DEAR PATRICK MCLOUGHLIN, PLEASE PUT PARTY POLITICS TO ONE SIDE FOR THE SAKE OF UK PLC

In the first cabinet reshuffle since the Coalition Government took power, anti-third runway Transport Secretary Justine Greening has been ousted and Patrick McLoughlin has taken her place. Not much is known about Mr McLoughlin transport-wise, apart from the fact he has a fear of flying and he represents the most landlocked constituency in the UK.

 

No doubt, airport expansion, and the issue of a third runway at Heathrow in particular, will be top of his agenda this morning. Speaking on behalf of the business travel industry – if I may – I urge Mr McLoughlin to use this opportunity to put party politics to one side, to not succumb to the NIMBYs (not in my backyards) who will fight against expansion at whichever airport affects them most, and to focus solely on what’s good for UK PLC.

As the Government continues to dither and decisions are delayed, cities like Amsterdam, Frankfurt and Paris – all with world-class, well-connected hubs – continue to attract global corporations and the UK continues to slide down the scale as a centre of global commerce. 

Our lack of airport capacity is also preventing us from introducing new routes to the BRIC countries, which is essential to fuel economic growth long term.

In my opinion, that means putting a plan in place to create a long term transport strategy that will support the UK as a centre for business and fuel its economy over the next 20-30 years. And in the short-medium term look to airports such as Gatwick, Luton and Stansted to ease the capacity issues at Heathrow that everyone is getting so blindsided by.

As event director of the Business Travel Show, I’d like to extend an invitation to Mr McLoughlin to address the business travel industry at our event in London next February where he will meet a very eager audience keen to question him about the issues affecting our business including airport expansion, APD, green taxes, and high speed rail and franchises.

David Chapple, event director Business Travel Show, david@businesstravelshow.com

THERE'S HOSTED, AND THEN THERE'S HOSTED

I was interested in the opinions recently expressed in the June edition of C&IT in the Big Debate article: Can trade shows deliver ROI in the current climate? The majority of views, albeit for different reasons, were in favour of trade shows, but the real argument centred on the difference between shows that offer a hosted programme and those that don’t.

It’s just a simple fact that a trade show that initiates and maintains a creative and ambitious hosted programme will always deliver more ROI for both visitors and exhibitors than those that don’t. The question I’d add to the debate however is what is a genuine hosted programme?

We've learnt at the Business Travel Show that you can only really drive ROI for visitors if the hosted programme is a year round commitment with a highly focused business networking and education programme. There also needs to be meaningful ways for both groups to interact and meet over the two days of the show. Having a deeper understanding of the market helps too, BTS 2013 will be our 19th year, enabling us to quickly identify the trends and unique requirements of this complex market.

So embrace successful events, they genuinely do offer a strong return,  but in these challenging times it’s not unreasonable to look harder at the criteria that you use to determine what is and isn't a successful event.

David Chapple is event director of the Business Travel Show - he’d love to hear what you think about this topic - contact him on Twitter @btshowlondon

IS UK PLC TRAVELLING ITS WAY OUT OF RECESSION?

I read good news yesterday. Very good news. The UK appears to be travelling its way out of the double dip recession.

I've always believed that when the going gets tough, businesses should not cut back, but continue to invest in business development to shore up their futures. And, in my opinion, there's no better way to secure new business and maintain strong relationships with existing clients than through face to face meetings. 

According to ABTN, a study carried out by GBTA predicts a 0.7% rise in business travel spending by UK-based businesses this year compared to declines within the rest of Europe. But what's really interesting is where they are travelling from and to.

Delve into the monthly BAA Traffic and Business Commentary for May and you'll see that traffic through Heathrow was down 0.6% last month, while traffic through Glasgow rose by 10%, Aberdeen 16% and Edinburgh 2.2. Why? Well the ‘from’ could very well be linked to my blog on Monday about business travellers using regional airports to connect to long haul flights at European hubs outside of the UK to avoid paying APD.

And if you look at the ‘to’, you’ll find that flights to the North Atlantic rose by 1.6% yet flights to Europe dropped 9%, which implies that we may be avoiding the Eurozone during its ongoing crisis, but we are still flying to see our friends in North America in the hope of doing business with companies and countries that we already know and feel safe with. 

David Chapple is event director of the Business Travel Show - he’d love to hear what you think about this topic - contact him on Twitter @btshowlondon   

TRAVELLERS GO OUT OF THEIR WAY (LITERALLY) TO AVOID APD

Thanks to a recent report from Sainsbury's Finance claiming that families are planning to avoid or reduce APD by taking more staycations and long-haul flights from other European countries, APD is back in the news again.

Not that it’s been out of the news much (try Google-ing it). Since it was introduced in 1994 to combat the lack of VAT on fuel, APD has been the subject of many an angry rant from leisure and business travel journalists, who fight back with renewed vigour each time an additional price hike is announced.

And who can blame them? What started out as an extra £10 per passenger per long-haul economy flight from the UK peaks at an incredible £125 come 2016. The Government defends APD tooth and nail, claiming it’s a valid eco-tax. But they would, wouldn’t they? It accounts for £2.6bn in additional revenue to the treasury.

My question is whether APD is about to back fire on the Government as savvy business travellers get wise and fly short haul out of the UK using Charles de Gaulle, Schiphol or Frankfurt as their long haul hubs. This would certainly reduce the APD coffers in the short term and damage the UK economy in the long term.

If APD really is a green tax as the Government claims, maybe they need to look at ways to incentivise airlines to be more environmentally friendly rather than penalising the passengers who – just possibly – think they’re already paying enough taxes as it is.

Posted by David Chapple - talk to him on Twitter @btshowlondon

UNBUNDLING DEMYSTIFIED

Unbundling was a dirty word that first reared its head in the travel market a few years ago and the public’s disdain toward suppliers offering unbundled prices peaked when Ryanair suggested it was planning to ‘charge a pound to spend a penny’. It’s since become part and parcel of how we buy travel and, when the game is played well, travellers and travel managers can use unbundling to their advantage, paying for only what they need and saving money as a result. 

In the trade, unbundling is more commonly referred to as ancillary fees. And though we may be more used to their existence, controlling, navigating and tracking them can still be a mystifying experience for many travel managers. According to recent research by the GBTA just 21 percent (21%) of travel managers are tracking ancillary fees while those fees account for over eight per cent of total travel spend.

Believing that ancillary fees have a significant impact on travel budgets and policies and, with better insight into how these fees work, travel managers can make more informed choices, the GBTA has now released the ‘2012 Ancillary Fee Handbook, Who Charges What, When & Where’.

The study categorizes virtually all the ancillary fees that business travellers can incur through airline, hotel and car rental travel. It also provides a rating system that evaluates each fee on three essential characteristics:

1. How common it is for a business traveller to incur the fee?
2. How transparent it is to travellers and planners?
3. How easy it is for travel managers to track the fee once it has been incurred?

You can download it here: http://hub.gbta.org/resources2/view/profile/id/21535. Travel managers across the globe can now breathe a collected sigh of relief. 

Posted by Daniela Reck - daniela.reck@centaur.co.uk 

BUYERS ARE RELAXING THE RULES ON ROGUE TRAVELLERS

I’m at the ITM Intelligence Conference in Manchester this week and, so far, it’s been a really interesting event with some fascinating insight into the future of business travel.

Yesterday’s recurring theme was traveller empowerment. I even wrote a blog post along these lines last week. With the rise and rise of social media and mobile technology, travellers are exposed to so much choice while on the move and are frequently making bookings independently. 

You would think this would have travel managers running for the hills. How on earth are they supposed to mandate travellers to stay within policy when travellers have essentially flipped them the bird and are all doing their own thing?

But you’d be wrong. Leading travel buyers are actually relaxing policy and, instead of stamping down on rogue travellers as they would have done previously, they are giving them price parameters and more freedom than ever.

Why? It’s all thanks to new technology, that’s why. Rogue travellers can now book through public apps and websites and managers have still have visibility of all of these bookings, thanks to a number of new products (Amadeus/KDS’ Maverick) that feed all of the information back to their corporate data banks. So rogue travellers can still feel rebellious and managers can still keep them within policy.

Posted by David Chapple, event director of the Business Travel Show. Challenge him on Twitter @btshowlondon

TRAVELLERS PREFER TO TRAVEL OUT OF POLICY. NO SURPRISE THERE, THEN.

I’ve just finished reading a news story in the LA Times based on a survey by Concur Technologies. The survey found that business travellers believe the success of their trips is inversely proportional to the number of travel restrictions laid down by their employers.

Business travellers on trips with strict travel policies score them as 73 per cent successful in achieving all of their goals; when travellers are given only guidelines and recommendations, the score rises to 76 per cent; and when an employee travels with no policy at all, that score jumps another three per cent.

Surveys like this are undoubtedly useful and interesting, particularly for HR and senior management, even though I’m not 100 per cent sure you could call the results surprising. I mean, wouldn’t we all prefer to choose our own flights and hotels when travelling on business? I know I would.

But they must also be downright frustrating for travel departments, managers and bookers who put so much effort into creating travel policy, securing management buy in and support, and enforcing that policy to ensure they are getting the best for their business. 

Posted by David Chapple - david@businesstravelshow.com 

ARE BUSINESS TRAVELLERS PREPARED FOR THE OLYMPIC GAMES?

From my window, I can see the WaterTower in east London, which is likely to become home to an arsenal of surface to air missiles during the 2012 Olympic games. It really brought home a) how close the games are now – less than three months away, and the sheer disruption the Games will cause for business travellers.

Throughout June, July and August, London will be awash with tourists thanks to the Olympics, Paralympics and Diamond Jubilee. This influx of people will be filling up hotel rooms, serviced apartments, tube trains and taxis to bursting point, which is great for the London economy, but not so wonderful for the business traveller.

Stanley Slaughter wrote about the likely disruption in ABTNrecently, highlighting that hotel prices are up 7.6% year on year (according to consultants PKF) and booking rates up by more than 5% due to our summer of fun and London’s recent poll topping of the best cities in the world. What this means is that those rooms needed for last minute trips are going to be hard to find and, if they can be found, come with a premium price tag. But, he claims, it is transport that is likely to prove the more crucial problem: both getting into London and getting around it.

From a local’s point of view, the reminders from Transport for London to consider alternative routes to work – or better still – working from home, are omnipresent and more than a little annoying. So I do worry how the business traveller will cope, with their lack of local knowledge and reliance on local service providers. One solution could be to avoid London altogether, which means the sun could be about to shine very brightly on video conference providers this summer.

Posted by Daniela Reck - daniela.reck@centaur.co.uk  

HOSTED WITH THE MOSTED

Exhibition News ran a Food For Thought column in this month’s issue with three event organisers explaining why and how they run hosted programmes. As the Hosted Buyer Manager on the Business Travel Show it was particularly interesting for me to read and, I have to admit, hard to disagree with anything they said.

Hosted programmes are not the answer for every exhibition. But for the Business Travel Show, they work. Like the other commentators’ shows, we introduced our programme to guarantee the highest quality buyers in Europe attend our event each February and that they also attend a set number of appointments with our exhibitors over the two days. The result is exposure to more business opportunities for our exhibitors and a much, much higher ROI for them, which is increasingly important given the economic environment we are all operating in.

We believe so strongly that hosted buyer programmes are the way forward for the Business Travel Show that last year we invested heavily in bringing nearly 800 to our event from the likes of Nike, Sony, Jaguar Land Rover, Kellogg’s, Microsoft, 02, British Gas, Aviva and Bridgestone. For 2013, we are investing heavily again. In fact, work’s already started on refining the programme and working with our European partners to expand our database. I’m already looking forward to it.

Posted by Graham Angus - graham.angus@centaur.co.uk 

IS THE DREAMLINER THE KING OF GREEN?

In February 2008, we were lucky enough to unveil the Dreamliner to business travel buyers at the Business Travel Show in London. Four years on and it has finally taken to the skies, as reported recently on BBC Breakfast. The impact it will have on the business traveller has been widely reported, but I’m more interested in what the launch means to the business travel buyer, particularly on an environmental level.

The Dreamliner is often compared to the Airbus A380, simply because they are the two most recent long-haul launches. But while Airbus has focused on increasing capacity to reduce environmental impact by creating the lowest fuel-burn-per-seat ratio, Boeing has achieved its environmental credentials in an entirely different way altogether.

Boeing has created a medium sized plane with two engine platforms (Airbus has four) and engineers have also used the highest carbon composite to date resulting in a plan that’s 20 per cent lighter and, as a result, 20 per cent more fuel efficient than existing planes of the same size.

With 821 orders for Boeing compared to 236 for the Airbus, the market seems to be voting for the Dreamliner, but it will be interesting to see how the travel buyers vote. But comparisons aside, the fact that both airlines are now entering the design process with ‘green’ at the top of the agenda, is surely a good move for everyone. 

Posted by David Chapple 

What corporate buyers want from agents in 2012

I have written a guest comment for today's Travel Mole about what corporate buyers want from agents in 2012. You can read it below and also on the Travel Mole website  http://www.travelmole.com/news_feature.php?news_id=2000094

"In a survey of business travel buyers commissioned by the Business Travel Show for the New Year, cost, the London 2012 Olympics, the economy and travel alternatives were all among their top concerns for 2012; and as we head into another year of economic uncertainty - last week it was reported the UK’s GDP fell by 0.2% and hotel, fuel and ancillary fees are continuing to rise - buyers tell me that now, more than ever, they need their TMCs to keep them informed and continue to suggest new ways they can save money and add value.

1 Cost savings
Buyers are looking to TMCs to help them introduce initiatives to improve compliance this year and, therefore, manage costs. For example, adherence to preferred supplier agreements, not booking outside of policy or introducing, improving or increasing the use of technology (ie with self booking tools (SBTs)). They also want advice on managing the demand for travel and potential travel alternatives such as video and teleconferencing where relevant.

2 The London 2012 Olympics
Buyers are expecting to feel a ripple effect from London staging the Olympics in the form of hotel availability, commuting disruption and reduced demand. Buyers who normally do a lot in London from May to September need TMC help to plan around this. They want TMCs to not only advise them about the impact the Olympics will have on business travel but also on commuter travel, homeworking and general movement of employees.

3 The Economy
As mentioned earlier, the latest figures show the UK economy fell by 0.2 per cent last quarter and analysts and politicians are worried we about to enter a double dip recession. In times of uncertainty like this, the demand for travel is often driven down. Non-savvy organisations adopt the ‘ostrich’ approach and fail to deal with the effects of the economy strategically or with a long-term approach opting instead for short term cost-cutting.

What buyers need from their TMCs in this instance is help and advice on how they can continue travelling - and continue to do business - but more effectively. They need smarter account management.

4 Emissions Trading Scheme
The European Union Emissions Trading Scheme (EU ETS) was the first large emissions trading scheme in the world under which large emitters of carbon dioxide within the EU must monitor their CO2 emissions and annually report them. The scheme was recently extended to the airline industry, with the changes coming into effect this year. This is likely to mean an additional hike in the cost of flights. Buyers will need TMCs to keep them informed and prepared so the increased costs don’t come as a nasty shock.

5 Adding value
Many organisations are integrating business travel and meetings budgets, but business travel buyers don’t necessarily have the resources or the expertise to fulfill the meetings management activity. While they focus on their core competences, they are looking to TMCs to alleviate this additional workload with specialist meetings expertise."

All of the issues above - and more - will be addressed, dissected and debated at the Business Travel Show, which takes place at Earls Court on 7-8 February 2012.

For the full line up of 26 sessions and to register for a free visitor pass to the show, go to www.businesstravelshow.com.

All Hail the Serviced Apartment Revolution

An accommodation revolution has been taking place across London for thousands of business and leisure travellers. Gone are the days when traditional hotels reigned supreme, to make way for a powerful new adversary within the corporate accommodation market. Serviced apartments provide business travellers with the opportunity to relax at leisure, prepare for meetings, and feel at home whilst staying in one of the world’s busiest cities. It is this feeling of freedom that has been fundamental to the success of the serviced apartment industry.

London has experienced the biggest change in recent years thanks to the swift growth of the serviced apartment sector. From an initially slow start London is now the dominant European leader in terms of both volume and revenue. The UK accounted for 11.3% of the total revenue produced within this sector by all 27 EU countries in 2009. This figure comes as no surprise when you realise that the combined serviced apartment stock within London pre Olympics is estimated at one hundred thousand units. Even with this high figure average occupancy growth has increased year on year by 6% since 2008 demonstrating increasing demand from both leisure and business travellers.

A number of London’s leading providers, including us - Think Apartments, have also further adapted the serviced apartment model into apart-hotels. Apart–hotels feature additional services such as professional 24 hour reception, lounge/ coffee area, additional housekeeping and, as being trialled at the Thinks Earls Court, an innovative blue key concierge service. By running an apart- hotel model providers are breaching the services gap between hotels and apartments and encouraging new thinking and new business from the market.

The Olympics will be a trying time for all accommodation providers within central London. The city will be absorbing one million extra visitors during the three weeks of the games. This will be an exceptional opportunity to demonstrate the attributes that are growing the serviced apartment industry and engaging travellers and agents alike.

Posted by James Sykes-Hagen, Business Development Manager, Think Apartments.

Think Apartments is exhibiting at the Business Travel Show, 7-8 February 2012. To register for a buyer pass, please visit www.businesstravelshow.com

IT’S ALL ABOUT THE LONG GAME

This is my fourth week as Hosted Buyer Manager for the Business Travel Show. The show’s new hosted buyer programme was only announced recently and already we’re getting our teeth stuck in and working hard behind the scenes to bring it all together.

Our target is to host 1,200 buyers from all over Europe to the show in February; a massive increase on the numbers we looked after in 2011. The programme will create an additional 6,000 pre-arranged meetings between buyers and exhibitors. The Business Travel Show is the biggest corporate travel event in Europe, which means our hosted buyer programme will introduce big budget buyers to the most comprehensive range of suppliers under one roof, and introduce our suppliers to a whole raft of buyers who are visiting the show for the first time.

It’s a massive investment in the show; not only for 2012 but more importantly for the long term and this long term view is what makes it so exciting to work on. With a project of this magnitude, no one’s saying it won’t be a challenge, but I’ll be bringing all my experience from working on the programme at EIBTM for Reed to the table, so I’m ready to take it head on.

Hosted buyers accepted on the programme will receive complimentary travel and accommodation during the show, networking opportunities, access to the best quality free-to-attend conference in the market place, with a choice of workshops, master classes and seminars and, importantly, the opportunity to use the hosted buyer diary to book pre-arranged meetings with exhibitors of their choice. These pre-arranged meetings increase the return on investment for the buyers but also for the exhibitors, who will know in advance of the show that they have a diary of meetings with great quality buyers.

The online diary facility will allow buyers to easily view their itineraries for the Business Travel Show, including their pre-booked meetings and also their travel arrangements, networking and social functions and all the education and conference sessions they’re planning to attend.

The Business Travel Show is on 7^th and 8^th February in Earls Court, London. If you’re exhibiting at the Business Travel Show then expect to hear from me any day now. If you’re reading this and you’d like to apply for the Hosted Buyer Programme, I’d be delighted to answer any questions or queries you might have. Simply drop me an email at graham.angus@centaur.co.uk. 

Posted by Graham Angus, Hosted Buyer Manager of the Business Travel Show