13 minute read
News and trends, comment from the BTA and the ITM, and a sustainability news special
GbTA GoES INTERACTIVE AT EuRopEAN CoNFERENCE
deleGATes at the GBTA's 2021 European Conference in Berlin in December will be able to join interactive sessions to discuss and share ideas on four aspects of post pandemic travel programmes.
‘The Big Idea’ and a ‘Think Tank Series’ - new to the programme - will run alongside main stage presentations focussing on key strategic issues and breakout sessions on industry excellence. Sustainability and diversity, equity and inclusion will be even higher on the agenda at this year's conference, which is being held on December 6-8 in partnership with VDR, the German Business Travel Association. "The way in which we work has changed and the GBTA European Conference will address these issues and provide an opportunity to once again connect, to share and to learn from one another," said a spokeswoman. Delegates will also get the chance to network at a welcome reception and a Christmas-themed 'Mingle All the Way' reception, and join a morning running tour taking in Berlin's most famous landmarks.
PanDemic forces inDePenDent tmc to sell off travel assets
The TRAvel-RelATed assets of independent TMC, Flightline Travel Management, have been acquired by Global Travel Management (GTM).
“It is very sad that another great name and a superb SME TMC has been removed from the business travel industry but we are looking forward to working hand-inhand with new customers," said Scott Pawley, GTM Managing Director.
mckinsey Report triggers optimism
GlOBAl business travel spending looks set to rise by more than a quarter this year and reach two thirds of pre-Covid levels by the end of 2022, says a report from the World Travel & Tourism Council in collaboration with McKinsey & Company. It predicts a modest 26% rise in global business travel spend this year followed by a further rise of 34% next year. But this comes in the wake of a 61% collapse in business travel spend in 2020 due to the pandemic restrictions. Julia Simpson, WTTC CEO & President, said: “Business travel is starting to pick up. We expect to see two thirds back by the end of 2022. Business travel has been seriously hit but our research shows room for optimism with Asia Pacifi c and Middle East fi rst off the starting blocks.”
34%
Train alternatives under six hours
Research commissioned by Greenpeace shows 34% (51) of the 150 busiest short-haul fl ights in the EU have train alternatives under six hours, and the same can be said about 73 of the 250 busiest shorthaul fl ights in Europe (the EU plus Switzerland, Norway and the UK)
[ NEWS bITES ]
>> AMERICAN Express Global Business Travel has completed the acquisition of Egencia >> TRIPACTIONS has secured a $275 million in Series F growth funding, pushing its post-money valuation to $7.25 billion >> QANTAS has brought forward the restart of services between London and Melbourne to November 6, six weeks earlier than originally planned >> CYCAS Hospitality is to take over the operation of three upscale boutique hotels - the Mercure London Hyde Park, Mercure London Paddington and the Hotel Indigo London Paddington - as part of a deal with London Town Group >> HEATHROW Express has released seat-yoga exercises for passengers to relieve tension >> THE BUSINESS Travel Magazine’s website, thebusinesstravelmag.com, was named Best Trade Publication Online at the Travel Media Awards <<
united confident about london routes
UNITed AIRlINes has announced five new services to and from London Heathrow starting in March 2022. It will add two more flights to New York Newark, additional schedules for both Denver and San Francisco, and is also introducing a new direct daily flight to Boston. “London is an integral part of United’s network and we remain confident demand will continue to grow, particularly as international business travel returns in 2022,” said Patrick Quayle, United's Senior Vice President of International Network and Alliances. In total, United will offer 22 flights a day from the US to London, which was the most booked international destination for its business customers in October.
TBTM November-December Ad v3.pdf 2 11/10/2021 17:35:42
IATA has reported a ‘moderate rebound’ in air travel in September 2021 compared to August.
Total demand for air travel in September 2021 was down 53.4% compared to September 2019.
This was better than August, when demand was 56% below August 2019 levels.
Meanwhile, the latest IATA figures show domestic markets were down only 24.3% compared to September 2019, a significant improvement from August when traffic was down 32.6% compared with two years ago.
All markets showed improvement with the exception of Japan and Russia, although the latter remained in solid growth territory compared to 2019.
International passenger demand in September was 69.2% below September 2019, fractionally worse than the 68.7% decline recorded in August.
“September’s performance is a positive development but recovery in international traffic remains stalled amid border closures and quarantine mandates,” said Willie Walsh, IATA director general. But he said the long-overdue reopening of transatlantic travel and recent reopenings in other key markets will be a "boost to the large-scale restoration of the freedom to travel".
overhaul of aPD announceD in autumn buDget
AIR Passenger Duty will be cut on UK domestic flights by 50% from April 2023 but will be increased for some key long-haul corporate routes, including Singapore, Hong Kong and Australia.
Chancellor Rishi Sunak announced that a new ultra long-haul band will be introduced for flights of more than 5,500 miles, saying: “Less than 5% of passengers will pay more. Those who fly furthest will pay most."
LANDMARK PINNACLE CANARY WHARF | LONDON
music specialist TmC takes to the stage
TWO FORMeR directors of The Appointment Group (TAG) have launched a TMC specialising in the entertainment and music sector, with its own air charter operation.
Set up by Ian Patterson and Glen Duckworth, Equinox Travel will specialise in managing complex itineraries for bands and solo artists, agents, tour managers, and fi lm production companies but also off ers specialist travel support for professional sportspeople, athletes and sports agents, corporate travel and luxury leisure trips.
Its sister company, Equinox Charter, will be run by Elliot Bottomley and will provide global private aircraft chartering solutions to clients across all sectors.
Bottomley is the former founder and MD of Artist Charter and previously worked at PrivateFly and FlyMeNow.
GbTA poll SHoWS SHARp RISE IN buSINESS TRAVEl opTImISm
TWO ThIRds of companies are now permitting non-essential domestic business travel, found the latest global poll by the GBTA.
In a high for the year, 42% of members are now also allowing international travel and over 70% expect a rise in business travel over the next six months as a result of the US reopening.
The October poll showed a sharp rise in optimism, with 52% of members reporting they feel more optimistic compared to a month ago. This number was 22% in September.
Only 10% say they feel more pessimistic about the industry’s path to recovery compared to 27% a month ago.
Three in four (78%) GBTA buyer and procurement members feel their company’s employees are “willing” or “very willing”’ to travel for business in the current environment.
bTA UPDATEbTA COMMENT
Returning to the 'land of the free'
For more than 500 days the ability to travel between the UK and the US has been restricted despite the route being one of the most important for global trade.
It has been an integral part of so many business travel itineraries.
Its absence has been a source of economic, business and cultural frustration.
With over £200 billion in annual trade between our two countries, the US regularly tops the list of business travel destinations. Blocks on travel for almost two years have hurt our economy badly.
The BTA’s Business Travel Tracker, published in partnership with Travelogix, shows that in the last four months the closure of travel to the US has cost UK GDP around £8 billion.
So, it’s welcome news for British and US business that fully-vaccinated travellers will be able to enter the US once more.
The resumption of transatlantic travel has been coveted not only by the airlines that fl y the Atlantic but also by the TMC community which makes those trips a reality and provides critical duty of care for travellers.
After some uncertainty about whether the Astra Zeneca vaccine would be accepted by the US authorities, the issue has been thankfully resolved. The opening of travel to the US is another signifi cant step on the road to recovery and follows last month’s signifi cant and necessary reductions to the red list.
But make no mistake, the business travel sector still has a long road to travel before we return to any semblance of normality, especially when it comes to international trips.
The UK Government must work harder to align us with other nations by dropping the requirement for Day 2 testing.
As we've said before, consistent international protocols for entry are vital.
It is only when there is international reciprocity that we will see international business travel truly recover.
After many months of disruption, we can fi nally see a light at the end of the tunnel, but sadly we’re not there yet. there yet.
Clive Wratten
Chief Executive Offi cer
IN BRIEF
Green power
Marking a UK milestone, 42 easyJet flights from Gatwick were powered by a 30% fuel blend from Neste, including 39 services operating to Glasgow airport during the UN Climate Change Conference (COP26) between October 31 and November 12.
Eco venues
Over 3,200 Green Key venues in the UK can now be booked through venuedirectory.com, bringing the number of sustainably accredited venues on the online platform to 4,076.
Carbon choice
Air Canada has launched a programme to give corporate customers the option to mitigate their carbon emissions either by purchasing offsets or sustainable aviation fuel sourced from Neste.
Tech generation
Virgin Atlantic, Air France KLM and Delta Air Lines have joined with Boston Consulting Group to form an Aviation Climate Taskforce (ACT), designed to stimulate innovation in the next generation of sustainable aviation technologies, such as synthetic fuel and direct air capture.
meeting targets
Radisson Hotel Group claims to have become the world's first hotel group to make its meetings and events carbon negative across more than 400 EMEA hotels through its ‘Carbon Negative. Planet Positive’ programme.
atPi grouP has set uP a new Division DeDicateD to sustainability. calleD atPi halo, it will helP clients achieve their carbon reDuction targets through new services, research anD DeveloPment
TRAVElpERk buyS CARboN dATA CompANy
TRAvelpeRk has acquired UK corporate travel sustainability consultancy firm, Susterra, its fourth acquisition this year
Founded by environmental scientist James Dent, Susterra uses data analytics technology to offer companies an "holistic view of their entire business travelrelated environmental impact” using the ICAO Methodology, an industry standard.
Its technology will be integrated into TravelPerk’s platform over the coming months.
TravelPerk said corporates will be able to use Susterra’s reports on flights, hotels, car hire, and rail travel to gain actionable insights to help improve their carbon efficiency and reduce costs. "Sustainability is a long game and we want to be leaders in this transition," said Ross McNairn, TravelPerk's Chief Product Officer.
TravelPerk also offers clients the chance to offset 100% of their carbon emissions through its GreenPerk initiative.
Survey: Sustainability still not a priority
AlMOsT two-thirds of executives said the pandemic has made them rethink how they travel but only 11% list sustainability as a factor.
According to a survey of 1,022 UK employees and 250 employers by spend management specialist Emburse, Covid safety weighs in as the most important factor (34%) for employers to consider for business travel arrangements, while the other most important factors are efficiency (13%) and journey time (9%).
When respondents were asked how they could make their trips more sustainable, 35% said they would consider cutting down the number of trips, 25% said they would combine trips and 22% said they would minimise air travel.
SAF FIRST FoR mANCHESTER AIRpoRT
MANChesTeR Airport will become the first in the UK to have a direct feed of Sustainable Aviation Fuel (SAF) thanks to a partnership between its parent, Manchester Airports Group, and Fulcrum BioEnergy Limited UK.
The fuel will be produced at a new biorefinery in Stanlow, Cheshire, and will have a CO2 footprint at least 70% lower than its traditional jet fuel equivalent.
It will be produced from residual household and commercial wastes otherwise destined for landfill or incineration.
IN BRIEF
It's electrifying
Hertz has announced a major investment to off er the largest EV rental fl eet in North America and one of the largest in the world with an initial order of 100,000 Teslas by the end of 2022 and the installation of thousands of new EV charging points across its global operations.
mission possible
Virgin Atlantic has committed to a 15% net reduction in total CO2 emissions, with 10% of fuel sourced from sustainable aviation fuel (SAF) by 2030 as part of its renewed mission to achieve net zero emissions by 2050.
Cleaner ride
Sixt Ride has added hybrid and electric vehicles to its transfer or limousine services in several UK locations, including London, Edinburgh, Farnborough, Gatwick, Glasgow, Heathrow, Luton, Oxford and Reading, and in other key destinations across its European network.
Re-energised
Edinburgh Airport and renewable energy company, Orsted, have signed a Memorandum of Understanding (MoU) to collaborate on reducing emissions at the airport and help it meet its target to reach net zero by 2040 through the use of green technologies, including plans for hydrogen production facilities powered by off shore wind farms and decarbonising the fuel used by aircraft.
SAF initiative gets off to a fl ying start
TRIpACTIONs has joined forces with Neste to off er its clients the option to purchase Neste MY Sustainable Aviation Fuel (SAF) and says clients are signing up fast despite the additional expense.
The initiative is for TripActions clients and for customers of Reed & Mackay, which TripAction purchased earlier this year. Chris Truss, Reed & Mackay's Head of Sustainability, said some clients have committed to buying SAF for their entire fl ying programme to meet their science-based targets.
SAF is made from sustainably-sourced renewable waste and residue raw materials and reduces greenhouse gas emissions by up to 80% compared to fossil jet fuel when used in its neat form and over the lifecycle.
heathrow Joins with climate-tech sPecialist for uK first
heAThROW has become the fi rst UK airport to off er passengers the chance to off set carbon emissions by directly purchasing Sustainable Aviation Fuel (SAF) thanks to a partnership with global climate-tech company CHOOOSE.
The voluntary initiative will enable passengers to calculate and off set their air travel emissions regardless of their airline or end destination.
ITM
Scott davies
Chief Executive
Although buyers are very much looking forward to in-person meetings with their supplier partners, they are looking for a diff erent kind of engagement this time around.
Supplier review meetings of the distant past were informal aff airs where relationships were developed and sometimes food and beverage were consumed. Then came the advent of the CRM and reviews became highly structured, even formulaic, explorations of endless reports and carefully-constructed questions designed to secure advances and commitments.
As we all start over again, supplier reviews must also be re-imagined. Buyers tell us they want precious time spent face-to-face with their key suppliers to be lifted a level in terms of strategic thinking and to help connect their organisations in diff erent ways. They will want to understand exactly how their partners are managing the recovery and what other value they can bring to each other in the areas of sustainability, employee wellbeing, diversity and inclusion and more.
So all hail the next age of the supplier review meeting; sharing, listening to and enlightening each other for mutual benefi t.
