Upgrade Magazine - Issue 3

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Summer 2018 FCM TRAVEL SOLUTIONS UK

Elevating business travel intelligence

What are the key ingredients for traveller well-being?

Lisbon and Porto are closer than ever

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Welcome

Summer 2018

We’re dreaming about our summer holidays. The sun, sea and cocktails beckon but getting there has required online research and booking. And the experience can differ from that for a work trip.

No wonder that one of travel management’s mantras is that business travellers expect what they get in their private lives in their business lives.

This issue of Upgrade focuses on traveller experience, health and well-being and that’s very much about the convergence of leisure expectations and corporate reality.

For some traveller centricity means an opportunity for bleisure; for others it means reducing traveller friction and addressing work-life balance.

But how do you adapt your travel programme without reducing compliance or increasing cost?

A good place to start is by listening to experts and finding out how peers have addressed these challenges.

This issue has tips on where travel managers can go to ‘learn’.

And where are you going on your summer hols?

Betty Low, Editor

A

t FCM, the start of the summer season also marks the end of our financial year. So it’s not just a time for looking forward to a summer holiday, but also for reflecting on how our business has performed over the last 12 months.

And what an amazing year it has been! I am delighted to report that we have won a record amount of new business nationally and globally since last July. And we have also retained the custom of a record number of our clients, in particular several major companies following extensive retender processes.

Much of this success has been due to FCM’s renewed focus on developing

4 Contents

ground-breaking, innovative, customer-led technology, such as Sam, Seeqa and FCM Connect, whilst also staying true to our ethos of personal service.

But we can never be complacent.

Business travel will continue to be a diverse and fast-changing environment. Rest assured, FCM will continue to be at the forefront of that change over the next 12 months and beyond in order to flex with the needs of our clients.

In the meantime, have a great summer!

Jo Greenfield

4

Value creation Traveller centricity? Mark Frary outlines what’s changing and why it matters

8

Healthy choices The stress points of frequent travel and implementing solutions to drive travellers’ well-being

10

Downloading Amadeus Upgrade interviews Rajiv Rajian, Amadeus EVP Business Travel Agencies

12

FCM news What’s happening at FCM

14

Comparing like with like Catherine Chetwynd unravels ‘extras’

17

Singapore Our guide to this financial hub and gastronomic heaven

19

Soweto Support See what FCM UK staff are achieving for one infant school

UK General Manager, FCM Travel Solutions

EDITORIAL

PUBLISHING

EDITOR | Betty Low

MANAGING DIRECTOR | Sue Robinson

CONTRIBUTORS | Catherine Chetwynd,

PRINTING

Linda Fox, Mark Frary

REDBOX | Ed Cooling

FCM EDITORIAL ADVISER | Vanessa Aves ADVERTISING ADVERTISING SALES | Sue Robinson

©FCMUPGRADE 2018

DESIGN

New business enquiries:

PRODUCTION & MANAGEMENT

salesuk@fcmtravel.co.uk

WonDesigns, Caren Johnstone

Editorial and advertising enquiries:

DESIGNER & ILLUSTRATOR | André Albuquerque

enquiries@fcmupgrade.com

20 Blockchain unwrapped Linda Fox explains how blockchain could revolutionise business travel.

23 Back to school Tips for where travel managers can gain skills and learn about the market 25 Airport meetings Upgrade highlights some airport venue options

TRAVEL MANAGERS

Value creation Traveller centricity has moved beyond a flirtation with open booking. Mark Frary looks at where the trend is heading

I

f you have been to a business travel industry conference recently, you will almost certainly have listened to a session about traveller centricity. Every magazine seems to have articles on the

subject while industry suppliers raise it regularly in their discussions with you.

But why should that be? What is it that is making traveller centricity such a hot topic?

For most of recorded history, companies have largely been management or owner-centric – where great businesses are created by visionary leaders and employees are just raw materials like steel or cotton to be used to produce the final product.

Yet a growing number of companies are treading a different path – an employeecentric one in which workers are the most important part of the business engine.

Staying on for some leisure*

2-3 DAYS

Average add on

Summer 2018

This business philosophy is the cornerstone in Vineet Nayar’s best-selling book Employees First, Customers Second. In it he writes, “The role of the CEO is to enable people to excel, help them discover their own wisdom, engage themselves entirely in their work, and accept responsibility for making change.” Nayar, who has made outsourcing firm HCL Technologies a $19 billion giant, says this idea is key to the company’s success.

This employee-led focus intersects with business travel in a number of ways.

US$1000-$2000 Average personal cost

04

WHAT HAS CHANGED? Market researchers Gallup have been measuring employee engagement since 1997. In its most recent study of 1.8 million employees in 73 countries it found that companies in the top quartile for its Q12 employee engagement metric significantly outperform companies in the bottom quartile: their customers are on average 10% more loyal, productivity is 20% higher and, perhaps most important of all are 21% more profitable. More engaged employees mean your business performs better.

WORK-LIFE BALANCE Employees are increasingly looking for work-life balance. This has led to an increase in employees seeking bleisure trips, ones that blend business and leisure. An FCM survey of 6,000 international travellers found that bleisure travellers were tacking on an average of two to three days onto their business trips and dipping into their own pockets to the tune of $1,000 to $2,000 to do so.

Bleisure trips have come to be associated with millennials and it is easy to see why. A business traveller at the start of their career may well be single and have no family ties keeping them at home. However, that is too simplistic a view and older travellers are also wanting work-life balance, particularly if any children have left home.

Work-life balance is becoming so important that one of Britain’s major recruitment firms says that employees are willing to change jobs to find it.1 Travel policy is a vital pillar in an employee-centric organisation and one, according to the GBTA Foundation, that

UK Salary and Recruiting Trends 2018, Hays. 2Creating a Frictionless Travel Experience, GBTA Foundation. *Based on FCM global MNC data sourced from ClientBank in April 2018 and 2017 MNC client survey

1

can directly affect a company’s ability to recruit and retain key talent: half of European travellers say that a company’s travel programme is a key consideration when looking at a new employer. 2 Scott Reddie, FCM’s Global Director Account Management, says that this view of travel policy is becoming more common and the company is increasingly reporting on measures such as traveller friction, the metric popularised by business travel guru Scott Gillespie for quantifying the wear and tear that business trips demand of regular travellers.

This is particularly common in the hightech industries.

“For many Silicon Valley clients, travel policy is a tool for attracting and retaining talent. There is high demand for the services of tech workers and if you are a tech guy and a company can fly you business class that is going to affect where you end up working,” says Reddie.

A traveller-centric travel programme does not have to mean a free-for-all where travellers can choose whatever they want.

“The concept of open booking turned out to be a little like the threat of the Y2K bug – it never materialised,” says Reddie. “We had a few companies that tested ideas but it never really went anywhere. Yet we are definitely seeing more generous travel policies that put the traveller at the centre.”

GAMIFICATION Gamification, much talked about over the past few years, is now starting to become a reality, driven by the travellercentric trend.

Data has migrated from a central hub in which the travel manager sits to a distributed world where data is collected and can be pushed out to the traveller’s smartphone – 5 billion of them and growing, according to the latest global statistics.

How old is our traveller?*

18-29yrs

9%

30-39yrs

30%

“There is now more of a channel to the end user and we can show them metrics on how their booking affects the bottom line,” says Reddie.

DEMONSTRATING VALUE A traveller-centric programme can also help travel managers demonstrate their value.

“Companies are investing a lot more time in the end-user experience than they were five years ago,” says Reddie.

Yet more companies are exploring the idea.

“We are having a lot more conversations “From a travel manager or procurement about what would it cost to improve sense, we have a lot of clients and the traveller experience, he says. prospects who want to be seen to “Companies want to quantify the effect be driving on their innovative travel business of, programmes. say, allowing They want Where is everyone sitting?* to know how business class (4hr international flights) they can use over six hours technology instead of over to drive the eight hours.”

First Prem.Economy programme,” FCM’s survey % % says Reddie. of 6,000 Technology travellers said comes into this that while because it can access to a help reduce the wider range of complexity of content was Business Economy introducing such key to having a % a programme. % good traveller Travel managers experience, TOP 5 INTERNATIONAL DESTINATIONS are often there are concerned that specifics that giving travellers more freedom road warriors Sydney Boston London Dehli Frankfurt leads to less are seeking in control. this new world.

2.7

71.8

TRAVELLER EXPERIENCE Traveller experience is all-important in a traveller-centric programme. The 2017 GBTA Foundation research cited above showed that the travel experience is important for 83% of travellers in Europe, compared to 79% in North America. It looks set to become even more important as younger generations of traveller move up within companies.

The research showed that for millennials, 88% of travellers in Europe and North America wanted satisfaction while

THE AVERAGE AGE FOR OUR TRAVELLERS IS 41

40-49yrs

33%

travelling to ensure they were satisfied in their job as a whole.

50-65yrs

28%

65yr+

1%

1.7

23.7

FCM’s global managing director Markus Eklund says, “With the New Distribution Capability programme entering the market, along with increasing platform integration it will not only change the landscape of ancillary services but enhance the traveller experience in new ways.”

The survey showed that the ability to select seating options was particularly desirable to achieve a good experience on the road.

The traveller experience is increasingly going to be delivered by mobile apps. It is very noticeable while travelling today how many people have their heads down in a smartphone rather than the newspaper or book that might have had them engrossed in previous decades.

The survey found that travellers are using an average of three travel apps.

What they want from these apps is illuminating: they want live updates, direct contact with their travel consultant and a single place to do airline check-in.

FCMUPGRADE.COM

05

TRAVEL MANAGERS This is why FCM has invested heavily in

Traditional vs Traveller-centric

the launch of its own highly interactive and travel-savvy Smart Travel Assistant TRADITIONAL MODEL

TRAVELLER-CENTRIC MODEL

RESEARCH

Traveller phones or emails booker to share general outline of trip. Booker responds with options. Research options may be limited causing traveller dissatisfaction

Traveller carries out own research using online booking tool (OBT), TMC app, supplier websites and online travel agents (OTAs). Travellers can access a wider range of content, making them happier

TRAVEL POLICY

Options returned by booker comply with travel policy. Traveller can request out-of-policy options but this is flagged. Policy will be dictated by airline deals and hotel rate agreements and is likely to focus on best value, or more often, lowest price

PAYMENT

Often billed through lodged account and sometimes through personal corporate card

OBT and app bookings through lodged account or personal corporate card. Other bookings through personal corporate or individual credit card

Data collected on all bookings through preferred channel

Data collected on bookings through OBT and app but probably not on bookings made through other channels

Made via booker or through TMC app

Made via booker or through TMC app for preferred channels. Traveller will have to arrange own changes for other channels

Travel manager knows where traveller is at any given time as everything has been booked through the preferred channel. Security and safety notifications delivered through traveller tracking platform, email and mobile

Travel manager has gaps in their knowledge of where the traveller is for bookings outside preferred channels

for Mobile, or SAM, an AI-powered virtual assistant which helps travellers out on the road.

While they may use a more traditional method to book their trip, using a consultant, by phone or email, or an online booking tool perhaps, once on the road, the mobile app is your mobile travel consultant.

Reddie says, “With the mobile platform, people use it for changing their itinerary while the chat functionality with a live consultant is a massive win. People

“

We are definitely seeing more generous travel policies that put the traveller at the centre” Scott Reddie FCM

like the technology but this is not just a chatbot flicking back automated messages, it is a blended experience of

DATA

ITINERARY CHANGES

DUTY OF CARE

Best options offered by OBT and TMC app are within policy although others may be shown. Options booked via supplier website or OTA may be out of policy.

An intentionally traveller-centric policy may offer a wider choice of options and perhaps offer open booking or hotel price caps rather than specifying particular airlines or hotels

live consultant and smart technology.”

Integration is vital for SAM. “There are fundamental things you want have to rely on and by focusing on the integration of those, it makes the platform more relevant,” says Reddie.

“For example, if you are going to land at an airport, you want to have ridesharing from the airport integrated into the app.

It improves the traveller experience.”

TECHNOLOGY IS NOT EVERYTHING. Marcus Eklund says, “We are investing heavily in technology and product integration to align with growing demand but in our experience corporate travellers certainly still want to talk to people for assistance and complex bookings. High service will not give way to an offering solely focused on technology, it will run concurrently.”

In a traveller-centric world, service is the bottom line.  06

Summer 2018

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TRAVELLERS

Healthy choices Business travel may drive company prosperity but it can have consequences for traveller health. What might improve traveller satisfaction?

A

I

t’s not just George Clooney in Up in the Air to blame. Airline ads have a habit of showcasing their cabin crew dealing with requests for roast beef off the serving trolley when they’re not focused on pouring the claret.

and developing new business in new markets. A study by Oxford Economics found that both executives and business travellers estimate that 28% of current business would be lost without inperson meetings. 3

For better or worse, business travel has the image of being glamorous and a career aspiration. The reality for many is quite different.

A strategic business travel programme can contribute to the financial health of a company but what does it do to the men and women who are regularly getting on planes and spending time away from family and friends?

“A review of past scientific studies noted, frequent business travel, especially long-haul travel, accelerates aging and increases the likelihood of suffering a stroke, heart attack, and deep-vein thrombosis.” 1

“

Even the most healthconscious business traveller can struggle to maintain a healthy diet while travelling” According to another study, “frequent travel leads to unhealthy lifestyles (eg, poor diet, lack of exercise, excess drinking), while jet lag causes stress, mood swings, disorientation, sleep problems, and gastrointestinal problems, all of which impair job performance”. 2 The high usage and apparently unhindered steady growth in business travel is in stark contrast to executives’ increasing use of online rather than offline for their communications.

Face-to-face meetings are invaluable to building business relationships 08

Summer 2018

CONVENIENT/ COMFORTABLE HOTELS

DIET AND EXERCISE Even the most health-conscious business traveller can struggle to maintain a healthy diet while travelling.

Most meals will be consumed in restaurants where fat and sugar are liberally used to create the food that’s popular on menus but travellers can follow a few simple rules to make their away-from-home diets healthier.

The lack of exercise that comes from sitting in an airline seat and being whisked by taxi from destination to destination can also take a toll but a strategy of including properties with gym and fitness facilities in the corporate hotel programme can go some way towards keeping travellers’ minds and bodies fit.

To travellers a poor diet and lack of exercise can pale in comparison to the effects of being away from friends and family.

TRAVEL AND TRAVELLER WELL-BEING Global expense management company Chrome River conducted research among US, Canadian, British and Australian travellers to discover the relationship between travel policy and traveller satisfaction. The survey was completed by 1,456 people who travelled a minimum of three times a year for business.

B NON-STOP FLIGHTS

BOOKING FLEXIBILITY

PAID TIME OFF FOR LONG TRIPS

Its findings included that “the top ‘perk’ of business travel among all groups is the ability to see new places, and the top detractor among all groups is spending time away from the family.

“Choice is a key driver of satisfaction among those who view themselves as happiest with business travel. Those who are able to choose the travel provider (airline, hotel, car rental provider) are significantly more likely to be satisfied than those who are required to use the employer’s preferred vendor.”4 The importance of personal choice to a traveller’s well-being was also the finding of a survey by the Global Business Travel Association: “Two out of five of business travellers in Europe (41%) say they have booked a business trip out of policy to lower stress/anxiety while travelling.” 5 The GBTA also asked travellers “What do you see as the greatest challenge you face when traveling for business?”

1 Scott A Cohen and Stefan Gossling, A darker side of hypermobility, Sage Publications, 2015. 2Tomas Chamorro-Premuzic, The Health Risks of Business Travel, Harvard Business Review, November 3, 2015. 3Oxford Economics, The return on investment of US Business Travel, 2009. 4Chrome River, 2017 Global Benchmark Survey: Business Travel Satisfaction.

To What Extend do the Following Influence Your Business Travel Experience? % saying "a lot"

Health impacts for business travellers • Impact on ageing • Exposure to rising radiation levels

62% 54% 40% 39%

29%

CARRIER TYPE

29%

CLASS OF SERVICE

BEING ABLE TO EXTEND A BUSINESS TRIP FOR LEISURE

BEING ABLE TO BRING FAMILY OR FRIENDS ALONG

25% 17%

• Effects on immune systems • Higher risk of obesity • Concerns about mental health • Impact on stress levels Source: Maxis (Met Life and AXA), Business Travel – Good for business, bad for health? The potential impact of frequent, long-haul travel on the health and wellbeing of your employees

The GBTA report seems to indicate that a more flexible travel policy and delegating some of the decisionmaking can make a huge impact on traveller satisfaction and therefore well-being. It concludes, “Importantly, traveller well-being can align with other company goals. For instance, two out of five business travellers in Europe have booked a trip out of policy to lower stress or anxiety while travelling.

A better travel experience could make some of these bookings less likely.

Frictionless travel might be impossible to attain on every trip, but a better experience can still be the goal and ultimately can also make it easier to attract and keep top employees. 

Source: GBTA, Creating a Frictionless Travel Experience

The top answers were “The time it takes” and “Finding a balance between the time spent travelling and being away from family/friends”. This echoed the Chrome River study finding that “Spending time away from the family” was the most frequent answer to “What is the Worst Aspect of Business Travel?” with 35% of both medium and frequent travellers as well as Brits giving it as their answer. This was also the highest scoring reason for all age

groups although it was thought so by only 30% of Millennials in contrast to 40% of Generation X and 36% of Baby Boomers. The differences might very well be attributed to the likelihood of family responsibilities at different ages.

An executive may have to travel to deliver on their corporate responsibilities but there are things that corporate travel policy can address to improve the well-being of their employees (see chart).

Satisfaction with Booking Process by Managed vs Unmanaged

75%

MANDATES

81%

GUIDELINES

93%

UNMANAGED

Source: GBTA, Creating a Frictionless Travel Experience

5 GBTA and Sabre, Creating a Frictionless Travel Experience A global study on business traveller satisfaction, October 2017.

George Clooney at the "Up In The Air" Los Angeles Premiere © Photographer: s_bukley/ Shutterstock.com

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INTERVIEW

Downloading Amadeus FCM’s technology partner is a leading player in the distribution revolution. Upgrade navigated the changing landscape with its EVP Business Travel Agencies, Rajiv Rajian

10

Summer 2018

N

DC (IATA’s New Distribution Capability) has been lurking in the wings for at least half a dozen years. But this year it’s taken centre stage, prompted in no small part by Lufthansa, IAG and Air France KLM all announcing their intention to levy booking fees for any direct bookings made via the GDS. FCM customers, however, will enjoy an exemption from charges on BA and Iberia bookings because Flight Centre and the two carriers have agreed to work together on developing the future roadmap of NDC with a view to begin integrating content via this channel during 2018.

Flight Centre is doing this with technology partner Amadeus.

Amadeus is one of the three large travel technology companies which distribute suppliers’ content to intermediaries, notably travel management companies, who in turn do the booking and fulfilment for clients.

It is commonly referred to as a GDS – global distribution system – because that is how it started life but rapid developments in technology in the twenty-first century mean that distribution, although still vitally important, is only one element in the travel technology portfolio.

It is a trend that Rajiv Rajian, EVP of Business Travel Agencies, Travel

“

The speed of change in the travel industry continues to increase” Channels acknowledges: “One thing that is constant is the speed of change in the travel industry and that speed continues to increase. It’s not static.”

He strongly believes that the changes in business travel distribution are a direct result of changing customer needs. For example, he believes that risk management has moved from a tick box to a strategic necessity. “[Corporates need to] look after their business travellers so they arrive home safely.

This is more important that it was 10 years ago because parts of the world are more volatile.”

The nature of the demand for some elements of travel programmes that have always been important to suppliers, TMCs and corporates is changing. A notable example of this is content. According to Rajian, “The business traveler is looking for more choice and that is accelerating.” He boasts that Amadeus has the “broadest selection of content” including over 700 airlines, 800,000 hotels, 90 rail lines, 53 car rental companies and 16 insurance providers.

But corporates’ – and suppliers’ – attitudes towards content access are changing. Ten years ago the familiar refrain was for “full content” agreements and access. The demand for content may be greater but technology and market developments mean the approach too has changed and there is more of a clamour for relevant content rather than full content.

Earlier this year Amadeus announced NDC-X, a programme to respond to the inevitable consequence of increasing personalisation that “travellers expect brands to know them and adapt offers accordingly”.

In their private lives business travellers are accustomed to being able to access the same information and purchase the same content on different channels.

This has not been possible in the past when buying business travel because the legacy GDS did not contain all the product information that was on airlines’ websites. Nor did it allow all components of a journey – so-called ancillaries such as seat selection or a checked bag – to be booked and purchased at the same time.

Airlines devote a lot of time and money to differentiate their products through marketing and develop their websites to show product differences and provide greater functionality such as the ability to pay for extras with the booking.

Margin-conscious airlines crucially want that revenue and are also seeking a lower distribution cost per segment than they have historically paid GDSs. The GDS has worked well for more than half a century in delivering one effective and comprehensive travel platform.

But that legacy system does not have the rich content and fuller options that customers want and the airlines want their customers to have access to.

“

We’re looking to integrate traditional content and NDC content and make it seamless for corporate customers” IATA, the airlines’ trade body, has consequently been working with GDSs and some of their clients to develop and implement NDC, the new distribution capability by which travel management company corporate clients will be able to have a research and booking experience similar to that of the airlines’ own web sites.

The onward march of NDC means that travel distribution and merchandising is bound to change. Amadeus is working with selected partners to enhance the “digitalisation” of the industry and increase and improve options and processes for airlines, intermediaries and their customers.

Amadeus’s role in this evolution is “massive”, according to Rajian. The 20-year travel industry veteran says, “The investment to make it work endto-end is a massive undertaking for us but I believe we have the technology to deliver on commitments.

“There’s more and more content out there from suppliers. We’re looking to integrate traditional content and NDC content and make it seamless for corporate customers.

“Our goal is to bring NDC to the forefront.”

According to Rajian the fact that airlines like NDC because it promises to generate extra revenue does not preclude benefit for both corporates and travellers. He says, “We believe NDC has the potential to deliver new benefits of all players. This is why we’re investing. From a traveller perspective they want consistency, transparency and choice.”

And he should know. Rajian himself is one of Amadeus’s most frequent business travellers.  FCMUPGRADE.COM

11

NEWS

TOP STORY

Reducing traveller friction FCM has released a White Paper which examines how corporates can make use of behavioural economics to reduce traveller friction.

According to FCM, traveller friction is exacerbated when travel policies are too rigid or inflexible, fail to factor in the human cost of travel or prioritise financial savings over traveller well-being.

The report flags warning signs of traveller friction including employee absence post-trip, resistance or reluctance to travel, poor employee retention among frequent travellers, frequent non-compliant bookings and unproductive business trips.

“Behavioural economics looks at how people make decisions about what they will buy, how much they will pay for a product or service and what factors drive these decisions,” says Jo Greenfield, UK General Manager, FCM Travel Solutions.

“Traveller friction can occur when your people are travelling too much or they are having poor travel experiences in-trip. In order to address the causes, you need first to identify and understand the key challenges your travellers face. These insights into traveller friction can then be used to tweak your travel programme to achieve better compliance and engagement – and to reduce the human cost of frequent travel.”

By understanding behavioural economics, travel managers can implement subtle changes to their travel policy to ‘nudge’ travellers to make cost-effective or time-effective choices, the White Paper explains. For example, offering travellers a choice of three different hotels, at different price points, instead of two, leads to the majority selecting the mid-priced option.

The report also highlights how business travellers value simplicity within the travel process from the use of digital passports via smartphones to keyless check-in and cardless payments.

A copy of the White Paper is available on the FCM website (https://www.uk.fcm.travel/white-paper-downloadbehavioural-economics-and-your-travel-programme)

NEW EUROPEAN HEAD FOR FCM Andrew Boxall has been appointed to the new role of European Managing Director for FCM. Based in London he will be responsible for overseeing and growing FCM’s businesses on the European continent. Boxall’s extensive career with Flight Centre Travel Group spans 20 years in diverse retail, procurement and corporate

product roles.

For the last nine years he has held the position of Managing Director for Flight Centre Travel Group in the United Arab Emirates, playing a significant part in growing the business to an annual turnover of USD 100 million.

FCM DRIVES NDC ROADMAP WITH AMADEUS

Marcus Eklund, FCM Global General Manager with Gianni Pisanello, Amadeus VP NDC-X Program

12

Summer 2018

FCM and parent company Flight Centre Travel Group have joined forces with Amadeus in the development of its new NDC-enabled solution for business and retail travel agencies. The move means that FCM is the primary TMC customer working with Amadeus to shape the technology provider’s NDC-X programme.

Marcus Eklund, Global Managing Director, FCM said: “We believe NDC

will play an increasing role in travel distribution and our priority is to ensure that our customers benefit positively from the opportunities it presents.

Together with Amadeus, our objective is to find the best possible way to integrate NDC content so our consultants can service their customers quickly and simply, providing them with an even richer choice of fares and the option to

FUTURE OF TRAVEL TODAY

FCM PLAYS LEADING ROLE AT ITM CONFERENCE FCM played a leading role at the Institute of Travel Management’s recent conference.

The ITM is the UK and Ireland’s buyerled organisation with 3,700 members of which 900 are travel buyers. The organisation’s annual conference, which was this year held in early May in Aviemore, featured an extensive programme of plenary and break-out sessions examining trends and hot topics in the business travel industry.

FCM supported the event as a gold sponsor and also showcased its new online booking tool Seeqa on the TMC’s stand in the exhibition area. Plus Graham Ross, FCM’s Head of Sales, represented FCM on a panel which also included suppliers and buyers entitled “Fixing a Broken Process – RFP Tennis”.

The session encouraged delegates to think outside the box when approaching RFPs rather than automatically repeating what had been done before.

Ross commented: “These events are vital for educational and networking processes for all the delegates and

book NDC-powered ancillary services within our core booking systems.

“We have been asked frequently if we are afraid of NDC. But the answer is ‘No’. We see great opportunities and are proud to be on this journey with Amadeus in defining how NDC becomes a reality in the corporate travel sector.”

See “Downloading Amadeus”, pp 10-11

suppliers who attend. These sessions are extremely useful and you can guarantee you will learn something you didn’t know before.”

A new campaign ‘The Future of Travel, Today’ has been launched

by FCM to showcase the TMC’s progressive approach to using technology and innovation to improve customers’ business travel experience.

At the heart of this journey is FCM LAB, which brings together experts around the globe who are dedicated to testing, building and delivering ground-breaking new solutions. The highly visual campaign will feature in FCM white papers, website and social media channels.

See “Back to School”, pp 23-24

SAM ADDS FEATURES FOR TRAVEL MANAGERS FCM has announced plans to enhance its AI ‘pocket travel assistant’ application Sam with extra features for use by travel managers, in response to client demand for greater visibility of their travellers in-trip.

Sam blends a powerful mix of Artificial Intelligence with the expertise of real FCM travel consultants to deliver personalised, relevant information to business travellers’ mobile devices through a chat-based interface.

bookings, integrated self-booking tool,live chat with an FCM consultant to provide service and make or amend bookings on the move; and the option for the user to ‘share location’ via FCM’s Secure risk management technology.

The new version for travel managers, EAs and bookers will help them to manage their current travellers and itineraries, so that they are aware of potential issues, can take appropriate action or communicate directly with the traveller to ensure their wellbeing.

Sam will also soon provide enhanced safety and duty-of-care features as the app will recognise the traveller’s location via a blend of itinerary information and GPS and match this to any critical incidents, triggering real time relevant alerts with an ability to respond with appropriate action for the individual traveller.

Meanwhile the premium version of Sam for use by FCM clients’ travellers, which was launched via the global app store last November in the UK, USA, Canada, France and Switzerland, has now been deployed in 15 additional markets including: Hong Kong, Singapore, Germany, Belgium, Netherlands and the Nordics. Sam’s premium features include auto-synching the traveller’s

Another new feature in the pipeline is Sam Community – a chatbot assisted ‘community’ for business traveller users to share tips and advice, anything from flight delay updates, to quiet and comfortable places to rest or the best place to find power-points in an airport to charge a laptop.  FCMUPGRADE.COM

13

SUPPLIERS

Comparing like with like There is no standard menu for what airlines and hotels consider to be “extras”. Catherine Chetwynd describes the challenges in evaluating options and analysing data.

A

irline fares were once all-inclusive – checked baggage, a designated seat and a meal. But when low cost carriers took to the skies, such so-called ‘extras’ became an optional extra cost. As a result, ostensible fares dropped measurably.

Legacy airlines followed suit to compete.

The total cost of a hotel room has been similarly disaggregated. Breakfast was generally only included with “executive” accommodation but use of a gym and/or pool came with the room rate. However, because hotels had entered into expensive contracts with WiFi providers, access to the internet came at a price.

WiFi is now pretty much a given but premium WiFi often attracts a charge.

Gym facilities have been upgraded but are now generally run on a franchise basis which means income for the hotel but a fee for customers. Parking charges vary between city centre, airport or country and the model on which a property is run also affects pricing. In short, it is all much more complicated.

“WiFi has become a commodity and many hotels do not charge for it,” says hotel industry consultant Melvin Gold. “Because people bring along devices and want to stream content, which can take up a huge amount of the hotel’s bandwidth, some hotels have a two-tier system, where you can easily pick up emails but if you want to watch football on line, you are going to struggle or pay for premium WiFi,” he says.

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“Where WiFi is not free, it would generally be packaged with a corporate contract because it is not worth a hotel losing a corporate agreement for the sake of £15 on WiFi.” “People are now trying to sell other products on the back of WiFi,” continues Gold. Hotel companies now commonly

“

NDC is an opportunity to have more imaginative corporate fares” Mark Avery Head of Business Services, PwC

have a coffee bar or café which they encourage guests and the public to use.

Because these are often franchised, like gyms, companies can have a Costa or Starbucks included in their negotiated room rate. “The traveller enjoys it, it improves their feeling of wellbeing, their company is getting a nice cost benefit and it does not cost the hotel a great deal to give it,” says hotel product manager – corporate team leader for Flight Centre Travel Group Rachel Newns.

A hotel breakfast can otherwise be expensive – up to £30.00 – and timeconsuming and, if negotiated into the rate, could leave a company paying for a buffet groaning with food which their travellers are not eating.

Radisson Hotels is experimenting with a grab & go breakfast. “The majority of corporates want room only. That applies to 75% of the corporate rates we have,” says Radisson’s Sean Philby. “We have a handful of corporate clients who still require B&B and we will negotiate that but it is difficult from their and our perspective because they can’t predict how many breakfasts they are going to have to pay for and we don’t know how many we have to produce or how many staff we will need.”

If parking is either on arrangement with an independent provider or rented, a hotel may increase its corporate rate to include it. In city centre properties, travellers can use public transport but where employees need their cars, negotiating parking into the rate may be justified by the reduction in expenses.

The trend for hotel chains to move from owning properties to franchising and management contracts has affected ancillaries. Two Hiltons, for example, within a stone’s throw of each other may be operated by different parties, so even where a company has negotiated a corporate rate nationwide, it may negotiate directly with a specific property as well if it has lots of people staying there.

“Agreements could be reached with one manager, which are different from what another manager in the same city might do, because the company may not be negotiating with one brand even though that’s what you see,” says Gold.

For buyers, unbundling causes a number of problems. “Hotels don’t always classify items properly, for example food & beverage, and a bed and breakfast rate is often not split out but just says ‘room rate’,” says head of hotels and venues for PwC Samantha van Leeuwen. “We tend to bundle WiFi, breakfast, F&B discounts, parking (if the hotel owns it) but of course we have to assume the hotel and traveller monitor this at check-out!”

And according to Rachel Newns: “Where ancillaries are charged separately, it is hard to collect the information in one place. If it is on billback, it will feature on the invoice but if the traveller is paying separately and claiming on expenses, it goes through a different process.”

“Rather than unbundling fares, the deals we put together for corporates are tailored to the requirements of the account. Most deals include seat selection and flexibility in the time the person travels – additions we know are important for business travellers,” says head of corporate sales at British Airways Marie Hilditch.

Delta also takes a flexible approach. “We have made it possible for customers

Key Ancillary Revenue Components Traditional Airlines Outside the US

27%

Baggage Fees

Sales of FFP Miles

Other a la Carte Services

Onboard Services (Food, Seating, Duty Free)

Travel Retail (Hotel, Car, Insurance)

21%

12% 25%

15%

Distribution based upon analysis of 2016 results of non low cost carriers based outside the US Source: CarTrawler Worldwide Estimate of Ancillary Revenue for 2017

to upgrade their flight experience for tickets,” says country manager UK and Ireland Nadia Clinton. “Premium products can be purchased as an addon for all or part of their journey.” Delta Comfort+ specifically applies to tickets that are bought from an agency and benefits include four extra inches of leg room, greater recline and priority boarding.

is provisionally delivered,” he says. “It is seen as an upsell and we don’t need that; it needs to be delivering additional value. On a flight that costs £3,000 across the Atlantic, why pay $3 for WiFi? NDC is an opportunity to have more imaginative corporate fares and to negotiate things like that into the fare so that travellers don’t have to get out a wallet and card to pay for it.”

“Most of the things airlines are offering as extras tend to be in the lower classes but we fly business class long haul and our deal fares include a package with all the elements,” says head of business services for PwC Mark Avery.

Unbundling, it seems, is a bundle of problems for buyers, who have to juggle convenience and traveller well-being with cost and gathering easily comparable data. Though some have got it down to a fine art, the proliferation of ancillaries looks set to multiply rather than decline, ensuring the battle will continue. 

“However, we see that changing with NDC and are trying to get involved early to influence thinking on how NDC

Ancillaries have become too valuable to disappear

Total Ancillary Revenue

$32.5

$36.1

$42.6

$42.6

$59.2

$67.4

$82.2

billion

billion

billion

billion

billion

billion

billion

A la Carte Portion

$17.5

$19.9

$23.7

$23.7

$36.7

$44.9

$57.0

billion

billion

billion

billion

billion

billion

billion

2011

2012

2013

2014

2015

2016

2017

This graphic depicts the annual worldwide ancillary revenue estimates for 2011 through 2017. Two numbers are offered for each year, the total ancillary revenue and the portion represented by a la carte activities. The latter consist of the amenities consumers can add to their air travel experience, such as: 1) onboard sales of food and beverages, 2) checking baggage and excess baggage, 3) assigned seats or better seats within the same cabin, 4) call centre support for reservations, 5) fees charged for purchases made with credit cards, 6) priority check-in and screening, 7) early boarding benefits, 8) onboard entertainment systems, and 9) wireless internet access.

Source: CarTrawler Worldwide Estimate of Ancillary Revenue for 2017

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fadvert f

DESTINATION

Singapore DOING BUSINESS IN

S

ingapore is undoubtedly one of the most prominent and successful of the world’s financial capitals which is why “Friday evening from Singapore to London” was long understood as an industry shorthand for an overbooked flight.

Its strength in financial services, coupled with a reputation for being a tax haven, probably go some way towards explaining why this island city-state has a high standard of living and one of the highest GDPs per capita in the world.

INSIDER’S TIP Bertrand Saillet, General Manager, Asia, FCM Travel Solutions • In Singapore punctuality is much appreciated but it is generally quite relaxed. A suit is not expected – for men, shirt and tie with trousers are acceptable and for women, a work dress with heels.

• Singaporeans will spend a few minutes to get to know someone when meeting for the first time before discussing business.

• Many Singaporeans will ask someone if they have had lunch or dinner. This is not an invitation but a way to show their concern for a guest’s well-being.

• When dining out with a local, you will often find that food is shared, especially in a Chinese restaurant. The bill is also often split equally.

• Singapore does not have a tipping culture. Most restaurants include a service charge in the bill but it is fine to tip if you receive exceptional service.

GETTING THERE British Airways, Qantas and Singapore Airlines all offer direct flights from Heathrow which take about 13 hours. If Heathrow isn’t the local airport, a journey from the UK to Singapore will require a connecting flight.

Tanah where a traveller can change to

There are choices of how to get from Changi airport to city centre including hotel transfer services as well as the bargain option of a train to Tanah Merah MRT (mass rapid transit) station

Taxi stands in Singapore are clearly

a subway. Taxis from official taxi stands attract an airport surcharge in addition to the metered fare; cost will be $20$40 depending on destination.

GETTING AROUND marked. Taxis are also easy to hail, metered and the drivers speak English.

MRT stations are well positioned and it is extremely efficient.

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DESTINATION STAYING THERE Singapore is a major business hub so it’s no surprise that there’s a wide range of suitable accommodation.

Road warriors will love the Oasia Hotel Downtown with its two roof-top pools, 24-hour gym and Cin Cin bar which boasts 100 kinds of gin. This 27-storey modern property is as well-located as it gets sitting in the Central Business District and only two minutes away from Tanjong Pagar MRT and 20 from Changi.

Business people such as consultants and architects whose trips often involve more than three nights might opt for an extended stay property such as the Capri by Fraser Residences. This serviced apartment group’s brand comprises such hotel service stalwarts as 24-hour gym, concierge and security in addition to the requisite separate bedroom, living room and kitchen facilities.

Those executives who know what they want and like large hotels might choose the Fairmont Singapore (769 rooms in two 26-storey towers) with its in-room desks, meeting rooms and high speed WiFi. It also has fabulous views, 15 bars and restaurants plus the Willow Spring Spa. “Spa” is misleading. It’s also a fitness centre including six tennis courts and a pool on the eighth floor which is shared with its neighbouring sister hotel, the Swissôtel.

Its other close neighbour, which is also managed by Fairmont Hotels, is Raffles, one of the most iconic hotels in the world.

Oasia Hotel Downtown

Smoke and Mirrors

DRINKING Raffles Hotel is famous for being famous.

More than a century ago a bartender in its Long Bar launched what would become a global taste for cocktails by mixing gin with some fruit juice. Ordering – and drinking – a Singapore Sling at its birthplace is a quintessential Singapore experience – but beware, the hotel is currently undergoing restoration and not scheduled for reopening until the second half of this year.

Two other bars to try – both on rooftops and offering spectacular views of the city – are Smoke and Mirrors, on top of Singapore’s National Gallery, and Mr Stork, at the Andaz Hotel.

EATING There’s more to Singapore’s global reputation for cuisine than a bowl of Singapore noodles but everyone should sample its street food. Good places to try it out are in the open at Newton Circus or air-conditioned comfort at Straits Kitchen in the Grand Hyatt Singapore.

Travellers who plan to entertain a client might try The Black Swan. Its location in the central business district plus its recreation of a 1930s New York atmosphere complete with chophouse menu makes it a popular choice for business lunches.

Well-known Australian chef and restauranteur Luke Mangan is behind the Salt Grill & Sky Bar on Level 55 of ION Orchard in the heart of Singapore.

The views and the food are perfect for impressing a special client.

Travellers just wanting a meal might head to Dempsey, an enclave of restaurants including Atout (casual French dining), Jim Thompson (Thai Cuisine) and PS Café (casual American). 

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CHARITY

FCM UK powers Soweto refurbishment project One of Flight Centre Foundation’s projects has been to renovate Qhobosheane Primary School in Johannesburg.

F

CM UK’s team has been busy – even busier than usual. They’ve been using their spare time to raise money towards Flight Centre Foundation's target of the £40,000 needed to rebuild Qhobosheane Primary School’s kitchen.

The Flight Centre Foundation invests time and money in development

projects in destinations with which it has a commercial relationship. The UK team is gearing their efforts on one of these international initiatives, the five-year ‘adopt a school’ project at the Qhobosheane Primary School in Soweto, Johannesburg.

Flight Centre staff helped out in the kitchen on a recent visit to the school

The Foundation has sponsored the renovation of the Qhobosheane Primary School. This included the painting of interior walls, fixing the ceiling, replacing

Hopes are high that the target will be reached by the end of July. Twentytwo Flight Centre employees are being sponsored for taking on the 24-hour Three Peaks Challenge while other colleagues have organised fund-raising activities at a Flight Centre global event in Berlin.

Their efforts mean that a new kitchen to improve the Qhobosheane Primary School children’s lives as well as being community resource is getting ever closer to completion. 

the existing flooring, electric works, new carpeting, fitting of chalkboards and

The current kitchen is in a shipping container

noticeboards, external floor tiling and built-in pigeon holes as well as erecting a palisade fence around the play area.

The kitchen still remains to be completed. The current kitchen is a stove and sink in a shipping container.

This is where food is prepared for the school’s nearly 500 pupils every day, some of whom get their only meal each day here.

FCM staff raised almost £19,000 of the £40,000 target in April alone with members of the team participating in a range of activities including sponsored runs in the Paris and Brighton marathons.

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TECHNOLOGY

Blockchain unwrapped

How a blockchain works

It’s not only about BitCoin and cryptocurrencies.

Linda Fox highlights some potential ways that blockchain may transform business travel

B '

lockchain - hype or reality?' that Is often the question you hear when approaching what is one of the experimental technologies in travel for 2018.

And the answer is, well, a little bit of both. Such was the conclusion of John McQuillan, founder of Dublin-based TravelTechLabs, who presented at an Enterprise Ireland event recently.

Hype because of Bitcoin, and other cryptocurrencies often mentioned in the same breath as blockchain, the value of which varies widely on any given day and the amount of venture capital that has been invested - some $2 billion according to McQuillan.

And, reality for the potential of blockchain to disrupt, and improve, some industry models, as well as for some of the projects that have already emerged.

BUT WHAT IS IT? There are many descriptions out there but in its simplest form, blockchain is a database – somewhere to store digital information whether that be contracts, biometric information in the case of business travellers, or transactions of some sort.

In the travel industry, Sabre Labs, in its Emerging Technology in Travel report, has come up with one of the best explanations of blockchain so far. It says: "At its core, a blockchain is a concept for a particular kind of database. Going back a step further, a database is just a means for storing a collection of digital information, usually in a way it can easily be updated and searched. Information within a database can be any kind of value – birthdates, property records,

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biometric information, taxes, healthcare records, etc. - anything."

WHY ALL THE HYPE? As mentioned before, most of the noise around blockchain is to do with the associated Bitcoin and its value.

However, there are also stories out there of companies adding blockchain to their names and seeing their share prices sky rocket overnight.

Stepping away from the Wild West image it is attracting for a minute, it's more useful to look at why blockchain has potential, some of the use cases and what they could mean for travel.

The Sabre Labs report is useful again as it lays out the benefits of blockchain such

£

£

£

1. A wants to send money to B

A

as the difficulty of undoing or changing information held on the blockchain. This is called immutability.

The transparency, with anyone able to see a record of transactions, is also seen as a benefit because it helps to cut down fraud. In a public blockchain, the idea is the data is shared around or "distributed" to many places but even with a private blockchain, a number of people can still see the transactions that have taken place.

One further benefit that has been highlighted is the bypassing of third parties with blockchain. For example, why do you need a bank, if all transactions are stored in a shared database distributed to many? And, some start-ups argue the same for intermediaries in travel such as the global distribution giants and online travel agents.

McQuillan says: "A mutually trusted virtual computer is what blockchain intends to deliver."

How blockchain can transform the future of travel 1. PAYMENTS Making settlements between different parties, like hotels, travel agents and aggregators, can be an extremely complex process, especially across borders.

Blockchain could streamline this process by reducing the intermediaries and the settlement timing while increasing the overall flow transparency.

2. TRAVELLER ID VERIFICATION Today travellers are required to show their ID at multiple stages in the journey, from booking to boarding to checking in at the hotel. Blockchain could make this more secure while simplifying traveller identification at every stage.

3. BAGGAGE TRACKING Another challenge is keeping track of travellers’ luggage as it changes hands from airlines to ground handlers at airports. Blockchain will allow all parties to exchange information even if they are not in the same alliance or related to the same segment improving the accuracy of baggage tracking across the industry.

Source: Amadeus White Paper, Blockchain: harnessing its potential in travel

2. The transaction is represented online as a 'block'

REAL LIFE TRIALS IN TRAVEL Winding Tree is one of the main start-ups to emerge in the travel industry. The company is seeking to disrupt travel distribution by using blockchain. The idea is that the company would introduce its own distribution platform, remove the need for the global distribution companies and offer a cheaper solution for suppliers.

Lufthansa announced last year that its innovation hub would work with Winding Tree to bring blockchain applications to its digital products and services.

Aviation technology specialist SITA has partnered with airlines and airports including British Airways and Miami International Airport to experiment with blockchain. One of the areas it has been trialling is 'smart contracts' whereby blockchain would act as the "single source of truth" for flight data.

3. The block is broadcast to every party in the network

This "FlightChain" blockchain would offer all parties shared control of the data in a secure environment.

4. Those in the network approve the transaction is valid

5. The block then can be added to the chain, which provides an indelible and transparent record of transactions

£

£

£

£ 6. The money moves from A to B

B

Amadeus is working with San-Francisco based Loyyal to see how blockchain might be used to make loyalty programmes more user-friendly. Various areas are being explored including how points are switched between schemes as well as realtime access to points and redeeming them. For corporate travellers this could mean instant redemption at airports or for transfers or hotel products and services.

A second area that Amadeus is working on is identification where a traveller's "verified data" is stored via a smartphone application and can then be used as their official documentation. Both Amadeus and SITA have highlighted the benefit of blockchain for identity management and how it could be used to speed travellers through airports.

A number of hotel projects are also underway. Nordic Choice is working with Winding Tree on ways to distribute inventory using blockchain.

Payments is one final area being explored and Travel Ledger, set up by Dolphin Dynamics CEO Roberto da Re, is working on using blockchain to create a settlements platform for nonair products but similar to what BSP does for air.

REALITY CHECK It's wise to read up on blockchain and follow its progress but the reality is it's probably some time before it might really catch on – some say as much as 10 years. There are also a lot of misconceptions about it that people need to be aware of.

Some of the main ones, as pointed out by McQuillan, include the fact that it is not anonymous, security is not an "inherent quality" and it's not only about cryptocurrencies.

He adds to that other downsides such as its slowness and that it might be expensive.

"One of the things promised was that transactions could be low cost. The cost of transactions is starting to climb. It probably will get cheaper but as of now, it's volatile."

POTENTIAL FOR USE CASES IN TRAVEL A number of ways the travel industry could employ blockchain have already been identified. Amadeus in its report on the technology highlights loyalty schemes and the potential to make them more user-friendly, identity management, baggage tracking and simplifying payments.

From a corporate travel standpoint all of these cases have huge appeal because they could remove some of the friction from the airport experience.

WHAT ELSE? There are public blockchains out there such as the Bitcoin example which is spread across, or hosted, by millions of machines. There are also private blockchain where all the computers storing the information are controlled by one organisation. A final variation is permission blockchain which is a sort of hybrid between public and private where the information is hosted by many but you have to be invited to become involved.  FCMUPGRADE.COM

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TRAVEL PROGRAMME

Back to school Corporate travel managers have no clear career path but they still need to learn about the market and sharpen their skills

R

egardless of their party affiliation, political junkies are always fascinated by the cabinet go-round. Someone without any experience of medicine moves into the Department of Health and immediately assumes responsibility for thousands of doctors and nurses while someone with no military service record takes over at the Ministry of Defence.

Politics can imitate life – just think of all the people you know who had no travel market knowledge or corporate experience who just one day discovered that they had become a travel manager.

What do they need to learn? Where?

How? Yikes.

CHANNEL CHOICES Scott Davies is CEO of the Institute of Travel Management. The UK industry association has 3,700 members, of which 900 are buyers. He says, “People often fall into travel. When you first go in, you think it’s like everything else and then discover it’s not.”

Davies is alluding to the seemingly irrepressible corporate trend for travel to sit in procurement rather than, say, facilities or HR. It is not uncommon for a procurement professional, accustomed to processes, procedures and templates, to wake up one day and find that the travel category has been added to their portfolio of responsibilities.

He continues, “It’s emotive – taking people away from their homes and often travelling over long distances. And how

the ecosystem of travel hangs together, how money flows around the industry.

It’s bewildering when you first enter.”

The travel buyer parvenu quickly discovers that there is a plentiful range of learning sources – and resources.

As well as industry associations, there are websites and business travel publications, including Buying Business Travel and The Business Travel Magazine, industry conferences and events.

Catherine McGavock is Regional Vice President EMEA of the GBTA which is the global umbrella organisation to which national travel buyer associations, such as ITM, belong. She points out the value of different channels for different buyers.

The range of choices include classroombased training, mixed audience workshops and closed sessions such as the “buyer only” ones which the ITM currently offers.

There are also online repositories such as the GBTA hub and Business Travel IQ which both eschew news but contain white papers, high quality research and toolkits on best practice in different areas.

“

It used to be about procurement and the cost. Programmes are now a lot more traveller-centric and talk is about the value of a trip.”

Catherine McGavock Regional Vice President EMEA, GBTA

“I describe BTiQ as the business travel management British Library,” says David Chapple who is responsible for this as well as being Director of the Business Travel Show which includes nearly 70 conference sessions at which people with different levels of knowledge and experience can learn.

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TRAVEL PROGRAMME “For the first time this year we had a workshop for creating the building blocks of a travel programme – topics like why use a TMC? policy creation, compliance, duty of care, reporting.

of as part of the business support brigade – is one reason why everyone interviewed for this article was keen to emphasise the benefits of networking which their events could deliver.

“This is geared primarily to PAs and secretaries who are booking lots of travel but not managing it. Our ‘Fundamentals’ sessions are more geared to people new to travel in a professional capacity.”

Companies may operate in different markets and be of different sizes but some skills are commonly needed although some are needed more in some positions than others. This is recognised in industry associations such as ACTE.

MARKET V SKILLS Chapple’s comments suggest that those providing the knowledge, be they publishers or industry associations, need to bear in mind the two very different kinds of knowledge gaps that travel managers might have: how the travel market itself works and professional skills.

Smook continues, “The skill sets, such as data analytics, negotiating or communications, of a travel manager need to be developed.

The characteristics that distinguish buying travel from the proverbial paper clips – perishable inventory, the difference between price and cost, the dynamic nature of pricing, the differences in expectations among sectors, size of company and markets – are at the forefront of people’s minds but ACTE’ s Acting Regional Director EMEA Stephanie Smook is keen that the skillset needed to manage travel is not forgotten.

“

The profession of a travel executive is underestimated. You need to know so much because there are so many stakeholders.”

Stephanie Smook Acting Regional Director EMEA, ACTE

“The profession of a travel executive is underestimated. You need to know so much because there are so many stakeholders – risk management, IT, HR, etc. You also need to be at the forefront of technology, but you can’t do it on your own because there’s usually only one of you in each company.”

The potential isolation of travel managers – after all, the main business of an organisation might be professional services, energy, manufacturing, retail, etc so travel managers are often thought 24

Summer 2018

“Data analysis is so incredibly important.

You have to learn how to read data, how to obtain it and how to work with it.”

McGavock adds, “When I got this job I knew I’d have to do a lot of presentations so I signed up for a presentation course.”

She points out that membership of a global organisation such as GBTA, which currently boasts more than 9,000 members, can itself include development training.

A CHANGING CURRICULUM Travel management is not a “dead” subject as we often describe Latin. It evolves all the time.

Smook describes how in 2003 she implemented an online booking tool.

“But what we have now is a whole different ballgame. We still have them but they’re so far advanced. How do you make sure that you have that technology integrated in all your systems? How about TMCs? Should they still be working with you or have a different role?”

McGavock also points to the dynamic nature of the content in which buyers are interested: “The key areas now are risk, new technologies and capabilities and traveller engagement.

“GPDR is the hot topic of the minute” because of an immediate need to

“Members can get involved in committees and boards. They share expert knowledge but this is also a great personal Events such as the ITM conference are valuable learning resources development opportunity. know but “how to demonstrate an This is very beneficial for someone trying ROI and measure performance” is a to raise their own profile and build their current focus. own network.”

The distinction between organisation activity and professional achievement is underlined by Davies who says, “Sometimes travel buyers have a good standing in the business travel community but in their own company they struggle to get the air time their programme needs.”

She says, “It used to be about procurement, the cost and mandated programmes. Programmes are now a lot more traveller-centric and talk is about the value of a trip. What’s the purpose of the trip? Are there better ways of doing something?”

He urges buyers not to “assume you can’t take learnings from travel buyers who are working on a very different scale as you.

A large buyer can learn from small, agile buyers. A small company can learn about best practice from global programmes.

Davies, however, reminds us that knowledge is not the prerogative of industry associations and publishers:

"There’s more commonality than people think.”

“TMCs are an invaluable source of benchmarking. You should expect a lot from your TMC and what they share with you. They are the ‘go-to’ place in addition to your industry peers and contacts.” 

EVENTS

Airport meetings Many people use airports for meetings. Check out Upgrade’s ideas for some destinations The Sofitel Heathrow is connected to T5 by a walkway

Most travellers just want to go as quickly as possible through an airport to get to their destination.

But there’s a cohort for whom the airport is actually the destination because it’s the best place to have a meeting.

In certain circumstances airports can be the most time-efficient venue for a meeting. Internal company meetings involving participants from different destinations can cut down the need for overnight stays and the total time of travel. They are also very useful for a senior manager who is based elsewhere to catch up with team members based at a flight connection such as a CEO based in New York who has been in Africa on business meeting with British team members at Heathrow before boarding a flight to JFK. Airport hotels are often attractive places at which to hold client dinners and conferences which include a fair proportion of guests or delegates who do not live in the city – clients’ time is valuable too.

Just as for any other meeting, booking an appropriate meeting room is necessary.

The big difference is that there will be far less flexibility on time. Meeting with the CEO will mean a very narrow window when an appropriate room at the right location (onsite or offsite?) is available.

Effective timing is necessary for the team meeting to ensure that the time gained by avoiding travel into the city or the hotel stay isn’t lost because of the requirement to sit in a terminal for three hours waiting for a return flight.

as Manchester, Heathrow, Schiphol or Dubai, or at airports that have a large volume of daily flights from relevant business destinations.

Here are a few of our favourites: HEATHROW If your corporate travel policy is to use BA, the Sofitel London Heathrow could be ideal for either a team meeting or one with the CEO. It’s connected to Terminal 5 by a walkway so total travel time is minimised. With 45 meeting rooms this property can cater for everything from a small boardroom meeting for 2 to a large conference for 1300.

Located on the Bath Road the Renaissance London Heathrow is perfect for meetings where delegates The Sheraton Frankfurt Airport Hotel

are arriving from multiple locations. For those travelling from elsewhere in the M25 corridor there is ample parking and there are frequent bus transfers from every terminal as well as Hatton Cross underground station. There is ample choice and capacity for any room configuration up to 450 theatre-style in the Westminster suite (360 for that client reception).

FRANKFURT Frankfurt Airport is very well resourced for meetings.

The Sheraton Frankfurt Airport Hotel, which is located at Terminal 1, also has its own conference centre with 60 meeting rooms to choose from. It can also be easily reached by Skytrain from Terminal 2 and has parking for local participants, making it ideal for both national and international meetings.

The airport also has its own Airport Conference Centre, again with extensive parking and easy access from the terminals. There are 35 meeting rooms of various sizes which can be hired on an hourly basis, if desired.

Such meetings are commonly held either at airports that are hubs, such FCMUPGRADE.COM

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EVENTS MANCHESTER The 131 destinations served by Manchester include direct flights between the city and all the leading business centres of both the UK and Europe. The hotel’s Runway Conference Centre, which houses an actual Concorde to explain why it’s also known as the Concorde Conference Centre, has the requisite boardrooms and parking to accommodate a conference for delegates from different bases.

But if you want something different try the Quarry Bank which is only minutes from Manchester Airport. This National Trust property surrounded by extensive gardens was once an eighteenthcentury textile and is now open for conferences. It’s a perfect place to have a very private meeting which needs air access from multiple cities but has a very non-airport environment.

AMSTERDAM Schiphol offers space for all-size and style of meetings, both landside and airside. The Hilton Schiphol’s dedicated conference and meeting facility has a ballroom which can accommodate 640 while its boardrooms, fully equipped with state-of-the-art AV facilities, suits more standard business meetings. It is only a 10-minute walk via a covered walkway from the international terminal so is perfect for meetings which require delegates based in different countries.

For those who have the extra minutes to meet at a slight distance from the terminal on the airport perimeter there is the Citizen M which 26

Summer 2018

Concorde Conference Centre, Manchester; Below, Dubai Airport © Photographer: Helen Pe Patryk Kosmider / Shutterstock.com

DUBAI Given its growing importance as a hub for long-distance international flights it’s perhaps no surprise that Dubai Airport is well kitted out for meetings.

Business centres and meeting rooms are located on the Arrivals level in Terminal 3 and on the Hotels level in Terminal 5 so perfect for those who have a gap between changing flights.

describes its style as “perfect for a crosscountry brainstorm or international sales meeting”. Its rooms all come with smart TV and conference ready connectivity ports and all the basics – including tea and coffee! – included.

Planning a meeting at an airport is quite a different exercise from one at which all the participants aren’t also equipped with boarding passes and

checking schedules. The ability to carry the traditional branding material and hand-outs will be severely limited and the planning has to include adequate time to transfer between aircraft and meeting room for all without wasting any participant’s time unnecessarily.

But your participants won’t miss having a night at home and one less room night on the corporate accommodation bill. 

The Citizen M Schiphol Hotel © Photographer: citizenM hotels & Richard Powers

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Improved cabin air humidity and cleaner air, Windows are 65% larger than current aircrafts, Electronchromic dimmable windows replace traditional window shades, 15" personal TV screen.

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Double Daily from London Heathrow Daily from Manchester