cautious
More than half travel budgets are stable
3257114
countries
Decreased Remained stable Increased
+24%
in average
-31%
in average
+ 4.2%
Average budget increase
in the last 12 months
+ 5.6%
+ 7.5%
+ 2.4%
+ 3.3%
Business travel budget evolution
% of organizations
This positive trend results from the activity, not from the
inflation
► Budgets mostly increase for trip volume increase: the market shows a strong dynamism
74
26
Main reason for budget increase
% of organizations
Higher volume of travel
Higher travel cost
79
21
90
10
75
25 33
67
4
countries

A strongly domestic market
For now and the near future, the business travel market in Latin
America remains largely domestic, with 75% of companies listing
domestic development as the main reason for increasing budgets. This
rate is similar in Argentina, Brazil, Chile, and Mexico. While this is
expected for a large country like Brazil, it is more surprising for the
comparably smaller countries.
This rate is similar to the rate in China, but much less than in Europe
(35%), where organizations much more rely on their activity in the rest
of the continent, and moreover abroad (especially Asia). This can be
explained by the fact that, in Europe, markets are smaller in average
and the economic situation requires closer cooperation.
Breakdown of travel budget: importance of Air + Hotel
In Latin America, the proportion of business travel expenses spent on
air and hotel are very high. 74% of the surveyed organizations’ budgets
were used for these two categories, in comparison to 61% in Europe
and 46% in China. These high percentage rates can partially explained
by the absence of rail in these countries.
The market is strongly domestic
► When budgets increase, it is mainly for domestic development reasons
Domestic development
75%
of budget increase reasons
Continental development
15%
Global development
10%
43
31
6
0
13
8
Trip purpose breakdown
% of budgets
Air + Hotel = 75% of travel budgets
Car
rental
Food &
Beverage
Other
Air + hotel =
74% of budgets
Rail
61%
47
31
6
0
10
32,8
38
31
5
0
14
8 3,7
37
30
6
0
18
71,7
38
29
9
0
15
8 1
67% 69%
78% 67%

Part 2: Three main priorities for Latin American organizations
Introduction to the three main priorities
As it is in Europe and China, cost control is unsurprisingly the number
one priority for Latin American firms. 71% of surveyed organizations
are willing to take measures in order to improve their capacity in cost
control within the next 3 years.
Getting a complete view of expenses seems to be a growing priority. It
is number two in Latin America, and although no evolution can be
drawn in this 1st edition of the barometer, a strong positive trend has
been observed in Europe and China for a few years now. It has
reached #3 priority in Europe, and #4 in China. The desire to be fully
able to grasp travel expenses is a growing tendency around the world
and will surely become a major topic in the coming years.
Organizations have 3 main priorities
► These top priorities are similar in Europe
► The “complete view of expense” is a recent & growing priority
71%
Get a better
COST CONTROL
Increase TRAVELLERS SECURITY
& SAFETY
Get a
COMPLETE VIEW OF EXPENSE 50%
43%



% of organizations

Priority #1 = Cost Control
Travel policy
Only one in every two Latin American firms interviewed has a travel
policy in place. This is a relatively low figure, compared to 64% in
Europe. Moreover, if a travel policy is in place, it is not widely applied,
with only 41% of organizations reaching 70% compliance or more. This
figure is 57% in Europe.
Not applying these travel policies can have a direct effect on costs, but
also on other priorities, such as a complete view of expenses or
travelers’ safety. The importance of travel policies will also likely be a
trend in the coming years.
Interestingly, while travel policies are not fully enforced, they are
composed with a high level of directives, with seven directives being
shared by at least 50% of organizations. This is a rate comparable to
Europe’s situation. When in place, travel policies are ready to be
applied to the whole traveling process.
Implementing a travel policy is a standard yet to come, and
compliance must be optimized
Travel policies are in place in ½ organizations Their compliance is often limited
Travel policy in place
% of organizations
50%
of organizations have
a travel policy in place
50%
of organizations don’t
have a travel policy in
place
Travel policy level of compliance
41%
of organizations
19%
of organizations
22%
of organizations
18%
of organizations
= 64%
57%
>70%
of expenses
50-70%
of expenses
20-50%
of expenses
<20%
of expenses

Among the seven main directives in travel policies:
 4 are related to direct costs, with hotel directives being the most
prevalent at 80% of companies, followed by air directives at 76%.
This trend is also observed in Europe: hotel directives are now
slightly more present in travel policies than air directives, although
hotel expenses weigh an average twice less than air expenses.
This can be explained by 2 main facts: first, hotel expenses are
more difficult to control, with many independent suppliers not fully
present in central booking tools and a significant part of the
expenses being made on-trip while in the hotel; second, some
studies reveal that out-of-policy hotel bookings can have a strong
impact on the budget, while out-of-policy air bookings tend to occur
the same expenses – or even a little saving (see GBTA study “Out-
of-Policy Business Travelers and Their Impact on the Bottom
Line”, August 2013)
 2 directives are related to process or indirect costs, 82% of firms
have a policy requiring upstream validation, and 79% have a
downstream validation process. Interestingly, directives on
process and indirect costs, although more complex to implement
and with longer return-on-expense, are now widely shared by
organizations.
 Finally, 1 directive is linked with the security of employees, with
52% of respondents having implemented such measures in their
policy.
Yet, travel policies contain a lot of directives, to manage
both direct and indirect costs
► 7 directives are shared by at least 50% of travel policies. This is a similar rate to Europe
(9 directives)
Concomitance 14 May 2014
Direct costs
Process /
indirect costs
Corporate
responsibility
80
76
54
50
45
41
38
20
82
79
49
47
52
20
Hotel directives
Air travel directives
Car rental and ground service directives
Meetings & Events (MICE) directives
Preferred suppliers
Travel alternatives (audio, video conf)
Ancillary service directives
Rail directives
Upstream validation process
Downstream validation of expenses
Payment method directives
Travel agency directives
Security of employees
Environmental & sustainable development
Travel policy components
% of organizations 50% of organizations

Travellers autonomy
In general, organizations in Latin America award a high level of
autonomy to their travelers. In 41% of cases, travelers have either great
or even total autonomy for their bookings and expenses, which can
greatly impact the total cost of the trip and the full view of expenses.
This situation has of course an impact on the above described low
compliance of the travel policies.
This rate is lower in Europe, but even higher in China with the same
consequences on travel policy compliance.
Budget optimization needs and levers
Organizations are already conscious of pre-described areas of
improvement, with 82% saying that their travel budget could be
optimized, compared to 64% in Europe. Out of these 82%, 24% say
that their budget could even be optimized to a “large extent.”
Indeed, travelers have a great level of autonomy for their
expenses
Level of autonomy
Complete
Great
Partial
None
20%
of organizations
21%
of organizations
46%
of organizations
13%
of organizations
41% of organizations
give full of great
autonomy to their
travelers
29%
► An important share of
companies award a high level
of autonomy to their travelers.
► This can have an impact on
the total cost of trip, and on
the full view of expenses.
► The level of autonomy is
generally lower in other
regions.
Consequently organizations consider that their budgets
could be largely optimized
► More than 80% of interviewed organizations consider that their expenses could be
optimized.
► They are 25% to consider that this could be done to a large extent.
18
58
24
Could expenses be optimized?
% of organizations
No, or to a very small
extent
Yes, to some extent
Yes, to a large extent
82%
of budgets could be
optimized
Only 18% of organizations
already have an optimized budget
64%
19
55
27
13
64
24
26
52
22 14
69
17

Like in other regions, best buy is their preferred optimization lever. As
previously mentioned, seeing that this is the first edition, it is hard to
find a trend. However, in Europe the trend is very strong: this lever was
#2 last year, #6 in 2011, and not even in the top ten in 2010. This
growth was notably made possible by the emergence of tools and
solutions within organizations, making price comparison easier.
Emergence of best-buy is also made possible by the rise of low-cost
carriers in the business travel, where they now weigh an average 37%
of air budgets through the 4 studied countries. The situation is however
heterogeneous, with a very heavy weight in Brazil (49% of air budgets,
the market being shared between Gol and Latam), and a more lower,
but significant weight in other countries (between 21% and 28%).
Interestingly the relationship with suppliers has evolved: renegotiating
the partnership is now used more often (lever #8) than maximizing the
use of existing partnerships (lever #15). This trend has been observed
in Europe too, where the earlier is lever #6. Many organizations,
especially SMEs, consider a negotiated rate a guarantee against
higher rates, rather than an opportunity of savings.
Unsurprisingly optimization efforts are likely to affect air and hotel
expenses, as the main cost items; but F&B appears just behind, this
category being much more difficult to control despite a lower weight in
the budgets.
All categories of expense are concerned by optimization
► Air and Hotel expenses have the highest potential for optimization, before non-bookable
expenses
81
69
33
30
6
51
35
20
Expense categories which should be more tightly managed
% of organizations
Air
Hotel
Car rental
Food & beverage
Ancillary services
Rail
Road expenses
Bookable expenses
Non-bookable, or partially
bookable expenses
Meetings & Events
Best buy is their preferred optimization lever
► Best buy is today’s most used optimization lever.
► Most optimization levers act on direct costs.
Best buy
Pre-trip TCO* assessment
Advanced booking
Online booking
Unused ticket follow-up
Pre trip approval procedures
Travel policy compliance
Renegotiation of supplier agreements
Post trip approval procedures
Central payment means
*TCO = Total Cost of Ownership
Top 10 budget optimization levers
1
2
3
4
5
6
7
8
9
10
1
2
4
5
3
7
13
6
10
13

Travel agency support in optimization
Surprisingly, travel agencies are not often requested to provide support
for budget optimization. Hardly 1/3 of organizations using a travel
agency appeal to its expertise for this purpose; and this share drops
below 25% when it comes to set up optimization levers or measure
their efficiency.
There is definitely an area for improvement here, which partly lies into
a higher consolidation of travel agency usage (agencies are currently
mostly local and partly cover a client’s need, see after).
Travel agency support is not often requested
► When a travel agency is in place, its support is not often requested for budget
optimization
36
Defining optimization levers
% of organizations
25 23
Measuring efficiency of
optimization levers
% of organizations
Do organizations use their travel agency for optimization levers?
Base 100 = organization with at least 1 travel agency
Setting up optimization levers
% of organizations

Priority #2 = Complete View of Expense
Travel agency usage
75% of organizations use a travel agency, a rate which is comparable
to Europe at 80%. However, there is a significant difference for the type
of agencies used. In Latin America, they tend to be mainly local (45%
of organizations) while TMCs have little penetrated the market yet
(18% of organizations). In Europe the situation is almost the opposite,
with TMCs in place in 57% of organizations and local agencies only in
31% of them.
Consequently 33% of organizations use several travel agencies, in
comparison with 19% in Europe. This results in a lower capacity of
getting a full view over expenses.
Booking practices
Regardless of whether organizations use a travel agency or not, direct
supplier booking is very high. More than 50% of organizations use it as
their main booking practice or equally combined with travel agency
booking. This also has an impact on their view of expenses.
Organizations use several travel agencies, and these
agencies are mostly local
¾ organizations are using a travel agency
Have a travel agency
75
Don't use a travel agency
25
At least 1 travel agency in place
% of organizations
1 agency
41
2 agencies
24
3 agencies
9
33%
They often use
several agencies
TMC
18
Pure online agency
10
Local agency
45
Other
2
They often use a
local agency as
their main agency
Organizations have several booking practices
► Direct booking to supplier is still strongly used by organizations (true assessment
whether they have a travel agency or not).
Direct supplier
36
Travel agency
45
Balanced combination
18
Booking channel used
% of organizations
Direct supplier
43
Travel agency
35
20
Direct supplier
46
Travel agency
36
18

Booking solutions
Online corporate booking tools are used by 44% of organizations,
either through a travel agency portal or as an integrated solution. This
rate is comparable with the rate in Europe at 50%.
However, when OBTs are in place, they are not fully used with only
41% of organizations managing at least ¾ of their bookings through
the system. This ratio is especially surprising when considering that
such a large part of expenses is made up of air and hotel costs.
One reason for the low usage of OBT could be because, as a corporate
practice, mobile phones are highly used in the booking phase (booking,
payment, booking modification). This is an important conclusion of this
barometer, as, in comparison, European organizations mainly use
mobile phones for the on-trip phase, but not yet for the booking phase.
This situation is likely to continue to grow, as this phase of the trip cycle
is also the one where respondents want to increase the mobile usage
the most.
This also once again shows the high level of autonomy awarded to
travelers.
Mobile can be considered an alternative to OBT
14
8
48
72
62
50
22
30
34
15
25
37
68
58
49
54
Mobile functionalities commonly used
% of organizations
Europe
Latin America
Bookings to
providers
Payment
Booking
modifications
Check-in
Alerts from
providers
Security alerts
Concierge
services
Reporting et
expense
management
Mobile is considered a real
alternative to booking methods,
including OBT

Payment methods
Currently, organizations in Latin America use several payment
methods for their business travel expenses. However, there is not a
single means of payment that is being used by 50% or more of
organizations yet, meaning that there is not yet a clearly defined
standard for a payment method on the Latin American market.
On average, organizations use two different methods each, with
manual and non-centralized methods still controlling a significant
market share. Centralized payment methods have not yet convinced a
majority of organizations. This is similar to the profile that currently
exists in Europe, and it is likely to be a major challenge for expense
consolidation in the future.
Travel management procedures
Having standardized procedures in place is an important driver for
expense management. A majority of Latin American organizations do
have such procedures in the pre-trip phase, such as the entry and
approval of travel requests or online booking. However, this is much
less the case in the post-trip phase, with only 38% of organizations
having a standard procedure for the entry and approval of expense
claims and 36% having a procedure for the integration into the
accounting system. When standardized procedures are not in place,
managing expenses remains an ad-hoc process with disadvantages
occurred in the full view of expenses.
Organizations use several means of payment, none of
them have become a standard yet
► No payment method exceeds 40% of organizations: a standard is still to define on the
market.
► In average organizations use 2 different methods each.
► “Manual” and non-centralized methods still hold a significant part of the market.
► This profile is similar to Europe and represents a major challenge for expense
consolidation.
40
36
33
32
23
Corporate card - company account
Cash advances
Travel agency invoicing
Reimbursement on personal credit card
Corporate card - traveler account
Top 5 payment methods used by organizations
% of organizations
50%
Centralized
Not centralized
Standardized procedures are not in place in all the post-
trip phase
62
54
38
59
36
Presence of standardized procedures
% of organizations
Entry and approval of
travel requests
Online
booking
Entry and approval of
expenses claims
Reimbursement of
expenses
Integration in the
accounting system
Pre-trip Post-trip

Moreover, 40% of the organizations that do have these procedures in
place have fully manual business travel management practices. This is
a higher rate than in Europe, where only 28% of companies have
manual practices.
Interestingly enough, at 25% the rate for fully automated booking
processes are also higher than in Europe, where the rate is currently
at 13%. This means that in this emerging market, a significant number
of firms have directly jumped to end-to-end solutions.
Expense management solutions
Unsurprisingly, the high level of manual procedures in the travel
expense management partly results from a still low adoption of
expense management solutions. To be noted, this low rate is
comparable with Europe, where these solutions are still to convince a
majority of organizations, especially in the SME segment.
However, most organizations are fully aware of the benefits of using
both an Online corporate booking tool and an Expense management
solution: ¾ of those using an EMS are also using an OBT.
And when in place, these procedures are often manual
► 40% of organizations have fully manual business travel management procedures.
► Full automation is in place in 1 organization in 4.
Fully manual
39
Partly manual
36
with disparate
systems
13
with 1 unique
solution
12
Level of automation of procedures
% of organizations
Fully automated
45
42
40
28
35
31
39
33
4
16
13
20
16
10
9
20
EMS equipment is relatively low, but often comes
together with an OBT
► OBT drives the adoption of EMS.
► When they have an Expense management solution (EMS) in place, 71% of organizations
also have an OBT.
EMS only
EMS +
OBT
Using an EMS
33%
Expense Management Solution adoption rate
% of organizations
74%
26%
4
countries

Priority #3 = Security of travellers
Traveler’s security and safety is ranked #3 priority in Latin America,
which joins a global trend already observed in other regions such as
Europe, where this concern is now priority #2. Despite mostly domestic
trip needs, Latin American organizations already have a high duty of
care, both legal (especially for those travelling to Europe, where travel
insurance in mandatory), and moral (internationally, but even
domestically with higher security risks than in other regions).
These 2 aspects of the duty of care are likely to grow in the future, as
international standards observed in the US, in Europe, or in some parts
of ASPAC, are getting higher.
Organizations have taken several measures to ensure security to their
travelers. More than half of them are now able to know at any time
where travelers are. A similar share of respondents are now
subscribing insurance for their trips.
But surprisingly, a much lower part of them have taken upstream
measures to provide training or information to their employees. The
same assessment can be made in Europe.
To answer this central issue, organizations have taken
security measures
► Subscribing a travel insurance / assistance is among top measures (also taking into account it is
mandatory for trips to Europe)
► Upstream training of employees is developing, although only in 27% of organizations so far.
15
27
53
64
53
31
Measures taken to ensure travelers security
% of organizations
Nothing
in place
Upstream training
of employees
Travel insurance
subscription
Ability to contact
travelers any time
Ability to know
where travelers are
Ability to repatriate
travelers
Pre-trip On-trip

Synthesis: several levers for organizations to reach their priorities
Analyzing the gap between organizations’ priorities (and therefore
ambitions) and their actual achievements in terms of solution
acquisition, practices, procedures, etc. allows to draw a list of
challenges for the next years to come.
As priority #1 by far, cost control should focus the attention.
Organizations’ main challenge lies in the better management of
expenses occurred by their travelers in a high level of autonomy. This
could be achieved by driving a better compliance of their policy – when
a policy is in place – or implementing a policy. Given the importance of
mobile solutions and direct booking, a better compliance could be
reached by adapting corporate solutions to these booking methods.
Getting a full view of expenses is priority #2 and several drivers can be
considered in order to reach it. Most of them are related to a better
adoption or usage of tools: Online corporate booking tools (to manage
a higher share of bookings), payment tools (to adopt central payment
solutions), and in a general way, getting procedures to become more
automated.
To enhance their ability to secure their travelers, organizations should
leverage the already high usage of mobile, and complete it by training
employees prior to their trips.
Synthesis
► To reach their 3 main objectives, Latin American organizations still have a few challenges
ahead
Priorities Challenges to reach objective
#1 = Cost control
 Implement a travel policy (50% of organizations)
 Drive compliance by framing travelers autonomy
 Leverage travel agency support in optimization efforts
#2 = Full view of
expenses
 Rationalize booking practices
 Maximize usage of OBT, when in place
 Enlarge adoption of central payment tools
 Standardize & automate procedures in the post-trip phase
#3 = Traveler
security
 Develop upstream training of employees
 Optimize mobile usage in the on-trip phase

Perspectives for 2014
At the moment, the market is still cautious. In total, 56% of
organizations will stabilize their budgets in 2014. However, in total, still
more organizations are looking to increase their travel budget, leading
to an average budget increase of 5.8% over the next 12 months.
The situation is improving vs. 2013 in all countries, but especially in
Brazil and Chile.
Perspectives
► The market is still cautious: more than half organizations stabilize their budget
► But less organizations will decrease it
+ 5,8%
Average budget increase
in the next 12 months
+ 7.9%
+ 5.5%
+ 4.1%
+ 5.6%
36567
4
countries
34
45
35
38
58
50
62
52
8
5
4
7
Business travel budget evolution
% of organizations
Will decrease Will remain stable Will increase

About the Latin American business travel barometer
The 2014 barometer was prepared by Concomitance on the basis of a face-to-face and telephone survey conducted from February 17th and April
2nd, 2014, among persons in charge of travel budgets ranging from less than USD 50,000 to over USD 10 million (Travel Managers, Finance
Directors, Purchasing Directors) in 480 Latin American companies based in 4 countries: Brazil (240 interviews), Argentina, Chile, Mexico (80
interview each).
About Concomitance
Concomitance is a service company specialized since 2001 in marketing, commercial, sales and client relations research, consultancy and
performance development. Concomitance has teams specialized in several activity sectors such as telecommunications, travel and business travel,
banking, distribution, etc.
Since its establishment, Concomitance has stood out in terms of its capacity to transpose commercial and marketing issues into action plans which
are immediately effective and comprehensible to all players. This capacity is a direct result of Concomitance's DNA: the prior business experience
of our consultants allows us to formulate recommendations and share them with our clients in line with the maturity of their organization.

First lat am business travel barometer by concomitance

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First lat am business travel barometer by concomitance