GUEST BLOG: HOW TO SLASH ACCOMMODATION COSTS BY UP TO 40%

A recent survey conducted by the Association of Serviced Apartment Providers (ASAP) has found that its 56 members are optimistic about the sector’s growth in the UK & Ireland for 2013. With occupancy rates as high as 89%* in London last year, it’s not surprising that providers are feeling positive about the forthcoming 12 months.

Thanks, in part, to the many benefits the sector offers business travellers, the serviced apartment sector is finally starting to take a well-deserved place in the limelight. These benefits include:

•          Earlier check-in and later check-out times
•          Discount vouchers for local restaurants/bars/spas/tourist attractions
•          Continental breakfast
•          Gym membership: discounted membership or vouchers to access local gyms;  or free  gym on site
•          Complimentary wi-fi, depending on length of stay
•          Loyalty programmes
•          Butler Service
•          Free parking
•          Free movies

Perhaps more importantly, the serviced apartment sector also offers massive benefits to corporate travel buyers as well as travellers, not least of all starting with price.

ASAP founder member Marlin Apartments has calculated that corporate buyers can save between 30% and 40% on their accommodation costs by switching from hotels to serviced apartments. Booking a serviced apartment in central London can save 31% or £80.29 per night when compared to the equivalent standard hotel. And booking a Marlin serviced apartment in central London will slash 37% or £92.45 per night off the bill.

For major corporate buyers managing accommodation for, say 100 travellers staying in London for 30 nights per year, this is the equivalent saving of £277, 350 per annum. And, as you’ll see from the benefits list, travellers don’t miss out at all from making the switch. In fact, a serviced apartment gives corporate travellers the freedom to spend their down time as they please rather than being tied to the inflexibility of a hotel stay, helping them to comply with policy.  

Both Marlin Apartments (stand AC5) and ASAP are exhibiting at the Business Travel Show, which takes place on 5-6 February 2013 in London. Registration is open at www.businesstravelshow.com. Visit them and find out how you can slash your accommodation costs.

*October 2012 was the month which delivered the best occupancy for the final quarter of the year: 89% for London and 82% in the regions.

For further information, please contact:

Ed Rogers, Marlin Apartments; edward@marlinapartments.com

Joyce Cawthorpe, ASAP; jcawthorpe@theasap.org.uk          

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

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.

 

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.

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 

1,200 HOSTED BUYERS TO ATTEND BT 2012

Forgive the gratuitous self-plugging, but today is a very exciting day for the Business Travel Show team. We announced that, for the 2012 show next February, we will be hosting the world’s largest fully hosted buyer programme for the corporate travel market.

1,200 of Europe’s highest quality corporate travel buyers will visit the show in 2012. All of them with annual budgets in excess of £3m and many of them first time visitors. With the prospect of these buyers committing to at least 6,000 pre-booked meetings, this news is even more exciting for our 180 exhibitors. 

Over the last two or three years, we have invested time and money into refining the Business Travel Show to make sure that only the highest quality audience attends and that our exhibitors enjoy an increasing ROI each year. Two years ago we launched the Executive Buyer Programme and it was a big success, attracting over 500 buyers. This year, the launch of the Hosted Buyer Programme will build significantly on this success.

In return for committing to – and attending – pre-booked meetings on each of the show’s two days, the Business Travel Show will provide the 1,200 strictly pre-qualified buyers with:

•             Free flights and accommodation
•             Fast track entry
•             Access to the First Class Lounge with complimentary refreshments and               lunch
•             Support from the Hosted Buyer Team before, during and after the show
•             Specialist, cutting edge technology, which allows buyers to book                           meetings with exhibitors that are best matched to their needs and                       create a personalised diary

Buyers who choose to extend their trip and land in town early will also be invited to the prestigious European Travel Buyer Awards, which take place on Monday 6 February.

Centaur Travel Group, which organises the Business Travel Show, has invested heavily in the corporate travel market for the last 17 years, and the introduction of the Hosted Buyer Programme just shows how committed we are to both the market and to the show in the long term. We plan to be around for at least another 17 years to come, and we plan to make sure the Business Travel Show remains the leading event in this market in Europe.

The Business Travel Show takes place on 7-8 February at Earls Court in London. Visitor registration is open now at www.businesstravelshow.com

Posted by event director David Chapple.