New research from the National Limousine Association (NLA) and the University Transportation Research Centre (UTRC) is drawing attention to overlooked duty-of-care risks in business travel ground transportation. Preliminary findings, presented at the Global Business Travel Association (GBTA) Convention in Chicago, show that illegal and unlicensed operators are increasingly using digital platforms to mimic legitimate services, creating significant safety and insurance gaps for corporate travelers.
The study, led by Matthew Daus, UTRC Transportation Technology Chair, examined 17 major US travel markets, including New York, Los Angeles, and Chicago. It found that illegal operators have evolved from street solicitation to organized, technology-enabled networks. These operators often bypass necessary licensing, insurance, and tax requirements, posing risks at airports, hotels, and major events.
Duty of care extends beyond the terminal
Brett Barenholtz, President of the NLA, emphasized that duty of care does not end when an employee leaves the airport terminal. "Ensuring that transportation providers are safe, licensed, and insured is a critical part of corporate travel risk management," he said. The study also identified at least seven states with laws criminalizing rideshare impersonation, underscoring the need for updated legislation and coordinated enforcement.
For travel managers, the findings reinforce the importance of vetting ground transportation providers. The NLA and UTRC recommend that corporate travel buyers prioritize approved providers, verify licensing and insurance, and educate travelers on safety protocols. The forthcoming full report aims to provide a practical enforcement framework for travel buyers, regulators, and law enforcement to address these challenges effectively.
The issue is not limited to the US. Similar risks exist in other markets where unlicensed operators use digital channels to appear legitimate. For global travel programs, this means that duty-of-care policies must account for ground transportation in every destination, not just at home airports.
Travel technology vendors and booking platforms also have a role to play. By integrating verified provider data into their systems, they can help corporate clients avoid unlicensed operators. The study's findings align with broader trends in business travel, where hidden costs and unexpected risks are increasingly under scrutiny.
For hoteliers and event organizers, the study serves as a reminder to partner only with licensed ground transportation providers. Major events, such as conferences and MICE gatherings, are prime targets for illegal operators seeking to exploit high demand. Ensuring that recommended transportation partners are fully compliant is essential for attendee safety and brand reputation.
The NLA and UTRC plan to release the full report later this year, offering a detailed enforcement framework. In the meantime, travel buyers are urged to review their ground transportation policies and ensure that they align with the study's recommendations.
As the travel industry continues to recover and adapt, the importance of duty of care in ground transportation cannot be overstated. The study provides a timely reminder that safety and compliance must remain top priorities for all stakeholders in the business travel ecosystem.
