Open any newspaper and it's hard not to feel dismayed by the
current state of geopolitics. From trade tariffs affecting global markets to regions
of armed conflict and increased confusion over immigration rules, business
travel is becoming increasingly risky business.
※What*s especially challenging in 2025 is that even regions
historically seen as stable now present unpredictable challenges 每 ranging from
sudden social unrest to deteriorating healthcare infrastructure,§ says International
SOS regional
security director in Northern Europe, James Wood.
And while Europe*s air traffic proves
resilient in the face of uncertainty, Wood said corporate travel sentiment
is ※noticeably more cautious§.
※Outside of the pure people risk considerations, the
fragmentation of traditionally stable and predictable operating environments
means organisations are finding it harder to plan longer term,§ he adds. ※Due
diligence on new market entry, new supply chains and new travel destinations
has become more challenging because of the need to be able to foresee risk
differently.§
Indeed, conducting a risk assessment has become increasingly
difficult given the current pace of geopolitical change. According to a poll of
80 travel managers at the BTN Group*s Business Travel Show Europe last month, most (84 per cent)
indicated that geopolitical volatility is complicating their work.
Additionally, 30 per cent said their organisation is now
travelling less, although 57 per cent reported no change in travel volumes and
13 per cent are travelling more because of shifts in geopolitics. In a subsequent poll, 68
per cent of buyers reported no change in the destinations where employees are travelling
to. Business continuity, it seems, remains a core objective.
Bex Deadman, co-founder of the Travel Risk
Academy 每 which provides education and training in line with the ISO
31030 Travel Risk Standard 每 says most companies still treat travel risk
management as a tick box exercise.
※They've got policies in place, but no one's testing this,§
she says. ※No one's taking this to the next level unless they're in a crisis
situation. That*s when they realise they haven't got everything they needed in
place 每 that's the trigger,§ Deadman explains, adding that many travel managers don*t
have complete visibility of their programmes from a travel risk perspective.
※Larger corporations generally have a global travel
management company, a global insurance company and a global assistance
company. In most cases, [the travel manager] holds the relationship with the
TMC and someone else has a relationship with the insurance company, which may
or may not be how your assistance company is involved,§ says Deadman. ※The
reality is that 60 to 70 per cent of companies are not optimising their
programmes in the way that they should be.§?
The introduction of the ISO 31030 Travel Risk Standard in
2021 was a ※leveller§ for a lot of organisations and forced the
industry to really ※take a look under the hood,§ says Deadman. It includes guidance on policy and programme
development, risk assessment and prevention and mitigation strategies. ※Some organisations are doing very well against it, others
not so well, and some are not even on the scale.§
Among a growing list of risk management specialists, TMCs are
also offering up new services to help corporates better manage travel risk.
UK-based travel management company Key Travel, which serves the non-profit sector,
recently introduced a travel risk assessment framework that it said provides
clients with a ※readiness§ score in line with the ISO standard based on
pre-trip, in-trip and post-trip assessments. According to group product manager
Bruce Teatheredge, most clients are still largely concerned with in-trip
risk.
※There's a bit more of a consciousness around pre-trip, but
less so around post-trip, depending on the organisation,§ he says, adding that
most of the TMC*s clients don*t rely on dedicated third-party support for
travel risk management.
Meanwhile, Barcelona-based TravelPerk in June partnered with
insurance provider Battleface to provide
insurance
coverage for unexpected medical issues or lost baggage for clients
in the UK and Europe.
The TMC also recently established an in-house travel disruptions
team in response to increased geopolitical
volatility and civil unrest 每 ※but they work with all types of disruption,§ says TravelPerk*s UK and Ireland country manager, Vicki Williams.
The 20-strong
team includes dedicated agents and business travel consultants as well as a weather
forecaster, which Williams says allows the travel management company to ※flex the capacity of
our customer care team well in advance§ and ※proactively reach out to clients§.
Increased complexity
Evolving immigration policies are also adding new layers of
complexity to business travel. International SOS*s Wood says the reintroduction
of travel restrictions into the US under President Trump has ※prompted an
interest from clients, especially regarding visa delays, airport detentions and
last-minute itinerary disruptions§.
Deadman went one step further, saying immigration compliance
is ※a huge issue§. She continues: ※It's probably one of the biggest driving forces to get
travel risk management on the table in front of your executives# because of the
[risk of] fines and the reputational damage.§
Cybersecurity and data protection is another area that has
received ※significant§ attention. ※Travellers are always the weakest link in
any cybersecurity programme,§ says Deadman, ※because they're plugging into
airport lounges and downloading stuff in hotels§ 每 which can expose
company-owned devices to a potential cyber attack.?
How are corporates responding?
GE Vernova*s executive 每 travel, meetings and fleet,
Bernadette Basterfield, says traveller safety is currently her top priority. ※We work very much hand-in-glove with security because we
know that people will go off piste [and book direct],§ she said during a panel
discussion at Business Travel Show Europe in June. ※Some travel policies might say &OK,
if you find it cheaper online, go book it* 每 but not in today's world,§ she added.
Last October, GE Vernova introduced new policy controls that
require travellers to upload their itinerary to the company*s systems if
they*ve booked directly with a supplier ※so that we've got eyes on you,§
Basterfield said.
The travel team now also proactively reviews expense data to
identify travellers who habitually book direct. These travellers receive a
message from the C-suite notifying them that they*ve violated company policy.
Additionally, the company has developed a safety message, &Off
programme. Off radar*, which is shared at town hall meetings. ※We*re doing a hard and soft element to traveller safety 每
and it's working,§ said Basterfield.
Tightening travel policy
Jennifer Legittino, global
travel & expense manager at industrial tools and services provider Enerpac has increased communication
with her travellers within the last 12 months. This involved working more closely with the company*s
immigration services provider and duty of care partner to provide travellers
with information on extended visa processing times and destination-specific
advice on safety and security.
※I don't want to inundate [travellers] with information, but
I want them to have the right information,§ says Legittino. Internal collaboration between the company*s travel, IT and
security departments has also ramped up, which Lettigino says has helped to
※button up§ the travel programme.
Headquartered in Milwaukee, Enerpac has operations in
more than 20 countries, including a heavy presence in the Middle East as well
as across Europe.
Even before the US travel restrictions were announced, increased
scrutiny of travel documentation at the border saw the company implement a
travel approval process for US-bound travellers ※to better understand the
timing of things and really for our security department to check to see what
the state [of US immigration policy] is at that moment,§ she explains.
Enerpac also provides travellers with scrubbed laptops to
mitigate against cyber attacks or any sensitive information being leaked while
travellers are on the road. ※We've been doing that with mobile phones as well.
If people are travelling overseas or to higher risk areas, we don't want them
having their corporate computer,§ says Legittino.
She relies heavily on her duty of care provider, which
pulls travel data directly from the company*s online booking tool to power a
traveller tracking app and emergency response service.
※Risk and safety are our first priority, and cost is
definitely secondary,§ she says, while stressing the importance of keeping
herself informed. ※I think just paying attention to the news [is important] because, as much
as you can rely on your vendors, things are changing so rapidly that sometimes
communication can't come out fast enough.§
Case study: Investing in new tools, tech and partners
A travel manager at a Canada-based pharmaceutical company
who spoke to BTN Europe on the condition of anonymity said they rely on
their travel management company for risk management support and
currently feel ※overlooked§.
With strategic sites in India and Mexico, a footprint in
Europe and the UAE, and regular travel to Israel where ※lots of strategic
decisions are taken§, traveller safety and security is top of mind.
※My priority is to ensure that my travellers are taken care
of and that they feel they have a back-up, that someone will reach out to them
[if necessary]. However, there is no support from [my current] TMC,§ they said.
※I would have liked the TMC to be proactive, but every
single time [there is a potential risk scenario] I have had to reach out 每 be
it Isreal-Palestine, Russia-Ukraine, or border entry updates into the US 每 and the
TMC has really failed me by not offering a single proactive solution,§ they explained.
※Instead, I have to pull the [travel booking] reports
manually and sometimes I reach out to travellers with advice or flag insurance
issues to finance# [but] I cannot be monitoring 24/7, nor do I expect my TMC to
do so... these processes need to be automated.§
This lack of support has prompted the travel manager to
launch a TMC RFP with the goal of consolidating the travel programme onto a
single online booking platform. The focus here is technology, rather than
service, they said, ※because the expectation from the CEO is that travellers
book online. If you are calling the agent, either you are incapable or the TMC
is not offering the right stuff.§
Alongside this, the company is also currently engaged in a
sourcing exercise for a global risk management partner 每 a first for the
company 每 which occurred as a direct result of heightened geopolitical tensions.
With strategic sites in high-risk areas, this travel manager
hopes ※the right tools§ combined with existing systems will help drive booking
compliance and improve duty of care processes.
※For me to alleviate any risk, I don*t [currently] have a
platform. So it comes down to having the right tools and the tech to
make sure
that every traveller is using the system# [and] to ensure we can
continue
working safely,§ said the travel manager. ※Our travellers have the right
to feel safe. Because of the geopolitical risk, this RFP is
going to optimise the travel experience that the company has.§