Benefits, risks, and legal considerations
Peer-to-peer sharing of goods and services, including transport and accommodation facilitated through companies such as Uber and Airbnb, has transformed leisure travel in unprecedented ways. While business travellers have not yet embraced such services to the same extent, experts believe it is only a matter of time.
Peer-to-peer services leverage the use of technology that matches consumers with service providers, offering greater flexibility, ease of use and, more often than not, increased overall value for money. Now that the share economy has reached a level of widespread consumer confidence, these disruptive intermediary companies are turning their attention to business travellers.
With share economy service providers now offering dedicated business travel solutions and integrating with other business applications, including expense reporting and traveller tracking, more organisations are finding strong business cases to at least give such services a chance.
However, a financial incentive should never be the only consideration in trying new services. Using share economy services for business related travel creates new risk challenges for employers that need to be managed and mitigated.
However, a financial incentive should never be the only consideration in trying new services. Using share economy services for business related travel creates new risk challenges for employers that need to be managed and mitigated.
Before enabling employees or contractors to use share economy services, particularly transport and accommodation services, for business purposes, organisations need to determine the business reasons for doing so in the context of existing policies and procedures.
An organisation’s exposure is wide and predicted to grow: research1 conducted by International SOS in 2016 found that 27% of business travellers used shared transport services, like Uber, while travelling abroad, and almost half anticipate their usage to increase. A further 22% anticipate increasing their usage of shared lodging services, like Airbnb.
The research indicates that as many as 75% of organisations do not have clear policies or procedures for staff using these services for business-related travel. This lack of clarity appears to directly affect employees, with nearly 40% responding that they did not know whether their organisations deem these services to be ‘safe’.
An organisation’s exposure is wide and predicted to grow: research1 conducted by International SOS in 2016 found that 27% of business travellers used shared transport services, like Uber, while travelling abroad, and almost half anticipate their usage to increase. A further 22% anticipate increasing their usage of shared lodging services, like Airbnb.
The research indicates that as many as 75% of organisations do not have clear policies or procedures for staff using these services for business-related travel. This lack of clarity appears to directly affect employees, with nearly 40% responding that they did not know whether their organisations deem these services to be ‘safe’.
Steve Bell, Partner at a leading international law firm, Herbert Smith Freehills, said: "Local law will struggle to keep pace with developments in social and economic services. Employers sending workers overseas should understand the laws in their destination country, the relative risk profile of sharing economy services compared with traditional services, and above all be guided by their duty of care to their workers. In all, this requires a sophisticated risk management approach.”
When considering the risks associated with accommodation, the advantages of cost savings and convenience that are associated with apartment or house shares need to be compared to the business grade hotels which are most likely operated by internationally recognized companies. These generally have higher security standards including access controls and the ability to respond to emergencies.
Organisations also need to give consideration to ridesharing services, which are more commonly used by business travellers than share accommodation services. Ride-sharing services such as Uber in countries that have low to medium risk ratings can offer travellers additional personal security features through car and driver verification, GPS tracking and cashless transactions. At the same time, however there can be uncertainty about the background and skill of the driver as well as the safety of the vehicle.
Transport and accommodation selection should always be appropriate for the local conditions and the profile and itinerary of the traveller. The use of shared travel services may be appropriate in some locations but not others.
There is no one-size-fits-all approach to travel risk management, and policies need to relate not only to the specific locations and risk environments to which an organisation sends its business travellers, but to the individual travellers themselves. Age, gender, health, sexuality, ethnicity and travel experience all influence a person’s risk profile, as will what they are doing, why and for how long.
There is little doubt that share economy services are here to stay and will continue to evolve in other service industries, creating alternate options for business travellers and their employers. How organisations choose to make use of these services requires careful assessment and consideration by office bearers, risk managers and business travellers alike.
There is no one-size-fits-all approach to travel risk management, and policies need to relate not only to the specific locations and risk environments to which an organisation sends its business travellers, but to the individual travellers themselves. Age, gender, health, sexuality, ethnicity and travel experience all influence a person’s risk profile, as will what they are doing, why and for how long.
There is little doubt that share economy services are here to stay and will continue to evolve in other service industries, creating alternate options for business travellers and their employers. How organisations choose to make use of these services requires careful assessment and consideration by office bearers, risk managers and business travellers alike.
To further support organisations undertaking this assessment, security experts at International SOS have developed a report including policy recommendations and comprehensive checklists highlighting what to consider for the specific purpose of business related travel.
By International SOS
By International SOS
1 Travel Sharing Economy survey is an International SOS survey conducted among 707 people globally, mainly executives managing business travel or travellers themselves. Research was conducted online in the period 26 April – 20 May, 2016.
