Upgrade Issue 6 for Asia by Flight Centre

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ISSUE 1

FCM TRAVEL SOLUTIONS ASIA

Elevating business travel intelligence

Get with the programme Procuring travel content in today’s dynamic distribution landscape

Frictionless travel Safety and efficiency top traveller priorities

Livin’ the dream

How do we sharpen the blurred lines around ‘bleisure’?

What can business travellers expect from Beijing Daxing

China open’s the world’s largest airport terminal

Channelling the right travel content

fadvert f

Welcome

Issue 1

ew beginnings are always exciting. You just have to be adventurous, come with an open mind and expect the unexpected. Welcome to the first issue of Upgrade Asia!

Within these pages of the inaugural issue of FCM Asia’s quarterly magazine, we present stories through a diversity of perspectives from travellers, bookers and travel managers. We want the stories behind the story in every issue to inspire you, as well as provide the know-hows and resources so that your own vision and goals will become attainable to you in your unique corporate culture. The rapidly changing pace of travel management today with the endless iteration of business travel content has caused the subject to be incomprehensible to many corporates. Opening this issue with our cover story Get with the programme on page 4 couldn’t have been more apt. The feature examines ways in which corporates can access the right content and address the challenges of managing their travel programme

Contents

amidst the seemingly never-ending disruption, content and supplier choices available. Content is king for us as a TMC. FCM gives our clients access to an unrivalled range of content via our virtual gateway and makes the complicated simplified for you through our Marketplace which you can read more on page 16. A buzz word that has been on everyone’s radar in the business travel world is NDC and we have made great progress on the NDC roadmap since Nicola Ping joined us from British Airways earlier this year as Manager of Air Content & Distribution. I’m sure you will enjoy our interview with Nicola on page 19. I am delighted to report that FCM has recently been recognised as one of the Best Companies to Work For in Asia (China edition) organised by HR Asia Magazine on page 17. As the only travel management company to earn the recognition this year, it is a reflection of the hard work by our China team. This is a positive charge for us as we continue to make inroads into China, and as we reflect on the first quarter of our financial year 2019/2020, contemplating on how we might do better in the next nine months. I hope you enjoy the first issue of Upgrade Asia and let us know what you think.

Bertrand Saillet Managing Director, Asia FCM Travel Solutions

Livin’ the dream How do we sharpen the blurred lines around ‘bleisure’?

EDITORIAL COMMISSIONING EDITOR Betty Low CONTRIBUTORS Catherine Chetwynd, Gary Bowerman, Mark Frary Mark Harris FCM EDITORIAL ADVISER Vanessa Aves

4 Get with the programme Procuring travel content in today’s dynamic distribution landscape

10 Frictionless travel Safety and efficiency top traveller priorities

15 7

ADVERTISING ADVERTISING SALES Jade Lynch

FCM News

Beijing Daxing China opens the world’s largest airport terminal, Beijing Daxing International Airport.

First world hotels find secondary cities Top hotel chains head outside the capital to meet growing demands

DESIGN PRODUCTION & MANAGEMENT WonDesigns, Caren Johnstone LEAD DESIGNER & ILLUSTRATOR André Albuquerque PUBLISHING MANAGER Rebecca Talbot PRINTING Oxford Graphic Printers Pte Ltd Singapore 415939 ©FCMUPGRADE 2019 Images sourced from suppliers, FCM Travel Solutions, and stock photography

A socially responsible turn of events Building CSR into your next corporate event

New business enquiries info@sg.fcm.travel Editorial and advertising enquiries info@sg.fcm.travel FCMUPGRADEASIA.COM

TRAVEL MANAGERS PROGRAMMES

Get with the programme The changing distribution landscape makes managing travel procurement far more complex and challenging for corporates these days…

81% of travel managers have a mandate in place requiring staff to book travel through company tools and platforms but 5% of those admitted adoption is currently lower than 10%. ACTE (Association of Corporate Travel Executives) report, ‘Booking Tools and Technologies: One Size Does Not Fit All’. June 2019

oday’s corporates want rich content through one source, as it correlates directly with effective business travel management. It delivers personalisation, traveller satisfaction, friction-less travel, compliance and therefore ultimately, cost savings from preferred suppliers. If travellers also comply with the in-policy booking channel then the corporate benefits from detailed traveller tracking satisfies duty of care and can influence future supplier negotiations. Happy travellers are generally compliant travellers, so delivering that rich content is vital; but it's challenging in today’s dynamic distribution landscape. Some suppliers, for example, do not offer price or content parity across multiple booking channels, while disruptors tempt travellers away from the in-policy booking channel, sometimes because in-policy content isn’t available.

Issue 1

THE IMPACT OF ONLINE TRAVEL AGENCIES In particular, online travel agencies (OTAs) have had a major impact on the marketplace, luring travellers away from in-policy booking channels and it’s easy to see why. Since their market entry some 20 years ago, they’ve offered more convenience, selection, fewer touch points and better prices – on the face of it, at least. However, OTAs are not authorised booking channels and cause significant leakage, loss of savings and concerns over traveller safety. An OTA hotel rate is not comparable to a TMC negotiated rate for example, as the latter often includes an array of corporate-friendly benefits such as a room guarantee, room upgrade, F&B vouchers and maybe even loyalty scheme points. A TMC rate is also more likely to be refundable, which an OTA rate is usually not. Some 39% of travel managers surveyed by ACTE said travellers think they can

“

Gone are the days of just negotiated hotel rates. Corporates need more flexibility outside the key chains”

booking channels, they must do the right deals with the right suppliers. Is there a mix of boutique hotels alongside corporate hotels? Does the programme include apartments for re-locating staff or staff on long-term contracts?

safe. While TMCs strive to offer full content, there is a strong argument that curated content will sit better with today’s traveller than unlimited access to multiple suppliers, as personalisation is what travellers want.

“A lot more customers want a more varied approach to their hotel programmes. Gone are the days of just negotiated rates. They need more flexibility outside the key chains,” says Leticia Tan Regional Corporate Product Leader in Asia

What’s key is not to strike deals with everybody but just those that will be effective. The deal might make perfect commercial sense, particularly if an airline has offered vastly reduced fares and no targets, but if travellers are not going to use that airline then the deal will be ineffective.

It’s a conundrum for the corporate who wants all content in one place. A report from ACTE (Booking Tools and Technologies: One Size Does Not Fit All) this summer summed up that 80% of travel managers said consolidating all channels into one platform is important. TMCs can aggregate these multiple booking channels via third-party APIs regardless of source or user to deliver the widest range of omni-channel content. For it to work seamlessly, booking technology has to be open source and connectable with other technologies to aggregate new disruptors. Worryingly, some four out of five (80%) travel managers surveyed by GBTA/ SAP Concur do not use technology to capture bookings made outside of their programme.

Data capture of all bookings is key - and the good news is that today’s booking tools aggregate OTA content so travellers can benchmark with an OTA rate.

THE RAMIFICATIONS OF BOOKING OUTSIDE IN-POLICY CHANNELS FCM’s Scott Reddie, Global Director of Account Management, says: “Booking outside of corporate channels takes away one of the key things driving management of spend – visibility. We flirted with open booking and trying to loop back into cost tracking via expense systems, but that left too big of a support gap when things don’t go according to plan. Who likes sitting on hold for hours to get through to a lowcost airline?”

DOING THE RIGHT DEALS TO IMPROVE COMPLIANCE If corporates wish to keep their travellers away from non-compliant

Business travel management has become more complex, and the travel management company plays a vital role to simplify, add value and keep travellers

get a better deal and save money outside of their programme. Yet 56% of travel managers are apprehensive about employees booking outside of policy, and 55% recognise that the company may be missing out on opportunities to save money. Moreover, less than half of respondents in a GBTA/SAP Concur survey say they do not capture traveller data if they book outside of corporate channels. “This lack of visibility has critical implications for both travel spend and duty of care,” says the report.

“

THE NEED TO CREATE THE LEISURE BOOKING EXPERIENCE The next hurdle is replicating the leisure booking experience. Apps can offer updates on gate changes, flight delays and the like, helping business travellers run their work lives just as seamlessly as their personal lives. The key is to reduce trip friction and enable self-service across multiple devices. The crucial piece of technology in the booking process is the online booking tool, which usually accounts for the bulk of bookings. “The booking experience needs to be highly flexible and should look and feel like it does when they book personal travel,” said Fitzgerald Draper, director of research at ACTE. Travel manager respondents in the GBTA/SAP Concur report revealed they are “excited about different booking innovations, such as a more consumer-friendly booking experience, personalised booking and live online chat.”

Booking outside of corporate channels takes away one of the key things driving management of spend – visibility”

Confirming a booking with a minimum number of strokes is key. Visual guilt can also be used to advantage, with timed messages appearing on the screen at key stages of the booking process as reminders to do the right thing. Moreover, the OBT can show hotels and airlines that are in policy, by using rate caps for example. According to ACTE, 90% of those surveyed agreed that optimising their online booking tool platform for company policy and preferred options was moderately or extremely important. FCMUPGRADEASIA.COM

TRAVEL PROGRAMMES THE RIGHT TYPE OF TRAVEL POLICY IS KEY The travel policy can also help in this regard, by being written in favour of the traveller/user experience rather than applying mandation. The fact that almost two out of five hotel bookings are made outside of corporate channels, whether a travel programme is managed by a strictly mandated policy or more flexible policy guidelines, means that something must change. Today, a travel policy is a tool being used increasingly to improve staff

80%

Four out of five (80%) travel managers do not use technology to capture bookings made outside of their programme.

retention and traveller well-being. Nonetheless, a travel policy must detail preferred suppliers, booking horizons, rate caps for cities and the like, and be policed so that exception reports, for example, are acted upon. The skills required to manage a business travel programme today are far more diverse, and the role of the travel manager has evolved to meet these new challenges. Compared to five years ago, the average travel manager now spends far more time on a variety of different functions, namely data/ analysis reporting (66%), evaluating or implementing new technology (66%) and traveller safety/ duty of care (60%) according to the GBTA/ SAP Concur report, ‘Lost in translation: Changing Landscape, Familiar Challenges’.

GBTA/SAP Concur report, ‘Lost in translation: Changing Landscape, Familiar Challenges. August 2018.

39% of travel managers surveyed said travellers think they can get a better deal and save money elsewhere.

55%

56%

believe the company may be missing out on opportunities to save money.

of travel managers are apprehensive about employees booking outside of policy.

ACTE (Association of Corporate Travel Executives) report, ‘Booking Tools and Technologies: One Size Does Not Fit All’. June 2019

Issue 1

A DOUBLE WHAMMY FOR CORPORATES AI AND NDC Change is definitely the new norm. Artificial intelligence is the next big leap into the unknown, so corporates must grasp the opportunities change brings with both hands to simplify the increasing complexity and ameliorate any knock-on cost. The spectre of New Distribution Capability (NDC) is already adding a further layer of complexity. This XML-based data transmission standard developed by IATA allows airlines to not only distribute content in real-time but more of it, with an emphasis on their

lucrative ancillaries. According to the annual IdealWorksCompany report, the top 10 airlines generated US$35.2billion from ancillary revenue in 2018. Airlines want to unbundle fares and package them up in different ways, by adding a seat, a bag, a meal, or departure lounge access. NDC will force a review of travel policy as corporates will have to detail which ancillaries are in policy. Will they allow travellers to book wi-fi, a meal or a different seat, for example, in this new world of unbundled airfares? TMCs recognise the merchandising benefits NDC can bring as it will allow them to tailor airline products to each specific client, negotiating value adds and delivering a better and more personalised overall experience. Once NDC reaches an acceptable scale, IATA will unveil phase two of NDC to unveil: ONEOrder, a far bigger change than NDC. ONEOrder will consolidate different elements into a more manageable single entity – and one customer number - and ultimately hotels and car rental bookings could come under its wing. This will make problem-solving for agents and passengers much easier. The PNR will be eradicated in the long term. It’s an exciting, ever-changing world for today’s travel manager, as long as they are proactive and use continuous sourcing as the new business model. As the adage goes, snooze and you lose. 

Read the full report online: https://www.fcmtravel.com/en-uk/ resources/white-papers/businesstravel-procurement

NEWS

WHAT CAN BUSINESS TRAVELLERS EXPECT FROM

Beijing Daxing C China opens the world’s largest airport terminal, Beijing Daxing International Airport. What can business travellers expect from this new gateway to the world’s second largest economy? BEIJING DAXING INTERNATIONAL AIRPORT Designed by the late British-Iraqi architect Zaha Hadid, Beijing Daxing International Airport (PKX) is scheduled to open on 30 September, in time for the week-long China National Day holiday. Located 46km south of Beijing, the vast new airport will ultimately count seven runways, and is expected to handle: ff 45 million passengers annually by 2021 ff 72 million by 2025 ff 100 million by 2040 Preparations have advanced smoothly, with test flights and operations well underway. ff In May, a China Southern A380 became the inaugural test flight to land. ff In June, the first routes were annouced, including Busan, Gwangju and Daegu in South Korea, Cairo, Helsinki, Moscow and St Petersburg. Chinese media also reported that 60 global airlines had applied for slots. ff In July, full-scale operational tests were completed, including check-in, security and baggage claim. ON RADAR: THE WORLD’S LARGEST AIR MARKET The new airport will make Beijing the second Chinese city, alongside Shanghai, to boast two international airports. Shanghai is already planning a third, rumoured to be at Nantong. These two facts underpin how crowded China’s skies are becoming. A second Beijing airport has long been planned, but the right location proved elusive. That’s because China is planning

for the long term. Beijing Daxing needs to be large enough to ease chronic congestion at Beijing Capital International Airport (BCIA), and meet eye-watering future predictions for air travel.

million passengers in 2018. There is simply no space to grow!

IATA predicts China will overtake the US as the world’s biggest air market by 2022. Growth is being driven by Chinese airlines, which have more than doubled their international passenger traffic in the past five years, says the Centre for Aviation. In 2018, 29 Chinese carriers operated international flights, up from 12 in 2014.

With two airports to choose from, checking flight tickets carefully will be crucial from next month. Approximately 40% of flights at Beijing Daxing will be assigned to China Southern Airlines, and 30% to China Eastern Airlines – and both have said they will transfer some flights from BCIA to Beijing Daxing. Air China, regional Chinese airlines and global carriers may – at least initially – offer services from both airports.

WHICH AIRPORT IS MY FLIGHT?

FROM 5G TO ELECTRONIC TAGS

Full details of the route map are yet to be published, but Asia Pacific destinations will likely account for a high percentage of flights from Beijing Daxing – offering much-needed new options for business travellers. The overcrowded BCIA has operated at full capacity for many years, and this has stymied airlines from launching new routes and frequencies – plus onward flights to emerging business destinations in China.

Considerable media attention has focused on the distance of Beijing Daxing – which is, in fact, located in Hebei province – to the capital. Access to the city will be expedited by a new highway, as well as China’s fastest subway line. While not as rapid as Shanghai’s Maglev, the 160kph link will travel at twice the speed of Beijing’s subway trains – connecting travellers to/from the capital’s Caoqiao station in 19 minutes.

This situation dates back over a decade. Opened for the 2008 Beijing Olympics, the Norman Foster-designed Terminal 3 at BCIA boosted annual capacity to 85 million. However, aviators courting Chinese travellers quickly ate up the slots. With 105 airlines flying to 160 domestic and 136 global destinations, BCIA handled over 100

Once inside the terminal a raft of digital innovations are promised, including wireless 5G. In June, China awarded 5G network licenses to China Mobile, China Unicom, China Telecom and China Broadcast Network – and designated Beijing Daxing as a priority 5G service location. With around 4 in 10 flights at the new airport to be handled by China Southern, passengers will also enjoy the benefits of electronic luggage tagging. In August, China’s largest airline introduced BAGTAG, a reusable electronic device developed in the Netherlands to replace the singleuse paper suitcase label. Check-in is completed via a mobile app, and suitcases are deposited at a bag-drop kiosk. Considered a major landmark in the nation’s aviation history, Beijing Daxing will be opened with considerable fanfare befitting a new era for air travel in China, with business travellers having much to look forward to.  FCMUPGRADEASIA.COM

TRAVEL MANAGERS

Livin’ the dream Seeing lots of places without having to pay the fare? Sounds great for travellers, but how about the travel manager . . .

here’s no question that the long overdue recognition of the importance of traveller welfare has been a good move for both travellers and companies – after all, happy travellers are more productive and their trips tend to produce better outcomes. Today’s demanding work schedules mean that more and more business travellers want to reduce stress and improve their life-work balance by adding a leisure stay to a business trip. This trend, which has been christened ‘bleisure’, sounds like a winwin, doesn’t it? Employees gets costeffective breaks, employers get happier and more productive employees. But like all good ideas, it also needs a plan.

Issue 1

“

THE TRAVEL MANAGER

Travellers need to be clear on what is and isn’t covered”

Jo Lloyd, a partner at Nina & Pinta, said: “A business trip with bleisure needs to be managed within travel policy. For me, the key point is not what is the right or wrong policy to follow. The key thing is clarity. Travellers need to be clear on what is and isn’t covered.”

THE ORGANISATION

Clarity suggests that a travel policy review might be needed - and that means identifying the relevant internal stakeholders. This will vary from organisation to organisation; someone might own travel but others might own risk and people. HR and insurance should certainly be represented, but sometimes the person responsible for insurance is actually in the finance team.

As with everything with work in general, and travel management in particular, so much comes down to company culture. Some companies actually have strict policies preventing an extension to a business stay, but most are more relaxed. According to consultant Jo Lloyd, “There’s not one way to do this. The whole approach has to be a reflection of the organisation you’re in.” However, there will be some universal specifics that need addressing.

Once the travel manager has identified the stakeholders, they need to get together to agree a ‘bleisure’ policy.

THE POLICY Every organisation will do it differently but there are some common issues to consider when creating the bleisure guidelines within a travel policy: 1. Process It is essential to work out a methodology for defining how the line between business travel time and leisure time is determined. Consider whether this should be incorporated into the request to travel. 2. Insurance Corporate insurance policies differ and whether or not the traveller is covered when the business element of the trip ends will come down to individual policies. Travellers need to be made aware not only of whether they are covered on the leisure segment but for what – people in sober business suits on Friday have been known to abseil and parachute on Saturday. Are all activities covered or does the employee need their own personal travel insurance? 3. Duty of care and risk management Travel disruption can happen at any time, anywhere. If an incident happens during the leisure segment of the trip, has their location been tracked to ensure they are safe? 4. Forms of payment and data The best hotel for total business costs

31%

of business travellers expect their organisation to be responsible for traveller safety on added leisure days

and productivity might be near to the destination while for leisure travel a buzzier part of the city where the bars and restaurants predominate might be preferable. If a traveller moves to different accommodation after the business trip, there will automatically be clarity around the payment and data elements. However, there are business destinations (think Milan, Barcelona, Edinburgh) where travellers might want to extend their stay in the same property. If so, will the hotel let them keep the room at the corporate rate? That corporate rate, however, might be higher than the weekend rate as many hotels in business districts offer low rates at the weekend to fill the rooms that are in less demand at these times. What happens about cost, payment and data? Does the traveller settle the bill on their individual corporate card on Friday, then start a new bill to be cleared with their personal card on Sunday? If it is one bill and the traveller pays on one card, with the aim of being reimbursed only for the business element, can the right data be accurately collected? Processes that the company expects the traveller to follow must be made explicit. 5. Cost Responsibility for division of the costs needs to be spelled out so that both employer and employee are clear as to what expenses are reimbursable and which are not. For example, is the return to the airport for the flight home covered by the business (they would have had to pay anyway) or does it become the responsibility of the traveller once the trip becomes a leisure break? “The general rule of thumb is that a trip with bleisure shouldn’t cost

56%

of business travellers extended their business trips into personal or leisure time in the past year

The suppliers respond Hilton’s new Signia brand has what every bleisure traveller might want from their business or conference hotel. Features include design-led public spaces such as the lobbies which can double as a “social destination”, “destination bar” and “signature restaurant”. The rooms are high-tech, not only in having digital key access and temperature control, but sleek connectivity including personal device streaming. The brand was launched this year in Orlando, Indianapolis and Atlanta, with more expansion planned. The brand has clearly been developed with the meeting business in mind – all will have a minimum of 500 rooms and premium meeting space – but there are also wellness facilities. The objective is surely also to tempt that business traveller/conference delegate into extending their stay.

the company any more than a trip without,” says Jo. However, rules need to be agreed by stakeholders and incorporated into the travel policy. THE COMMUNICATION The key to success, explains Jo Lloyd, is clarity and making sure people understand what’s expected of them. Organisations must let their travellers know what their stance is, what the employer expects of the traveller and what the traveller can expect from the employer. 

40%

of bleisure travellers reported that they encountered issues during these added leisure days and that their company helped resolve the problems

FCMUPGRADEASIA.COM

TRAVELLERS

Under pressure Do your travellers know if they’re coming or going?

he GBTA’s 'Frictionless Travel' report has a subheading worth reading: “For companies around the world, enhancing the travel experience for employees instead of cutting corners on cost promotes workplace satisfaction, organisational loyalty and operational efficiencies.” In other words, if you reduce travel stress you not only improve employee welfare, but you increase the corporate travel programme’s ROI. A no-brainer really. Accepting that this is a good idea is not the same as implementation. That requires identifying, measuring and analysing the problem and then coming up with a strategy for a solution.

passenger ratio, on long-haul flights will be more stressful than flying in premium. 2. Transfers Airport transfers have costs beyond the fare. In some frequently visited business cities – London, Stockholm, Amsterdam, to name a few – there are accessible, efficient and frequent rail services to link an airport with the centre of a business destination. But travellers arriving late at night at a destination with an unfamiliar language and without that kind of service can find this aspect quite daunting. Pre-arranged airport transfers can reduce stress. 3. Hotels

How well equipped and comfortable a hotel room is may be an obvious stress factor, but many forget that business travel accommodation which is located near the ultimate trip/meeting destination reduces not only total trip cost, but the time spent travelling and therefore stress for the traveller. 4. Individual travel profiles As well as reviewing overall travel programme content choices, managers need to monitor the business travel profiles and special needs of their individual executives. The volume and profile of trips can vary hugely among travellers. It’s one-thing to be in an unpleasant hotel for one night; it’s quite another if that is the case for 90 nights a year. Stress levels are affected by the total number of trips or miles travelled and time away from home.

WHAT CAUSES TRAVELLERS STRESS?

The study found that hotels were the most significant factor affecting travellers’ experience.

The report surveyed travellers from different regions and found that in EMEA the two most difficult aspects of business travel are time spent in transit (cited by 62%) and layovers (47%).

Safety and efficiency are travellers’ top priorities

These factors are also implicit in the specific points which FCM addresses with its Stress Watch Reports. FCM knows travel can be stressful in several ways: 1. Flights All flights are not created equal. Direct flights will cause less stress than those with changes. Domestic trips are less stressful than international travel for reasons of length and simplicity (no need to remember foreign currency, passport, etc). And flying in economy class, with its narrower seats, smaller seat pitch and higher cabin crew to 10

62%

54%

40%

CONVENIENT, COMFORTABLE HOTELS

NON-STOP FLIGHTS

BOOKING FLEXIBILITY

Source: GBTA, Creating a Frictionless Travel Experience, 2017

Issue 1

HOW TO ADDRESS

2. Travel department processes

1. Travel policy The GBTA begins its report with almost a trite observation: “While travel programmes that rely on cost-saving tactics (like negotiated air, hotel, car and rail rates) can deliver significant ROI, the benefits of a traveller-centric programme that boosts employee wellbeing and job satisfaction can often outweigh the savings of a cost-centric programme.” Once the sources of travel stress are identified, the travel manager can assess the financial cost of any adjustment in policy – for example, by reducing the threshold at which travellers are eligible to travel in a premium cabin from 10 hours to 8 – against the benefit. If a corporate does not have access to an automatic reporting system such as FCM’s, its internal stakeholders should agree which factors to measure and a scoring system to assess the cost – to both the traveller and the company – against the possible benefit of any amendment. In addition to class of travel, some examples to consider might be rail versus air and whether the method of choosing a hotel is preferred supplier or rate ceiling.

FCM TRAVELLER STRESS WATCH REPORTS Reporting is what all travel management companies do. FCM’s reporting tool Client Bank can cut and slice data to benchmark not only fares but the average stress of its travellers. It looks at the following factors: 1. Number of segments flown in economy 2. Number of miles flown

3. Days away 4. Nights away 5. International vs domestic travel

The tool will analyse all the bookings in the reporting period by these factors to benchmark the organisation’s stress score versus the average for a similar organisation. If travel stress is indicated, the manager can identify which factor is contributing and recommend changes in policy or behaviour to reduce it. For example, if too many hours are spent travelling on longhaul flights in economy class, the manager might recommend that policy be adjusted so that travellers are eligible to fly in a premium cabin on shorter long-haul flights.

Technology can improve the traveller experience. The pre-trip approval, booking and expense-reporting, reimbursement and traveller support processes can all affect traveller stress as much as the journeys themselves.

Asia Pacific travellers' experience would be enhanced by these technological amenities:

59%

30%

Automated travel destinations info

Customised traveller profiles

48%

37%

Itinerary apps

Mobile expense reports

48%

33%

Mobile payment capabilities

Travel policy live chat

40%

21%

Safety-tracking apps

Wearables

Is the booking tool user friendly? Does the traveller have to do full research every time to find suitable options or does the system automatically recognise repeat journeys and suggests a repeat flight/ hotel/car rental? A pre-trip approval process which results in requests lingering in an inbox for days before travellers receive authorisation can create uncertainty. And a manual expense claim system can take up valuable family time.

“

Average result based off data from China, India, Japan and Australia More than CONCLUSION 8 out of 10 Asia In late 2018, Amadeus invited business travellers and travel managers from Pacific business medium to large companies to take a survey about traveller well-being. Nearly travellers believe 900 travellers and 96 travel managers from around the globe responded. their travel Most companies gave medium to high attention to this topic. However, when experience asked whether their organisation takes active steps to improve it, only 39% of impacts their job travel managers answered yes, while 22% were not even sure. satisfaction” Source: GBTA, Creating a Frictionless Travel Experience, 2017

The importance – and communication – of support cannot be over-estimated. Whether it’s 24-hour helplines or an online tool that allow travellers to rebook their own flights or support in case of disruption, travellers should know how to access help at any time. The GBTA survey also found that the ability for travellers to get the right information easily was highly valued.

The survey “showed that when travel managers made suggestions to improve travellers’ well-being, these were generally accepted in 33% of the cases, sometimes in 40% of the cases.” Travel managers can have a real impact. But a process for evaluating the number, length and extent of individual trips is essential if individual ‘at risk’ travellers are to be identified before any damage or stress sets in.  FCMUPGRADEASIA.COM

Let your

IMAGINATION SOAR in South America

From street carnivals and dancing the tango, to rainforests and the ruins of ancient civilisations. Choose from 4 destinations in our South America network for your next adventure.

Buenos Aires Santiago

Rio de Janeiro

SĂŁo Paulo

DESTINATION

São Paulo

DOING BUSINESS IN

ão Paulo is the commercial hub not just of Brazil, but of Latin America. If it were a country its GDP would rank it as one of the largest in

the world. The ex-Portuguese colony’s huge coffee export income has enabled it to grow into a wealthy industrial city, and now it's following the global trend into services. International law, consulting and financial services are all strongly represented, too. GETTING THERE

There are very few non-stop flights between the UK/Ireland and São Paulo. Oneworld partners Latam and British Airways both have a daily flight from Heathrow. A connecting flight will be required if any other carrier or UK or Irish airport is used, although Virgin Atlantic has announced that it will start a Brazilian route in 2020. However, no start date has been given. The centre of São Paulo is about 15 miles southwest of Guarulhos (GRU – the international airport), so a taxi or airport transfer should be organised.

STAYING THERE Traffic in São Paulo is so heavy that taxis can sometimes take an hour, so it’s vital for the hotel to be close to the intended meeting. First impressions are important in Brazil and businesspeople are judged not just by their dress but by their accommodation. Business hotels are plentiful around Avenida Paulista and in the districts of Jardins and Itaim Bibi, which are also home to some of the city’s finest restaurants. Located in downtown Brooklin, São Paulo’s new commercial district, the Grand Hyatt São Paulo is close to Itaim Bibi and Congonhas (the domestic airport) and has panoramic city views and two international restaurants. The Hilton São Paulo Morumbi is situated inside the CENU Complex, close to Berrini Avenue, WTC Convention Center and Berrini rail station. The city’s skyline can be admired from most of the guestrooms and there are stunning views of the Ponte Estaiada suspension bridge from the top floor’s swimming pool and fitness centre.

Hotel Emiliano, a boutique hotel on Rua Oscar Freire, one of São Paulo’s most stylish streets, has many sophisticated features. These include a fully-equipped spa, a vertical garden, a champagne bar and even a rooftop helipad. The Renaissance São Paulo, also close to a metro and Avenida Paulista and Rua Oscar Freire, has the bonus of two better-than-hotel-average restaurants: Terraço Jardins features Brazilian cuisine with local ingredients from small producers, or Living Lounge Bar & Sushi for Japanese food. EATING São Paulo is a huge melting pot. With many of its population having Italian or Japanese roots, there are many Italian and Japanese restaurants. Latin America has also become something of a foodie heaven and São Paulo has many creative chefs and restaurants eager to showcase local products. The Jardins restaurant D.O.M. has two Michelin stars and has been a stalwart on the world’s ‘bests’ lists. It’s famous for rock star chef Alex Atela (literally, as he is an ex-DJ) and a multicourse tasting menu with Amazonian FCMUPGRADEASIA.COM

DESTINATION ingredients, including ants and Brazilian seafood such as Santa Catarina oysters. Mani’s head chef, Helena Rizzo, and her contemporary Brazilian-European fusion dishes are regulars on Netflix’s The Final Table. Her tasting menu can be sampled in this former residence in Jardin’s leafy Jardim Paulistano neighbourhood. Carnivores who don’t want to linger over a Michelin-starred meal but find themselves in Republica should visit A Casa do Porco, a bar which, as its name suggests, is a temple to imaginative, not-breaking-the-expense-account creations from bacon, sausage and ham. DRINKING Close to the Avenida Paulista, inside the Maksoud Plaza, is the very cool and classy Frank Bar. It was created as a homage to Frank Sinatra but the cocktails, both the classics and some imaginative modern inventions, are the star of the show. Whether to describe its shape as a watermelon or an old ship is debatable - but the luxurious Hotel Unique’s rooftop Skye Bar is the place to sip a wasabi martini and share stunning views of the city. The Riviera Bar is for those who want to sip their caipirinhas somewhere with history. This home to musicians and left-wing intellectuals, particularly during Brazil’s military dictatorship throughout the 1960s, 70s and 80s, on Avenida Paulista and Rua da Consolação, reopened a few years ago as a much larger – and smarter – bar with superb cocktails. And if you’re a footie fan, try São

INSIDER’S TIP Valquiria Mendes, National Account Manager, FCM Brazil “If you stay in the central area the metro is an efficient way to get around São Paulo. But if you stay further away from the centre, definitely use a taxi or Uber - be aware that it is a city of intense traffic; it is always good to allow extra time and set off an hour in advance, because you never know what to expect. “There are a lot of good bars and restaurants for business lunches, and for fun too. São Paulo is a 24-hour a day, 7 days a week city – there’s always something to do, some place to go.”

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Cristovado in Vila Madalena, a temple to Brazilian football. GETTING AROUND Traffic is heavy in the city, so by day the best way to get around São Paulo is on foot or via metro. At night, taxis or Ubers are the better option. The São Paulo metro operates six color-coded lines that are also numbered. The routes typically move north and south, and east and west. The metro runs from 4.40am to midnight Sunday through Friday and to 1am on Saturday. You can buy a bilhete unitário (single ride) or a reloadable bilhete único card which can be topped up as necessary at metro station kiosks. BUSINESS CUSTOMS ff UK Foreign Office advice is to be wary of theft or pickpocketing around Avenida Paulista and the historical downtown area. It also warns that the red light districts located on Rua Augusta (north of Avenida Paulista), Catedral da Sé, Praça da República and the Estacao de Luz metro “can be especially dangerous”. ff Brazilians negotiate with people not companies - so first impressions and personal relationships are important. Men shake hands and women are kissed on both cheeks. ff Efforts to speak Portuguese are appreciated. When first introduced, it is polite to say "muito prazer" (my pleasure). Expressions such as como "vai and tudo" bem are used to say hello once you know someone. ff Business starts at 9am but many business meetings are held over a coffee in a coffee shop or restaurant. Decisions are rarely made after one meeting. ff Good conversation topics are football and family. ff The city’s trademark is heavy traffic, so punctuality is relaxed and being late by up to 15 minutes is acceptable.

TIME OFF If you have any time off, just walk around the city. São Paulo’s amazing architectural history includes iconic buildings from its neo-Gothic cathedral to skyscrapers like the 1929 Martinelli and Oscar Niemeyer’s curvy Edifício Copan. The colonial-style Pátio do Colégio church marks where Jesuit priests founded the city in 1554. As well as being South America’s largest urban park, Ibirapuera Park is also home to several museums including the Museum of Modern Art. 

NEWS

Superwomen of the workforce FCM launches Womenwise in Asia

omenwise, an initiative guided by a vision for women to be equally represented, valued and rewarded at FCM Travel Solutions (a subsidiary of Flight Centre Travel Group) launches in Asia today. Carole Cooper, Global Peopleworks Leader and Co-Founder of Womenwise, as well as women from all areas of the business in Singapore, Malaysia, Hong Kong and China will fly into Singapore from their respective countries to celebrate the launch. Established in 2015 by a group of Flight Centre Travel Group senior female leaders to inspire all women, Womenwise showcases opportunity, provides role models and offers structured support to create gender balance across FCTG businesses including leadership roles. Now a global movement, Womenwise chapters can be found across FCTG’s businesses in Australia, The Americas, UAE, South Africa, with Asia as its latest addition. Throughout the year, they offer platforms for women to connect and engage via various opportunities including regional Town Hall events, panel discussions and the annual Womenwise conference, which aims to foster gender diversity and address issues associated with achieving equality in the workplace.

of new processes such as elimination of unconscious bias in recruitment, flexible working arrangements for working mothers, and the launch of the Womenwise chapter in Asia. The inaugural Womenwise Leadership Summit facilitated by FCTG’s in-house, world-class leadership development specialists and senior leaders was also organised as a career development day for female middle managers looking to leap forward into leadership roles and future-proof their career. Women’s relatively low representation in leadership positions has been a global issue. Worldwide, slightly less than four women hold leadership positions for every ten men in business and politics according to a 2018 Power of parity report by McKinsey. Even though Asia-Pacific nations have made progress in the past decade, driven by a combination of economic development, market forces, technological change,

government measures and female activism, women are still heavily under-represented in APAC leadership positions with 28% of senior roles held by women according to a 2019 Grant Thornton Women in Business report. In FCM Asia, the percentage of women in the workplace is 69%, with female leadership at 55%. “We are constantly making conscious efforts to drive this transformation in female leadership parity. It is important to recognise the influence and contribution of FCM’s women who are passionately contributing to the workplace and ensure they have equal and fair opportunities in leadership development,” says Bertrand Saillet, Managing Director at FCM Travel Solutions, Asia. “Women and men both need to be the catalysts to drive this transformation towards an inclusive and diverse workforce of the future.”

As part of the focus in engaging FCTG’s women, 2019 will see the introduction FCMUPGRADEASIA.COM

NEWS

TOP STORY

FCM launches MarketPlace travel content gateway FCM Travel Solutions has created MarketPlace, a virtual gateway to the TMC’s extensive proprietary and speciallynegotiated air fares, hotel rates, car rental and rail booking options. The move underpins FCM’s approach to giving customers access to the widest choice of business travel content via multi-channel online and offline sources from across its global network. A key driver within MarketPlace is FCM’s team of over 500 global travel procurement specialists, one of the largest content teams in the travel industry. Each team member is responsible for a specific sector of supplier relations, from air and hotel to rail and ground transport and has at least 10 years’ experience in supplier negotiations. “Travel content is vast and covers a huge array of choice which can be confusing for the corporate customer,” explains Mick Heitzinger, Product Director, FCM EMEA “Travel buyers are frequently concerned about whether they are getting the best value, the widest choice of air content, hotel rates, and so on, in order to achieve cost-savings and ROI on their travel programme. “Not only does MarketPlace give our customers access to FCM’s exclusive and vast range of global content all in one place, it also embraces disrupters and new entrants to the

distribution landscape to ensure our customers have full availability and visibility. Our core purpose with Marketplace is to provide our customers with the widest travel content in a way that no other TMC can, so that they benefit from unparalleled choice and savings,” said Heitzinger.

FCM EXPANDS IN FRANCE AND SWITZERLAND

Solenn Le Brazidec has been appointed FCM President for France and Switzerland

FCM has strengthened its European footprint with the announcement that parent company Flight Centre Travel Group (FCTG) has taken 100% ownership of 3Mundi, FCM’s partner in France and Switzerland. In July 2017, FCTG made an initial 25% investment in 3Mundi, which has been a licensee partner of FCM since 2015. On 30 June 2019,

FCTG acquired the remaining 75% of 3Mundi’s business. 3Mundi was established in 2006 as a progressive agency combining highperforming technology and human talent to optimise business travel services. Thanks to its innovative business model, 3Mundi has grown rapidly over the last six years achieving growth of over 35% per

FCM RECOGNISED AS BEST COMPANY TO WORK FOR IN ASIA IN THE HR ASIA AWARDS 2019 CHINA EDITION FCM Travel Solutions, a leading global travel management company, has been recognised by HR Asia Magazine as a Best Company to Work For in Asia in the HR Asia Awards (China edition). Now in its 3rd year, this award recognises world class corporations with high levels of employee engagement and excellent workplace cultures in China. More than 250 multinational and leading Chinese companies were nominated for this year’s award, with only less than 15% conferred the honour. "We are privileged to be the only travel management company to receive this award in China. "FCM has always been a people-focused company with a strong credo in ensuring diversity and an all-inclusive work environment, says Bertrand Saillet, Managing Director of Asia, FCM Travel Solutions. "Our Brightness of Future philosophy is extremely empowering, providing employees with an exciting future and supportive working community. We have one of the lowest attrition rates

annum. The company’s managing director, Solenn Le Brazidec, will continue to oversee 3Mundi’s dayto-day operations and has been appointed FCM Travel Solutions’ President for France and Switzerland. Steve Norris, Corporate Managing Director - EMEA, Flight Centre Travel Group commented: “FCM and 3Mundi have enjoyed an

in the industry as employees know they are always the first choice when promotion and transfer opportunities become available."

between engagement and motivation.

Best Companies to Work for in Asia recognises companies that have demonstrated a high level of best practices to achieve effectiveness in employee engagement and people management. Using the Total Engagement Assessment Model (TEAM) to measure the employee engagement level of a company, the survey provided insights on employees’ morale, their needs and expectations, as well as motivation factors. This is vital information which drives employee satisfaction within the organisation as well as a company’s human resource strategy into the future. The survey is completely selfadministered by employees and relies on a 100% non-disclosure environment of trust and privacy, and also acts as a valuable engagement tool for companies.

commitment in building a cohesive

I am very proud of this recognition and would like to congratulate our China team for their dedication and workplace culture which will help to transform the way we connect, share and work. A motivated workforce will push the boundaries of opportunities for FCM and our clients’ businesses and contribute to better customer experiences through elevated service delivery. We will continue our efforts to build the best workplace and deliver employee experiences that are worthy as a Workplace of the Future,” concluded Saillet.

“We believe there is a strong correlation

excellent partnership since 2015 and we forged a closer bond in 2017 when we first invested in the business. We are excited to be investing in this further acquisition which will give FCM an even stronger presence in France and Switzerland.”

FCMUPGRADEASIA.COM

fadvert f Stretch out and relax in our award-winning Premium Economy cabin, with luxurious levels of space and attentive service. Seated in an intimate and private cabin, you'll enjoy the benefits of flying premium with dedicated check-in, priority boarding, a well thought out seat design with indulgent touches. Speak to FCM or your Qantas Account Manager about upgrading to Premium Economy on your next Qantas flight.

NEWS

Why premium economy is the best choice for business travel

meals designed by celebrity chefs and relax by watching movies on a 13.30-inch HD touchscreen. On its service between Singapore and Newark, New Jersey, the carrier has scrapped economy altogether, including only premium economy and business class seats. Qantas launched their latest premium economy seats in 2018 on the fleet's B787 Dreamliners. Their cabins have 2 – 3 inches of extra legroom and recline, plus calf rests engineered to offer better ergonomic support than the ‘old’ premium economy seats. As well as the usual in-flight upgrades, Quantas also offers a self-serve bar for mid-flight snacks. Virgin Atlantic’s premium economy cabins (originally branded Mid Class) are amongst the widest in their class. Their in-service upgrades include multi-dish meals served on china and a self-serve snack bar. Though late to the party, the US carriers have finally joined in. American Airlines and Delta Air Lines both rolled out premium economy on international flights in 2018. Delta’s Premium Select has eight inches more legroom and seven inches of recline; more screen space, adjustable footrests, personal stowage spaces and amenity kits.

t’s over twenty years since Virgin Atlantic and Taiwan's EVA Air became the first international airlines to offer premium economy cabins.

With more and more carriers following suit in the interim, it’s surprising that the area between economy and business class only accounts for 4% of capacity – largely because US carriers have traditionally been focussed on their economy products. Corporate demand for bigger seats, better meals, screens and up-graded service – but without the exorbitant price tag – has forced airlines to take notice. A step down in cost, but less so in terms of experience, premium economy provides great value, makes travellers relaxed and productive travellers and generates incremental income for airlines. Price-wise, premium economy seats are twice the price of economy, but half that of business class. It’ s worth noting that most airlines only allow upgrades to the next cabin, from economy to premium or from premium to business. Increased competition has also brought better premium economy experiences. Most premium economy fares now include lounge access, fast track passes

for premium economy customers, checked baggage and better food. Some carriers include headphones, amenity kits and improved bedding in their premium economy products.

In March 2019, United Airlines began offering its new premium economy cabin on some long-haul routes. Premium Plus is aimed at travellers who want to graduate from the main cabin but aren’t yet ready for United’s Polaris business class product. United customers can also take advantage of new amenity kits featuring the Sunday Riley beauty brand.

2018 was the year in which many airlines launched so-called “true” premium economy cabins; those which go beyond simply offering extra legroom to include priority boarding and so on. This has been good news for business travellers on long-haul trips used to arriving at their destinations feeling anything but relaxed.

For other airlines, premium economy products are still in development. Emirates announced plans to develop a premium economy class back in December 2016, but although the carrier unveiled new cabins for first, business and economy classes on its B777s, the new class remains ‘imminent’.

Anxious to protect their business class revenues, the airlines position premium economy as a trade-up for SME business owners. However business is becoming the new first class as company travel policies restrict access to first class and airlines compete with low cost carriers to pack economy cabins. So premium economy is ideal for business travel because it’s as good as short haul business class with space to work and relax.

Etihad appear to moving in the opposite direction, announcing plans to reduce the number of Business Class seats on their existing A320/A321 fleet, from 16 to 8 and replacing them with economy seats, where most of their demand is focussed. Upgrading will also be harder with fewer seats in the front cabin.

Singapore Airlines' premium economy is regarded as an industry benchmark. Seats on their A350s, A380s and some B777-300ERs have six inches of additional legroom, nine inches of recline, leather upholstery and extendable footrests. Passengers can pre-order

With so much time and money being spent by airlines to attract higher-fare business customers, the race is on to harness technology, create eye-catching benefits and freshen the whole look and feel of airplane cabins. The concept of class in cabins is shifting, and that shift may become more pronounced in the coming years. How long will it be before business travellers demand to fly this way?  FCMUPGRADEASIA.COM

INTERVIEW

How did you get into the travel industry? I studied economics at university and started out doing pricing for the telecoms industry, but always loved travelling. One day I was really frustrated at work and just decided to look on company websites for another job. British Airways was advertising a role in pricing – I thought I can do that, so I applied. I’m glad I did, telecoms is quite boring.

What did your previous role at British Airways encompass? I joined British Airways 10 years ago, starting in revenue management as a pricing analyst. BA has a team reorganisation every two years or so, and one happened when I’d only been in the company five months. It worked out well, as I applied for a pricing management role and was successful. I changed roles every couple of years, looking after various revenue management teams. In 2015, a role in distribution was advertised which looked new and exciting - so I became Manager of Distribution, working closely with IATA to build British Airways’ internal NDC technology offering. I was also responsible for educating corporate and leisure agencies externally on BA’s NDC content and represented the airline on IATA’s Passenger Distribution Management Group.

In conversation Upgrade talks to Nicola Ping, who joined FCM from British Airways earlier this year as Manager of Air Content & Distribution, responsible for driving the TMC’s NDC strategy

Summer Issue 1 2018

Can you tell us more about your role at FCM? I’m part of the new Global Air Content & Distribution team – working with Jason Toothman, Executive General Manager Global Air Distribution based in the US, and Jason Nooning General Manager Global Air Distribution in Australia. My role covers EMEA and all the other markets where FCM uses Amadeus. My responsibility is to ensure that we can access all the air content that our customers want, but also to ensure that it works with all of our end-to-end systems and processes, so that the customers get the same level of service that they are used to. I’ve continued to work closely with IATA and now chair the NDC Advisory Group. As a team, we educate not only our customers, but also the airlines – they are keen to know more about how travel agents really look after the customers.

What are the main differences or challenges about NDC that you’ve observed from the TMC point of view, now that you’re on this side of the fence? As an airline, the challenges are making old technology cope with doing new things, like being able to bundle ancillaries and price dynamically, in a way that agencies can still buy. Airlines are the start of the chain, so they are effectively in control of the pace of change. As a TMC, there is pressure on us from the airlines to adopt the new content, as well as pressure from the customers to buy it. Technology and processes are still being developed, so it's key that we keep working with IATA

to understand the pressures and drivers of the entire chain. It’s key that we keep working with IATA to understand the pressures and drivers of the entire chain.

Why did FCM decide to work with its technology providers, Amadeus and Sabre, to find a long-term solution for booking NDC content? Although everyone in the industry talks about NDC a lot, actually only a handful of the world’s largest airlines are doing NDC transactions. At FCM, we sell tickets on hundreds of airlines globally - so it’s absolutely key that we can offer our customers, comparisons between those carriers effectively. Sabre and Amadeus are ensuring that we can get access to the new NDC content alongside the other traditional carrier content, without needing to change how our consultants work. That involves a lot of development work by the technology providers in order to build a solution, but it’s definitely the most efficient method for FCM.

What do you enjoy most about your job? I like the fact that NDC is still evolving and FCM is actually involved in driving that forward. As we’re involved closely with the airlines and IATA, I can explain what a TMC needs for its customers and then help IATA and the airlines design how to build it. It’s genuinely new and I love that.

What is your average working day like? Genuinely, there is no average day. Although I’m based at FCM’s UK head

office in New Malden, some weeks I’m only there for one day, as I may be at IATA meetings, meeting airlines or talking to our larger customers and prospects. New Malden is not far from where I live, so I like having days in the office when I can catch up on emails and spend time with the team who are doing lots of NDC testing in the background, and then be back home quickly at the end of the day.

Any other differences you’ve noticed working for a company like FCM compared to an airline like BA? I think there are two main differences, both around culture. Firstly, customer focus: in everything that we do at FCM we ask ourselves whether this is good for the customer – that’s before we do it, rather than make changes and have to deal with the customer complaints subsequently. Absolutely everyone I work with here has this focus and that’s really refreshing. Secondly, it’s the Flight Centre Foundation. Many companies have links with charities, but it’s not part of the culture. When I came to look round New Malden as part of my interview, the Flight Centre Foundation was explained to me and since then, there have been loads of opportunities to get involved – things like SolarBuddy, and raffles for our Charity of the Year. That generates a really nice feeling of community in the company. Staff who have only ever worked at Flight Centre/FCM shouldn’t assume all companies are like this! 

Favourite business travel destination? Singapore. It’s a really easy place to be – everything works seamlessly from arrival to departure and there’s plenty of time to sleep on the plane!

What’s your pet hate when travelling on business? What’s the one thing you would like to see that would make travelling on business easier? I am a really anti-social traveller when I’m working, particularly when I’m flying, so I don’t like people being chatty when I’m doing my emails! I’d love airport security to be standardised. I think that the queues are sometimes so long because even regular travellers don’t know what the rules are at each airport – iPads in or out, shoes on or off? If it was the same in every major business airport, it would be much easier.

FCMUPGRADEASIA.COM

SUPPLIERS

First world hotels find secondary cities Catherine Chetwynd discovers how the big global companies have found their way to India and China’s regional cities

ot so long ago the presence of global hotel brands in emerging markets would have been largely confined to major cities such as Shanghai, Beijing, New Delhi, Mumbai or Jakarta. However, the likes of Accor, Hyatt, IHG, Marriott and Radisson Hotel Group have all established local brands in launching new properties in secondary cities. In India, for example, Marriott has properties in Itabagar and Nagpur, while in China it has two in Guiyang, five in Nanjing, nine in Qingdao and five in Foshan. For its part, Wyndham now has seven in Guiyang, 17 in Nanjing, eight in Qingdao, eight in Foshan and one in Puyang. And Accor has one in South Tangerang, Indonesia, three in Semarang, one in Batam and two in Padang, according to STR’s June Existing Supply Report. Secondary cities in countries like India, China and Indonesia have massive populations. For example, 40 cities in India outside New Delhi have more than one million people. Though outside of London, in the UK only Birmingham, Glasgow and Greater Manchester have populations of more than one million people. “Those countries have a fast-developing middle class and a very fast-developing

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economy, much quicker than Europe Status also plays a part. “When real - which makes them big markets,” estate markets develop, many owners says consultant to the hotel industry, and businesses are keen to showcase Melvin Gold. “And to the extent that their success by building a hotel and international travellers want to be affiliating it with an international brand,” there, either for leisure or business, says managing partner for HVS Asia international brands need to and can Pacific, Daniel J. Voellm. “International establish a viable presence - either operators will ensure that the build through their quality is sufficient own investment, and meets their but more brand standards, normally and they will assess through a that the operation franchise is viable. As much arrangement of their share price with a local is propped up by entrepreneur revenue growth, who is happy ie hotel pipeline, to own a hotel expansion into and put an new markets is international inevitable.” brand name Daniel J. Voellm Managing partner HVS In China, there on it.” Asia Pacific are 65 cities with He added: populations of over “Properties can serve as a billboard a million, and 360 cities with 100,000 in a city, so the spread of brands to 1 million people. However, “there deeper into some of these countries are only a few second-tier cities in the will increase awareness. Therefore, China national system: Tianjin, Nanjing, when the aspiring middle class travels Hangzhou, Suzhou, Wuhan, Xi’an, out of their country, they are going to Shenyang, Chengdu and Chongqing,” says Voellm. “It is arguable that many be more aware of those names; that among the 360 are not suitable for helps people when they travel. And it’s international brands - and some smaller secondary, but the brand also starts to ones might be well positioned pick up loyalty card members.”

“

International operators will ensure that the build quality meets their brand standards”

to accommodate demand for tourist attractions or similar that would help develop a hotel market. Given the broad portfolio of brands these hotel groups have, they can penetrate less-developed markets with their mid-scale brands before following through with those positioned at the higher end.” Indian hotel group OYO has been expanding its presence in China, focusing on tier 2, 3, 4 and 5 cities, rather than markets like Shanghai and Beijing. As of June 2019, OYO Chinese subsidiary OYO Jiudian had expanded its presence to more than 337 cities and 500,000 rooms which, the group claims, surpasses the scale of traditional and established hotel chain brands in the country.

“

“In many parts of Asia, tier 2 and 3 destinations are growing quickly as the middle class rises, so there is strong demand. In addition, governments are often keen to support investment in these locations because it helps to spread the benefits of tourism throughout a country,” she says. “In Indonesia, we have over 120 hotels and resorts, including a growing presence in destinations like Bandung, Surabaya, Bandara and Yogyakarta.”

It's important for us to have a strong local presence in these markets, so the domestic audience gets to know our brands.”

In China, the company is increasingly expanding into cities with populations of up to 10 million people, such as Hangzhou, Gaynor Reid, Vice president Chengdu, Wuhan, communications & CSR Asia Pacific Accor Guiyang, etc. It is a similar story in India. Because it can take five years or more from signing to opening a hotel, the In India, OYO has more than 200,000 company looks out for emerging rooms in 300 plus cities. It saw a 159% destinations in countries where it is increase year-on-year in bookings in already the No.1 operator. largely non-commercial destinations such as Coorg, Chail and Yercaud. And with 85% occupancy on average, the group’s mid-scale Collection O has seen an increase of almost 30% in corporate bookings in the second quarter of this year.

“It is important for us to have a strong local presence in these markets, so that the domestic audience can

get to know our brands and show preference for them when venturing overseas,” she says. Growth in second tier cities in Asia is predominantly led by domestic travellers and intra-Asian travel, especially in cities like Surabaya, Hyderabad and Suzhou, which are predominantly business destinations. There are many reasons for hotel groups to set up shop in Asian destinations outside the capital. And given a growing middle class with a disposable income they are happy to spend on business and leisure travel, supported by willing investors, the trend is set. 

Accor is also a case in point. “While we have a geographic spread across tier 1, 2 and 3 cities throughout the region, in Australia, China, India and Indonesia especially, we are very focused on opening hotels in second and third-tier destinations, where there is growing demand and easier investment opportunities than in first-tier cities, where the market is more mature and space is at a premium,” says vice president communications and CSR Asia Pacific, Gaynor Reid.

FCMUPGRADEASIA.COM

TECHNOLOGY

Brain dump Mark Frary assesses how artificial intelligence is becoming integral to travel management

f you’ve booked travel recently, chances are artificial intelligence (AI) has helped during the process – whether you realise or not. The power of AI to improve business processes has been glorified for many years - but it is now getting embedded throughout our lives and we may not even be aware.

New technology is inevitably hyped and AI is no exception; the tech companies developing it need their huge investments to bear fruit. “Just look at the smartphone,” says FCM’s EMEA Chief Technology Officer, Michel Rouse. “No one needed a smartphone before, but now we can’t live without one. We don’t necessarily need AI, however we see opportunities where we can drive real savings and better service for customers.” A recent survey by McKinsey shows that 47% of companies have embedded at least one AI function in their business processes, up from 20% in 2017. Crucially, three-quarters of those companies have seen moderate or significant benefits from doing so. Part of the reason for this uptake is the wider availability of AI tools. “Google, IBM and others have commoditised some of the building blocks that companies can use to build models and applications,” says Keesup Choe, CEO of AI consultancy PredictX. 24

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While most companies are using AI in their service operations (including implementing chatbots), a growing number of companies are starting to use the technology in managing their supply chains, according to the research. The industry sectors leading this revolution are retail, telecoms and high-tech.

“We are looking at building AI into our complete workflows, looking at the Its use in business travel is starting to take context of each individual booking off too. FCM is at the forefront of this and and driving has implemented AI some automated in its Smart Assistant operations and for Mobile app, Sam:]. some manual “It has given Sam:] interventions,” its personality,” says says Rouse. “When Rouse. “It takes a lot someone calls in of information out or emails, AI can there, the context of determine whether it your booking, where is a support issue, an you are and your urgent flight change profile, the check-in request or a regular time for the flight, any flight enquiry - then delays, security alerts Michel Rouse, Chief Technology offer up information and other things that Officer, EMEA, FCM Travel Solutions to the consultant to may affect you, giving provide a better level you something a bit of service.” more personalised.” FCM is also investigating the use of AI Over the past two years, FCM has also in driving contextual approval flows to employed bot-like technology to optimise get away from approving every single airfares and hotel rates after booking. The booking. “With this, you can start to travel management company is looking do things like smart budgets where, at embedding AI further in its operations. say, you only want to spend X amount

“

No one needed a smartphone before - now we can’t live without them”

Source: https://www.mckinsey.com/featured-insights/artificial-intelligence/ai-adoption-advances-but-foundational-barriers-remain

per month and using that to drive approval flows,” says Rouse. The TMC has included AI within its online booking tool to filter search results into two buckets as well. “We take a blend of traveller preferences – if they want to fly at certain times perhaps – and corporate policy. The AI-powered OBT takes these rules and determines if something matches both criteria. If it does, it goes into one bucket, if not, it will put it into the alternative options bucket.” The use of AI is not just restricted to travel management companies. On the sell side of business travel, suppliers are investing heavily in AI, not least in the area of revenue management which has traditionally used historical statistics for its models.

spend the most on technology in their core business area, whether that is drug discovery or financial risk management, and the investment trickles down. One of our clients in the insurance sector implemented an AI-based risk management system at least five years ago. Now they are thinking how they can apply AI to the service functions of procurement, finance and travel.” Buyers who are keen to adopt AI in their own functions often feel they cannot secure the funding. “It could be that there is a fixed budget for procurement spend and that is a difficult route to get funding,” says Choe. “Nowadays there is quite a lot off funding in the centre of organisations for innovation initiatives and that might be an easier route.” Looking ahead, AI is set to become omnipresent. Choe says it will be like “an ivy plant growing on your house”, you turn around one day and you cannot see the bricks. Choe feels one potential development could be a game-changer: at Google’s I/O event for developers in 2018, it made a demonstration that included its AI-powered Google Assistant making an appointment with a hairdresser. The technology may be used to replace offline bookings.

“

You dial a number, you think you’re speaking to a human, but you’re talking to a machine rather than a human” Keesup Choe, CEO, PredictX

speaking to a human, they are asking the same questions, but you are actually talking to a machine rather than a human. We are just on the brink of that possibility,” says Choe. FCM’s Michel Rouse raises one concern of this future – the fear that AI will become a black box whose operation is opaque to its users. “The minute the machines are thinking and making educated choices for you, it is important for humans to understand why it is doing it that way.” AI has arrived in business travel – it is up to us to decide what we want it to do. 

“You call a number, you think you are

“These are static, deterministic models,” says Choe. “If the market changes - if market share changes, there is consolidation or there are external changes, such as Brexit - then the model will stop being effective. With AI/ machine learning, the new models look at the primary factors and are adaptive to changes in those factors.” AI-powered revenue management models are now being used by airlines to optimise for the highest yield in real-time. And some innovative travel buyers are doing their own AI thing too. Rouse says, “You have a few companies – the tech companies and consultancies particularly – that are well geared towards AI. EY, for example, has a sizeable development team and can focus energy on these things. Some customers will develop their own sets of technology but it will generally be complementary to what a TMC can offer.” Choe says it is the buyers with the biggest travel spends who are adopting AI in-house. “These companies tend to FCMUPGRADEASIA.COM

EVENTS

A socially responsible turn of events Corporate events are no longer only about learning or networking - they can also help support company CSR initiatives

vents may be a broad church – training, internal conferences, external client events – but even conferences on the most serious of topics look for ways to engage the audience and encourage relationship or team-building. As corporate social responsibility becomes more prominent in everyone’s consciousness, savvy event organisers are increasingly looking for activities which are engaging and rewarding for participants while also giving back to the community. Rachel Capell, Operations Director at cievents UK, stresses that devising the ideal CSR activity for an event is completely dependent on what it is the client wants to achieve. “One size doesn’t fit all,” she says. “When a new client brief comes in, we begin by asking them a series of questions, such as ‘what is the primary objective of the event?’ ‘What do you want the delegates to come away with?’ We

Issue 1

review the company’s overall strategic goal – why they’re having this event, the demographics of the attendees, the location, the budget. It’s sometimes challenging to find an activity that every demographic can enjoy and relate to, however we do our best.” CSR event decision-making will also depend on whether a company supports a particular charity. “We are finding that more and more clients are becoming affiliated with specific charities,” says Capell. “In this instance, our event manager will discuss options to find an activity that benefits both parties.” Different company cultures – or the culture of the event’s location – can affect the choice of beneficiary. For example, Capell describes an event she recently organised in China where the preponderance of pollution in the country meant that an environmental charity would not be appropriate. CSR events can be tailored to any location, duration, or culture and,

most importantly, they can be fun and rewarding. Come up with your own idea or try one of these CSR activities for your next conference or team-building event: BUILD-A-BICYCLE This engaging and rewarding activity requires the group to be divided into teams of between four and eight participants. Teams are given a “Prove Book” containing a series of challenges – each of which is rewarded differently – to earn tokens that can be exchanged for the tools and parts needed to build the bicycles. The activity ends with the assembling of bicycles by each team. The participants can either then experience the joy of delivering the new toy to nominated disadvantaged children or they can select their own charity. TREE-MEND-US This is a group’s chance to demonstrate the grit and determination (and experience the passion) it takes to attain valuable ‘gold’ coins which will subsequently be used to ‘purchase’ the tools and materials needed for the group to plant trees. The group’s participants, divided into smaller teams, are rotated around a game to win points, which are allocated according to the team’s performance in each task. Games may include Trolley, Aqua Dot, Angry Birds, Puzzled, Bean Bag Toss, Giant Jenga, Dodge Ball and Da Vinci Bridge, which are a mix of mental and physical to ensure that there’s something for every member of the group. By planting a tree on one of these sites, such as a park in Malta, the teams will gain the huge satisfaction of having contributed towards reforestation. Delegates will be contributing towards a better environment and helping create greener and healthier places for people to enjoy for generations to come.

MISSION KILO This activity’s objective is to help those in need in the community by collecting the greatest number of kilos of food to donate to the local food bank. All participants are assigned a role and an organiser will distribute clues booklets, coins and the rest of the equipment. The specifics are specially designed with the contestants’ profile and the company’s objectives in mind. The trails will include references to companyspecific details such as products and markets, as well as taking account of the life and history of the town. Once the stipulated time has passed, all the teams will be in the briefing area where the person in charge of the town’s food bank will be waiting to accept all the food that participants have obtained during the activity. NEST HOUSES WORKSHOP In this activity participants build nesting houses for different species of birds. The group will be divided into groups of about five. They will be greeted at the destination by qualified monitors with signs bearing the names of the different teams which will be animal species,

native to the location of the specific event. The monitors will welcome the participants with explanations of what each is going to develop and take them to their specific workshop locations where, under the supervision of qualified personnel, each will become a bird’s house architect for a few hours. Uniforms with the month and date of the event can be created which participants can wear on the day and then keep as a souvenir of the event. SOLARBUDDY Over the last year, delegates and staff attending various FCM events have been building SolarBuddy lights as part of the conference programme. Approximately 18% of the world’s population has no access to electricity. This equates to 1.4 billion people living in the dark - which severely impacts their education, health, the economy and the environment. This activity’s objective is to help break this cycle and improve the educational opportunities of children living in darkness by providing them with solar lights so that they can study after dusk. Building these lights not only fosters more meaningful experiences for participants but also inspires them to spread the word about energy poverty. Each kit comes with instructions and takes around 15-20 minutes to build using a basic screwdriver. The SolarBuddy light kits can be branded with the corporate’s company identity. At last year’s FCM global conference in Berlin, staff built 2,000 SolarBuddy lights which were shipped to children in Papua New Guinea and South Africa. And at FCM’s recent Focus conference, delegates made 400 SolarBuddy lights which have been sent to children in Madagascar.  FCMUPGRADEASIA.COM

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FCMâ&#x20AC;&#x2122;S THOUGHT-LEADERSHIP AND EDUCATION INITIATIVE. BRINGING TOGETHER THE CORPORATE TRAVEL INDUSTRY WITH KEY EXPERTS TO EXPLORE TRENDS, BEST PRACTICES, THE FUTURE OF BUSINESS TRAVEL AND MORE!

6 NOVEMBER 2019 Island Shangri-La, Hong Kong, 3pm Email Jade.Lynch@sg.fcm.travel to register interest

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