THE HEATHROW DEBATE - WHAT'S THE ANSWER?

We posted a news story on our LinkedIn page yesterday about business travellers wanting another runway at Heathrow Airport. Richard Charman, research manager at HRG, posted a reply. See below. Food for thought, isn't it? We'd love to hear what you think - @btshowlondon or Business Travel Show group on LinkedIn. 

If you look at the IoD's own member research - it shows a significant regional split on where expansion should be focused. Having read numerous submissions my gut feeling is that Gatwick may be given an additional runway, Manchester Airport will get an additional runway, Birmingham Airport will have a significantly expanded runway by the end of 2014, Boris Island or similar will be promoted as a long term alternative to Heathrow, by the Government, whilst expansion at a number of other airports will also be permitted. It is already happening at Llydd Airport.  Personally, I would like Heathrow Airport expanded to accommodate two more runways but, I do not see how the Government can get that through Parliament or the courts because of the environmental impact. The promotion of one additional runway might be acceptable - but some argue that is only an interim not, a long-term solution. The likely outcome of the Davis Commission exercise is an attempt to direct development to a number of airports around the country to try and encourage balanced airport expansion because this implies balanced economic development - such simplistic logic ignores failed attempts to get airlines to use Stansted which is currently a white elephant used many by low cost airlines. Such a scenario could do a great deal of harm to UK earnings from aviation and encourage expansion at airports outside the UK. We are already suffering significant political and economic damage as a result of the imposition of Air Passenger Duty which should be abolished or as a minimum reduced significantly.

By Richard Charman

GUEST BLOG: THE MUST HAVE TRAVELLER APP

Smart phones are an essential tool for business travellers, largely owing to the fact that information can be accessed instantly and easily. With the vast majority of corporate travellers now organising themselves with hand-held devices, leading corporate travel and events business, the ATPI Group, has recently introducing an expanded and upgraded version of its popular On the Go app. 

Version 2.0 of the app has been developed in response to demand from users to meet the increasingly specific needs of business travellers. The interface has been made as straightforward as possible, following feedback from users who expressed a desire to have information presented in a clean and simple way and to avoid any flashy gimmicks.

Since its initial global launch this time last year, usage of the app has continued to grow and the new upgraded version is already proving to be a popular tool for busy corporate travellers. Entering its second phase, the enhanced app now includes flight booking functionality for both scheduled and low cost carriers and an improved mobile itinerary, where ticket numbers are recorded in all flight bookings. The performance and speed of the app has also been optimised, and security features have been upgraded. Also, included in the app’s features is an itinerary display application which gives users access to all flight bookings in their name, while a flight status report allows users to track progress of any flight number – either arrival or departure.

Smartphone users can add a photo of travel documents such as passports or cards to the app safe in the knowledge that this data is stored on the phone with an extra security layer providing protection in case the phone is lost or stolen.

Since the launch of its first generation On the Go app, the ATPI Group has maintained an open dialogue with users to ensure it can respond to their feedback and take actions based on their ever changing requirements. As a result, the business has been consistently able to make strategic improvements to the app to ensure clients can get to their place of work quickly and efficiently.

Available free via iPhone, Android and Blackberry worldwide from the respective app stores - iTunes, Google Play, and Blackberry App World, the app can also be downloaded by any smartphone user.

Additional features of the 'On the Go' app include a currency converter, world clock and details of all the ATPI Group office locations and telephone numbers worldwide. A separate destination guide section offers handy tips on where to go and what to see in cities around the globe.

For more information and to test out the On the Go app, visit the ATPI Group at the Business Travel Show at Earls Court on 5th & 6th February 2013. Register now at www.businesstravelshow.com 

GUEST BLOG: Put TMCs to work for you

Travel is one of the largest controllable expenses for most companies. Using the right travel management company will give you peace of mind and save you time. A TMC should want to learn about your business and think strategically about what you need and offer a full range of services.  

At Wings Travel Management, it is our passion to find the best fares for your business travel needs – advising you on how to best leverage your travel budget while monitoring your travel policy. We work with creative ticketing, Internet fares and our own negotiated fares from all our offices across the globe. This applies to hotels, too.  Sometimes the best fare is one that a TMC can get for you using a pricing index available through one of its branches in another part of the world.

When deciding on a travel management company, there are some key questions to consider:

• Does it have people on the ground in those emerging markets where travel can quite easily not run to plan?

• Does it have the technology to keep up with your travellers, no matter where they are?

• Does it specialise and understand your industry, in other words, know what you need to make it a successful trip?

• Does it have a history of success and leadership in places that are important to your business?

• Does it give you access to company staff 24/7/365?

• Does it offer standardised technology throughout its global operations so you get the same service and reporting everywhere?

• Does it track the performance of all your travel suppliers: air, car, hotel, ground transportation, TMC?

• Does it have process and reporting audits that provide for accuracy and accountability?

• Does your TMC put the client first, understanding that this is not a one-size-fits-all industry? 

• Is your TMC growing into the areas where your business industry is growing? Is it following your industry trends?

• Does it set itself apart in ways that matter: human attention, experience, passion, integrity?

Travel management companies should have easy, ready answers to the above questions. 

To determine whether you’re getting the most from your TMC, contact Wings Travel Management on +44 (0) 207 458 7000 or visit Stand No. 230 at the Business Travel Show.

By Paul East

Paul East is chief operating officer at Wings Travel Management, which specialises in corporate, oil & gas, and marine travel. Meet Paul at the Business Travel Show at Stand No. 230 to find out what sets Wings apart from other TMCs. You may contact him directly on 0207 458 7000 or at paul.east@wings.uk.com

Is Big Data the Way to Ensure Compliance?

Big data – according to Wikipedia – is a collection of data sets so large and complex that it becomes difficult to process using on-hand database management tools. Yawning yet? The truth is big data is exciting. And the excitement lies in the additional information that can be pulled from these data sets and what you do with them.

In the past it’s been prohibitively expensive thanks to the cost of servers needed to store and drill down the data to make it useful. But as technology gets cheaper, the opportunities available from big data are becoming more accessible to everyone.  And when it comes to buying business travel, big data holds a lot of potential for corporates.

Big data allows travel managers to understand the traveller better, track him or her and push information out to him. It’s this last element that is particularly useful for travel managers because it allows them to push information to travellers that enables and encourage them to stick to policy and budget while away from the office.  

For example, managers can use big data to tell junior staff, who may well feel apprehensive about taking public transport abroad, not to get a cab when they arrive at the airport, but to go to bus transfer stop A or train station B. They can give them directions, explain where to go to buy a ticket, ask them to use the NFC company credit card, pick up the ticket, get on the train at time x to destination y, remind him when to get off, that he can walk to the hotel in five minutes rather than take an overpriced unnecessary cab, where to go for dinner that’s close to the hotel, within policy and within budget… the possibilities are pretty endless.  

And, as we know in this day and age of the rogue, anything that helps travel managers to know more about their travellers and use that information in a way that increases compliance has got to be a good thing.

David Chapple is event director of the Business Travel Show. Talk to him about Big Data on Twitter @btshowlondon or directly at david@businesstravelshow.com.

The hidden cost of relaxing policy and embracing rogue

Much has been written about the rise of the rogue traveller this year. The fine balancing between policy enforcement and happy and productive business travellers has been the centre of many a debate since it was first raised (to me, anyway) at the ITM Intelligence Conference back in May (you can read my blog on that here) and, most recently, at the GBTA Europe Conference in Budapest (my blog on that session is here). 

Corporate travel buyers are being warned that managing policy too closely leads to traveller friction, which in turn impacts on the wellbeing, productivity, motivation and loyalty of the traveller. Introducing flexibility, on the other hand, can lead to happier travellers; travellers less likely to ‘go rogue’.

On paper, the traveller turned self booker appears to be a no brainer, saving money for the company thanks to religiously booking within policy price parameters or even under budget because of internal incentives and reward programmes.

But it can’t be all win win for the organisation, surely? There must be some pay back? And perhaps the answer is, yes, of course there is, and that pay back lies in the time it takes for these employers to self book. And therein lies the problem: because this cost isn’t visible it can go largely ignored.

Whether the traveller turned self booker uses a self booking tool, an internally-designed travel portal (a la Google), or simply surfs their favourite leisure portals, they are wasting hours and hours of time online booking their trips; time that could be spent working; time that costs the company money. In fact, a company that has 20 senior execs each taking 20 trips a year and each taking a morning to book each trip is throwing away the equivalent of more than £51,000 worth of billable hours.

So what’s the answer? Well, frustratingly, that seems to be far from decided and still very much up for debate. The Business Travel Show will attempt to throw some light on the issue with a panel session called ‘Policy – how vogue is rogue?’ at the event next February, but I’m sure a lot more will be said about it – for or against – between now and then and I’d be interested to know what you think, so why not join the debate on Twitter @abtn_online or @btshowlondon?

David Chapple is event director for the Business Travel Show, which takes place at Earls Court on 5-6 February 2013. Registration is open at www.businesstravelshow.com.

ROGUE IS VOGUE - TALES FROM THE GBTA EUROPE CONFERENCE 2012

I’m in Budapest for the GBTA Europe Conference and, what appears to be this year’s recurring theme in corporate travel, has reared its head once more: Rogue is Vogue.

Max Keegan, a 17 year old ‘digital native’ took to the stage this morning to share his experiences of booking travel in a bid to help buyers understand how they will need to evolve to cater for future travellers. In short, it’s all about digital, and his message to corporate travel buyers is that they need to adapt now to deal with social hungry travellers like him. 

It seems the new generation of business travellers is feeling rebellious. They don’t want to be reined in by regimented booking policies and procedures. They want the freedom to be able to book corporate travel using the types of booking tools – and with the same level of ease – they experience when booking leisure travel.  

What’s behind this urge for rebellion? Technology. Technology has enabled business travellers to pick and choose rather than be directed. It allows them to be flexible. And, according to this morning’s speakers, flexibility is one of the most important messages that buyers should take away from this conference. Closed, structured, mandated and managed policies are dinosaurs. The future is about open travel booking. 

Instead of forcing travellers to stick to very strict procedures, buyers are now being encouraged to allow travellers to book whatever, however as long as they stay within more general parameters of policy, whether that’s financially set or otherwise. By giving travellers this freedom and access to the booking experiences they are used to, it’s more likely they will stay within set parameters and everyone’s a winner.

David Chapple is in Budapest for the GBTA Europe Conference 2012 (#gbtaeurope2012). If you’re there, too, say hi. If not, say hi on Twitter – www.twitter.com/btshowlondon

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

VIRGIN TAKES OFF AT HOME

Richard Branson and Virgin have somewhat hijacked the news over the last two weeks, haven’t they?

It started with Virgin being outbid by FirstGroup for the West Coast Mainline franchise that it has been running for the last 12 years. You can read our blog post with the details of FirstGroup’s bid here. Branson, it was reported, was livid, issuing an aggressive statement questioning the Government’s decision and FirstGroup’s competence almost immediately. This was followed by the announcement of an appeal and the launch of an online petition, which garnered 150,000 signatures. Branson even offered to run the service on a not-for-profit basis if the Government agreed to postpone the contract signing for two months.

Yesterday (28 August 2012) it was reported that Virgin had its lawyers working over the Bank Holiday weekend and is now planning a last minute legal challenge to prevent the Government from signing the contract, which is due to happen tomorrow and, which, according to the Transport Secretary Justine Keeling, is going ahead.

It’s all very gung-ho for the transport industry and I’m genuinely looking forward to the outcome. But what I find really interesting is the surprise announcement – released in the midst of this melee -that Virgin is proposing a three-times-daily airline service from London Heathrow to Manchester from next March.

When it was announced, many assumed Branson was simply throwing his toys out of the pram having lost West Coast Mainline. But I doubt this very much. I think the domestic airline has been part of the Virgin plan for some time and the timing of the announcement was merely coincidental.

The airline lost £80.2m last year. It has also lost its code share deal with BMI following BMI’s acquisition by IAG and its alignment with BA, which means it’s lost a significant chunk of its feeder routes, so something had to be done. And that something, it would seem, is the launch of a UK domestic network.

My question is: “Does this signal more of a strategic change in direction for Virgin Altantic, or will the IAG competition trustees charged with reallocating the BMI Heathrow slots see it as nothing more than smoke and mirrors to make them look like more of a credible option for those slots?”

The trustees will award these slots from summer 2013 and the decision will be made in the next couple of months, which also makes me think twice about the timing of the announcement.

Whatever the reason, though, the move by Virgin is potentially good news for the corporate travel buyer, as the likes of Virgin and BA start competing on value, service and price leading to increased frequencies and flight options, as well as better value for money.

David Chapple is event director of the Business Travel Show – you can challenge him on Twitter @btshowlondon or at david@businesstravelshow.com  

FARE HIKES AND FIRSTGROUP FRANCHISES - WHAT DOES THIS ALL MEAN FOR BUSINESS TRAVEL?

All eyes were on the rail industry this week following two massive announcements, starting with a proposed 6.2% increase in rail fares and followed by the news that Virgin Trains has lost its West Coast main line operating contract, which it had held since 1997, after being outbid by FirstGroup. FirstGroup is the UK’s largest train operator and it is believed to have bid as much around £5.5bn for the rail franchise.

The company, under the name First West Coast Limited, will take over the franchise from 9 December and is due to operate the service until 2026. The West Coast main line is a lucrative business proposition, having experienced a surge in passenger numbers from 13m to 31m in the last 15 years.

FirstGroup says it will introduce 11 new 125mph six-car electric trains on the Birmingham-to-Glasgow route and provide more direct services between destinations. It’s also promised to add a further 40,000 seats a day on West Coast routes from 2016.

But what does all this mean for the business traveller and business travel buyer? After all, Virgin Trains has done an excellent job of attracting and retaining business travel customers during its 15-year West Coast reign.

If FirstGroup keeps its promises and really does increase direct services and capacity, then this is only good news for the business traveller reducing both journey times and disruptions. And, as FirstGroup owns a substantial chunk of the UK rail network then maybe, just maybe, there will be an opportunity for business travel buyers to negotiate volume discounts for the first time, which may well help to offset those rather steep fare increases.

Of course, it’s very early days, but let’s hope that FirstGroup bears the business traveller in mind when rolling out its franchise strategy in a few months time.

David Chapple is event director of the Business Travel Show. Commuting to central London from the Home Counties each day, he’s a bit of an expert on rail travel. Challenge him on Twitter @btshowlondon. 

TRAVEL AND MEETINGS CONVERGENCE - MYTH OR REALITY? PART 2

My colleague Katy Phelps wrote the prequel to this blog - Travel and Meetings Convergence, Myth or Reality? Part 1 – you can find it here. In her blog, she spoke about the convergence between the worlds of the corporate travel buyer and the corporate meetings buyer and how, on the whole, this crossover was a myth. And it’s true, the cross over is small, especially when it comes to trade shows, but crossover there is.

There are two areas where I believe it is most apparent. The first is at the strategic procurement level (ie where large multinational organisations are spending a lot of money and big savings are to be had). The second is the booking of spaces for regular small meetings (where only the tiniest of margins exist and minimum savings can be made).

Strategic procurement in the meetings industry – also known as strategic meetings management – is mostly the domain of large multinational organisations that have the buying power to procure meetings services in the way they procure business travel. These organisations often have procurement managers that deal with meetings and travel whereas in other, smaller companies, it’s not necessarily seen as a procurement function.    

These category specialists are responsible for agreeing the terms of contract with two or three suppliers in every category – from AV, production and creative, to venues, delegates and, of course, travel. They also look after their organisation’s large meetings. Their purpose is not to coordinate the creative elements of travel and meetings (which is best left to the event managers) but rather to consolidate the procurement of these functions and their suppliers. Do this well and considerable costs can be cut.

The other area where there is crossover between travel and meetings is in the procurement of high volumes of small meeting spaces by an organisation for, for example, sales meetings, training sessions, board meetings. In recent years, this function has increasingly become the responsibility of business travel managers who are able to draw on their experience and knowledge of consolidating large volumes of travel to transfer these procurement skills to the meetings category. Procurement managers are driving this consolidation of meetings spend because it gives them increased buying power, which leads to cost savings.

And so, in my opinion, the convergence between travel and meetings is very definitely a reality; it’s just that it’s a reality that is limited to certain job functions and it’s the business travel managers who are taking on meetings management but not vice versa. This is why at Centaur we have unique exhibitions for each industry and why, at TheMeetings Show UK, you’ll find no business travel content, but at the BusinessTravel Show you will find meetings management suppliers and educations sessions dedicated to meetings management and procurement in the conference programme.

David Chapple is event director of the Business Travel Show. Contact him on Twitter @btshowlondon or on 020 7970 4072.

TRAVEL AND MEETINGS CONVERGENCE - MYTH OR REALITY – PART 1

In recent years, the convergence between meetings and travel has been somewhat of a hot topic with reports that an increasing proportion of business travel buyers are now responsible for meetings spend and vice versa. On paper, it makes perfect sense. In reality, it’s not so clean cut. This blog looks at the myth. Check back for Part 2, when my colleague David Chapple will discuss the reality.

In my role as sales director for the Business Travel Show, I’ve seen firsthand that there is some crossover between the worlds of corporate travel and corporate meetings but on the whole they are very different. In fact, if this blog were a Venn diagram, that little area in between the two circles you’d be looking at would be very little indeed.

A quick look at their job titles reveal just how different corporate meetings and travel buyers are. In the meetings world, buyers are corporate, event and association planners, and professional conference organisers and agencies. In the travel world, buyers are corporate travel managers, travel procurement and category managers, TMCs and HBAs.

They also have very different responsibilities. When corporate meetings buyers book travel, it’s incentive and group travel. Their focus is often on planning amazing trips to amazing places for thousands of people.  When a business travel buyer or TMC books travel, it’s still for thousands of travellers, but these are business travellers flying between major cities and often travelling alone.

And when it comes to supplier needs, the lack of crossover is apparent once more. Corporate meetings buyers want to talk to venues, cities, destinations and destination management companies. Corporate travel buyers want to speak to TMCs, airlines, hotels, ground transportation and travel technology software providers.

This divergence between buyers in the two sectors also explains why there is often very little crossover between visitors and exhibitors at exhibitions and conferences and why, knowing what we now know about the two markets, Centaur decided to launch The Meetings Show UK next July. We already run the Business Travel Show each February, which focuses predominantly – but not entirely exclusively – on corporate travel (more to come on that in David’s blog).

By organising separate shows for the two sectors our aim is to offer buyers and suppliers a more focused experience. Visiting and exhibiting at events are huge commitments in terms of time and resources and providing suppliers, knowledge streams and networking opportunities that are totally relevant means they can get more out of the shows and a much higher return on their investment

Katy Phelps is sales director of the Business Travel Show. Contact her at katy.phelps@centaur.co.uk or on +44 (0)20 7970 4075.

 

THE APPY TRAVELLER

When it comes to travelling on business, time is money and stress equals reduced productivity, so anything that can save time and reduce stress must be a good thing, right? This is why I’ve decided to share my top ten business travel apps:

1              TripIt (iOS, Android, BlackBerry, Windows)
A serious app for the organized traveller; TripIt keeps track of all your confirmation emails for the trip and creates an itinerary for you to follow. You can even book restaurant reservations or reserve tickets for a show through this app.


2              GateGuru (iOS, Android)Invaluable when it comes to long airport layovers, GateGuru provides maps of terminals, security line wait times and tracking for your flight.

3              Yelp (iOS, Android, BlackBerry, Windows)

Yelp's free app searches for locations like restaurants, bars and coffee shops around you, then provides details like hours, price and user ratings to help you make the best decision on where to travel next.

4              WiFi Finder (iOS, Android)

Wi-Fi Finder is a free app that helps travellers find over 320,000 registered public Wi-Fi hotspots. What’s not to like?

5              FlightTrack (iOS, Android, BlackBerry, Windows)

Easy to use app for info about specific flights from more than 5,000 airports and 1,400 airlines. It includes maps, flight statistics and more. Also integrates with your itineraries on TripIt.

6              Turboscan (iOS)

A free document scanner app that saves images as PDF or JPG image files, which you can then e-mail or send to a cloud storage service such as DropBox.

7              DroidScanLite(Android)

Similar to Turboscan for Android handsets.

8              Expensify (most)

Easy to use – either enter details yourself, take shots of receipts or use the app’s auto-scanning tool. Swiftly creates slick expense reports.

9              Worldcard Mobile (iOS, Windows)

Take photos of business cards as you collect them and this app translates them to digital files. Easy as that.

10           Time Master+ Billing (iOS)

This app keeps tabs on how long you spend on different projects or clients and produces detailed reports , which can  be back up on Dropbox to synchronised with other devices to create professional-looking invoices.

David Chapple is event director of the Business Travel Show – talk to him on Twitter @btshowlondon.

HOW DID WE FORGET ABOUT GATWICK?

There has been pretty much one topic on everyone’s lips in the industry this week and that is the argument for a third runway at Heathrow Airport. Why? Because the UK government is due to unveil a consultation document on its new airports strategy in the next few weeks. Note: the consultation document isn’t about Heathrow and its third runway. In fact, expansion at Heathrow isn’t even included as one of the options on the table. And yet, it would appear, all roads (or should that be runways) keep leading back to Heathrow.

There’s no doubting that Heathrow is a problem that needs fixing. It’s currently operating at a perilous 99 per cent capacity. Some have suggested introducing mixed mode flying (ie using its two runways for inbound and outbound flights) to increase this capacity by 15 per cent and another 10 million passengers per year.

But, in my opinion, Heathrow is a bit of red herring in this whole debate. We need to stop talking about it and get back to the real issue: how is aviation going to grow over the next 20, 30 years and how are we going to build an infrastructure fit for purpose to continue supporting the growth of UK Plc?

In the short term, the answer is not Heathrow. Or Marsden. Or Boris Island. Let’s open our eyes and look to other airports in the South East, airports with capacity: Luton, Stansted, Gatwick.

Gatwick, for one, is currently operating at around 80 per cent capacity on its single runway. It’s projected to grow to 40 million passengers by 2020 with that one runway (it’s currently at just under 34 million). It’s connected to London for business better than any other airport, with train links to Victoria, London Bridge, City Link and Kings Cross. And it’s currently investing around £20 million per month into new passenger facilities as part of a six year £1.2 billion programme due for completion around 2014/2015. This investment and infrastructure make Gatwick a great option for business travellers.

But I’m not here to champion Gatwick over Heathrow, or Stansted over Boris Island. I’m here to champion common sense and to say let’s park Heathrow for now and start thinking long term for the good of this industry. 

Posted by David Chapple - talk to him on Twitter @btshowlondon or david@businesstravelshow.com 

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 

IT'S TIME FOR TRAVEL MANAGERS TO SWOT UP ON MOBILE

Earlier in the week, AirPlus International and ACTE published a white paper focusing on how mobile payments will change corporate travel and expense management. I read it. And I’m glad I did – it’s a really interesting insight into the future of business travel management.

There are a number of key things that come across. Firstly, forget all the scare-tactics about mobile encouraging rogue travellers. According to this white paper, mobile actually has the potential to drive compliance. Why? Because it helps to link a lot of currently disparate processes together. 

By automating the purchase of smaller trip transactions through NFC (Near Field Communication) technology (which is when you simply touch your phone against a ‘contact’ point on, for example, a rail ticket machine, hotel room door, airport check in desk), managers will win back control over expenditure. By linking it to an app for your travellers, you can also control which suppliers they use and eliminate the temptation to fiddle expenses. And linking everything to your management system makes invoicing easier, quicker and cheaper.

Secondly, mobile also has big benefits for the traveller. It means they no longer have to carry cash and credit cards makes it easier and quicker for them to account for their expenses when they return home, too.  

Yet, despite all the arguments for using mobile payment technology, we’ve been slow on the uptake, with just five per cent of companies actually using mobile payment technology in our industry. Why? Well, mainly because the technology isn’t widely rolled out yet. It is here and it will happen. It’s just a matter of when. 

And it’s also partly due to ignorance – travel managers just don’t know that much about it. If they did, they would want to embrace it and, perhaps by embracing, they could help to speed up its adoption? In the meantime, I recommend reading the white paper and getting a head start.

Posted by David Chapple, david@businesstravelshow.com - tell me what you think @btshowlondon