Social media becomes purchasing tool for travel buyers

The recent Supply Management article by Angeline Albert, "Social media becomes purchasing tool for travel buyers", summarised findings of research conducted by American Express into the use of social media by individuals responsible for corporate travel purchasing. The article highlights the ignorance among purchasing professionals on the potential these platforms hold and the evolution of these tools from consumer to business-to-business use.

Half of the respondents indicated they use social media to support travel management, and usage is highest (59 per cent) among firms that spend more than $3 million annually on airline travel.

The three key behaviours/objectives noted were:

1. social networking to look for preferred vendors and services for travelers;
2. seeking to uncover travel patterns that could lead to better vendor rates and services;  and
3. networking with industry peers [to share knowledge and gain new ideas.]

" The top priority for 48 per cent of travel management departments was incremental cost savings, while 14 per cent thought identifying new or competitively priced vendors and services was most important."

“It is encouraging to see corporate travel departments becoming more comfortable with this form of collaboration,” said Alicia Tillman, vice-president, corporate affairs and marketing services, American Express Business Travel.

"The most significant barrier to adoption of social media has been the lack of awareness of direct benefits. Some 20 per cent found the business case for social media tools and usage within travel management programmes unclear. Lack of support from upper management (15 per cent) was another obstacle."

The value of the new conversation platforms will soon be recognised by all across multiple industries. We can hence expect a rapid expansion of this new trend from travel purchasing into other commodities in the near future.