[New] Five trends for 2023 – and how fleets can make the most of them

2022 has been an interesting year for the trade, throwing up both challenges and opportunities never before seen. A number of trends across business travel will shape how the industry interacts with, and services, business travellers beyond the next 12 months. Here I lay out those trends and how fleets can put themselves in pole position to win in this market.

1. DUTY OF CARE

Travellers and travel buyers are putting an increased importance on the use of business travel agencies. One of the drivers behind this behaviour is the increased focus on safety and security as companies look to address concerns about the duty of care to their passengers.

Daniel Price CEO and founder of Jyrney

The most exposed section of any business trip has always been the ground segments, where passengers often book their own transfer with a provider unknown to the company.

Linking the trip to the passenger’s travel management company is one way businesses can reduce the risk of ground transport trips. Travel management companies who integrate aggregator technologies can provide their business travel buyers with tracking and data on each trip. Working with companies like Jyrney give the fleets an opportunity to win business they have not previously had access to.

2. INCREASING POPULARITY OF RIDE HAILING

One trend that is likely to continue is the increasing popularity of ride hailing services for business travel. Ride-hailing companies are expanding their networks and looking to build better products for business travellers.

However, traditional taxi and private hire both still have advantages; they have a much better product for business travel, with closer driver relationships, little or no surge pricing (a big put off for business travel buyers) and a better waiting time policy, a must for business travel.

One way traditional taxi and private hire companies can compete with ride-hail is to be available where they are. Due to their scale, marketing budget and sales approach, ride hail companies can win national and international business with travel and transport companies.

However, the private hire trade in the UK has four times as many drivers in 10 times as many locations as the biggest ridehail company. Working together, and being available through the industry’s aggregators, gives the operator the opportunity to be part of a bigger network more focused on business travel.

3. VEHICLE ELECTRIFICATION

While still challenged by limited infrastructure and higher costs, another trend is the increased demand for electric and hybrid vehicles for taxi travel.

Concern about climate change will continue to grow in 2023 and there is going to be an increased push towards more sustainable modes of transport. Look to many countries banning internal flights as a sign of things to come.

While having a full fleet of electric vehicles may be beyond many operators in the UK due to the aforementioned challenges, many fleets can still optimise bookings from carbon-conscious travellers by ensuring they list all their low emission options among their available vehicles.

At Jyrney, we often identify operators that have hybrids on fleet but list them in their standard vehicle category, and not in their own hybrid group. To win more bookings, make sure you break hybrid and electric vehicles out.

4. TECHNOLOGY

The use of technology is also likely to continue to play a key role in the taxi industry, with ride-hailing and traditional taxi companies offering mobile apps and other digital tools to improve the customer experience.

As an operator, your choice for a dispatch system has now moved beyond the ability for them to provide technology for you and your drivers into how they can also connect your fleet to more jobs coming from new markets.

Making sure your settings are optimised on your dispatch system will increase the number of bookings you can receive. Settings can include out of area pick up premiums, correct vehicle groups and pricing, and having the correct coverage areas.

5. THE RISE OF INTERMEDIARIES

Intermediaries, such as online travel agencies, automotive businesses, and travel management companies are increasingly looking to the mobility markets to offer new solutions to their customers. These intermediaries offer a convenient way for customers to book and pay for taxi trips, wherever they are.

Intermediaries often have relationships with aggregators, as growing mobility is still an ancillary product for them, and working with an aggregator gives them all the content through a single technical integration. The use of intermediaries has made it easier and more convenient for customers to get around, but it also provides a valuable demand channel for taxi companies.

Overall, the future for traditional taxi and private hire companies looks positive, with a number of trends shaping how the industry interacts with business travellers.

From a greater focus on duty of care, an ability to compete with ride hailing through intermediary partnerships combined with the continued use of technology to improve the customer experience and increase demand, the taxi industry is well positioned to meet the needs of business travellers in 2023 and beyond.

n Daniel Price is CEO and founder of Jyrney.

Daniel.price@jyrney.com — www.jyrney.com eazitax.co.uk/operators

We launched our Operator Partnership Programme in January 2022. Since then, we’ve provided operators with free tax workshops and training for their drivers, as well as onboarding and driver status support.

We’ve now helped thousands of drivers with their tax woes, and we aren’t stopping anytime soon.

Would you like us to come to your office and give free tax workshops for your Drivers? You can also get confidential advice on VAT issues, Tax Checks and Making Tax Digital.

Contact David Nagler or visit our website for more information.