The sharing economy in business travel and how to use it in your favour

The sharing economy in business travel and how to use it in your favour
By Kate Webster


The growing use of consumer technology among corporate travellers presents an interesting challenge for businesses and travel management companies (TMCs).

Employees want to be able to organise their business trips with the same ease and flexibility that they have when booking their holidays, like booking an Uber instead of a taxi, or booking their own flights online. The consumerisation of business travel is inevitable, and the way companies and TMCs respond will define their success or failure in the travel space.

Unlike leisure travel, corporate travel has been hesitant to make the shift from traditional booking systems to online platforms. However, the proliferation of mobile devices and a new generation of employees entering the workforce (a generation used to on-demand online services), are spearheading a transformation. Look at the sharing economy, for example. The popularity of the sharing economy within business travel is such that these companies have tailored their services to cater to corporate travellers’ needs. In a bid to tap into the $1.3 trillion business travel sector, Uber and Airbnb customised their product offering to automatically send bookings, expenses and itineraries directly to companies’ reports.

More than ever, technology gives us the opportunity to automate corporate travel management, streamline processes and reduce costs. However, these benefits pose a challenge to the business travel industry. The biggest concern being companies’ responsibility for keeping employees safe while on the road.

Many of the new travel technologies were initially designed for leisure, so they don’t consider elements like companies’ duty of care towards employees, making it tricky to implement them into business travel programs. A common question among companies, in terms of using sharing services, is: in case of an accident who would be held accountable? The employer? The sharing platform?

If corporates want to take advantage of the benefits of consumer technologies and the sharing economy, they need to evaluate potential risks like the one above to assure employee safety at all times.

Companies need to create tight travel policies that address the current technology landscape, the sharing economy, and any potential risks, setting restrictions and benchmarks that help guide employees when using these types of services.

A good way to mitigate foreseeable risks when taking a ridesharing service for business would be to specify the hours that company-paid cars are available. Or to advise employees to only ride with drivers with a rating of four stars onwards. These conditions will help to keep business travellers safe and avoid misunderstandings.

Australia and Asia Pacific are already the second fastest-growing markets for rooms and apartments on sharing rental services, demonstrating significant demand in the sharing economy within the leisure travel sector. The next step is for companies to begin reaping the benefits of the sharing economy and add these types of services into their travel program.

As more business travellers are looking for the convenience and flexibility characteristic to on-demand platforms, both companies and TMCs need to strengthen their corporate travel management with technology and a variety of online approval, booking and expenses tools. Mobile apps and personalisation will also be key for business travel in the years to come. And only those corporate travel players capable of providing these will succeed.

Latest News

  • Destinations
  • News

APT Launches 2025 Asia Adventures

APT has launched its Asia Adventures for 2025, including new luxury holidays in India, Sri Lanka and Japan. Five new tours lead guests to the highlights of India, including a seven-night cruise along the rarely travelled Lower Ganges aboard the Ganges Voyager. Further south, Sri Lanka’s greatest destinations are revealed on a new 15-day Land […]

  • Cruise
  • Luxury
  • News

Seabourn announces Western Kimberley Traditional Owners as Godparents of Seabourn Pursuit

Seabourn has named Western Kimberley Traditional Owners, the Wunambal Gaambera, as Godparents of the ultra-luxury purpose-built Seabourn Pursuit. It is the first cruise line to appoint Traditional Owners as godparents of a ship. Seabourn Pursuit embarks on its inaugural season in the Kimberley region this June. The naming ceremony will take place on Seabourn Pursuit’s […]

  • Luxury

Malolo Island Resort opens brand new Spa

Fiji’s Malolo Island has added another string to its bow – opening its $1.3 million day spa on Thursday, 18th April 2024. (Lead Image: matriarch Rosie Whitton with spa staff) Located at the edge of the resort’s luscious patch of tropical rainforest, the new “Leilani’s Spa” adds another level of elevated experiences to Malolo’s already […]