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: 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

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  

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.

 

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

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