TCT 39

The

Corporate Traveller

Spring 2011 No. 39

Latin American mega-airline LATAM inches closer to take off “This is your Captain Speaking!”

The life of a Commercial Air Pilot London City Airport’s future plans An interview with CEO Richard Gooding

The EU-US Open Skies agreement

What has it achieved?

“I expect a dedicated queue at the airport for those who have taken the trouble to check in online”

Business Travel Trends 2011

Dragan Barbutovski, Frequent Traveller

THE

BUSINESS-TO-BUSINESS

MAGAZINE

FOR

THE

CORPORATE

TRAVELLER

IN

THE

BENELUX

Brighter, Bolder, Better

At Amadeus we aspire to be Brighter, Bolder, Better Amadeus people all around the world are working together, helping you be brighter. Our bolder approach to innovation is enabling every step of the travel chain. We aspire to deliver better service and solutions to drive your business results. Together we can build a Brighter, Bolder, Better future for the travel industry.

www.benelux.amadeus.com

ANTWERP AIRPORT Presentation

Flights

» OFFICIAL NAME OF THE AIRPORT:

» 2 MOST IMPORTANT DESTINATIONS AND THEIR CONNECTIONS SERVED BY REGULAR FLIGHTS:

ANTWERP AIRPORT

» COMPLETE ADDRESS: Luchthavenlei z/n 2100 Antwerpen

» WEBSITE: www.antwerpairport.be

» DESCRIPTION OF THE AIRPORT AND MAIN ASSETS: Save time at Antwerp Airport: easy access, free parking, and check-in up to 20 minutes prior to departure.

» LOCATION: 50 km from Brussels 5 km from Antwerp 65 km from Ghent 160 km from Amsterdam 100 km from Rotterdam 90 km from Eindhoven

» ACCESSIBILITY: 5 km from the R1, exit No. 3 5 km from the E34, exit No. 18 5 km from the E19, exit No. 5a or 6 Nearest train station: Antwerpen-Berchem

To London City with City Jet Frequency: 26 flights/week with direct transfer to Dublin, Dundee, Edinburgh and Nantes.

To Manchester with City Jet Frequency: 16 flights/week with direct transfer to Belfast, Glasgow, Inverness and Isle of Man.

» PRIVATE JET COMPANIES HAVING THEIR HUB ON YOUR AIRPORT: FLYINGGROUP ASL Abelag

Services » BUSINESS FACILITIES (FOR CORPORATE TRAVELLERS): Free wireless Internet: No > paying service Business Lounges: • Number: 1 • Upon invitation by the airline, tour operator or travel agent, or to be booked online at www.cityjet.com Check-in: 20 minutes before departure Internet check-in: Yes Meeting facilities: • Number of meeting rooms: 4 • Capacity of the meeting rooms: From 6 to 50 • Reservation through: +32-3-285.65.13 Car rental desks: Hertz, Avis Airport Shops open from 6.30 a.m. to 17.30 p.m.

The

Corporate Traveller

THE CORPORATE TRAVELLER THE BUSINESS MAGAZINE FOR THE CORPORATE TRAVELLER IN THE BENELUX

CIRCULATION 26.000

content

Industry News

be adding 709,000 additional seats to its network

007 The Journal

this year.

News from the travel industry

Travel Management 018 Discover efficiency by Thalys and travel in all simplicity

039 easyJet links Brussels with Liverpool, gateway to the North West of England In February easyJet opened a new route between Brussels and Liverpool, operating six times a week.

With Ticketless, click and travel with simplicity.

DIFFUSION Belgium, France, Luxemburg and The Netherlands

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PUBLISHED BY LEO bvba 1, rue des Ixellois, 4000 Liège, Belgium Tel: 0032 (0) 4 224 7871 Fax: 0032 (0) 4 226 9484 E-mail: jp@eventbox.be

Travel without any paper ticket and modify your reservation according to your needs, without stress or waste of time.

041 Air New Zealand celebrates first planes with revolutionary Skycouch Air New Zealand is celebrating the arrival of its first Boeing 777-300ER aircraft equipped with the

020 A great potential for third-party services A global study commissioned by Amadeus shows that revenues from third-party services are set to grow 10 times faster than general travel industry sales.

revolutionary new Skycouch in economy class.

042 Brussels become Qatar Airways’ 98th route Qatar Airways has launched a new service between Doha and Brussels. The Brussels route, which was

PUBLISHER Erik De Ridder – E-mail: edr@eventbox.be

MANAGING EDITOR Jean Paul Talbot – E-mail: jp@eventbox.be

EDITORIAL TEAM Joanna Pays, Angela Antrobus, Jeroen Coteur, Jacques Legros

ART DIRECTOR Bert Wagemans

SUBSCRIPTIONS Subscriptions to The Corporate Traveller cost € 75 per year (excluding VAT). Costs of delivery to destinations outside of Benelux and France are in addition to this price. Student

023 The EU-US Open Skies agreement: what has it achieved?

inaugurated by Qatar Airways’ CEO Akbar Al Baker, is the airline’s 98th destination.

What exactly has been achieved by Phase 1 of the EU-US Agreement, which came into effect in 2008 and Phase 2 ratified this summer?

044 Latin American mega-airline LATAM inches closer to take off On January 19, Chile’s LAN Airlines and Brazil’s TAM

024 Trends for 2011

SA made a major step forward in their merger plans.

After two especially difficult years for the travel

The result will be creation of LATAM Airlines, one of

industry in general, 2010 showed signs of a recovery.

the ten largest airline groups in the world.

What do 2011 and the coming years hold?

Associations 029 Travel managers: survival of the fittest

Airports 047 London City Airport, the UK’s leading business airport

“To adapt or to fade away.” A credo true for all

Richard Gooding, LCA’s Chief Executive, tells us about

necessary to obtain a student subscription. Subscription requests

professionals, including those from the travel industry.

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Insider 030 “This is your Captain Speaking!”: The life of a Commercial Air Pilot

Destinations 050 Shangri-La and Raffles pick Paris for European flagships Paris has been chosen by two of Asia’s leading luxury

Did you ever dream of becoming a pilot? Captain

hotel brands, Raffles and Shangri-La, for their first

Kunal Khajuria of Jet Airways shares with us what it

steps into Europe.

means to be a fully fledged commercial air pilot.

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052 Ukraine International Airlines relaunches Brussels - Kiev route

Graeme Barnett, Event Director at Reed Travel

Ukrainian International Airlines reopened the Kiev-

Exhibitions gives us the highlights of the show and

Brussels route at the end of September last year, with

what is in store for 2011.

5 direct flights per week (6 as from 5th June 2011).

Schaubroeck, Nazareth

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4 | CORPORATE TRAVELLER.NET

spring 2011|

034 The Corporate Traveller Interview: Dragan Barbutovski

Lifestyle 054 A unique wireless sound experience

Dragan Barbutovski, frequent traveller, is currently

No matter whether connected to a television set or a

based in Pristina, the capital of Kosovo.

hi-fi system – the RS 160, RS 170 and RS 180 guarantee

Airways 036 Brussels Airlines expands capacities and services

an excellent sound experience.

Advertorial 038 Dare to Explore

With its increased frequencies and seat capacities

A new, inspiring meeting and events concept from

on numerous European routes, Brussels Airlines will

Hotel BLOOM!

The Traveller Journal News from the travel industry

Boeing unveils new 747-8 Intercontinental high capacity aircraft Boeing has unveiled its 747-8 Intercontinental high-capacity passenger airplane. The 747-8 offers the lowest operating costs and best economics of any large passenger airplane, while providing enhanced environmental performance.

The 747-8 Intercontinental will have the lowest seat-mile cost of any large commercial jetliner, with 12 percent lower costs than its predecessor, the 747-400. The airplane provides 16 percent better fuel economy, 16 percent less carbon emissions per passenger and generates a 30 percent smaller noise footprint than the 747-400.

Boeing unveils 747-8

Saudi Arabian Airlines and Middle East Airlines to Join SkyTeam SkyTeam is to welcome its two first member airlines from the Middle East in 2012.

SkyTeam is actively working to strengthen its presence in the Middle East and the addition of Saudi Arabian Airlines alone will add 35 new destinations to the alliance network, giving passengers access to destinations across the Middle East not currently served by SkyTeam members.

Middle East Airlines, the national airline of Lebanon, is one of the leading Middle Eastern carriers. From its home base in Rafik Hariri

6 | CORPORATE TRAVELLER.NET

International Beirut, Middle flies to 30 destinations Middle East Africa.

Airport in East Airlines international in Europe, and West

SkyTeam significantly accelerated its global expansion last year, with China Eastern, Shanghai Airlines, China Airlines, Garuda Indonesia and Aerolineas Argentinas all confirming their future memberships. Saudi Arabian Airlines and MEA are the first announcements to be made this year by SkyTeam on new member airlines.

spring 2011 |

EU recognizes Amadeus as European leader for R&D investment Amadeus has been highlighted by the European Commission as one of the leading companies in Europe for investment in Research & Development (R&D).

The 2010 EU Industrial R&D Investment Scoreboard, an annual report published by the European Commission, examined the largest 1,000 European companies investing in R&D during 2009 and ranked them according to the total amount spent. Amadeus invested €250 million during 2009, a 10% increase on 2008. It achieved first place in two European-wide categories – for total R&D investment in the computer services category and for total

R&D investment in the area of travel and tourism.

Amadeus was also recognized as third largest investor in R&D in Spain over all business sectors.

Amadeus’ total budget spent in research and development since 2004 stands at more than €1.2 billion, reflecting a consistent investment every year of around 10% of consolidated revenues.

The company currently has a team of 4,000 people working in R&D, with sixteen research centres around the world (Nice, London, Sydney, Antwerp, Aachen, Frankfurt, Munich, Boston, Miami, Toronto, Strasbourg, Tucson, Bangalore, Bogota, Warsaw and Bangkok).

Etihad opens premium lounge in Dublin Etihad Airways, the national airline of the United Arab Emirates, has opened a premium lounge at Dublin Airport’s Terminal 2.

The new 332m2 lounge has expansive views of the airport and offers Etihad’s premium customers a range of top quality facilities and services that have not been seen in Ireland before. There is a high-tech business centre equipped with Mac workstations with broadband access and printer facilities, along with free WiFi for those that prefer to work from their own laptops. The comfortable lounge area is furnished with Italian leather chairs, soft sofas and a library of books, magazines and newspapers from around the world. Other features include shower rooms, a family room, a bar and a wide variety of food options.

The Traveller Journal News from the travel industry

Travelport and Air Canada Continental Airlines offers Sign Multi-Year Full Content BusinessFirst Flat Bed seats on Boeing 777 to Brussels Distribution Agreement Travelport has signed a new multi-year agreement with Air Canada. Through the agreement, Air Canada provides all Travelport travel agency customers, both offline and online, access to all its fares, seat availability, fare families and optional services.

As part of the agreement, Travelport is to launch an enhanced version of Travelport Agencia™ in Canada, in the first half of this year. Travelport Agencia is the travel agency desktop tool specifically designed

to meet the needs of the Canadian marketplace through its ability to aggregate traditional content and optional services from multiple sources.

Travelport Universal Desktop, which is currently in testing in Australia and will go into market deployment in 2011, will be another enabler for Travelport customers outside of Canada to access the full array of Air Canada’s content and products.

Matthew Hall to join London City Airport Matthew Hall is to join London City Airport as Chief Commercial Officer.

Matthew, who took up the new post at the beginning of March, brings with him a diversified background in aviation which includes extensive experience in sales and marketing. His previous positions include Vice President, Airline & Supplier Business Development, for Travelport and Managing Director, Sales and Marketing EMEA, for American Airlines.

Continental Airlines’ daily services between Brussels and its New York hub, Newark Liberty International Airport, will be operated on Boeing 777 aircraft until 18 May 2011. Passengers travelling in Continental’s BusinessFirst cabin class will benefit from the Flat Bed seats with which all the airline’s Boeing 777 aircraft are now equipped.

Continental’s BusinessFirst Flat Bed seat reclines 180 degrees and provides nearly 2 meters of sleeping space in the fully extended position.

It is one of the widest business class seats in the air, measuring up to

68 cm. Laptop power, headset and USB plugs are conveniently tucked above the customer’s shoulder. iPod connectivity allows customers to view their personal videos and enjoy their music while their iPods are charging.

The new seats feature 39cm video monitors for customers to enjoy 250 on-demand movies, 300 TV shows, 3000 audio tracks with a jukebox feature, 25 games and the interactive Berlitz Word Traveler foreign language program.

Continental will begin retrofitting substantially all of its Boeing 767 aircraft with BusinessFirst Flat Bed seats over the course of this year.

easyJet reaches 50 million passengers a year easyJet has passed a significant milestone, reaching the landmark figure of 50 million passengers each year.

Jet Airways innovates with Quick Response mobile barcodes Jet Airways has adopted the latest in Quick Response (QR) mobile barcode technology. This initiative means that customers can now use their smart phones for immediate access to real-time information on Jet Airways’ products and services.

Jet Airways has already started using the QR barcodes on its website, Facebook posts and inflight magazine, to allow guests access to additional information about offers and promotions. In the second phase of the deployment, Jet Airways plans to include the quick response barcodes on their eTickets as well.

Jet Airways has collaborated with 3GVision, a pioneer in mobile barcode solutions and advanced image processing technologies, on the project to fast-track consumers to its mobile internet site. The QR barcodes can be read using 3GVision’s i-nigma reader which can be easily downloaded onto a wide variety of smart phones. When the mobile phone is pointed at the barcode to scan it, the user is automatically directed to the mobile internet site to navigate through the airline’s editorial content and promotional offers and services.

The airline has seen phenomenal growth since it began operating in 1995, increasing in size from just two aircraft, with two routes and carrying 424,000 passengers in its first year. Today easyJet is one of the largest airlines in Europe operating 196 aircraft on 552 routes, across 30 countries.

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spring 2011 | 7

The Traveller Journal News from the travel industry

Etap’s new Hotel Antwerp Port is brand’s 8th in Belgium January 17 marked the opening of the 8th Etap Hotel in Belgium, with the inauguration of Etap Hotel Antwerp Port.

Amadeus has launched a new online booking tool for travel agencies - Amadeus e-Power.

Amadeus e-Power is designed for travel agencies selling their products and services online and can be used to book flights (including with low cost carriers), as well as hotels and car rentals. The online solution shows real-time information and proposes the best air fares for return trips or multi-destination routes, thanks to the Amadeus Master Pricer technology.

With 200 flight recommendations and the possibility to see in a 7 day calendar which is the best price, the online user can now compare all prices in the same website, without the need to switch from one website to the other.

Accor positions its Etap hotels as ‘the best of low cost’ and is actively pursuing the brand’s development in Europe, particularly in Belgium. Following on from previous openings in Ruisbroek, Charleroi, Brussels, Liège, Antwerp, Raeren and Bruge, Groupe Accor chose the Port of Antwerp for the implementation of its eighth Belgian hotel under the Etap logo.

Located at the highway intersection on Antwerp’s north ring road, the new hotel is easily accessible by road or by public transport. Etap Antwerp Port offers 105 ‘Cocoon’ rooms from 49 euros per night, with free WIFI connection.

8 | CORPORATE TRAVELLER.NET

spring 2011 |

Amadeus e-Power launch

Etap Hotel Antwerp Port

Amadeus e-Power can be adapted to the look and feel of the travel agency’s website. The flexible configuration allows travel agencies to tailor the content and parameters to their needs, getting them online quickly and securely. Credit Card verification or external Payment Service Providers can be implemented and each confirmed booking is automatically sent to Amadeus Selling Platform for processing and ticketing.

The Traveller Journal News from the travel industry

Turkish Airlines announces extensive network expansion for 2011 Turkish Airlines is adding 11 new destinations to its rapidly expanding network this year.

Already launched as part of this new schedule are 3 weekly flights to Guangzhou

in China. March saw the opening of services by the airline to Los Angeles, Valencia and Shiraz.

Routes to Malaga, Salonika, Toulouse, Manila, Naples, Turin and Genoa are set to follow later in the year.

Etihad and Hertz partnership to create seamless Air-to-Road luxury travel

Global study identifies 30% growth in revenues from third party sales by 2015 Revenues from third-party services are set to grow 10 times faster than general travel industry sales, accounting for 2.5% of total revenue travel providers by 2015, according to a new report commissioned

by Amadeus.

The study, entitled ‘Cross-Sell Your Way to Profit’ was developed for Amadeus by independent research firm Forrester Consulting. The report forecasts that thirdparty services are to deliver an improved passenger experience and greater revenues for airlines, hotels, cruise and rail providers.

Revenues from third-party sales are expected to grow by 30% by 2015, with new services such as virtual reality tours and digital concierges set to transform the customer experience over the next ten years. The study highlights what travel providers must do to effectively market new services and outlines the central role of mobile technology in driving adoption of new services in the next five years.

While traditional third-party services such as insurance, car rental and hotel room sales are expected to remain popular, travel providers see great potential in a range of, as yet,

Etihad Airways has signed a three-year agreement with Hertz, bringing the airline’s passengers a broad range of worldwide car rental benefits and money saving offers. Hertz car rental services are now available to all Etihad customers worldwide through multiple reservation channels.

Etihad CEO James Hogan and Hertz President Michel Taride

The partnership is designed to integrate the technology platforms of both Hertz and Etihad Airways, to deliver a seamless travel experience from the departure gate to the driving seat. Hertz has built a new dedicated microsite allowing Etihad customers to conveniently book online, and has also created a unique platform enabling Etihad Call Centre staff to offer customers

unexploited, products and services. By 2020, more than half of travel providers expect to offer virtual reality services that can help passengers experience airports, hotels and cruise ships before arrival. 80% of agencies expect to offer digital concierges to improve the in-hotel or airport experience.

“Today the industry is focused on the opportunity à la carte’ ancillary services offer, but this study spotlights the growing and significant contribution of third-party sales” commented Marcos Issaac, Director Travel Services Business Group at Amadeus.

“Travellers are set to benefit from a host of innovative services in the future, often delivered by companies outside the travel industry. Travel brands of all types need to understand who to form partnerships with, what the revenue potential is and how best to sell third-party services if they are to maximize this opportunity.”

Cross-Sell Your Way to Profit is part of the Amadeus Traveller Series, a global research initiative designed to stimulate new thinking and innovation in the travel sector. A copy of the study can be obtained from http://www. amadeus.com/Benelux/cross-sell-for-profit.

a competitive deal on car hire when booking their flights by phone.

Benefits of the new global alliance for Etihad passengers include exclusive promotions offered through the car rental tab at etihad. com, and 500 Guest Miles with every rental. To mark the beginning of the new partnership, all Etihad customers renting a car with Hertz by April 30, 2011 will have the chance to win a luxurious package of two return Etihad flights to either Europe or Australia, five nights’ 5-star accommodation at Relais & Chateaux, and the use of a Hertz Prestige Collection vehicle for five days to explore the open road. More details can be found on the Etihad website, www. etihad.com.

| CORPORATE TRAVELLER.NET

spring 2011 | 9

The Traveller Journal News from the travel industry

KLM Updates Online travel companies Business Class on unite for global reach European flights KLM Royal Dutch Airlines passengers are now able to enjoy a new European Business Class.

The new Europe Business Class provides business travellers to European destinations with more seat comfort and space, an improved catering service and priority service on departure and arrival. This product replaces KLM Europe Select and a seat in the new Business Class will provide 50 percent more room than before, as the middle seat will always be left empty.

Besides improving the level of comfort, this also offers business passengers more privacy. KLM continues to offer Europe Business Class passengers greater efficiency

by providing priority departure and arrival services, such as Premium Check-In, extra baggage allowances, access to airport lounges and priority during boarding and baggage processing.

The menu and presentation of meals on board is also being enhanced. A highquality menu containing a range of choices will be offered, served on tableware designed by Dutch designer Marcel Wanders.

BCD Holdings N.V. has announced the merger of online travel companies CheapTickets, Vliegwinkel, Flugladen, BudgetAir, and Vayama. Together with investors ING Corporate Investments, Bluefield Investments, and the owners of Beins Travel Group (CheapTickets), BCD Holdings is to unite these companies to form a new, larger internet travel organization with a global reach.

“Each of these companies has continuously pushed the boundaries and they complement each other in many ways” said Raymond Vrijenhoek, CEO Beins Travel Group.

CheapTickets and Vliegwinkel are industry leaders in the Netherlands and Germany.

Vayama has quickly matured on the American online travel market and has been successfully launched in Canada, England, Thailand, Hong Kong and Singapore, while online travel agent BudgetAir recently expanded its activities in Belgium, France, and England.

The new organization is active in more than 15 countries, with approximately 350 employees and an annual total revenue of over US$750 million. “The merger of these companies results in one strong and international online travel company” said Joop Drechsel, CEO of BCD. “Our common goal is to strengthen our current representation in the various countries, as well as expanding our activities in the remaining parts of Europe and in Asia.”

Europe Business Class is being introduced on all flights in Europe that are operated

by KLM or KLM cityhopper.

This amounts to around 500 flights a day to more than 60 destinations.

The Corinthia Hotel London, the UK capital’s newest 5-star luxury hotel, is now open for reservations.

Located in the centre of London, in Whitehall Place, the Corinthia Hotel London is the result of a meticulous reconstruction of what was originally an imposing Victorian-era grand hotel. Now reborn to a new standard of craftsmanship and service, Corinthia London features 294 rooms and suites, including the Royal Suite, which is the largest in London.

Of the 43 suites, there are seven signature suites, each inspired by a great figure in British history. The signature suites are served by their own internal lifts, and located inside historic turrets featuring terraces with views across some of London’s most iconic landmarks.

Corinthia Hotel London will be a world-classdiningand leisure destination for Londoners, as well as visitors. A beautifully refurbished grand ballroom takes center stage and includes restored Victorian features.

The hotel’s main restaurant, The Northall, celebrates the best of British artisanal produce. The menu offers the highest quality of raw, seasonal, and sustainable ingredients from local sources and an organic-focused wine list. In addition, the hotel features two striking venues conceived by world-renowned interior design practice, David Collins Studio. The musically-inspired destination bar, Bassoon, will serve both molecular cocktails and colonial-inspired drinks

Corinthia Hotel London is UK capital’s newest 5 star from its boutique spirits library.

Massimo Restaurant and Oyster Bar, headed by Italian chef patron, Massimo Riccioli, offers an exciting menu specializing in fish with a strong focus on daily catches and the highest quality ingredients.

The award-winning international spa company, ESPA, will raise the bar on spa excellence with its new flagship ESPA Life at Corinthia.

The next-generation spa is spread over 35,520 ft² on four floors and

will offer fully-integrative lifestyle solutions and luxury spa treatments.

Legendary colorist and hairdresser, Daniel Galvin OBE, will open a second London salon within the hotel.

In a unique twist, a private room in the salon will offer a library of over 25,000 films for VIP clients from the performing arts and film industry to use as a reference for their own hairstyles, color, and make-up. Other firsts for the hotel include a Harrodsinspired luxury lifestyle concept store in the main lobby.

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spring 2011 | 11

The Traveller Journal News from the travel industry

bmi and SWISS announce new services to Basel British Midland International (bmi) and SWISS have launched new routes from London Heathrow and Manchester to Basel, Switzerland.

Airbus A319 aircraft offering a full service business class and economy cabin, with conveniently timed schedules for both business and leisure customers.

The routes are operated in partnership with SWISS, and offer three flights per day on weekdays between London Heathrow and Basel, with two services on Saturdays and Sundays, and a daily weekday flight between Manchester and Basel. Services will be operated by bmi using an

bmi business class customers, Diamond Club gold and silver members can take advantage of bmi’s flagship international lounge, The Great British Lounge, at London Heathrow Terminal One. Star Alliance gold members are also offered complimentary lounge access.

Amadeus launches booking tool for corporations Amadeus has released version 14.0 of its flagship e-Travel Management solution, the self-booking tool for corporations.

The new version includes a range of enhanced features such as the Travel Arranger Workspace and the possible to access and approve trips using iPhones, in addition to Blackberry and Windows-enabled mobile devices.

“The new version maintains Amadeus’ vision of supporting corporations anywhere in the world, while locally customising solutions according to customer needs in specific markets” commented Albert Pozo, VP Multinational Business & Corporate, Amadeus. “For example, ticketless travel is now available on our system on the Thalys high-speed rail connection between Paris and Brussels.”

All of the features used by the travel arranger such as booking and modifying trips, trip reviews and profile management, are

12 | CORPORATE TRAVELLER.NET

spring 2011 |

now grouped into a single, more intuitive, work area. Coupled with enhanced search facilities, this speeds up the booking process with no need to switch between several screens.

New features within the workspace include a shopping basket where the trip can be built up by adding passenger elements quickly and easily, with a new calendar display which gives better visibility. The updated version also features improvements to Single View, the solution which shows fare-driven availability composed of several prices for each air segment. Users have the choice between one-way combinable and round-trip fares and can instantly see the lowest fare and reduce the overall corporate travel budget. In light of Amadeus being one of the few companies offering business travel solutions that support a multi-GDS approach, Single View is now extended to Galileo users.

Etihad makes 2011 ‘Essential Abu Dhabi’ year Etihad Airways has designated 2011 as the year of Abu Dhabi, with the launch of its ‘Essential Abu Dhabi’ marketing campaign.

Etihad need only to present their Etihad boarding card at participating outlets to redeem the offers within seven days of arriving in Abu Dhabi.

Designed to enhance Abu Dhabi’s position as a leading MICE and tourism destination, the campaign will see Etihad unveil a number of promotional activities across the globe. Hotels, tour operators, dining outlets, shops, adventure parks, cultural attractions and sports facilities are providing a range of offers, to entice business and leisure travellers to spend time in Abu Dhabi with a range of discount offers and deals. All are accessible with the Etihad Airways Boarding Pass, using the tagline ‘the pass to the magic’.

Visitors flying into Abu Dhabi on

As part of the campaign, a dedicated website, essentialabudahbi.com, has been created. In addition, a new Etihad Airbus A330 aircraft will be painted in a striking ‘Visit Abu Dhabi in 2011’ livery, which will carry the message to international destinations around the world.

The campaign is being supported by the Abu Dhabi Tourism Authority as a major partner and demonstrates the commitment of the entire local tourism industry to work effectively together to promote Abu Dhabi as a major global destination.

Star Alliance expands its Upgrade Awards program Frequent flyers on the Star Alliance network can now use their miles to upgrade when travelling on Air Canada, TAM and US Airways.

The three carriers have become participating members of the Star Alliance Upgrade Awards program which enables customers to use points from their Frequent Flyer Program accounts for one-class upgrades with Star Alliance airlines.

Brussels Airport wins Best Wine Bar award The Beaudevin wine and tapas bar at Brussels Airport was named Best Wine Bar at the worldwide Airport Food & Beverage Awards, which took place in Manchester in January.

The Airport Food & Beverage Awards elects the best airport bars and restaurants in 17 award categories.

Beaudevin tied in first place for the Best Wine Bar Award with Newark, New York Airport’s Vino Volo. The airports of Amsterdam and Heathrow shared the award for best design of overall food and beverage facilities.

The Traveller Journal News from the travel industry

New York City drew record breaking 48.7 million visitors in 2010 New York City drew a recordbreaking 48.7 million visitors in 2010. The higher-than-projected 6.8 percent increase over 2009 keeps the City on pace to meet its goal of attracting 50 million annual visitors by 2012 – a goal set in 2007, prior to the national recession.

To meet these growing demands, New York’s hospitality industry added

6,600 jobs and nearly 7,000 hotel rooms during 2010. “This past year was New York City’s most successful year for tourism ever, and we’re well on our way to achieving our goal of attracting 50 million visitors a year” said New York City Mayor, Michael R Bloomberg. “The strength of our tourism industry is one of the reasons New York City was less impacted by the national recession than other cities, and it continues to be one of

IATA forecasts 800 Million more air travellers by 2014 IATA, the International Air Transport Association, has released an industry consensus forecast which predicts that by 2014 there will be 3.3 billion air travellers. This is a rise of 800 million from 2009’s figure of 2.5 billion air passengers.

China will be the biggest contributor of new travellers. Of the 800 million new air passengers expected in 2014, 360 million will travel on Asia Pacific routes and of those 214 million will be associated with China (181 million domestic and 33 million international). The United States will remain the largest single country market for domestic passengers (671 million) and international passengers (215 million).

“Despite some regional differences, the forecast indicates that the world will continue to become more mobile” said Giovanni Bisignani, IATA’s Director General and CEO. “This creates enormous opportunities but also presents some challenges.

In five years we need to be able to handle 800 million more passengers and 12.5 million more tonnes of international cargo. To realize the economic growth potential that this will bring, we will need even more efficient air traffic management, airport facilities and security programs. Industry and governments will be challenged to work together even more closely.”

The industry forecast highlights that the fastest growing markets for international passenger traffic will be China, followed by the United Arab Emirates, Vietnam, Malaysia and Sri Lanka. By 2014, the top five countries for international travel measured by number of passengers will be the United States (at 215 million, with an increase of 45 million), the United Kingdom (at 198 million with an increase of 33 million), Germany (at 163 million with an increase of 29 million), Spain (123 million with an increase of 21 million), and France (111 million with an increase of 21 million).

the reasons we’re growing faster than other cities today. The industry employed more New Yorkers in 2010 than ever before, and the $31 billion visitors spent this year supported our restaurants, shops, hotels and cultural institutions.

We’re constantly looking for ways to strengthen and diversify our economy, and growing our tourism industry is an important part of that work.”

Michael R Bloomberg

ibis celebrates 900th hotel worldwide Since its creation in 1974, ibis has expanded to become Europe’s leading economy hotel chain and the fourth largest worldwide. At the end of January it celebrated the inauguration of its 900th hotel, with the opening of the ibis Tanger City Center.

After the opening of the first ibis hotel in Bordeaux, France, the brand went on to expand rapidly in France and Europe. The 1990s marked a turning point, with the opening of the ibis Fortaleza in Brazil and the brand’s first steps in Latin America. In 1992, ibis celebrated its 300th hotel worldwide and the start of operations in Australia, where it revolutionized the market for economy hotels. The 2000s represented a new strategic phase for the brand as it expanded into China, where it now has 50 hotels, and also into new countries such as Russia and India.

New appointment at Amadeus Benelux Amadeus Benelux has appointed Thomas de Bruijn as Business Development Manager, reporting to Bart Bellers, Director of Business Development. In his new role Thomas will promote Amadeus technology for corporations and develop sales of products, solutions and engineering services specific to this segment.

“The expansion of our local business development team with Thomas will enforce the collaboration with the corporations on one side and travel agencies on the other, with regards to our corporate solutions and services like Amadeus e-Travel Management” said Bart Bellers. “It also shows our local commitment to support our travel agency customers to further increase their foothold within corporations with the innovative travel technology of Amadeus.”

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advertorial

Leopold Hotel Antwerp Are you are looking for a business hotel with a difference in Antwerp? Look no further than the fully refurbished Leopold Hotel Antwerp. Here you will find a really friendly atmosphere at attractive rates. Moreover, Antwerp city centre lies just around the corner.

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The history of the Leopold Hotel Antwerp goes back to 1987 when it opened its doors under the name Carlton. Three years ago, the Irish PREM hotel group bought the property and started a complete renovation. “It was transformed into a four-star boutique hotel that was finally completed last year”, says Anja Van Echelpoel, Regional Director of Sales. “We have a total of 127 rooms and suites, a breakfast restaurant, a hip lounge bar, and three conference rooms.”

The revamped Leopold Hotel Antwerp is literally within walking distance of the Central Station with its various Thalys connections. “But you can also reach our location at the Antwerp City Park very easily from the motorway. And, moreover, we can offer our guests their own parking space! Leopold Hotel Antwerp combines excellent accessibility with a location close to the most important shopping streets, sites of interest, and numerous bars and restaurants.

So this gives companies the opportunity to show their foreign

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Boutique Hotel accommodation with park view guests the most attractive spots in Antwerp”, adds General Manager Filip Caluwaert.

Superbly equipped rooms

The completely refurbished rooms provide very many facilities. They all have a safe in which guests can store their laptop; each safe contains a charger as well. “We offer a docking station in all rooms for iPod and iPhone, and hotel guests can use the internet for free, both in the room as in the public areas. Guests who travel without laptop can surf the internet or consult their e-mails via the TV screen. There is a wireless keyboard in every room. For the furnishing of the rooms, we used warm colours that also appear somewhat daring. Both contemporary and luxurious.”, confides Anja. Moreover, all rooms have super-comfortable Hypnos beds, at least 1.80m wide... blissful sleeping comfort guaranteed!

The guests at the Leopold Hotel Antwerp can enjoy all these advantages, complemented by unique personal service, at attractive rates. This hotel is

the only one in Antwerp that provides ‘roomwalking’. When guests check in, they are personally escorted to their rooms and given all necessary practical information.

Hip & Healthy

But our hotel guests are also surrounded with the very best attention in the public areas. Among other things, the Leopold Hotel is renowned for its lavish breakfasts!

And, after a tiring day, guests can sit and chat at the bar counter or in the snug ‘loungy’ bar.

Finally, and very interesting for companies, we offer the recently introduced meetings package “Hip & Healthy” - an irresistible all-in formula (49 Euros for eight hours) that incorporates a load of fun extras: vitamin waters, energy drinks, various sorts of fresh juices, Ben & Jerry’s mini-ices, and wraps, sushi, and ciabattas. Literally and figuratively a dynamic package at a favourable price!

For further information: Leopold Hotel Antwerp Quinten Matsijslei 25 – 2018 Antwerp T. 03 231 15 15 – F. 03 225 30 90 sales.antwerp@leopoldhotels.com – www.leopoldhotelantwerp.com

The Traveller Journal News from the travel industry

Gordon Plomp becomes TravelTainment Country Manager Benelux TravelTainment has appointed Gordon Plomp, a sales manager with many years of international experience, as its Country Manager Benelux. In his new role, Gordon is in charge of the entire product portfolio, as well as the sales and marketing activities in these markets.

TravelTainment provides a multi-market, multi-channel distribution system for effective sale of leisure travel products. It

Alitalia increases synergies with Air France KLM and Delta Air Lines in Brussels

became part of the Amadeus Leisure Group in 2006. TravelTainment currently manages the Benelux markets from Germany and will establish an office in the Benelux region this year. “The Benelux is a key market to Amadeus and strengthening our position in the leisure segment is one of our key strategic directions” said Luc Pannecoeck, General Manager at Amadeus Benelux. The product portfolio of TravelTainment will help us to build on our existing relationship with the key players in the Benelux.”

Delta Air Lines adds Economy Comfort on long-haul flights

Alitalia has officially inaugurated its new offices situated on the 17th floor of the Louise Tower in Brussels. The Alitalia team is to co-locate with the regional offices of Air France KLM and Delta Air Lines in Belgium and Luxembourg. The four airlines will reinforce their presence on the local markets to the benefit of their customers.

Delta Air Lines plans to make major investments in its international fleet, including the introduction of a premium economy section – “Economy Comfort” – on all long-haul international flights from this summer.

“The arrival of our friends of Alitalia is an important step for us” said Vincent C o s t e , Alitalia celebrates collocation with Air France General KLM and Delta Airlines in Manager Air Brussels France KLM Belgium & Luxembourg. “This co-location enables us to develop new synergies. Our clients will benefit from a broader offer of products and services and a reinforced network.”

The seats in Economy Comfort will feature up to four additional inches of legroom and 50 percent more recline than Delta’s standard

Air France, KLM and Alitalia have been sharing their ticketing desk at Brussels International Airport since January 2010.

The city ticket office of Alitalia in Brussels has also moved, to the Midi Railway Station next to the Air France ticket desk and checkin area. .

Gordon Plomp

international Economy class seats.

The product, which is similar to upgraded Economy services currently available on flights operated by Delta’s joint venture partner Air France-KLM, will be installed in the first few rows of the Economy cabin on more than 160 Boeing 747, 757, 767, 777 and Airbus A330 aircraft.

Customers who have purchased an international Economy

ticket on Delta will be able to upgrade to Economy Comfort seats for an additional fee, while complimentary access will be available to all SkyMiles Diamond and Platinum Medallions frequent travellers.

Delta also plans to install 34 horizontal flat-bed BusinessElite seats in each of its 32 Airbus A330 aircraft by 2013.

China’s bullet train hits new top speed of 486 km/h A Chinese passenger train has broken the speed record, registering 486.1 km/h, during its recent test run on a new high speed line between Beijing and Shanghai.

The high speed line is scheduled to open later this year and is expected to cut travel times between the two cities in half, from 10 hours to 5 hours.

The project, which is costing over 25 billion euros, forms part of a country-wide initiative by the Chinese government to connect its main cities by high-speed rail. The government forecasts that around 80 million passengers a year will use the new service.

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The Traveller Journal News from the travel industry

CityJet introduces transfer facility at London City CityJet has introduced a Direct Transfer Facility at its London City Airport hub.

Passengers with onward connections at London City can proceed straight to the new CityJet Transfer Desk located just next to UK Border Control.

The move is in response to the increasing number of CityJet customers connecting via London City to destinations across its European network.

Etihad Airways increases frequencies on key European routes Etihad Airways is to boost frequencies on five key of its European routes, including Brussels, this year.

increases will become effective between June and August, on routes to Paris, Manchester, Geneva and Milan.

As from the summer of 2011, Etihad will increase flights from Brussels to Abu Dhabi, from six to eight times per week, with the introduction of services on Friday morning and Saturday evening. Other European capacity

“As we take delivery of new aircraft in 2011, our focus is on offering at least a daily service on key business routes, and wherever possible, a double-daily service, to attract a greater share of the corporate travel market” said James Hogan,

Etihad Airways’ Chief Executive Office. “The enhancements to the schedule mean that by October 2011, 74 percent of Etihad’s flight network of 66 destinations will be served by at least daily flights. At the same time, the new schedule will help us offer greatly improved connections across the network, making transiting via Abu Dhabi much more convenient for business and leisure travellers.”

Lufthansa and Airbus Delta Eliminates to operate world’s SkyMiles Expiration first passenger biofuel flights

Delta Air Lines has eliminated its SkyMiles mileage expiration, thus creating a new industryleading benefit for all members.

This program change is effective for all accounts and makes Delta the only major US carrier without mileage expiration.

Previously, Delta SkyMiles expired 24 months after a member’s last qualifying mileage activity, which required a member to earn or redeem miles within that period.

“Now that our massive frequent flyer program integration is complete, we are focused on smart ways to improve the SkyMiles program for all members” said Jeff Robertson, Delta’s VP SkyMiles.

“We know how much customers value their miles, so eliminating mileage expiration is a major win for them. This is yet another benefit that sets us apart from the pack, making Delta a clear leader in loyalty program benefits.”

This change is the latest of several enhancements made to the SkyMiles

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program in the last year including the new Diamond Medallion tier with complimentary lounge access and Rollover Medallion Qualification Miles. These features complement other recent changes such as the elimination of all award redemption fees and a free first checked bag on Delta flights for Gold, Platinum and Reserve Delta SkyMiles credit card holders from American Express.

Now in its 30th year, SkyMiles is one of the longest-running and most successful loyalty programs in the travel industry. In 2010, 8.3 percent of revenue miles flown on Delta were for award travel. SkyMiles was named ‘Best Domestic Frequent Flyer program’ for 2007 through 2010 by readers of Executive Travel magazine and ‘Best Frequent Flyer Program’ for 2006 through 2010 by Business Traveler magazine.

Lufthansa is to operate the world’s first ever scheduled commercial passenger flights using bio-fuel in the first half of this year. Using an International Aero Engine powered Airbus A321 aircraft, the daily flights between Hamburg and Frankfurt will be the first ever to use a bio-fuel blend made from 50 per cent Hydrotreated Vegetable Oil. The daily flights will begin in April 2011 and will initially continue for a period of six months as part of the ‘Burn Fair’ project to study the long term impact of sustainable bio-fuels on aircraft performance. Airbus’ role is to provide technical assistance and to monitor the fuel properties.

“We see great opportunities in the use of bio-synthetic kerosene, but we are first gathering experience with it in daily practice” said Wolfgang Mayrhuber, Lufthansa CEO. “Indeed, Lufthansa is the world’s first airline to utilise biofuel in flight operations. This is a further consistent step in the sustainability strategy, which Lufthansa has for years been successfully pursuing” The bio-fuel is being provided by Finland based Neste Oil, under a long term agreement with Lufthansa. The fuel will only be produced from sustainable feedstock sources to make sure that the bio-feedstock does not compete with resources for food, water or land.

The Traveller Journal News from the travel industry

Pandox AB takes Design award for Park Inn Hotel Antwerp over management The Park Inn hotel on Antwerp’s Astrid Square won first place in the international FX Design of Hilton Brussels has Awards, in the category of “Best Hotel Design”.

Pandox AB, the Swedish hotel group took over management of the Hilton Brussels on February 1.

The hotel on Boulevard de Waterloo in Brussels changed its name to ‘The Hotel’ and is undergoing extensive renovations. It will be positioned as a premium hotel for the international business traveller.

Renovation works to The Hotel are expected to take two years, with total investments estimated at 25 million euros. The Hotel will continue to remain open throughout this period for guests and Pandox AB has said that it will ensure that high service standards will be maintained throughout the remodelling.

With the acquisition of Hilton Brussels, Pandox AB is strengthening its position as a leading player on the Brussels hotel market.

The Swedish group now has eight hotels in Belgium, of which six are in the capital. It has been behind the successful positioning of Hotel BLOOM! and the Crowne Plaza Brussels Le Palace.

KLM and Malaysia Airlines sign memorandum of understanding KLM and Malaysia Airlines have signed a Memorandum of Understanding (MoU) to further strengthen links between the two carriers.

The hotel’s contemporary interior, was designed by London-based firm Virgile and Stone Associates. They used as their inspiration, Flemish traditional crafts and materials to reflects the style and atmosphere of the city of Antwerp. Typographical art throughout the hotel is an example of this, linking the hotel to the city’s important printing heritage, while the blue-gray woodwork is inspired by traditional handmade Flemish furniture.

The Park Inn won the award from FX Design Award amongst international competition. Runners up for

Luis Maroto UK Government to appointed Amadeus invest heavily in rail President & CEO network improvements The UK Government has unveiled major investment plans for the country’s rail infrastructures, including modernisation of the rail network and over 2,100 new rail carriages for Britain’s railways over the next ten years.

UK Transport Secretary Philip Hammond said the project aimed to tackle overcrowding, improve reliability and speed up journeys. Within the plan, 6 billion pounds of budget are to be allocated to the London Thameslink project, which will virtually double the number of north-south trains running through central London during the busiest times and provide new direct links between towns and cities north and south of the capital. Amongst other projects included within the investment plan are a new fleet of intercity trains to replace the ageing 30 year old ‘Intercity 125s’ on the Great Western and East Coast main lines.

“At a time of severe pressure on public spending, it would be tempting to cut back on investment in our railways” underlined Hammond. “But we cannot afford not to invest in Britain’s future.”

KLM and Malaysia have already been working in collaboration for 11 years and the MoU aims to offer even greater connectivity, better schedules and more choice for passengers.

KLM operate its flights daily to the Malaysian capital of Kuala Lumpur using Boeing 777-200 and Boeing 777-300 aircraft.

the ‘Best Hotel Design’ award included the Hoxton Hotel in London, 8 Degrees hotel in Hong Kong and the Yas hotel in Abu Dhabi.

KLM and Malaysia Airlines

Luis Maroto Amadeus has announced the appointment of Luis Maroto as its President and CEO. Maroto, formerly the Deputy CEO of Amadeus, has taken over the role from David V. Jones.

The succession plan for Luis Maroto to become President & CEO was originally announced in January 2010. Since then he has been working closely with David Jones and the Amadeus executive team, to ensure a smooth transition and succession.

Luis Maroto has worked for Amadeus for 11 years in a number of positions including CFO. For the last two years as Deputy CEO, he has been instrumental in Amadeus’ return to the stock market with the company’s successful IPO in April 2010 and the subsequent inclusion in Spanish blue-chip index IBEX-35.

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spring 2011 | 17

management

Welcome aboard!

Discover efficiency by Thalys and travel in all simplicity Ticketless:

T

ravel without a paper ticket: go wherever you please, whenever you please!

With Ticketless, click and travel with simplicity.

Travel without any paper ticket and modify your reservation according to your needs, without stress or waste of time.

Three steps are enough: 1. Book and receive an e-mail confirmation you can print. You also have the possibility of asking for a recall of your seat and coach number by SMS/ 2. Once on board, show your confirmation mail to the Train Manager or, if you’re a member, your card Thalys TheCard.

3. After the journey, access your former trips file on www.thalys.com and, if you wish, print a justification.

So simple!

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Wi-Fi on board:

Connect whenever you please: Wi-Fi is available throughout your journey.

As a Thalys customer you can take advantage of continuous broadband internet connections on all Thalys* trains, for browsing, reading your e-mails or working during your journey. *Service subject to availability depending on technical conditions on the day.

Service provided by 21Net and activated by Nokia Siemens Networks and Telenet.

Do you regularly travel on Thalys?

Your loyalty deserves a special reward and for this reason Thalys invites you to enter the world of the new Thalys TheCard programme: • Miles that can be exchanged for free tickets; • Access to station lounges where you can wait comfortably; • Flexibility of access to trains;

• Traffic information by SMS; • The Ticketless service allowing you to travel without a printed ticket; • Discounts at our partner hotels and car rental companies; • Taxi and motorcycle taxi reservations; and other exclusive offers all year round ...

Exchange your Miles for Reward Tickets: As soon as you join, each journey on Thalys will earn you Miles.

3 Cards, 3 status levels, 3 levels of privileges.

• TheCard Silver: fewer than 10 journeys a year.

• TheCard Gold: between 10 and 28 journeys a year.

• TheCard Platinum: more than 28 journeys a year.

Advantages that make travelling easier for you and contribute to your everyday well-being.

For further information and to become a member, visit thalysthecard.com.

« Le Salon », a private lounge:

Thalys introduces « Le Salon », a new private and confidential lounge on board, now available for reservation.

Created for you to work or hold meetings in complete privacy, you will also enjoy the same complimentary services as in Comfort 1: Wi-fi connection, meal served at your seat, international press, taxi booking.

Catering:

Sweet, savory, indulgent or light…

You are sure to find something that suits your tastes…

A catering service at your seat, included in the price of your ticket, is offered in Comfort 1*.

Thalys’ new philosophy is shown in the plates to offer more tasty and healthy meals, depending on the hour and the train you’re on. *For trips lasting more than 50 min.

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management

A global study commissioned by Amadeus provides a wake-up call to travel suppliers. It shows that revenues from third-party services are set to grow 10 times faster than general travel industry sales, accounting for 2.5% of total revenue for travel providers by 2015. The study, Cross-Sell Your Way to Profit (www.amadeus.com/Benelux/cross-sell-for-profit), was developed by an independent research firm and finds third-party services are to deliver an improved passenger experience and greater revenues for airlines, hotels, cruise and rail providers.

A great potential for third-party services A

new industry study, Cross-Sell Your Way to Profit, charts the untapped revenue potential of third-party ancillary services to the travel industry, with analysis providing a wake-up call to travel suppliers as it identifies growth of 30% in revenues from third-party sales by 2015.

The study, conducted by Forrester Consulting, identifies the growth of new ‘extreme’ services such as virtual reality tours and digital concierges set to transform the customer experience in the next ten years; highlights what travel providers must do to effectively market new services; and outlines the central role of mobile in driving adoption of new services in the next five years.

The study was developed by Forrester Consulting, an independent research firm, and commissioned

by Amadeus, a leading travel technology partner and transaction processor for the global travel and tourism industry. The study states that: “Thirdparty ancillary services provide travel suppliers with an underexplored revenue-generating opportunity, expected to increase by 30% by 2015 compared to 2010. There is growing recognition that third-party ancillary services will become important revenue contributors to travel suppliers, provided they offer a relevant product mix and

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make these services available throughout a journey and across channels. Third-party ancillary services offer the potential for travel suppliers to extend the length and breadth of traveler interactions before, during, and after a trip.”

The study is based on quantitative research with 67% of respondents drawn from travel brands that generate annual revenues in excess of $1 billion.

In addition, the study includes qualitative input from industry experts across airlines, hotels, rail and cruise operators that details the scale of the revenue opportunity, the future third-party ancillary services set to drive sales and the shifting mix of channels required to effectively sell third-party ancillary services according to customer needs.

Key findings Third-party ancillary revenue to grow 10 times faster than general sales in next five years Third-party ancillary revenue is expected to increase by 30% during the period 2010 to 2015.

Set against estimated travel industry growth of 3% during this period, analysis demonstrates thirdparty revenue growth is 10 times greater than that of general sales. The study finds third-party

ZZ Olaf Leenders, the Director of Marketing & Product Management at Amadeus Benelux

revenue is likely to represent 2.5% of total provider income by 2015 - or $25 million for a $1 billion company.

‘Extreme’ ancillary services set to transform the passenger experience allowing providers to innovate in the next 10 years While traditional third-party services such as insurance, car rental and hotel room sales are expected to remain popular, travel providers see great potential in a range of ‘extreme’, as yet unexploited, products and services. By 2020, more than half of travel providers (54%) expect to offer virtual reality services that can help passengers experience airports, hotels and cruise ships before arrival, digital concierges to improve the in-hotel or airport experience (80%) and in-journey spa treatments (37%). Travel providers expect future services to be shaped by a combination of macrotrends with mobile having the greatest impact (81% believe it very important) and the rise in travel to-and-from emerging economies is also viewed as important (59% believe it either important or very important).

Mobile to match websites as primary channel for third-party sales Although respondents recognise the limitations of mobile’s effectiveness to sell third-party services today, ranking it behind traditional channels such as airline ticket offices and hotel front desks, they expect a dramatic increase in importance over the next five years. Driven by the increasing penetration of smartphones and tablet devices, as well as the industry’s desire to develop more flexible selling capabilities travel providers believe mobile will be a very close second to websites in terms of effectiveness to sell third-party services by 2015.

Increasingly mobile will be a primary channel for the sale of third-party services beyond the booking stage.

Respondents also highlight social media and selfservice kiosks as increasingly important channels to reach customers with third-party offers.

Cross-Sell Your Way to Profit is part of the Amadeus Traveller Series which is a global research initiative designed to stimulate new thinking and innovation in the travel sector.

“Still a great deal of opportunities for the travel industry” Olaf Leenders, the Director of Marketing & Product Management at Amadeus Benelux, explains why Amadeus conducted this study. “At the moment, ancillary services are a real trend in the travel industry. This is the reason we commissioned a study - to take a look at what’s going to happen over the next few years. It seems that the revenues that will come in from ancillary services will see a spectacular increase in the years to come. First and foremost, the ancillary services offered by the travel providers themselves, but also the so-called third-party ancillary services.”

Although the results of the study were not completely unexpected, they do give a strong signal. “For certain, I think that it is a wake-up call for some of the players in our industry,” says Leenders. “In any case it is a confirmation of the fact that there are still a great deal of opportunities within the travel industry. This is because these ancillary services are promoted in order to improve the travel experience of the traveller, but they also allow for the travel providers to generate new sources of income. You are now seeing that fares are being sold unbundled. Services that were earlier included are now taken out to keep the fares low and to meet the needs of the traveller. I’d like to make a comparison with the music industry here. Earlier, you could only buy albums with all the songs on them. Now we can buy music by the song and completely follow our own tastes.”

For Amadeus, the results of the study are interesting material to assist in the development of new products. “Our goal is to answer the demand of travel suppliers to offer these ancillary services in a manner that is as optimal as possible. In addition, we want to cater to the demand of travel agents who would like to be able to sell these services easily. In fact we have developed the Amadeus Ancillary Service with which we are busy in certain markets. As far as that is concerned, we are in the testing phase in the Benelux countries. The technology is there, but in the future it will be able to go much further. Mobile technology will play a very important role here. This is because ancillary services are not just booked when the trip itself is booked, but also during the trip. And if travellers have a mobile device with them, they can obtain additional services very easily,” concludes Leenders.

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Give your seminar a sustainable footprint!

Carbon offset your meeting.

For every residential seminar held in one of its 11 hotels, Martin’s Hotels compensates all CO2 emissions by creating clean energy projects in emerging and developing countries (projects certified by the United Nations).

This compensation is certified by CO2logic, a Belgian certification organisation, recognised for its expertise and the quality of the projects in which it invests its funds.

You will receive a “Zero Emission” certificate for your company.

A “Martin’s Carbon Zero” seminar is an integral part of the Martin’s Hotels global sustainable development project.

A real and joint activity to protect the planet and future generations.

www.martinshotels.com

management

The EU-US Open Skies agreement what has it achieved?

UU

Many of the rules and restrictions governing commercial aviation between countries have been in place since World War II. But over the years they are being eased with the introduction of Open Skies agreements, usually between two countries, to liberalise aviation services. The EU-US Open Skies agreement was a huge step forward in opening up the aviation market, as it concerned not just two countries but the whole of the European Union and the United States. What exactly has been achieved by Phase 1 of the EU-US Agreement, which came into effect in 2008 and Phase 2 ratified this summer?

Signing of the Open Skies agreement

VV IATA’s Steve Lott

“Phase 1 of Open Skies was really a big accomplishment” explained Steve Lott of IATA, the industry body which represents 230 of the world’s airlines. “A fundamental part of this agreement was the opening up of services between Heathrow and the US to more airlines.” Heathrow has always been viewed as London’s airport for business travellers, but until the agreement of Phase 1 only two UK airlines (British Airways and Virgin) and two US airlines (United and American) were authorised to operate transatlantic routes from here. Phase 1 effectively paved the way for the likes of Delta and Continental to open flights from Heathrow over the last 18 months.

On a wider scale, Phase 1 of Open Skies has meant that European airlines can now serve destinations in the US from any point in Europe, even from non-traditional home markets. Some airlines have already experimented with these non-hub routes, an example being the launch of British Airways’ subsidiary, its OpenSkies airline.

Operating out of Paris Orly Airport, OpenSkies offers all business class services to New York and Washington. Part of the

problem with Phase 1 though, was that it opened up the market just as the recession hit. Many airlines were therefore hesitant, or experimented only for a short while, on new route possibilities.

“Leading into phase 2, which was finalised in June 2010, it was our hope that both sides would address the thorny issue of airline ownership” said Lott.

“The Europeans wanted to push up the existing cap of 25% on foreign ownership of US airlines. This limit on foreign investment is unique to the airline industry, as you do not see it in other sectors – just look at banks or telephone companies. Our message is that we think the long term financial stability of the industry is dependent on normal commercial freedom. But with foreign ownership off the negotiating table, it has to be said that phase 2 of EU-US Open Skies was disappointing. It was not a step backwards though as some smaller items were accomplished, such as easing restrictions on night time flying and advancements made in relation to the environment and cooperating on security.”

“We have seen there is an appetite in the industry for mergers and Open Skies has oiled the wheels for agreements such as the trilateral accord between British Airways, Iberia and American Airlines” said Lott. “We think its time to get rid of these archaic ownership restrictions and let airlines run like a normal businesses. However lifting of these restrictions is a matter for the US Congress to decide on and as there seems to be very little impetus there we have little hope that it will change in the short term.”

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management

A look at two reports from industry experts

Trends for 2011 After two especially difficult years for the travel industry in general, 2010 showed signs of a recovery.

What do 2011 and the coming years hold? We hoped to find out by looking at two reports published by some major players in the industry: Amadeus and Advito, an independent operating unit of BCD Travel.

F

or Amadeus and Advito, there’s no question that 2011 looks promising for the travel sector, including business travel. As their forecasts were drawn up during the last quarter of 2010, they do not take into account certain factors that are currently influencing the market, such as the impact of the unrest in North Africa on the price of gas – and therefore of jet fuel.

The reports are based on data from very reliable sources, but they should naturally be taken with a grain of salt due to these unanticipated factors that can have a profound effect on industry data.

expected final growth of 4.8 percent for 2010. The total figure for 2011 masks a major disparity in the prospects of advanced nations (up 2.2 percent) and emerging/developing nations (up 6.4 percent).

On a more positive note, the IMF states: “The probability of a sharp global slowdown, including stagnation or contraction in advanced economies, is still low.”

The Amadeus report, which aims to determine the sector’s growth over the medium term, begins with a reminder that the industry is coming out of two difficult years, but stresses that 2010 marked a return to growth, with an increase of 5.6 percent during the first six months of the year.

Regional

Intercontinental

Business

+3%

+6%

Economy

+6%

+7%

Business

+5%

+4%

Economy

+5%

+4%

Business

+2%

+5%

Economy

+7%

+5%

Business

+3%

+5%

Economy

+6%

+4%

Business

+4%

+4%

Economy

+5%

+4%

For Advito, the ambient optimism for 2011 stems from a generally positive economic climate, as indicated by the International Monetary Fund.

According to the October 2010 World Economic Outlook from the IMF, global economic output will grow 4.2 percent in 2011, compared with

Airfare Predictions for 2011 Increasing demand will result in YOY increases in airfares in 2011.

North America

Latin America

Europe

Middle-East

Asia-Pacific

Forecast of average development of air fares used by corporate clients 2011 against 2010 Source: © 2010, Advito. 2011 Industry Forecast

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Business travel

Along with this economic recovery, Advito notes that the price of business travel will increase due to a series of factors, including constant demand, increased limited capacity, the fact that airlines are closing out low-priced reservations more quickly and the growing trend in add-on costs and separately-billed services, such as meals, checked baggage, etc.

In the wake of the crisis, Amadeus also points out several fundamental changes, including videoconferencing and business class travel. Videoconferencing is likely to supplement rather than supplant business travel due to industry growth and the continuing advantages of F2F contact, particularly for initial meetings. Business class is most likely to survive and thrive but classes in general are likely to become increasingly fragmented.

Amadeus also discusses other, more general changes. The global recession meant that apart from companies doing less business overall, items such as travel would be among the first to be cut, as these might be deemed expendable. According to an estimate at one point in 2009 by ACTE, over 70 percent of corporations trimmed their travel budget by 10-20 percent that year. The GDS also points out cultural shifts, including a disdain for high spending business practices, coupled with increasing environmental concerns that would have permanent effects on business travel as environmental awareness increases. Air travel may thus become a corporate responsibility issue.

On the other hand, recent – positive – data from IATA shows some encouraging trends for premium air travel with an annual growth rate of 18.7 percent being recorded in May 2010 – exceeding the recovery in economy seats where an annual growth rate of 10.2 percent was recorded. Other positive points were highlighted in a study conducted by the US-based Oxford Economics, where business travellers estimated they would lose 28 percent of their current business without F2F meetings.

Likewise, they estimated that these same F2F meetings enable them to turn 40 percent of their prospects into new clients, compared to 16 percent without such meetings. This way, for every dollar invested in business travel, companies realise $12.5 in incremental revenue.

Air traffic

When it comes to air traffic, Advito expects a rise in prices across the board, while also predicting that

2011 Hotel Average Daily Rate (ADR) Predictions by Region North America

+3.5%

Latin America

+6.0%

Europe

+2.5%

Middle-East

+4.5%

Asia-Pacific

+5.0%

Source: Advito. ©2010, Advito. 2011 Industry Forecast

cheap reservations will be limited and airlines will set stricter conditions for the sale of these slashedrate seats.

The independent operating unit of BCD Travel expects fares to rise in every region worldwide and in both business and economy cabins, but not dramatically, given how far they fell between 2008 and 2009. The predicted magnitude of increases (see Table 1) ranges from 2 percent (business class in Europe) to 7 percent (intercontinental business class in North America and economy class in Europe). To Advito, fares will rise much more as a result of airlines putting fewer seats in lower fare buckets than official increases in published prices.

More restrictive conditions on cheaper fares are also likely.

The dominant air-related issue for travel buyers in 2011 will be dealing with the consequences of major airline consolidation in 2010. In addition to the creation of mega-mergers on three continents (United/Continental in North America, British

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spring 2011 | 25

management

Airways/Iberia in Europe and LAN/TAM in South America), there are now three powerful transatlantic joint ventures, with more on their way on transpacific and U.S./Canada routes.

Buyer experience of these consolidated entities to date has sometimes been unhappy, with the suppliers’ network coverage and demands ill-fitting the needs of clients. Buyers also fear fewer supplier choices will mean less competition and higher prices, although the consolidated entities argue that greater volume enables them to compete more robustly. 2011 should prove which of these views is right.

Incentives

As a result of expanding demand, air fares rose in 2010, thanks in part to airlines successfully cutting capacity during the recession. Hotels could not reduce capacity, so average daily rate has not yet recovered in many markets (although a couple of hotspots, most notably New York and London, are glaring exceptions). Normally, the release of so much pent-up demand would create an expectation of significant price rises in 2011, but travel suppliers have sensed the mood of uncertainty, making them hesitant about forcing through significant increases to bring themselves back to pre-recession levels.

Consequently, the prevailing impression from recent corporate negotiations is that travel will cost more in 2011, but price increases will only be marginally ahead of inflation. However, looking ahead, continued economic growth could lead suppliers to become gradually more aggressive with their pricing in 2012. In the air sector, this trend could be tempered by increasing capacity.

Amadeus also points out that the low profitability of airlines implies that, in the longer term, there is likely to be downsizing within the industry, reducing capacity and pushing up prices, until profitability is restored. IATA data suggests that there are already signs of this with passenger load factors reaching 79 percent in early 2010 – slightly above pre-financial crisis level.

Advito reports that the incentives market recovered slightly in 2010, though not as much as other parts of the meetings sector. Incentives have also changed in the following ways: • Almost the only incentive trips which have survived are those with a well-defined return on investment, such as a sales scheme.

• The average number of nights per trip has fallen from 6.5 to 4.

• Although still highly desirable, trips are less extravagant than in the past. Primary target destinations tend to be domestic or shorter haul international. However, current trends show a growing interest and activity in longer haul international in which the long-haul flights (where they remain) have generally been downgraded from business class to economy. In some cases, hotel standards have moved one tier down (e.g., from luxury to upper upscale).

• There is now nearly always a business element to the trip, such as discussions about corporate strategy and direction.

• There may well also be a “corporate giving” element to the trip, such as a team-building project that supports a local charity or community. This approach is increasingly popular in the U.S. Incentives will continue to recover steadily in 2011, but the redefinition of their shape by the recession is likely to remain permanent.

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Meetings Given the growing demand for meeting space, prices will climb again for the first time since 2008. Advito expects this price increase to remain marginal in 2011, but if the current trend holds, it will have a major impact in 2012. The greater demand explains why more and more meeting spaces are completely booked, making it harder – if not impossible – to reserve them at the last minute.

Hotels

After several years of the market being stacked firmly in the seller’s favour and then two years of buyers having the upper hand, 2011 is throwing up the most evenly balanced set of hotel negotiations for a very long time. Hotel companies have told owners and shareholders they are pushing for an average increase of 5 percent to 10 percent in room rate, but buyers are aiming to keep prices flat.

While the main upward pressure will be continuing growth in occupancy rates, doubts over the sustainability of economic recovery mean the net increase in price will probably end up somewhere between these two sets of aspirations. Advito forecasts the greatest growth in rates to be in emerging markets, led by Latin America (6 percent) and then Asia-Pacific (5 percent). Close behind will be the Middle East (4.5 percent) and Africa (4 percent), with the more mature markets of North America (3.5 percent) and Europe (2.5 percent) bringing up the rear.

European high-speed rail High-speed trains in Europe are competing with the airlines’ short-haul flights. Rail is meeting with increased success given the shorter travel time, the ability to work for a longer portion of the trip, less stringent security procedures and a greener image. Advito foresees that this increased demand will automatically drive rail prices up.

ADR paid by corporate clients may also be restrained by downgrading of their hotel policies. During the recession, many upscale properties reduced their rates to levels close to those of midmarket properties. As their rates start to differentiate again, clients that were tempted to upgrade are moving back to midscale, a trend likely to continue into 2011.

Even more than for air, rate increases in 2010 and 2011 will still not offset the reductions of 2008 and 2009, which were in many cases in the high teens or low twenties in percentage terms.

However, do expect some heavy rate increases in high-occupancy cities with limited new capacity, such as New York (13 percent), Singapore (8 percent) and London (7 percent).

Sources 2011 Advito Industry Forecast – read more at www.bcdtravel.be The Travel Gold Rush 2020 – read more at www.amadeus.com/goldrush2020 This article is a drastic summary of the reports published by these organisations. For a comprehensive look at these trends, please contact these organisations.

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associations

Travel managers: survival of the fittest “To adapt or to fade away.” A credo true for all professionals, including those from the travel industry. Certainly today, when our profession experiences fast evolution and growing complexity.

YY Pascal Struyve, President, BATM

J

ust thinking about the increasing fragmentation of the market – and the breakdown of transparent rates – illustrates that point. Airlines tend to unbundle their fares.

Access to private lounges? More legroom? Reservation modifications? Choosing your proper seat? It’s all possible with the right surcharge. Tailor made offers of course come with advantages, but they do not make the work of those who have to budget travel easier, not to mention any refunds. Hotels too adopt dynamic rate models, offering floating Best Available Rates depending on demand and supply.

The decline of standardization makes total travel cost calculations more laborious, but also impacts on communication with travelers. The travel manager has to be aware of the preferences of his travelers, while ensuring compliancy with corporate policy and the traveler being informed about reservation options, rights and obligations.

Such clear and effective communication must be integrated in corporate processes and rules.

Moreover, the travel manager’s role evolves as a consequence of growing internal pressure. Like in all departments he or she needs to do “more with less”. Three variables need to be balanced at all times: traveler security, traveler satisfaction and cost savings. So travel managers must focus on what’s indispensable, while eliminating unjustified costs and guaranteeing the highest security level. In the mean time, they have to do a better job at managing internal demand and providing just the right advice. For example, when meetings are not indispensable, videoconference should be considered as the best alternative.

These evolutions require strong competences in order to compose a travel program. Continuing education and training is therefore a must for travel managers. At BATM we are convinced that we can play a crucial role for our members in this matter.

The Iceland volcano eruption for example, brought the adjacent questions on consumer rights to the heart of our concerns.

Integrating these issues – and the answers to them – into a company’s travel programs not only creates a competitive advantage, it can also convince company management of the need of such a program. Industry and associations like ours have to guarantee sufficient knowledge and transparency to address these questions. Our last events have made it very clear that the sector is in demand of training, for travel managers as well as for account managers of customers and suppliers.

“Continuing education and training is a must for travel managers.

At BATM we are convinced that we can play a crucial role for our members in this matter.”

Education is a central value for BATM. In our training forums we choose to reflect on hot topics.

We want each of our members to return home feeling confident of grasping the daily challenges at work. That is, moreover, a prerequisite for the growth of BATM. And we count on the support of everyone playing a role in the travel industry for the continuous professionalization of our training programs.

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insider

“This is your Captain Speaking!”

The life of a Commercial Air Pilot Did you ever dream of becoming a pilot? Not many manage to fulfill their childhood career ambition, but Captain Kunal Khajuria of Jet Airways did just that. He shares with us what it means to be a fully fledged commercial air pilot.

TCT: What made you decide to become a pilot?

I

was travelling with my parents between Kuwait and Baghdad when I was 3 years old and I was lucky enough to be taken to the flight deck (this was way before the threat of terrorism existed). It was a Boeing 727 and I remember the flight deck being the most amazing thing I had ever seen. The lights, the dials and the view of the night sky were breathtaking. I was hooked. This may sound clichéd but from that day on I lived, ate and slept aviation.

TCT: What training is needed to be a commercial pilot?

You can undergo a pilot training course from a reputable DGCA-approved institute (Directorate General Civil Aviation –India’s regulatory body on Civil Aviation). Then of course you need to meet all the medical criteria. It is compulsory to complete 200 hours of flying and to clear theory papers to be eligible to apply for the Commercial Pilot Licence (CPL). The CPL training can then take anywhere from 6 months to 2 years. When you have the CPL, you then need to have a multiengine endorsement to apply for an airline job.

Once selected by an airline, you get further training on specific aircraft types, which takes six months to one year. This includes more classroom training, simulator training and finally aircraft training to be able to work as a co-pilot.

TCT: What types of planes do you fly and on what routes?

My airline, Jet Airways, has 3 variants of the Boeing 737 NG (Next Generation) aircraft – the 700, 800 and 900 series – and I have the pleasure of flying all of them. Jet Airways has an extensive network and I fly all over India and to neighboring countries in the Middle East, as well as the Far East. In addition to these destinations which are part of the standard network, I get to bring back brand new UU Captain Kunal Khajuria airplanes joining our fleet from Seattle via Brussels. For regular maintenance checks, I take them to Beijing and back on ferry flights. During my career as a pilot I have flown approximately 3,000,000 nautical miles, which translates to 5,556,000 Kilometers.

“I was promoted to Captain at a fairly young age and being given Command of a Boeing 737 was the greatest moment of my career.”

Good communication skills are crucial too, to be part of, and lead a highly skilled team.

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Of all the destinations I have flown too, Seattle is my favourite, as it is the place where the aircraft I fly are born.

The fact that it is also a beautiful and a friendly city, is an additional bonus.

TCT: What have been your career highlights?

I can think of quite a few. Here are some of them.

I was promoted to Captain at a fairly young age and being given Command of a Boeing 737 was

the greatest moment of my career. Also my first test flight for accepting an aircraft from Boeing in Seattle was a day I truly cherish.

I have had the immense pleasure of working with very motivated people to set up the new Crew Resource Management (CRM) team in Jet Airways.

Working with these people, who are now close friends, on a project so dear to my heart, has been very rewarding. The success that we have achieved so far is extremely encouraging and it motivates us to achieve greater heights.

TCT: How have new technologies changed flying for you?

We have come a long way from the day when I first flew as a co pilot vis-a-vis technological advancements. We have moved from the earlier variant of the 737, the -400 referred to now as the ‘classic’, to the NG. These aircraft are faster, quieter, fly higher and are more fuel-efficient. These airplanes have better safety features, which translate to greater situational awareness for the pilots. The new airplanes can ‘see’ better and therefore land in lower visibility than before, ‘fog’ for the layman.

Aviation is always at the receiving end of cutting edge technology. The improvements are continuous. The fun of flying is enhanced by the constantly enhanced safety measures which are implemented periodically.

TCT: What do you like most about your work?

My feelings towards what I do go beyond the word ‘like’ – I ‘love’ being up there in the sky. John Gillespie Magee Jr’s poem “ High Flight” epitomizes the way I feel about my work, to quote ‘Oh! I have slipped the surly bonds of Earth and danced the skies on laughter-silvered wings……’

The considerable prestige, responsibility, risks and challenges that come with my work make it even more rewarding. Each day your skills are

“Aviation is always at the receiving end of cutting edge technology. The improvements are continuous” put to test, be it the handling of the aircraft or the ability to take split second decisions. The courage with which you have to face challenges - this could be anything from very bad weather to something technical - help you to grow as a person too.

I have been with Jet Airways for the past 14 years, almost since the time the airline was born. I have seen Jet grow from a small 7 aircraft fleet to the current size of 90. The growth has been phenomenal and the company ethos of having a young fleet bodes well for us as we get to fly the latest new airplanes. Pilots are in love with their big expensive beautiful toys and I certainly am.

This is an extremely fun place to be. The fairly good salaries and the opportunity to see different countries add to the charm of this profession. It is not often that we get to choose a career where we love what we do and get paid well for it too.

The people I fly with are more often than not, remarkable. The new blood of Jet Airways is vibrant, motivated and dynamic. It is a pleasure to fly with them, watch them grow and take wings as new Captains. I take it upon myself to hand pick a few who are ahead of the others and assist them on their journey to greater heights. It is very satisfying to see that the future of the airline is in good hands.

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insider

EIBTM 2010 Post Show Report EIBTM, the annual meetings and events exhibition, has packed up and gone home after celebrating its 22nd edition in December. The three day event saw 3,125 exhibiting companies from over 90 countries, with a 5% rise in visitors. A huge amount of activity was reported from the show floor, with over 55,000 prescheduled appointments with hosted buyers.

Graeme Barnett, Event Director at Reed Travel Exhibitions gave us the highlights of the show and what is in store for 2011.

“T

he meeting industry has been through a tough time but companies have realised that they need to travel and be out there on the market in order to do business” says Barnett. “In the last six months we have seen some travel and marketing budgets starting to be unfrozen in this respect and 2011 should see a push forward. What we still need to be wary of though, is that some regional governments will be cutting back on infrastructural projects and meetings.”

“When we shifted EIBTM’s location from Geneva to Barcelona in 2004, we also started to reposition our brand. Our objective for EIBTM is now focused on delivering quality visitors and real business opportunities for all those attending, to maximise their return on investment. The Hosted Buyer Programme, a concept invented and trademarked by EIBTM, is very much part of this. The programme reassures our exhibitors that we are looking to drive visitors to the show who have a proven track record of placing business on an international basis and have got business to place now. Integral to this programme is our pre-scheduled appointment system.”

Industry professionalism

“This year more than ever, while walking around the show floor, what impressed me was the professionalism of the industry. The exhibitors really spent time and were creative with their stands in order to project what their destinations have to offer. And we can see that the investment in having high-level professionals staffing exhibition booths is increasing, as is attendance of the show’s half-day CEO summit.”

UU Busy show floor

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“To recognise the exhibitors who make this such an exciting and dynamic exhibition floor, we created an Awards Programme for the first time in 2010. The winner of the best overall stand design in the competition was the Malaysian Tourism Board.

“The meeting industry has been through a tough time but companies have realised that they need to travel and be out there on the market in order to do business.”

“The more mature destinations are coming up with fresh ideas to compete with emerging destinations.”

UU CEO Summit In each corner of their stand they had an activity area where there was always something different happening to attract attention. Holland won the award for Best Stand for Doing Business. The award judges found that Holland’s stand had been really well designed to facilitate meetings, that their branding stood out well and that they had come up with a lot of great marketing ideas to attract attention.”

“As to stand size, contrary to what one might think, destinations seem to be increasing the surface area of their booths. This is because they need to fit in more partners. Another trend we are seeing is that the more mature destinations are coming up with fresh ideas to compete with emerging destinations.”

New initiatives

“New at the show this year was the launch of EIBTM TV, where we broadcasted news from all around the 30,000 metres of the show floor to create a running news programme of happenings around the event. The TV channel was also available on line, so those unable to attend EIBTM were able to keep up with our news.”

“Sustainability for us is much more than just a new trend, but something we have been driving with initiatives and events for some time. We already have BS8901 certification and we are going for the international sustainability ISO standard in 2012.

What was new though was that for the first time this year EIBTM and its exhibitors worked with a group of local charities to donate the mass of objects that are left behind when a show is taken down. These include everything from promotional clothing and gifts, to brochures, carpets and bits of timber. These items will be resold or recycled to raise money for the charities.”

edition of AIBTM will take place in Baltimore, from 21 to 23 June. “We felt the need for a really good quality show in America and had been looking at the market for some time” explained Graeme Barnett. “We were confident that our concept of a hosted-buyer driven show in the US would work, but we were delayed by the recession. We now feel that the timing is right and the market place is ready. In fact two thirds of the exhibition space is already contracted with domestic and international exhibitors.”

“As to EIBTM, we are now in the period of postshow follow up where we research all of our communities to see whether the show met their needs and what they would like to see changed. When the results come back we will have a team meeting to analyse the data – a ‘Wash Up’ and then we will be able to put together our strategy plan for 2011.

“The professional travel and events industry is a fascinating environment to be involved in and facilitate. It’s also very competitive, but I must say in a professional and good natured way. As we have seen, when business gets tough that’s when marketing and sales become even more professional in how to make effective use of tradeshows.”

For 2011

In 2011 Reed Travel Exhibitions will be expanding its portfolio, with a new show for the US. The first

UU Graeme Barnett

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insider

The Corporate Traveller Interview series questions business people from all industry sectors to hear from the those that matter, the customer, on their business travel experiences, changing travel policies and where they would like to see improvements. For this edition we spoke with Dragan Barbutovski, frequent traveller, who is currently based in Pristina, the capital of Kosovo.

The Corporate Traveller Interview Dragan Barbutovski First of all Dragan, please tell us a little about yourself and your work?

I

am Slovenian and I moved to Pristina in May 2010, for a two year contract. I am a freelance communications and public policy consultant and I am here to work on a new project entitled “EU Perspective in Kosovo”. Prior to moving to Pristina, I was based in Brussels for over 5 years, so this is a very big change for me. My work in Brussels included being a spokesperson for Slovenian EU Presidency in 2008.

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How do you find working in Kosovo?

I do love my job, but logistically its difficult here. Pristina is not the best served airport and Kosovo’s general infrastructure is non-existent. We have occasional electricity blackouts, sometimes water cuts and the road networks are very poor, so it is quite hard in that respect. But despite what some may think, it is not at all a dangerous place to live in and the people are very polite and friendly. There are excellent restaurants and cafés, and in general there is a positive and lively atmosphere here, as nearly

three-quarters of the population are less than 35 years old.

The main problem I have with flying in and out of Kosovo is that it is not recognised as a country by five of the members state of the European Union, which means that their national airlines will not come here. Slovenia does however recognise Kosovo. Their airline, Adria Airways was one of the first to fly here and they are doing really well. Adria Airways’ schedule is quite helpful for me as they operate routes from Kosovo, not only via Ljubljana but also direct destinations to cities

such as Frankfurt, Dusseldorf and Munich.

Where do you travel to for work and what is your travel policy?

I commute regularly to European destinations for work, especially to the UK, Brussels and Vienna, and to my home in Ljubljana. I am away at least twice a month, normally for around 3 to 4 days each time. I just returned from a 5 day trip to Brussels, of which 4 days were for work and one was for personal reasons. Now I have my own company, I am able to mix business and personal trips together, so I like this flexibility.

My travel policy depends on my mood, but basically I look for convenience. I fly on economy class, as most of my trips are less than 3 hours, but I avoid budget airlines as I don’t like their attitude or their schedules.

Good connections and flexibility are especially important to me. I like to be able to fly out of Pristina with one airline and have the possibility to fly back with another,

if the schedule suits me better.

This is why I mainly use Star Alliance which allows me to mix the airlines I need. For example on my recent trip to Brussels, I flew out with Adria Airways and came back with Austrian Airlines, which are both members of Star Alliance. The fact that I am a silver status frequent flyer also means that I can check in the business class queue, even though I fly economy.

As to hotels, I prefer the small boutiques over the large brands.

Design is more important for me than luxury, but what really makes the difference is the breakfast. For me breakfast is not just about what is available – I want it to be served to me at my table, rather than a buffet. My budget per night is normally between 150 to 200 euros, possibly more when I am staying in London.

What are your worst experiences when travelling for work?

My worst travel experience was when I was flying with a certain

“When I recently flew to Manchester I had three flights there, on two different airlines, and the same on the way back. It took a total of 14 hours each way and was exhausting.”

Serbian airline. The flight attendant spilled coffee all over me, literally from head to toe. The attendant just looked at me, said ‘I am sorry’ and walked away. A recurrent problem I have when I am travelling from Pristina to European regional airports, is that I have to change planes a lot. When I recently flew to Manchester I had three flights there, on two different airlines, and the same on the way back. It took a total of 14 hours each way and was exhausting.

How could your travels be made easier?

I expect a dedicated queue at the airport for those who have taken the trouble to check in online. It seems to me too often that you check in yourself at a

machine and then you have to queue up again to drop off your luggage, waiting in line with people who have not done anything. Secondly, I do appreciate it when airlines make an effort in catering, rather than just throwing a sandwich at me that was prepared a few days ago.

On a short trip, maybe there is not much choice, but they could at least be a bit innovative even with a sandwich. There is one airline which serves exactly the same cheese spread sandwich every single time I fly with them!

As to my fellow travellers, I have seen that the worst ones are business people who are now forced to fly economy rather than business class. This is a particular type of passenger who can be really rude to other passengers and flight staff, making a fuss about things such as security procedures and having to put their bags in the overhead bins in a really quite arrogant way.

I travel frequently, but I really try to be courteous and I cannot stand rudeness.

Continuing on from this, what I do like is a sense of humour and as I said earlier, a human approach. I am a cheerful person, I appreciate a smile when I get on the plane or if I crack a joke, then someone makes one back. This is what the British do particularly well, and I appreciated when I was based there for a couple of years. I realise that airlines need to streamline, but cutting costs can sometimes mean that this human approach is lost.

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air ways

Brussels Airlines expands capacities and services Brussels Airlines is continuing to develop on all fronts, with new routes, aircraft and services for 2011.

With its increased frequencies and seat capacities on numerous European routes, the airline will be adding 709,000 additional seats to its network this year.

B

russels Airlines’ 2011 summer schedule will offer 806 European return flights per week, an increase of 28 flights from the same period last year. Flight frequencies are being augmented on routes to Athens, Bilbao and Prague, and new scheduled services are being introduced to Marrakech, Agadir and Italy’s Lamezia Terme. During the holiday months more flights will be offered to holiday destinations, with Malaga, Palma and Faro. The weekend offer to cities such as Florence, Lyon and Madrid will be expanded and the timetable to Marseille and Venice improved to offer even more flexibility. These schedule enhancements all mean numerous additional connection possibilities for passengers through Brussels Airlines and its Star Alliance partners. Also as part of its expansion plans, Brussels Airlines its increasing seating capacity on many of its routes, replacing regional jets with larger aircraft. Six Airbus A 319 and A 320 aircraft will be added to the airline’s fleet during the course of 2011.

an investment of Brussels Airlines in comfort, efficiency and environmental concern” said Brussels Airlines’ co-CEO Bernard Gustin. “This way, Brussels Airlines becomes more attractive to the customers and more competitive on certain routes.”

More services for the business traveller

Services are being increased too. Passengers on Brussels Airlines’ A 319 and A 320 aircraft are to benefit from a revolutionary new seat, which offers more space, legroom and comfort thanks to its ergonomic design. Nearly 300 Brussels Airlines frequent flyer passengers were actively involved in the design and selection process of the new seat.

Brussels Airlines, as part of the Lufthansa Group, belongs to Miles & More, Europe’s largest frequent flyer programme. The loyalty scheme recently welcomed its 20 millionth member, who happened to be a Brussels Airlines’ passenger. To celebrate this milestone, Brussels Airlines hosted an event in Brussels to thank its most important frequent flyers for their loyalty and to mark the increase of its flights to the Basque region, with the addition of its third daily frequency to Bilbao. Over 200 Brussels Airlines’ frequent flyers with the HON Circle or

“The introduction of six Airbus aircraft in the course of this year together with a new seat is

ZZ Bernard Gustin - co-CEO Brussels Airlines

Services

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Senator status attended the event, which was organized in cooperation with the Tourism Authorities of the Basque Region.

Miles & More has won several airline industry awards for being one of the most beneficial airline loyalty programmes in terms of accumulating and spending points. The Miles & More scheme counts over 200 partners, including car rental companies and hotel groups, giving members numerous options to earn and burn award miles. Two of the most recent partners to join Miles & More are Mastercard and mobile phone company Proximus, both of whom have put in place a generous mileage earning scheme for customers.

Another new service being added for members of Miles & More is that they now have the option to ask at the boarding gate for an upgrade from economy class to business class on all African flights in exchange for miles. Extra luggage allowances on flights to Africa can also be purchased using air miles.

An electronic boarding pass is then sent to the user’s phone in the form of an sms or email that can be stored in the device’s memory. The electronic boarding pass contains a 2D barcode that can be used at many places in airports which require proof of check-in, such as at border controls and lounge entrances. Brussels Airlines’ mobile platform also means that passengers can receive flight updates and other information on their handsets, in real-time.

Brussels Airlines plans to add further capacity and services for its customers throughout the year.

“Our strategy of creating a good performing Star Alliance and Brussels Airlines/Lufthansa hub at Brussels Airport is materializing and has led to passenger growth” said Bernard Gustin. “We will continue to invest in our Brussels hub in 2011 by adding capacity, opening new destinations and supporting the development of our Star Alliance partners by enabling smooth connections to our joint networks.”

Mobile check-in and paperless tickets

Brussels Airlines recently launched a new mobile platform, m.brussels.com, which allows passengers to check-in online using their smartphones.

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advertorial

A new, inspiring meeting and events concept from Hotel BLOOM! The Hotel BLOOM! on Koningsstraat in Brussels introduces a new meeting concept: Dare to Explore. Attendees at meetings and events will be regaled with stories and portraits of known inspiring personalities.

With Dare to Explore, Hotel BLOOM! offers a stimulating environment and seeks to help visitors achieve and even surpass their goals.

H

otel BLOOM! has given itself a mission - to become known as the “place where there is always something happening in Brussels” - and has made it a reality by creating a truly inspiring experience for the hotel guest and visitor. Both leisure and business guests can discover what this means during a stay in one of the 305 guestrooms, each adorned with a unique fresco, hand-painted by young art students from renowned European art schools. Or during a visit to SmoodS, Hotel BLOOM!’s cosy living space and bar with several different interiors or “islands of atmospheres” as well as various international cuisines and music.

There is also the Art’n BLOOM! events that are organised each quarter that serve as a reference point for creative and artistic individuals from Brussels and all over Europe.

The missing puzzle piece:

“The Hotel BLOOM!’s tagline is “Stay Away from the Ordinary,”

Dare to Explore

explains Christel Cabanier from the Hotel BLOOM!. “This translates into the fresco concept in the rooms as well as the SmoodS concept. Now, we want to give a special touch to our meeting concept.”

The “Dare to Explore” concept consists of providing a stimulating experience for meeting attendees with stories and portraits of inspiring personalities - people who have changed their own environment and that of others through their own creativity, ideas and perseverance.

“We’ve hung all the large photos in the meeting rooms,” explains Cabanier. “Photos of people you might not recognise at first glance, but whose stories you probably have heard of. Most people don’t know the face of Franco Dragone. But of course, everyone has heard of Cirque du Soleil. It’s the same with Toni Mascolo, who founded a worldwide empire of hair salons.”

In other words, not the most obvious persons.

“It was not the intention at all to present faces that are very well-known,” relates Cabanier.

“Then people might not be likely to read their story. It is precisely the story that has to inspire the guests. These are all people who have made it in life in their own way. Not rich kids, but self-made individuals that have built up

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everything themselves. Take Mr. Heinz, who at thirteen years old began selling tomatoes to his neighbours.”

Naturally, all of the meeting rooms at the Hotel Bloom are equipped with all the necessary equipment you’d expect. But the Dare to Explore concept gives it all an extra touch. Even the special food combinations that are catered during the coffee breaks fit into this philosophy.

Dare to Explore Foundation

As thanks for their participation as a personality in the Dare to Explore gallery, the Hotel BLOOM! strives to make a symbolic annual donation of €50,000 to worthy causes. To this end, the Dare to Explore Foundation was created. “In consultation with the personalities featured in the Dare to Explore experience, we choose the causes that make a positive contribution to society and thus come into consideration for receiving a part of the donation. The preference goes to a charity that helps people develop themselves. The board of the foundation is well aware of the fact that some of the personalities already support specific causes, such as SOS Children’s’ Villages, UNICEF, the Red Cross or Plan International. This support is taken into account when allocating the annual financial donation,” Cabanier explains.

Some personalities featured in the Dare to Explore concept: • Franco Dragone: Entertainer and creator of Cirque du Soleil in Las Vegas and Macao • Els Scheppers: Creator of Biscoff spread • Henry J. Heinz: entrepreneur who achieved fame through ketchup • Daniel Swarovski: Innovator in the crystal cutting process who became famous through crystal sculptures and jewellery • Thomas De Geest: Belgian entrepreneur who started Wafels & Dinges in New York • Toni Mascolo: Passionate hairstylist and entrepreneur with Toni & Guy • William Bernbach: Founder of the DDB ad agency

air ways

easyJet links Brussels with Liverpool, gateway to the North West of England UU Liverpool waterfront

In February easyJet opened a new route between Brussels and Liverpool, operating six times a week. This is the sixth direct destination launched by easyJet from Brussels Airport, following on from Nice, Lyon, Milan, Berlin and Geneva. The new route is part of the airline’s strategy to attract a higher number of corporate travellers, by augmenting its services and network of business destinations.

UU Ali Gayward - easyJet UK Commercial Manager

“I

n the past, easyJet was known purely with the rise of low cost carriers, travel managers started as a holiday airline, but as we have grown to examine the cost of items automatically included in we are now looking more and more towards the corporate a ticket fare, such as checked baggage and other extras. market” explains Ali Gayward, easyJet UK Commercial They began to question whether these extras are really Manager. “On average today about 17% of our passengers necessary all the time, especially for a same-day return are flying for business, but we hope to grow this to around journey.”

25%. As we continue to “However, even as a develop our corporate low cost airline we are traveller proposition, trying to differentiate included in that is ourselves and as part of serving major business this we have put a big destinations with schedfocus on services offered ules tailored to the needs for business travellers” of business travelers. says Gaymard. “As Brussels is obviously regards Brussels Airport important for us in this particularly, we are respect, as well as being continuing to develop an attractive city break our facilities there and destination. When you we are currently analyzlook at the routes we are ing possibilities for offering from Brussels, developing more routes they all appeal to both UU Liverpool’s Beatles museum from the Belgian capital leisure and business passengers. By offering this new service to Liverpool, we are for next year’s winter schedule. New services across our offering a gateway to the North West region of England, an networks include the recent launch of a Flexible Fare, important industrial area which has economic and political where customers can make changes to their flight dates and times, within a certain time period. This package links to Brussels.” includes speedy boarding and one piece of checked in Business travel policies mean more baggage at no extra charge. We have also launched a ‘Fly are moving to low cost Home Earlier for Free’ option, which gives passengers the “One of the reasons why business travellers are moving possibility to catch an earlier flight than the one booked if over to low cost airlines is that some companies have they arrive early at the airport. This is at no extra cost, and changed their processes for buying travel” says Gaymard. valid on any fare, as long as there is space on board.”

“Classically, companies would put their air travel out for tender and airlines would give them a discount usually With the addition of the easyJet route to Liverpool, Brusbased on achieving a certain level of volume. With the sels Airport offers passengers a total of 38 flights a day to economic downturn, many of these companies were UK airports, via five different airlines - British Airways, not achieving these levels, so they were no longer able Brussels Airlines, Flybe, bmi and easyJet. to get the same amount of flight discounts. In addition,

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air ways

Air New Zealand celebrates first planes with revolutionary Skycouch Air New Zealand is celebrating the arrival of its first Boeing 777-300ER aircraft equipped with the revolutionary new Skycouch in economy class.

The Skycouch, already termed as ‘Cuddle Class’, gives couples travelling together the opportunity to purchase seats that convert to a sleeping configuration.

UU Spaceseat in Premium Economy

T

he Skycouch system, designed by Air New Zealand, means that a row of three seats can be transformed into a couch bed for two passengers travelling together. By retracting the armrests and raising footrests, the seats become a 155cm long flat space where they can stretch out during the flight.

The passengers will pay for their respective seats at full price and fee for a Skycouch depending on the number of people travelling and when.

“The majority of our long-haul flights are overnight and we fly on average 90 minutes longer than any other airline” explained Group General Manager International Airline

Ed Sims. “That’s why we set out to overcome the seemingly impossible challenge of finding a way for people to lie down in economy without compromising affordability. Few airlines have invested time and money beyond First Class, whereas we have focused on the areas where most of our passengers sit by reinventing every aspect of our Economy and Premium Economy customer experience. We’ve created the world’s first economy seating that enables people to lie down and a Premium Economy seat that many airlines would call Business Class.” The 338 seat Boeing 777-300ER has 244 seats in Economy class (including 60 seats creating 20 Skycouch combinations), 50 in Premium Economy and 44 in Business Premier.

More innovations

UU Skycouch

Other features of the aircraft include redesigned seats throughout, including the ‘Spaceseat’ in Premium Economy class, and improved washroom facilities.

Every seat is equipped with personal PC power sockets, USB and iPod connectors, while business class passengers will benefit from

La Prairie amenity packs and in-flight wine tasting events.

“We’re the first commercial airline to introduce induction ovens for all cabins to give our cusUU Economy Skycouch tomers freshly prepared food” said Mr Sims. ger experience is now a reality” “This means that passengers commented Air New Zealand will have an on-demand food and Chief Executive Officer, Rob beverage service, where they can Fyfe, on the new arrivals. have steak cooked the way they want it, fresh pizza and burgers, More than 30 airlines have been toast and eggs.” in contact with Air New Zealand regarding the new seats and forThe first three Air New Zealand mal negotiations are underway Boeing 777-300ERs have already with carriers from Asia, North arrived at the airline’s Auckland America and Europe to licence hub. Two more are due for deliv- the seats following an 18 month ery over the next two months. period of exclusivity for Air New The initial Skycouch routes Zealand. will be operated on Air New Zealand return services between www.futuretakingflight.com Auckland and Los Angeles (and through to London), as from April 2011.

“Four long years of planning and design to create an absolutely world-first interior and passen-

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air ways

Brussels become Qatar Airways’ 98th route

Qatar Airways has launched a new service between Doha and Brussels, as part of its ongoing expansion plans. The Brussels route, which was inaugurated by Qatar Airways’ CEO Akbar Al Baker, on 31 January, is the airline’s 98th destination.

UU Doha

Q

atar Airways is currently operating the Brussels-Doha non-stop route with return flights on Mondays, Wednesdays, Thursdays, Fridays and Sundays but there are signs the frequency could soon be increased. “By adding Brussels to our network, we’ve opened up a myriad of connections through our hub in Doha to the Middle East, Africa and Asia Pacific regions” said Al Baker speaking at the press conference in Brussels to mark the opening. “We will look to enhance our presence in Brussels further as demand for our service grows and there are strong indicators that the route could witness increased capacity by the end of the year.”

Services

The service, operated on Airbus A330 aircraft, offers up to 30 seats in Business class, depending on aircraft configuration, and up to 275 seats in Economy class. Seats in both economy and business are amongst the widest in the sky. They feature independent telephones and advanced personal entertainment systems with over 900 options to choose from including movies, programmes and interactive gaming. A virtual jukebox allows

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passengers to create their own musical playlist from a selection of 500 CDs. Qatar Airways is also deploying a new communications system on all its aircraft, whereby travellers will be able to send emails and text messages from their seatback systems.

VV Doha Premium Terminal

Business class passengers on board can enjoy à la carte dining, with Middle Eastern and European dishes on demand, accompanied by Qatar’s range of award-winning wines, champagnes and spirits. Seats offer generous space and legroom, and incorporate back massage and seat position memory functions. On the ground, business class passengers benefit from access to the British Airways’ lounge at Brussels Airport, while in Doha they have a dedicated Premium Terminal reserved for business and first class passengers. The Premium Terminal offers 10,000 square metres of exclusive restaurants, boutiques and services, including business conference facilities and a world class spa.

Frequent flyers

Qatar Airways’ frequent flyer programme, Privilege Club, has three membership levels – Burgundy, Silver and Gold. Privilege Club Qmiles can be earned and burned with the airline’s nine partner airlines, as well as with a range of other partners including hotels and car rental companies. Qbiz, Qatar’s corporate fidelity programme, means that companies can earn points for redeeming flights and upgrades, while their employees continue to gain Qmiles at the same time. As part of a promotion to celebrate the launch of the Brussels service, Privilege Club members can benefit from a 25% discount on Qmiles needed for reward tickets between Brussels and Doha, on flights made by 30 April 2011. Extra Qmiles are being awarded to those flying on the route in the same period.

Qatar’s expansion plans

The opening of the Brussels line forms part of extensive expansion plans by Qatar Airways. CEO Akbar Al Baker has said that the airline’s route network and fleet size are to increase sharply over the next few years. Big investments are underway, with large orders in the pipeline for aircraft including Airbus A350s, Boeing 787 Dreamliners and 777s. Five Airbus A380s are due for delivery as from 2012, by which time the New Doha International Airport, with facilities for wide-bodied air-

craft, should be open. With the opening of the new airport and its increased capacities, Qatar will be able to position its hub in Doha as an attractive entry point into the Middle-East.

Al Baker’s aim is to concentrate on a long term growth strategy in order to reinforce the airline’s international presence. The airline sees a demand for high quality services with timetables to fit the business traveller. “Much has been said in Europe about the expansion of Gulf airlines in Europe” said Al Baker. “But we are operating in an environment where there is demand, and where customers want greater choice and an alternative experience to the services offered by legacy carriers”.

UU Qatar Airways CEO Akbar Al Baker addresses guests at Brussels Airport

European routes already represent 25% of Qatar Airways’ global network and the Brussels-Doha link is a key component of this development, connecting the European capital with Qatar’s economic and political centre. Qatar Airways has been studying markets that are still underserved by airlines and sees Brussels as representUU Qatar Business Class ing one of these opportunities, along with its other recently opened European routes, such as Budapest and Bucharest. By opening the new services to Brussels, Qatar Airways’s 24th European destination, Qatar hopes to capture traffic from not only Belgium, but the Netherlands and Luxembourg, giving passengers a new gateway into its network.

After Stuttgart in March, the next addition to the carrier’s schedule will be Aleppo, in April.

The route will mark the milestone of the airline’s 100th destination. By 2013, Qatar Airways expects to have reached a stage in its development plans where it serves 120 business and leisure destinations worldwide, with a fleet of 120 aircraft.

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airways

Latin American mega-airline LATAM inches closer to take off On January 19, Chile’s LAN Airlines and Brazil’s TAM SA made a major step forward in their merger plans, with the signature of a binding agreement between the two companies. The transaction is expected to be completed in the third quarter of this year, following final regulatory approvals. The result will be creation of LATAM Airlines, one of the ten largest airline groups in the world, and by far the biggest in Central and South America.

“W

We are pleased to announce that LAN and TAM are taking a new and very important step towards building one of the leading airline groups in the world” said Enrique Cueto, CEO of LAN Airlines. “The announcement confirms the commitment that we share with our friends at TAM, which is a strong passion and determination to provide millions of Latin American passengers with better service, always certain of the great potential of the Latin American market.”

The two airlines entered into a non-binding Memorandum of Understanding in August, following a five year period of discussions. With the signature of the binding agreement, the merger now only awaits definitive approval from relevant government authorities and the US Securities and Exchange Commission. Brazil’s aviation authority, the Agência Nacional de Aviação Civil, has already stated that it expects to give its rubber stamp soon. The creation of LATAM will mean a giant airline group that will include LAN and its affiliates in Peru, Argentina and Ecuador, TAM and its affiliates and AIRES, the Colombian carrier acquired by LAN in November.

LATAM will provide transport services for passengers and cargo to more than 115 destinations in 23 countries, operating a fleet of more than 280 aircraft, with a workforce of over 40,000 employees.

Global expansion plans

LAN and TAM’s networks are complementary, with very little overlap. LAN and its affiliates have a leading position in their domestic markets of Chile

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UU Mauricio Amaro, VP TAM, Enrique Cueto LAN CEO, Maria Amaro, TAM President and Ignacio Cueto, President LAM

and Peru, as well as strong presence in Equador and Argentina. The purchase of AIRES, gives coverage in Columbia, while TAM is Brazil’s premier domestic and international carrier. With this web of domestic networks, the group will be able to offer enhanced connectivity throughout Latin America.

And while LAN and TAM will continue to operate under their existing brands, the merger will allow them to further develop their global presence, with new international routes and hubs to connect them to Europe and the US. In addition LAN and TAM benefit from network connections offered by their memberships of global alliances. LAN has been a member of oneworld for over ten years, while TAM joined Star Alliance only in May 2010. A decision on whether or not the group will switch to a single alliance will not be made until the merger is finalised.

Major investments are underway and as part of expansion plans, the two airlines already have orders in place for more than 200 aircraft. The carriers expect to achieve cost saving synergies of $400m a year in terms of network and purchasing optimisation and these synergies will notably include the purchase of aircraft. “Together, LAN and TAM will be able to offer new destinations that neither company could have supported on its own” said Marco Bologna, CEO of TAM. “This will position us to compete with the foreign carriers that continue to increase service to our region, while creating new jobs in our home countries.”

YY Enrique Cuerto, CEO and Ignacio Cuerto, President of LAM

The merger is to be in the form of an all-share deal which will give LAN shareholders 70 per cent of the new group. TAM shares will be exchanged for 0.9 shares each in the new company. The financial sector is already looking favourably on the merger.

The two airlines have combined revenues of 8.6 billion dollars and LAN is one of the few Investment Grade rated airlines in the world. Confidence is bolstered by the fact that the airlines are operating in one of the fastest growing aviation markets, as both passenger and cargo demand in region is rising steeply due to economic growth.

Competition and consolidation

Although the demand for aviation in Latin America has grown, so has competition. The landscape of the region’s airline industry has been undergoing major transformations. There has been a strong increase in offerings from low cost carriers, Mexicana suspended its operations last year and there have been other consolidations such as Colombia’s Avianca Airlines pairing with TACA Central American group of airlines. Following on from this trend in consolidation, LAN itself acquired low-cost Colombian airline AIRES, in November.

LAN and TAM have already stated in the past that a motivation for the merger is to be able to compete with other newly formed mega-airline groups, such as Continental and United and the British AirwaysAmerican Airlines-Iberia link-up. “As regional leaders, TAM and LAN make a natural move in the global trend of consolidation in the airline sector” said Marco Bologna. “We believe this is the best way to guarantee our companies’ growth, in a scenario of high competition and growing demand. We are confident that, after all the required approvals, we will be able to offer even more advantages to our customers, employees and stockholders.”

As this article goes to press, the merger is currently being examined by the Chilean antitrust court, the Tribunal de Defensa de la Libre Competencia (TDLC), which could delay the transaction. Despite this, LAN has confirmed that the tie-up is “still fully on”.

“The merger between LAN and TAM brings a unique chance to create a leading World Class Airline in Latin America” a LAN spokesman told The Corporate Traveller. “This region is growing fast in the world and the passengers of Brazil, Chile and all throughout Latin America deserve an airline with an exceptional network, with multiple hubs and inimitable service standard that LATAM will bring. LAN and TAM will be placed in a good position to grow and we expect to create new positions and boost the economic development”.

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airports

Interview with CEO, Richard Gooding

London City Airport,

London City Airport (LCA) has become the UK’s leading airport for the business sector since its opening in 1987.

It owes much of its success to UU Richard Gooding - LCA’s Chief Executive its location, as the only airport actually in London. Richard Gooding, LCA’s Chief Executive, told us about the airport’s plans to expand passenger capacity and the attractions it holds for the business traveller.

YY Fast boarding times

the UK’s leading business airport “O

ver sixty percent of passengers passing through our airport are travelling for business, and of these the largest sector are those working in the financial services industry” says Richard Gooding.

“Our main attraction for corporate travellers is clearly our location, in East London’s Docklands.

Close by are the capital’s financial and economic hub in Canary Wharf and the ExCeL exhibiton centre - and we have fast ground transport links thanks to the Docklands Light Railway network. This is a market that is looking for speedy and efficient flights to the business capitals of Europe and that is what we offer. Our check-in time is faster than for any other airport within the Greater London area.

Maintaining this reputation is very important to us and we monitor it carefully. For 99% of passengers we are able to deliver a kerbside-to-aircraft service in just 15 minutes. This applies to passengers who check in online and have no checked baggage but here they tend to be experienced business passengers and 40% of them are returning the same day.”

Business niche market

London City serves some 30 city destinations, mostly geared towards the business market, with about 1,200 scheduled departures and arrivals per week.

“With restrictions on the size of aircraft we can accommodate, we are mainly a European airport, but we have recently seen the launch of a longer haul destination with a British Airways, twice daily, service to New York” says Gooding. “This is an all business class flight which has been a huge success and really targets our niche market. We are also important in the private jet sector and started a Jet Centre in response to customer demand for business aviation.

This is an unashamedly top-end-of-the-market service, where time from getting off the aircraft to leaving the airport is only about 1 minute!”

“Although we have recently added destinations, such as Copenhagen, Stockholm, Malaga and Faro with British Airways, our growth is mainly centred on increasing frequencies on key routes, as this is what our passengers want” says Gooding. “Our



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UU Landing next to London’s financial hub routes to Paris continue to be successful despite the offer from Eurostar, as Air France switched its service from Charles de Gaulle to Orly Airport, which is much more convenient for the city centre.

Although we could not really compete with Eurostar on the Brussels route, we have a strong network to the Benelux region, especially through CityJet.”

LCA-based CityJet offers strong network to the Benelux

CityJet, the airline subsidiary of Air France-KLM, is based at London City. It currently operates 14 domestic and European routes from the airport, including a link to Florence launched in December. CityJet acquired VLM in 2007 and its services include a strong network to the Benelux, serving Amsterdam, Antwerp, Eindhoven, Luxembourg and Rotterdam.

“We are lucky to have the history and loyalty of VLM passengers to London City, so we have built a close relationship with our Benelux customers“ said Christine Ourmières, who became CEO of CityJet in October 2010. “One of our two headquarters is in fact in Antwerp, and this is where we carry out all our maintenance operations for our Fokker 50 fleet. The year we acquired VLM, which had a strong foothold at London City, also coincided with a year of great expansion at the airport. CityJet now has over 50% of the slots at London City, so we are in a unique position for connecting passengers point-to-point from central London to key European destinations. Not only that, the time to check into aircraft is very short, so it is a dream for business travellers. We have built a seamless and rapid service for these passengers with bundled services included. ”

The Masterplan for airport growth and improvements

“Times were tough in terms of passenger numbers in 2009, but we have seen significant recovery dur-

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ing 2010 and expect to completely recover in 2011” says Gooding. “We expect up to 3 million passengers for 2010 and in 2011, if the economy doesn’t slip back, a growth of as much as 8 to 10%.”

LCA’s Masterplan, published at the end of 2006, sets out its goals for growth until 2030. The Mas-

airports

our departure lounge is to give it all the features of a business class lounge. Here you can get your shoes polished, free WiFi access and charge your lap top for free. There is plenty of place for people to work and we have laid it out so that they do, even though they are normally here only 15 to 20 minutes before their flights.” The airport also offers a ‘silent’ departure lounge policy to allow passengers the opportunity to work without being interrupted by tannoy announcements or boarding calls.

UU Passengers working in the departure lounge terplan forecasts a rise to around 3.5 million passengers by 2015 and, looking further ahead over the next twenty years, to 8 million passengers and 143,000 air transport movements a year.

Over the years, the general direction of development for London has been towards the east of the city and the airport has played a significant role in the decisions by enterprises in the financial sector to move to the area. East London is expected to provide for almost a third of all London’s housing provision and an even greater proportion of its jobs. The hosting of the Olympic Games in London in 2012 is likely to further boost growth in the area, and at the airport. LCA is just two miles from the main Olympic Games site, and will be directly connected by a new Docklands Light Railway line. “2012 is not that far away, and it will be pivotal in our growth” says Gooding. “We will be welcoming lots of people and it will be the opportunity to showcase this part of London. It has already kick-started investment and regeneration here, especially with the improved local transport networks, and we believe this area will continue to be a hotspot for development over the next 30 years.”

There are no plans for a second runway at LCA, but its existing runway is not currently used to its full potential capacity. Improvements have been underway to maximise on this potential and enhance facilities, as set out in the Masterplan. “We invested in more aircraft parking stands a couple of years ago and now we are completing 7 million pounds of improvements to our terminal facilities” says Gooding. “We have added an extra floor into the terminal building which will significantly increase space and improve the speed of security procedures. What we have endeavoured to do with

As to the recent announcement by the UK government to halt extensions to Heathrow and Gatwick, we asked Richard Gooding if he though that this would have a positive impact on London City.

“It’s a mixed picture. Over the next 5 to 7 years it probably is a good thing for us, as we will see a return to an overflow of capacity at Heathrow.

When slots become scarce at Heathrow, larger aircraft flying longer routes are favoured. So some

of the future overspill from Heathrow, of smaller flights to European destinations, will likely shift to our airport. In the longer term though, it does beg some questions as the theory is that restriction on development at Heathrow Airport will have a negative impact on the economy. Given that other financial capitals are developing airport capacity, there is a risk that London becomes an ‘aviation backwater’.

Currently London has a central position in European business aviation, and that is the kind of positioning you give up at your peril. In the past we encountered a similar position with London docks - because of a failure to invest and poor labour relations the docks declined and closed.

There is a risk that if we don’t develop and nurture aviation the UU Executives working in the depature lounge pattern may repeat itself.”

“Our outlook is positive though. 15 years ago the airlines at London City were not well known ones, but now the legacy carriers have recognised the strength of the market here” says Gooding. “All three airline alliances, SkyTeam, Star Alliance and oneworld, are now present at London City Airport.

And what is unusual is that although you normally see one dominant alliance at an airport, here we have all three with a more or less even balance. “oneworld is represented by BA, SkyTeam by Air France-KLM and Star Alliance by Lufthansa and SWISS. All of them have recognised this is a grown up airport with a mature market and a good demand for business travel market from nearby London City, Canary Wharf and the West End. Airlines have recognised this lucrative market needs looking after.”

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destinations

Paris has been chosen by two of Asia’s leading luxury hotel brands, Raffles and Shangri-La, for their first steps into Europe.

Raffles Paris-Le Royal Monceau opened in October, while the Shangri-La Paris was inaugurated just two months later. Both are five star hotels in every way, and both belong to brands that opened their very first hotels in Singapore. However while these two Parisian palaces are less than half a UU Shangri-La’s Suite Chaillot kilometre apart, in the Trocadero museum district, they are quite different in their approaches. The Corporate Traveller took a visit to compare what they have on offer.

Paris Raffles Le Royal Monceau

aris Raffles-Le Royal Monceau reopened its doors in October 2010 after more than two years of renovations. The hotel is now owned by Fairmont Raffles Hotels International, the global hotel company which owns 98 hotels and resorts worldwide under the Raffles, Fairmont and Swissôtel brands. The group’s new flagship hotel in Europe is all about surprising design and the creative director chosen to re-imagine the hotel throughout, from interior design to cutlery, is non other than Philippe Starck.

P

Back in the 1930’s, the clientele of Le Royal Monceau were the elite of Paris’s artistic set – writers, actors and musicians. Faithful to its origins, the hotel is now targeting clientele from the worlds of fashion, design and cinema. Throughout the hotel there

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Shangri-La and Raffles pick Paris for European flagships

UU Raffles Royal Monceau’s cigar lounge (Photo Philippe Garcia LaSociétéAnonyme) are references to the arts. An impressive private photography collection, a dedicated cultural concierge and an arts bookstore are just part of this positioning, while the hotel also has is own state of the art cinema for private screenings and films premiers. Some of the hotel’s suites have been especially equipped for press interviews, so that an entire movie promotion can be organised within the venue. Soon to be added will be an art gallery, with four exhibitions a year and a design concept store.

White, silver and crystal in the ground floor reception areas, bar and restaurants give an air reminiscent of Stanley Kubrick’s ‘2001 A Space Odyssey’- the film from which Starck was inspired for the hotel’s communal areas. The light and airy French restaurant, La Cuisine,

has combined intimate alcoves for private dining, with ‘table d’hôtes’ where diners can eat together with other hotel guests for a convivial atmosphere. Desserts from the kitchen of famous Parisian pastry chef Pierre Hermé, can be made to measure according to guests’ preferences.

An Italian restaurant, Il Carpaccio, is located in a veranda overlooking the hotel’s herb garden.

VV Shangri-La Paris

Le Royal Monceau has 85 guest rooms and 54 suites, which in contrast to the reception areas, have a distinctly 1940’s flavour.

Here designer Starck was inspired by the home of French writer, traveller and politician, André Malraux. Objects such as travel souvenirs, books and even a guitar complete the effect. The result is both simple but eclectic.

When works are completed to the building adjacent to the hotel,

of reception and events spaces in the form of three connecting rooms, with rich architectural details from the Napoleonic period, in marble, mahogany and gilt. A well-being area including a fitness centre and 16 metre swimming pool, will be added to the hotel’s portfolio this spring.

UU Shangri-La’s Grand Salon

UU Shangri-La’s La Bauhinia

ten apartments will be added to the hotel offer, along with a spa and swimming pool.

century glory with a flavour of Asia-meets-Paris elegance.

Shangri-La Paris

The Shangri-La Hotels and Resorts Group operates 68 hotels worldwide under the five star Shangri-La brand and four star Traders hotel ensigns. For their first property in Europe, the group has chosen an extraordinary location - in a palace that was originally home to Napoleon Bonaparte’s nephew, Prince Roland Bonaparte. Behind the hotel’s private gates, in the Trocadero district’s avenue d’Iena, many of the Shangri-La’s rooms enjoy views of the Eiffel Tower.

One third of the hotels 81 rooms are in fact suites, with the largest being the Suite Imperiale, located in the former private apartments of Prince Roland.

Renovations to the historical listed building took four years, the same amount of time taken for the building’s original construction which was completed in 1896. Prince Bonaparte was an enthusiastic traveller, botanist and art collector who loved to entertain guests in his home. Original noble materials, antique paintings and objets d’art have been used throughout, to recreate the atmosphere that former guests to the palace must have enjoyed. Marrying the histories of the Shangri-La brand and the palace, the hotel has been restored to its 19th

The high-ceilinged marble hallways with magnificent staircases in wrought iron and copper, complemented by Chinese porcelain antiques, reinforce this first impression on entering the hotel.

To the right of the entrance lobby, three salons for use by guests, originally the fumoir, billiard room and waiting room, offer luxurious but cosy relaxation areas. And it has to be said that for those travellers who have already experienced the Shangri-La brand in Asia, the level of hospitality seems to have lost none of its touch when crossing over to Europe.

The Shangri-La Paris is the first of three European hotels to be opened by the group over the coming year. Vienna will follow later this year, followed by London in 2012. Could this mean we are seeing the start of a new

trend? Over the last two years we have seen European and American hotel concentrating their expansion efforts in Asia.

Here two of Asia’s best known high-end brands are reversing the migration, with their first openings in Europe. And as for the positioning, is there still demand for hotel rooms costing a minimum of several hundred euros a night? If insiders in the luxury goods market are to be believed, they have felt very little impact by the recession. As both hotels were almost fully booked at the time of visiting, this would seem to be confirmed.

VV Royal Monceau’s private cinema (Photo: Harald Gottschalk LaSociétéAnonymeLe)

Also on the ground floor are the hotel’s ‘Napoleonic post-Egyptian’ cocktail bar and two of its three restaurants. Overseeing the entire hotel’s cuisine is Executive Chef Philipe Labbé, previously of Michelin two star restaurant Château de la Chèvre d’Or. His mission is a tall order - to showcase the finest Asian and French cuisine in Paris. La Bauhania, housed in a 1930’s glass cupola with mezzanine gallery, offers western and oriental dishes, while the more intimate L’Abeille specialises in French cuisine. The Shangri-La’s third restaurant, the eagerly awaited first gourmet Cantonese restaurant in Paris, will open this spring.

Completing the Shangri-La’s facilities are 850 square metres

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destinations

Ukraine International Airlines re-launches Brussels - Kiev route Ukrainian International Airlines reopened the Kiev-Brussels route at the end of September last year, with 5 direct flights per week (6 as from 5th June 2011), greatly benefiting business travellers negotiating with the former bread basket of the Soviet Union. A perfect opportunity to go and discover this pearl of the east before it hosts the 2012 European Football Championship, which is being jointly organised with Poland. Follow the guide‌

G

olden domes and shimmering spires peek out from the wooded hills rising above the wide Dnieper River. Leafy-green Kiev, with its traffic-packed boulevards, shopping malls, countless churches, brilliant music and lively nightlife, has embraced capitalism but held firmly to its heritage. The

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Caves Monastery is the spiritual heart of Ukraine, while nearby a gigantic Brezhnev-era Motherland statue bearing sword and shield casts her all-encompassing eye over the city, the river, and its island beaches.

World treasures

These two words sum up the Ukrainian capital, which is one of

the largest cities in Europe, with some 3 million residents, as well as the country’s economic and cultural centre. Located on the shores of the Dnieper River, Kiev is a city of invaluable historical and cultural monuments, a city of great events and outstanding people, where everyone will find something especially interesting for himself. The art and architec-

ture of Kiev are considered world treasures. We sincerely recommend that you visit some of its most well known treasures, such as the Cathedral of St. Sophia, the monasteries and churches of Kievo-Percherskaya Lavra, the Golden Gate of Kiev which dates back to 1037, the Ukrainian Baroque Church of St. Andrew, the magnificent 19th-century Cathedral of St. Vladimir, the Chernobyl Museum and many other attractions.

Bustling life

As you can imagine, as well as being able to benefit from its five star hotels and its fifteen or so 4 star hotels (a hotel capacity which is, however, set to grow

able price, such as Osteria Pantagruel, with its delicious Italian cuisine and excellent wine list. strongly ahead of the Euro 2012 championship) most of which have all the facilities required for organising meetings, conferences and other events, it is possible to spend your entire trip visiting the city’s churches and museums. But it would be a pity not to sample the bustling local life too. Kiev boasts hundreds of restaurants serving various cuisines and offering their customers comfort and style. Whether you are seeking traditional Ukrainian restaurants or restaurants serving classic French and Italian cuisines, you will find the most suitable establishments.

Restaurants, bars and cafes are available throughout the city, particularly in the centre of Kiev and near the places of tourist interest. Although there is no official tourist office for Kiev, you will easily find all the information you require in your hotel. You can also ask for advice from the guide facilitating your visit to the city’s treasures. Like us, he will be able to recommend a few nice restaurants, whether for local cuisine or otherwise, all of good quality and at an afford-

Simple shopping

In addition, the many security guards and watchmen at the state buildings located throughout the city centre provide a pleasant feeling of safety. The city is a godsend for shopaholics too, who will find their perfect fit in the various shopping centres, the most renowned of which is located just below Independence Square, images of which were seen around the world during the Orange Revolution in 2004.

All the big stores have a presence there, making it difficult to imagine that there was practically nothing to buy in Kiev just a few decades ago. And you’ll have no problem paying your bill, since the large chain stores, as well as hotels and many restaurants, take the usual credit cards. Bank machines can also be found almost everywhere.

While euros are accepted in some places, you should always carry some local currency (the Hryvnia) with you, whose easyto-remember exchange rate (10 Hryvnias = approx. €1) makes calculations simple…

Transport

Your Hryvnias will be useful above all for travel, which may represent the only slight

difficulty to be overcome during your trip. In addition to the transport problems found in any major metropolis, the barrier represented by the Cyrillic alphabet and language, especially in relation to taxis, will not make things any easier.

You are therefore advised to ask about the price of the journey in advance, for example in the hotel. To take us from the Opera Hotel to the KyivExpoPlaza

Exhibition Center on the outskirts of the city, for example, the prices demanded differed by up to 300%! It may therefore be better to take public transport, even though, in this case too, your attempts to decipher the name of the next station may mean you miss it… We feel certain, however, that the resources being deployed for organisation of Euro 2012 will address this minor shortcoming and make your next visit to Kiev all the more easy and convenient.

Practical information Flight details: Brussels - Kiev 19.50 - 23.45 (Monday to Friday) - Ukraine International Airlines PS902 Kiev - Brussels 16.45 - 18.45 (Monday to Friday) - Ukraine International Airlines PS901 New timetable as from March: Brussels - Kiev: 13.05 - 17.00 (PS 902) and Kiev - Brussels: 10.15 - 12.15 (PS 901).

A 6th flight will be added (on Sunday) as from 5th June 2011.

Boryspil International Airport - Kiev city centre: 35 km or 35-45 minutes KyivExpoPlaza Exhibition Center - Kiev city centre: 12 km or 20 minutes Currency: 1 Hryvnia (Hr or UAH) = 100 kopyika (1 EUR = approx. 10 UAH) Climate: Temperate continental No visa needed, valid passport only No official tourist office, but maps and information on local tours, river cruises, sightseeing, concerts, restaurants and nightlife can be found in hotels.

Further information: Ukraine International Airlines (www.flyuia.com) KyivExpoPlaza Exhibition Center (www.expoplaza.kiev.ua) Panorama Tours (www.panorama-tours.eu)

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lifestyle

Sennheiser RS Headphones

Conquering the Empire as a Jedi knight without waking the neighbours? Conducting a symphony orchestra in fortissimo with the kids asleep in their beds? No longer a problem with the RS wireless headphones from Sennheiser. No matter whether connected to a television set or a hi-fi system – the RS 160, RS 170 and RS 180 guarantee an excellent sound experience. Dynamic sound transducers with powerful neodymium magnets ensure a clear, high-resolution audio playback whilst the unique Kleer transmission technology promises uncompressed transmission of the audio data.

A unique wireless sound experience

T

he RS 160, RS 170 and RS 180 headphones represent a perfectly free, wireless sound experience.

All three models offer highly impressive audio quality – with no cables to get in the way. They all use Kleer transmission technology, which operates without compression and therefore without any audio loss. Not only can you move around while watching television but you can also enjoy cable-free music at a radius of up to 100 metres (RS 160 up to 20 metres, RS 170 up to 80 metres and RS 180 up to 100 metres).

UU RS 160

Cinema-quality performance

The new RS models combine cinema-quality sound with movie star looks. Clear lines and sophisticated, reflective surfaces in black, silver and anthracite make them genuinely desirable design objects. The headphones, with their soft padded ear cups and adjustable headbands, are specifically designed for hours of television or music enjoyment

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and are still comfortable to wear when your movie night eventually draws to a close.

model is targeted at sound purists; the open design ensures a particularly natural listening experience which can be set to individual preferences. The speech intelligibility can be improved through dynamic compression

shared as up to four headphones can receive radio signals via one transmitter.

(Automatic Level Control) and the balance can also be individually adjusted.

Plug and Play

UU RS 170

Cinema-quality sound in the living room

Tried and tested Sennheiser technology ensures transparent and balanced sound with the new wireless headphones.

Dynamic transducers with powerful neodymium magnets and a distortion of only 0.5 percent reproduce even the subtlest musical nuances. The frequency response reaches from 18 to 21.000 Hertz. With a sound pressure level of 106/110 decibels the three headphones have outstanding dynamics.

The RS 160 is the entry-level model: the closed headphones impress with their detailed sound and powerful bass reproduction.

The volume can be controlled directly on the headphones. The RS 170 is also a closed model and delivers dynamic bass boost and switchable surround sound.

The top-of-the-range RS 180

It‘s just so easy to connect the wireless headphones – whether to a television set, stereo system or DVD-Player. If the transmitter is connected to an audio or video device, it automatically transmits the audio data to the headphones: switch them on, put them on and sit back and enjoy the results. The 2-gigahertz digital radio transmission ensures smooth transmission with a high signal-to-noise ratio of 85 dBA. The Kleer technology even allows the listening pleasure to be

UU RS 180 The transmitter of the RS 160 has a diameter of only 9.7 centimetres. When connected to an MP3 player or mobile phone it fits easily into a backpack, which means that the headphones can be used for wireless music enjoyment whether you are at home or out and about. The RS 170 and RS 180 transmitters are a little larger as these also serve as a charging cradle.

Kleer Technology While other brands stick with known wireless protocols such as RF, IR and Bluetooth, Sennheiser comes with a series of products based of Kleer technology. This technology has several advantages over other commonly used solutions.

The 2,37 MB/s peak bit rate can transfer CDquality stereo sound without compression (lossless) and with less power use than conventional transmission architectures. Furthermore, the Kleer technology is virtually immune to interference from other devices in the crowded 2.4 GHz band. The 2.37 MB/s peak data rate provides more than enough bandwidth.

If any malfunctioning of the available bandwidth occurs, Kleer technology will switch fast and without audible effect to one of the other 16 channels.

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