South African corporate travellers have been slow to prioritise sustainability in business travel. This could become problematic in the near future, by limiting business opportunities for those who do not adapt to the new reality.
This was the opinion of Greg O’Neil, President of Asia Pacific, Middle East, Africa & Global Network at BCD Travel, speaking to Travel News on the sidelines of the recent GBTASA Conference in Sandton.
O’Neil was surprised that South African corporate travel departments had been so slow to prioritise sustainability but he believed that, ultimately, they would have to go with the flow of the global mindset.
“Sustainability has to start at home. South African corporate travel managers might not have adopted any, or many sustainable policies because they are not guided by any legal framework. And because of this, it might not be top of mind for them.”
This slow adoption of a sustainability mindset could be a risk to the procurement of business in the future.
“If you’re looking at the bigger picture and you’re not able to provide sustainability data or don’t have a sustainable mission and vision within your organisation, then there could be a risk of losing out on business,” he said.
O’Neil said it was important for corporate travel procurement departments to look at who they are doing business with when it comes to sustainability.
“The thing that companies need to be thinking about, in general, is that if you’re a corporate, you need to be asking more from your partners, whether it be a TMC or hotel, on what they’re doing sustainably and how they’re doing it.
“When looking at our relationships at BCD Travel, whether it be suppliers or any type of procurement, we’re looking at their sustainability records. And governments all over the world are increasingly requiring sustainability data from corporate companies.”
O’Neil admitted that it was very difficult for certain corporates to adopt sustainable travel policies because of the high costs involved.
“It’s a difficult situation because, these days, corporates can’t be sustainable if they’re not profitable and they can’t be profitable if they’re not sustainable.
“My advice for travel procurement managers would be to start small and possibly look at other companies on how they prioritise sustainable travel. They are not going to reach any of their sustainable goals if they set too high a target.”
Speaking to Travel News earlier in the year, Wayne Kruger, Head of Product: NexCT (a corporate online booking tool), said price had remained the main consideration for South African corporate travel, but he was starting to see a shift in thinking.
“There’s some recognition that sustainability needs to be part of a business’s objectives and that their environmental, social, and governance (ESG) efforts can make them more competitive as a business others want to work with.
“Our recommendation to clients is to look at implementing sustainable travel policies and practices so they are ready when legislation comes – which it will inevitably,” Kruger told Travel News.
He added that shifts in booking choices could aid sustainability efforts.
“For example, a direct flight is more sustainable than one with multiple stops, and while it may be a bit more expensive, the pay-off is that you arrive more refreshed and productive as a traveller.”
Kruger highlighted that he was seeing an uptick in corporate interest in some elements of sustainability.
“We have seen a marked increase in corporates wanting to understand the impact of travel on their carbon footprint. This has translated into a need for more comprehensive tracking and reporting and greater visibility of the carbon impact of various travel options on corporate booking tools.”
Linda Edwards, MD of XL Turners Travel, said sustainable corporate travel in South Africa was mainly driven by corporates whose head offices were in the US and Europe and who had strict environmental and social legislation in place.
“These companies are looking to partner with air, accommodation and land transportation companies that are eco-friendly and have a strong social responsibility. They generally would have an ESG policy in place as part of their business model, which would dictate their protocols for corporate travel.
“SA companies are currently less inclined to question sustainability as the high cost of travel is a bigger factor, but more SA companies are becoming aware of their carbon footprint, so it is likely to become a more important consideration going forward,” Edwards said.
President Cyril Ramaphosa’s recent signing of the Climate Change Bill into law is set to shake up business operations in South Africa, and corporate travel procurement departments will now be obliged to consider their travel practices as part of their broader ESG strategies.