PICTURES: ISTOCK
DESTINATIONS BUSINESS TRAVEL
Trust
TMCs
Nick Easen reports on how travel
management companies can help
tighten business travel costs in
turbulent times
Travel management
companies are hoping
that their role will still
be secure as clients look
to them to cut costs and
maximise value.
Hogg Robinson Group UK
managing director Ian Windsor
said: “Our role will become more
important and accurate reporting
is crucial for travel buyers so they
can make valued judgements and
decisions.”
Issues surrounding travel
policies in the downturn is still
causing headaches for businesses
and TMCs. Travel buyers prefer to
ask TMCs to reduce their fees
rather than push through an
internal travel policy that
potentially could save them more
money – since external costs can
be easier, and less controversial to
control than internal ones.
Guild of Travel Management
Companies chief executive Philip
Carlisle said: “To make that travel
policy work there needs to be a
great deal of education as well as
enforcement, to make sure the
business traveller sticks to it.”
“There is sometimes a clash
between individuals’ likes, as
well as beliefs, and the policy the
www.travelweekly.co.uk
company wants to have in place.
Loyalty cards and adherence to
favourite brands can be the enemy
of a travel policy.”
Yet with the recession biting
hard, more businesses are forcing
their executives to toe the
company line.
TRACKING TRENDS IN THE DOWNTURN
Smarter travel – Don’t call it
downsizing. It’s about being more
selective and aware of the travel you
can do and the related expenditure
you can save – day trips, instead of
overnights, travelling on cheaper
shoulder days, one executive going
instead of two, non-direct fl ights,
using non-fl ag carriers and booking
more restricted fares.
Hubbing – Expect business
travellers to have more meetings at
major airport hubs. Accor Hotels’
chief operating offi cer Michael
Flaxman said: “We will see clusters
of small meetings around Charles
De Gaulle, Amsterdam and
Heathrow that are contributing via
video-link to large international
conferences. So the nature of the
business is changing.”
A question of discounting –
The travel industry should not
panic. Amadeus Hospitality Group
managing director Antoine
Medawar said: “Remember what
happened after the September 11
attacks? The trade panicked, and
began discounting and giving away
inventory to third parties.” Good
yield management and booking
tools could be the answer.
Reliance on technology – The
Skype conference call, video and
teleconferencing will all be used
more frequently to save costs. Free
or low-cost high-speed internet on
the road is crucial. Don’t expect
executives to be using business
centres as much – everything is
on the BlackBerry, laptop or a
virtual network.
As Eurostar marketing director
for the UK Emma Harris explained:
“When corporate policy is
combined with an individual’s
consciousness of spend – which
is now thrifty – it is incredibly
powerful, because people are not
slipping through the net.”
However, travel suppliers,
especially airlines and hotels,
have made sure they have built
individual loyalty rather than
corporate loyalty, since it is easier
to focus on human beings, who
swap careers as well as mix
leisure with business.
Advantage director of business
travel Norman Gage said: “It will
be a brave fi nancial director or
purchasing manager who puts a
block on executives travelling,
where they earn the most air miles.”
Certainly the business travel
sector is in a new, very dynamic
phase where senses and business
acumen are heightened. Virgin
Atlantic general manager for UK
sales Paul Wait said: “There has
been a seismic shift in the market;
everyone in this environment is
now highly competitive.”
Harris added: “Even when the
economy recovers it is going
to be very diffi cult for people ✈
March 6 2009 | Travel Weekly | 63
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