The Business Travel Magazine September - October 2016

the

Businessmagazine Travel 60

SEPTEMBER/OCTOBER 2016

HOLDING ALL THE CARDS The payment options at your fingertips

Also inside...

Annual aviation review Sustainable travel Traveller tracking Meeting in... Sheffield On business in... Sydney Focus on... China

CONTENTS SEPTEMBER/OCTOBER 2016

60 Airlines update

Inside

ISSUE 60

Features

91

26 SUSTAINABLE TRAVEL Do corporates have sustainable travel policies back on the agenda and how are suppliers helping them?

Focus on China

34 CORPORATE CARDS The latest developments in the corporate cards market 44 TRAVELLER TRACKING The need to keep tabs on business travellers has never been so acute

Arrivals 6

60 AIRLINE UPDATE This comprehensive annual update navigates the latest developments and challenges faced by the aviation industry

OPENING SHOTS Eye-catching industry images

14 THE KNOWLEDGE Sourcing the right TMC

8

EVERYONE'S TALKING ABOUT...

The UK rail network

16 PEOPLE AWARDS Meet the winners

10 SIX OF THE BEST...

Awesome airport amenities

18 EVENT REVIEW The Business Travel Conference

13 IN FOCUS Brexit's impact on business travel

20 SPEAKING OUT Apartment sector transparency

The Review

18

The Business Travel Conference

Regulars

23 MEET THE BUYER Pam Booth, Anchor Trust

49 Ten pages of top news stories, trends and developments, plus updates from the ITM, GTMC, ACTE and MIA

24 BACK TO THE FUTURE Economy class bunk beds

Departures

32 THE DEBATE Brexit and the events industry

87 MEETING IN...

Sheffield

83 BEGINNER'S GUIDE TO...

Dynamic pricing

89 ON BUSINESS IN...

Sydney

84 TECHNOLOGY Personalisation

91 FOCUS ON...

China

86 SUSTAINABILITY Post-Europe possibilities

96 REALITY CHECK Product reviews

98 THE FINAL WORD The lighter side of travel

30 THE CONVERSATION Stephen Humphreys

THE BUSINESS TRAVEL MAGAZINE 3

WELCOME SEPTEMBER/OCTOBER 2016

Andy Hoskins, Editor

The fluctuating fortunes of airlines THE AIRLINE industry, by its very

are explored in our comprehen-

long. One week, Cathay Pacific

sive annual airlines report (from

reported an 82% drop in net profit

page 60), which examines airlines’

for the first half of the year,

evolving operating models, how

blaming the slowing Chinese

corporates are doing business

economy, more competition and

with airlines and much more.

Just a week later Qantas posted

PUBLISHER

David Clare david.clare@thebusinesstravelmag.com

The fluctuations of the industry

nature, does not stand still for

falling demand for premium travel.

EDITOR

Andy Hoskins andy.hoskins@thebusinesstravelmag.com

CONTRIBUTORS

Gillian Upton, Emma Allen, Julie Baxter, Colin Ellson, Catherine Chetwynd, Linda Fox, Roger Gardner & Rob Gill JUNIOR JOURNALISTS

Benjamin Coren & Cameron Roberts EDITORIAL DIRECTOR

Steve Hartridge

Not surprisingly, this issue is laced with Brexit-related

record annual profits – the best

comment and analysis, ranging

in its 95-year history – with an

from an overview of its potential

SENIOR SALES MANAGER

Craig McQuinn craig.mcquinn@thebusinesstravelmag.com CREATIVE DIRECTOR

impact on the travel industry

Matt Bonner

(page 13), and how it might affect the meetings and events sector

DESIGNERS

Louisa Horton & Ross Clifford

(page 32), to the positive

JUNIOR DESIGNER

Zoe Tarrant

possibilities it presents for

PRODUCTION MANAGER

sustainable travel (page 86) and

Clare Hunter

some early trends identified

PRODUCTION CONTROLLER

in travel searches and booking

Steve Hunter

data in the weeks following the

SUBSCRIPTIONS MANAGER

referendum (page 56).

Cheryl Staniforth

You'll also find features detailing

MANAGING DIRECTOR

Martin Steady

the latest developments in the

You can look forward to more great content in our next issue but, as we approach our tenth anniversary, it might just look a little different

corporate cards market (page 34) and on how best to keep track of your travellers while they’re on the road (page 44). You can look forward to more great content and comment in our next issue but, as we approach the tenth

impressive 57% improvement on

anniversary of The Business Travel

the previous financial year.

Magazine, it might just look a little

Next up, it was revealed that the President of American Airlines,

(Print) ISSN 1754-8543. THE BUSINESS TRAVEL MAGAZINE IS PUBLISHED BY BMI PUBLISHING LTD: SUFFOLK HOUSE, GEORGE STREET, CROYDON, SURREY, CR9 1SR, UK. T: 020 8649 7233 E: ENQUIRIES@BMIPUBLISHING.CO.UK BMIPUBLISHING.CO.UK ALL PAPER USED IN THIS PUBLICATION IS SOURCED FROM SUSTAINABLE FORESTS AND IS FULLY RECYCLABLE Recycle

When you have finished with this magazine please recycle it

different to what you’re used to.

Watch this space, as they say.

WHILE EVERY EFFORT IS MADE TO ENSURE ACCURACY, BMI PUBLISHING LTD CANNOT BE HELD RESPONSIBLE FOR ANY ERRORS OR OMISSIONS. © BMI PUBLISHING LTD 2016 IMAGES: SOURCED FROM SUPPLIERS, ISTOCKPHOTO.COM AND BIGSTOCKPHOTO.COM

Scott Kirby, would move to rival carrier United Airlines to take up the same role. The Wall Street Journal called it “one of the most unusual management moves in the industry’s history.”

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THE BUSINESS TRAVEL MAGAZINE 5

OPENING SHOTS Eye-catching images of the latest news and developments

1

1 THE Hotel Indigo in Bath is not

due to open until next year but its developers, the St James Hotel Group, have already given us a glimpse of its quirky guestrooms.

The 117-room boutique hotel is being created from two existing hotels and a former nightclub set in a number of Grade I listed Georgian buildings.

2 DELTA Air Lines is introducing

2 6 THE BUSINESS TRAVEL MAGAZINE

the Delta One suite, the first business class cabin to feature a sliding door at each suite. The product will debut on Delta's first Airbus A350 next year.

ARRIVALS OPENING SHOTS

3

4 3 ETHIOPIAN Airlines became the first African carrier to operate an Airbus A350 when it introduced the new aircraft on its daily service between London Heathrow and Addis Ababa in August.

5

4 HOUND Lodge is the latest

addition to the range of meetings and events facilities at the Goodwood Estate in Sussex.

5 LONDON'S Courthouse Hotel has opened the Shoreditch Sky Terrace bar with impressive views across the capital. It is open year-round and is available for exclusive hire.

THE BUSINESS TRAVEL MAGAZINE 9 7

ARRIVALS

EVERYONE'S TALKING ABOUT...

The UK rail network

Passengers want more reliable journeys in comfort and with better facilities. That is why we are investing record amounts in our railways, delivering the biggest rail modernisation programme for over a century, providing more seats, more services, wifi and air-conditioning” Paul Maynard, Rail Minister

The industry needs to focus on making the best fares available through all distribution channels so customers know that they’re getting the best deals” Ian Cairns, Head of Distribution, Trainline

In many places our railways are full, with passenger numbers having doubled in two decades, and we know passengers and the country need better services. We need to sustain investment to build a modern railway, and money from fares helps us to do this, which is crucial with rail now more important to our nation's prosperity than at any time since the Victorian era” Paul Plummer, Chief Executive, Rail Delivery Group

Business travellers want a reliable service and a seat they can work in. Some operators are very good at providing that but franchises need to be longer to encourage investment” Nick Hurrell, Partner at business travel consultancy 3Sixty Global

We need a better connected UK in order to enable business development and, in turn, grow the UK’s economy. We don’t want to hear any more talk without action.

It is time that we started to see movement on long overdue improvements and greater competition on the country’s railway network” Paul Wait, Chief Executive, GTMC

8 THE BUSINESS TRAVEL MAGAZINE

The recent rise in rail fares proves the government needs to stop using RPI to calculate ticket prices once and for all. The Office for National Statistics stopped using it in 2013 because it consistently over-estimates inflation and now it's time to apply the same rule to rail fares” Stephen Joseph, Chief Executive, Campaign for Better Transport

ARRIVALS

Rail passengers are paying more and getting even less. Fares go up while trains remain overcrowded, stations are unstaffed and rail companies cut the guards who ensure that journeys run smoothly and safely” Frances O’Grady, General Secretary, Trades Union Congress (TUC)

Our railways in the UK are the hardest working in the world, but everything is stretched” Simon Calder, speaking at The Business Travel Conference

Fifty years after Dr Beeching closed a third of the network, the successful New Stations Fund shows communities up and down the country are clamouring to get back on track. The challenge now is to build a railway that meets the growing demand to travel by

Want to save on average 38% on your business travel across Europe?

To find out more, contact our Business Team at european.sales@easyJet.com

train. That means reopening lines as well as stations” James MacColl, Head of Campaigns, Campaign for Better Transport

Average saving based on analysis of the prices paid for over 200,000 standard seats sold between 1 July 2014 and 30 June 2015. Flights departing on easyJet’s top 50 business (by volume) European routes, of which 43 were also flown by at least one other airline on a city to city route basis. Actual savings per route vary. Prices paid include admin and payment fees and some other airlines’ standard seats may include extra services such as hold baggage and in-flight services. At least 45 easyJet seats sold were compared on each route. Source: Capita Travel and Events Limited November 2015.

ARRIVALS

SIX

OF THE BEST...

Amazing airport amenities

Airports are raising the bar in terms of the facilities and activities they offer to passengers passing through their terminals. Benjamin Coren finds out what’s on offer

THE CULTURAL CENTRE, SEOUL INCHEON

Brush up on your knowledge of all things Korean at Seoul Incheon International airport’s Museum of Korean Culture. It houses various artefacts of around the terminal, nature trails and an entertainment zone with a movie theatre.

Beds are also available for passengers with long layovers.

BEER GARDEN, MUNICH AIRPORT

historical and cultural significance, several of which are recognised by UNESCO. The airport also has an ice rink, casino and indoor gardens.

It’s only fitting that Munich’s airport is home to the largest covered beer garden in Europe, with seating for up to 600 people. Lederhosen-clad staff serve traditional German food and beer that is brewed at the airport's inhouse brewery and bar, Airbräu.

AQUARIUM AND ART,

ROOFTOP POOL, SLIDES AND

VANCOUVER INTERNATIONAL

CINEMA, SINGAPORE CHANGI

The Canadian airport is brimming with works of art but there's also an impressive 114,000-litre aquarium that contains a large variety of species native to Canada’s

You won’t be short of things to do at Singapore Changi Airport. There’s a rooftop pool, the world’s tallest airport slide for quickly zipping

10 THE BUSINESS TRAVEL MAGAZINE

Pictured clockwise from above: Slides at Singapore Changi; Vancouver's giant aquarium; Live music at Austin Bergstrom; Munich Airport's beer garden; Seoul Incheon's Cultural Centre

coastline. Meanwhile, the Pacific Passage corridor of art welcomes arriving passengers.

THE AVIATION MUSEUM, SAN FRANCISCO INTERNATIONAL

The SFO Aviation Museum and Library features regularly changing exhibitions and a collection focusing on the history of commercial aviation.

It's all set in an architectural adaptation of the airport’s 1930s passenger lobby.

LIVE MUSIC, AUSTIN BERGSTROM

Look out for live music performances at both the East and West concourses of Austin's Bergstrom Airport.

There are six venues in total and more than a dozen live concerts are held each week for ticketed passengers only.

The Music in the Air programme covers all musical genres.

Whatever brings you to our cities, Edwardian Hotels London puts you within walking distance. We have 12 luxury boutique hotels in the most prestigious areas of London and Manchester. Each has its own distinctive character and atmosphere, and all are committed to making even the shortest stay last long in the memory.

To reserve your stay visit edwardian.com The May Fair Hotel Radisson Blu Edwardian, London Hotels: Berkshire • Bloomsbury St • Grafton • Hampshire • Heathrow • Kenilworth Manchester • Mercer St • New Providence Wharf • Sussex • Vanderbilt

ARRIVALS

IN FOCUS A closer look at industry developments

The mysterious case of Brexit and business travel 'Too soon to say' is the stock answer of many travel industry folk when asked about the impact of Brexit, but that needn't stop us debating the topic, says Andy Hoskins In a small room tucked away down a corridor of the vast Colorado Convention Centre in Denver, an audience of 50 or so British, German, French and American delegates – and a smattering of other nationalities – took their seats to find out what impact Brexit will have on the business travel industry.

It was one of 20 sessions running concurrently at the enormous annual GBTA Convention, attended by over 6,000 delegates, but the fact Brexit had found its way on to the agenda at all spoke volumes.

But if attendees were expecting any definitive answers, and few probably were, they might have left a little disappointed.

“Nobody really knows what Brexit means for business travel until the terms of the UK’s departure from the EU is negotiated,” said the session’s co-presenter, Paul Tilstone, of business travel consultancy Festive Road. “But there will be implications for open skies agreements, free healthcare in Europe, border-free travel, mobile roaming charges and flight compensation arrangements.”

He noted that two-thirds of travel to/from the UK is EU-based and that IATA forecasts a 1% reduction in air travel over each of the next four years.

And he addressed anecdotal evidence of a drop in demand for business travel from UK-based companies, and a resultant fall in

spend, suggesting it could be a short-term effect. UK businesses might seek to travel more to boost trade globally, he argued, and economic confidence could quickly rebound.

Moreover, with the pound weakening against both the Euro and US Dollar, the UK will become more attractive to overseas businesses and UK exports are expected to grow.

Co-presenter Daniel Bachman, Senior Manager Economics, Deloitte, meanwhile, came armed with a barrage of statistics that should have assuaged any concerns harboured by US delegates.

US exports to the UK comprise only 0.7% of the United States’ GDP, he said, and forecasts show a maximum 10% drop in exports.

“Brexit is not going to be a major source of trouble,” he said.

Another point debated by the presenters, without reaching a conclusion, was the potential waning of the UK’s appeal as the natural European base for big US and international businesses.

The session took place less than a month after the UK voted 52% to 48% in favour of leaving the EU and, a month further on, the picture is not much clearer.

Data is slowly emerging that reveals some post-referendum trends, such as falling room rates across the UK and a rise in inbound flight bookings (see page 56). And if demand and pricing both fall, it will play into the hands of corporate travel departments.

There are no such concerns for hoteliers though, with a report from the HBAA painting a picture of calm

“If demand and pricing fall, it will play into the hands of corporate travel departments” and no notable rush among clients to cancel or postpone events. The impact of Brexit on its workforce is of greater concern than its impact on rates achieved.

“A considered challenge we are seeing is against our future workforce and the potential impact on European employees to our industry,” says the HBAA. “How is this decision going to affect us in terms of legislation of employees being able to continue servicing us?”

Another organisation getting to grips with the impact of Brexit is ACTE. It says the subject will take centre stage at its Global Summit in Amsterdam this October. In the meantime, its Executive Director, Greeley Koch, promises to respond to any TBTM readers’ Brexit-related questions (see page 53).

Finally, as one GBTA delegate said, the uncertainty surrounding Brexit rather reminded them of Donald Rumsfeld’s famous ‘known knowns, known unknowns and unknown unknowns’ speech.

The fact is, it's just too soon to draw many meaningful conclusions.

THE BUSINESS TRAVEL MAGAZINE 13

The Knowledge

How to...

Source the right TMC After operating an in-house travel agency for many years, The Salvation Army International was seeking a travel management company that could deliver personal service and meet its exacting needs

THE BACKGROUND

THE CHALLENGE

Established in 1865, charitable organisation The Salvation Army was looking for a TMC The Salvation Army International is based in who would handle bookings with the same London and today has a presence in over care and detail as its old in-house agency.

120 countries worldwide. It provides health It needed a partner that could respond programmes, emergency response and quickly, was available 24 hours a day, could family tracing assistance to those in need. organise both individual and group travel “A lot of our travel is to developing and provide high-quality, stress-free countries in Africa, Asia and South America, customer service. It particularly sought a and to disaster and/or high-risk areas,” says TMC that would proactively look for cost the charity’s Travel Manager, Mark Edwards, savings and bring their attention to special “and we’re experiencing rates and offers that it was year-on-year expansion.” eligible for.

For a long time The “We’re a charity so we’re Salvation Army’s travel looking at the cheapest fares needs were fulfilled by its or rates all the time. Our own in-house travel agency, travellers appreciate that’s but this was disbanded in just the way it is,” says Mark.

2001. It hired its first TMC “That said, we recognise soon afterwards and had a that cheapest isn’t always lengthy and largely the best and it often means successful relationship with non-refundable or changeit before Mark felt it was able tickets so we have to time for a change. manage that very carefully.”

“Our old in-house Crucially, the charity also operation had offered us a required access to airlines’ really personal service and special charity fares. “Only the number of countries worldwide that’s what we needed to a small number of travel in which the Salvation Army get back to,” he says. “We management companies International works needed a relatively small have access to airlines’ company that could look charity fares so that after us and meet our demanding narrowed the pool immediately,” says Mark. turnaround needs.”

“At the time it was just four or five TMCs.” Mark cites the Boxing Day tsunami of 2004 as an example. “By midday we were getting people out there and working. We Ultimately, The Salvation Army selected have to be there almost immediately.”

Diversity Travel, with Mark identifying a He adds: “We have diverse travel patterns good cultural fit and the sort of high service and the amount we travel really depends levels and account assistance he required. on what’s going on in the world.”

“Diversity was relatively small and young Last year, The Salvation Army was heavily when we started working with them. We involved in projects in Nepal following the got very personal service and they’ve catastrophic earthquake that hit the maintained it as they’ve grown,” he says. country and this year has been working “We are growing, our spend is increasing, with North African migrants in Greece. and they know how we work.”

“A lot of our work is to help people in Chris Hellawell, Head of Account need and it’s often in high-risk areas. Our Management at Diversity, says the TMC travellers aren’t obliged to travel if they’re quickly got to grips with The Salvation nervous, but it’s the nature of their role and Army’s idiosyncrasies and describes its it’s in our ethic,” says Mark. needs thus: “Their travel can sometimes be

120

THE STRATEGY

Mark Edwards

Travel Manager, The Salvation Army International PROFILE

Mark started in the travel industry some 30 years ago as a junior for a small travel agency. He progressed to assistant manager and then director before changing roles in 2001 to become Travel Manager for The Salvation Army International Headquarters, managing its international travel programme.

14 THE BUSINESS TRAVEL MAGAZINE

THE KNOWLEDGE corporate case study

THE RESULTS

last minute or involve complex, multidestination itineraries, and the people Mark continues to handle The Salvation travelling could be charity staff, volunteers, Army’s travel bookings but has access VIPs or trustees.” to the GDS and can research the options He continues, “We need to be able to hold available to him. fares up to the day of travel without “There can be a fair bit of groundwork commitment and we can offer a range of before it even gets airlines with charity contracts.” to Diversity,” he The benefits of charity says, “and then they deals include the might come back to ability to hold fares, me and say ‘actually flexibility on this is what we’d changes, no suggest’ or ‘did you minimum stay realise such and such about this fare?’.” requirements and more The Salvation Army makes good use of airlines' He continues: “We have generous baggage charity fares and the benefits they offer so many variables to our allowances. Additionally, travel requirements that we some airlines offer a have to have a fluid policy and make sure specific discounted rate. we’re getting the best deals. Our partner’s “Charity fares are closely guarded by expertise is crucial in this.” those TMCs who have access to them,” The TMC has also opened its client’s says Mark. “We use British Airways, Kenya eyes to using a wider array of airlines, Airways and Emirates a lot but, even so, has helped secure new supplier deals and they account for only a small proportion of encouraged the use of smaller airlines our overall spend.” with whom The Salvation Army’s travel Mark praises Diversity Account Director, spend has more clout.

Peter Bush, for his proactive approach to “We’ve been very successful in achieving working with The Salvation Army, including more flexible and competitive fares for input on data analysis, supplier negotiations them,” says Peter. and general advice.

When it comes to MI, standard reports “We appreciate cost is important to have been tweaked to help The Salvation them,” says Peter, “but lowest fares aren’t Army identify always the best savings opporbecause they're not tunities or new very flexible. That’s the booking procedures. sort of thing we advise As Mark explains, on and will present “sometimes when alternative, costwe’re fixed on doing effective options.” something one way Mark and Peter work Diversity will come closely together to in and suggest doing identify trends from something else – and management reports it normally works.” and influence booking Peter jokes: “Somebehaviour accordingly. the amount saved on flights by securing times we know what Mark Diversity’s PinPoint group rates for a key event wants before he even asks!” traveller tracking system has Mark sums up The Salvation Army’s proved popular, while Mark has also relationship with its travel management dispensed with an “unsatisfactory” company: “Diversity was relatively small outsourced visa service and moved those when we started working with them. We requirements over to the TMC’s inhouse knew they would expand and grow but team – and “has not looked back since”. you wouldn’t necessarily know it because The Salvation Army’s point-to-point we still get the same service levels that are travel volumes are low so use of Diversity’s so important to us. booking tool has not been as beneficial He adds: “I always feel like we’re their as working directly with reservation best client and I guess that’s how every consultants. “For our set up, online is not company wants to feel.” the way forward,” says Mark.

“We’re a charity so we’re looking at the cheapest fares or rates all the time. Our travellers appreciate that’s just the way it is”

17%

advance savings Last year The Salvation Army International celebrated its 150th anniversary with a major event at London’s O2 venue. Over 1,480 people attended the event, travelling from 76 countries around the world. Diversity Travel began speaking to airlines 18 months ahead of the event even though fares are normally only available up to 11 months before travel. It successfully negotiated group rates with several airlines more than a year in advance – before flights went on general sale – resulting in a 17% saving, amounting to over £30,000.

THE BUSINESS TRAVEL MAGAZINE 15

THE PEOPLE AWARDS Meet the winners

Meet Esther Crowne

Account Manager of the Year, The People Awards 2016

Esther Crowne, Account Director at the InterContinental Hotels Group (IHG), tells TBTM about her role and what winning an accolade at The People Awards means to her

Q Tell us about your entry for The People Awards 2016?

A. I didn’t know I had been entered until the shortlists were announced so it came as a very nice surprise. It was all the more special because I had been nominated by one of our customers.

One of the great things about being nominated and attending the ceremony was taking my line manager with me. It was good to learn more about the event and to experience it in person. The fact that the entry and judging process is so

The fact the awards recognise people and partnerships rather than brands or companies makes them special

Esther Crowne (right) receives her accolade at The People Awards 2016

independent makes winning an award all the more valuable. The fact the awards recognise people and partnerships rather than brands or companies makes it special.

Q So how did you feel when you were announced as the winner?

A. I was really proud. It gave me an enormous sense of achievement. A few years ago I won an internal sales

achievement award but to receive this external recognition from a group of experienced and highly respected judges meant so much to me. I also think that, in this busy world, for someone to actually take the time to write an entry on my behalf is such a special thing to do.

Q How has your achievement been received by your peers?

A. My award was recognised both internally and externally. People who read the news in the media sent me congratulatory emails – one of our new customers saw it mentioned and wrote me a note to say it was great news and that it was fantastic to be working together. All of this has given me great confidence in what I do.

Q What advice would you give to someone thinking about entering the awards?

A. It is absolutely worth taking the time.

Recognising your teams, colleagues or business partners for their outstanding performance, or for going over and above the call of duty, is so important. It can really mean a lot and make a great difference to all those shortlisted and invited to attend the ceremony.

Q What are your top tips for successful business relationships?

A. I’ve worked with amazing general managers, directors and customers from whom I’ve learned a great deal. I’d confidently say, however, that from these people I learned three key values: work hard, be honest and trustworthy, and understand the market in which you operate as well as the business in which you work. These are all so important.

the people awards 2017 The People Awards recognise outstanding individuals and teams within and across all aspects of the supplier element of corporate business travel management whose professionalism and business excellence make them stand out from their industry peers. Entries for The People Awards 2017 will open in January.

16 THE BUSINESS TRAVEL MAGAZINE

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EVENT REVIEW TBTC'16

PERFECT TEN The Business Travel Conference celebrated its tenth anniversary this year. Andy Hoskins and Benjamin Coren report on the two-day event THE SHARING ECONOMY and Airbnb in particular were roundly criticised by travel industry leaders across several sessions at The Business Travel Conference 2016 which took place at the Novotel London West in July.

Safety and security concerns and a lack of regulation were the key issues raised by travel managers and TMC bosses.

“The sharing economy is an exciting development,” said Adam White, Managing Director of travel management company Baxter Hoare, “but we need to make sure Airbnb plays by the rules.”

White also revealed the results of a pre-event survey of delegates that showed 11% currently use Airbnb in their corporate travel programmes and 27% are considering its use, but the majority, 62%, do not allow its use.

In a session about accommodation trends, one travel manager said: “I don’t think Airbnb will take off for business travellers in the near future and it won’t be going into our programme unless there are changes to its rules and regulations.”

And in a session on risk management, all travel managers on the panel disregarded Airbnb as an accommodation option for their travellers.

Safety standards The subject of duty of care permeated numerous sessions and workshops at the conference, with corporates raising their

18 THE BUSINESS TRAVEL MAGAZINE

game when it comes to risk mitigation.

“We risk-rate every city we travel to over ten times a year. Even so, one day Paris was considered a safe destination, the next it was not,” said a travel safety and security coordinator at a major bank.

“We look at information from multiple sources. You have to feed travellers the correct information – you don’t want to scare people,” they added.

Anne Barlow, a travel manager at another major bank, added: “We are very proactive when it comes to risk management. We engage and educate and work hard to prevent complacency at all levels of our travellers’ journeys.”

She continued, “We have two types of travellers: those who

come to us looking for support and those who don’t. We insist everyone books through our TMC but, as with many companies, we have to manage our mavericks to provide adherence to programme and of course duty of care.”

Ground force The use of Uber was called into question in a session on ground transport, with one travel manager saying that although it wasn’t a preferred option in their travel policy, its use wasn’t ruled out.

The session was introduced by Chris Truss of Capita who called ground transport the “long tail of travel spend – the next frontier in finding savings in mature programmes.”

EVENT REVIEW TBTC'16

Travel manager Pam Booth noted that “trying to find a taxi solution countrywide is difficult,” but she has had more success achieving rail travel savings.

“Our average fare has come down from £68 to £55 in two months by influencing behaviour, specifically by encouraging booking lowest logical fares.”

Traveller friction A conference session addressing the ‘traveller experience’ proved one of the most popular, with two travel managers and a TMC debating ways corporates can improve the lives of those on the road.

Panellists discussed everything from traveller feedback surveys and focus groups to loyalty schemes, time off in lieu of weekend working and inhouse review and ratings systems (see the next issue of TBTM for more on this topic).

State of the industry Simon Calder, travel editor at the Independent and regular TV pundit, delivered a fast-paced presentation on the state of the industry, highlighting airport capacity in the South East – “capacity limits affect business travel very badly; a decision needs to be taken” – and high-speed rail travel in the UK. “HS2 is the most likely victim of government cuts even though it has allparty support,” he said. “It’s been sold incorrectly. It should be about increasing capacity, not just cutting journey times.”

Content and policy In a workshop on air travel developments, one group of delegates expressed concerns about the content available through TMCs and not having equal access to content through every channel.

And somewhat inevitably, Lufthansa’s DCC fee came in for criticism.

A third group highlighted the need for greater mobile booking capabilities from TMCs and a fourth proffered the opinion that content in the future could largely be distributed directly to customers, bypassing TMCs, presenting a whole new raft of challenges for travel managers.

For those delegates newer to the industry, another session covered the fundamentals of travel management.

“More than anything, it’s important to have a clear, concise travel policy,” said one travel manager on the panel.

“High Speed 2 is the most likely victim of government cuts even though it has allparty support”

EVENT SPONSORS

“Your travel policy is a living document and you must keep it updated. It’s also important to track compliance with the travel policy and choose the right TMC for your business,” they said.

“Make sure traveller profiles are correct and up to date, including emergency contact details,” advised another panellist. “From that you can track travellers and make sure they are safe during times of disruption.”

THE BUSINESS TRAVEL MAGAZINE 19

SPEAKING OUT

SIMON MORRISON

Clearing things up The maturing serviced apartment sector needs greater transparency if it is to really gain the trust – and business – of corporate customers, says Simon Morrison of Select Apartments

Simon Morrison Owner and Managing Director, Select Apartments PROFILE

Simon Morrison founded Select Apartments in 1998 and has over 19 years experience in the serviced apartment sector.

Prior to setting up his own business he worked for Euracom and Best Western Hotels.

20 THE BUSINESS TRAVEL MAGAZINE

MUCH HAS been written recently about the rapid growth in the serviced apartment sector, a trend that looks to continue upwards.

We have all read about the benefits to the business traveller, how serviced apartments offer more of a ‘home away from home’ experience with more space and the flexibility that self-catering offers.

We also know about the financial benefits in terms of rates (versus hotels) and keeping food and beverage costs down.

However, there is still a lack of awareness among corporates about what exactly a short stay ‘aparthotel’ is. In fact, a large majority would also have difficulty naming a provider’s brand. The reason for this is that the industry is still in its infancy and there are no particularly large players that have global recognition.

As an industry we are flying below the radar, unlike hotel brands and the likes of Airbnb which has invested heavily in marketing and saturated the market with awareness. Airbnb is simply a booking channel – and a controversial one at that.

And to make matters worse we have seen apartment providers like BridgeStreet and Oakwood join forces with Airbnb to offer this to the corporate sector.

Should we be worried? Well, I would say yes! Airbnb may work well from a leisure perspective if you don’t mind taking a risk and have a more adventurous nature. But it’s a bit like booking a cab through ‘Uber’ – there are no certainties of what you will get and this a huge risk for corporate bookers.

Unlike booking a hotel – where you know you are unlikely to get any nasty surprises – Airbnb does not carry out due diligence and there doesn’t appear to be the same degree of accountability and duty of care as there would be if you booked with a reputable serviced apartment provider.

Meanwhile, there is further confusion over the emergence of ‘hybrids’. Interestingly, some suppliers feel that travel buyers are becoming accustomed to the hybrid provider. This is all well and good as long as

they are not, as in some cases, passing off independent properties as their own.

This is misleading for the booker but also for the customer who may be expecting to stay at a brand they are familiar with which might not be the case on arrival.

Is this ethical? Think of it this way: if you had booked to stay at a Hilton you wouldn’t be very happy to arrive at your destination to find that due to availability issues they had booked you into a ‘partner’ hotel without mentioning it.

“If we are to see our industry thrive and grow, we need to provide our customers with complete transparency” Unlike the hotel sector, the one-size-fits-all approach doesn’t really work in our industry and several operators/agents – including ourselves – have opted to implement our own grading system designed to provide bookers with simple, at-a-glance, information that will help them make the right choice for their business needs.

If we are to see our industry thrive and grow, we need to provide our customers with complete transparency as well as consistency of product – something which the Association of Serviced Apartment Providers is endeavouring to address. But with so many different types of serviced accommodation across the globe, that is not a straightforward task.

In the meantime, our aim should be to ensure that customers are placed in suitable accommodation and that their expectations, comfort and safety take priority over any new marketing fads.

Bo N o ow k !

THE BUSINESS TRAVEL MAGAZINE

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MEET THE BUYER PAM BOOTH

Meet Pam Booth Anchor Trust

Pam Booth is a Category Manager at housing organisation, Anchor. She tells The Business Travel Magazine about her role and the company’s travel programme

Q Tell us a little about your company’s line of business and your role there.

A. Anchor is the UK’s largest not-for-profit housing organisation for over 55s. We have around 1,000 properties in the UK caring for over 50,000 older people. I’ve been at Anchor around two-and-a-half years as a Category Manager in our Procurement team.

Q How much of your time is spent managing business travel?

A. Very little, in fact. I manage the relationship with our travel management company, Click Travel, and with Trainline, but we operate a ‘self-booking’ policy so all of our travellers tend to arrange their own requirements.

Being a charity, our colleagues go that extra mile to 'do the right thing' knowing that any money we save ultimately goes back to helping our customers Q And what do your other responsibilities include?

A. I attend our quarterly review meetings where we look at the management information and make sure Click and Trainline are delivering a good service. I am an escalation point for any complaints regarding Click, Trainline or any hotels, and I'm ultimately responsible for ensuring we get the best value for money across our entire travel spend, which includes re-tendering the contracts at the appropriate time.

PROFILE

Pam Booth is a procurement professional with over 25 years’ experience across a range of industries. Previous employers include Centrica, The AA, SSL (Durex and Scholl), United Utilities, Peel Ports and Tata Steel, as well as a number of smaller organisations. Pam has managed travel spend ranging from £1million per annum UK-only up to £4milllion annual spend on international travel, alongside looking after other categories of corporate services spend.

Q Do you have a team of travel bookers that you share the responsibility with?

A. We are entirely self-booking, so all travellers book their own travel.

Q How many staff are there at Anchor and how many of them regularly travel on business?

A. We have around 10,000 employees

although only around 300 of these travel for business on a regular basis.

Q Give us a brief overview of your company’s travel patterns.

A. As we are UK only, around 50% of our bookings are for rail travel, around 49% is for hotels and the remaining 1% is flights.

The majority of our travel is UK-based between our London and Bradford offices.

Do you work with a TMC and/or a self-booking tool, or do you book everything on an ad hoc basis?

A. We use Click Travel for hotels, flights and conferences and Trainline for our rail needs. Both are online through a selfbooking tool, although we do have telephone support if needed.

Q

Q Do you have a comprehensive company travel policy in place? If so, how effective is it?

A. We have an expenses policy that includes travel. Our compliance is very high. Being a charity, our colleagues go that extra mile to ‘do the right thing’ knowing that any money we save ultimately goes back to helping our customers have a great later life.

Both Trainline and Click Travel have systems in place that flag up when a traveller is booking out of policy, which is usually enough to get them to go back and look again. If they don’t, they are then asked to give a reason code for why they are booking out of policy, and this is reported to our board on a monthly basis.

All of these things mean non-compliance with our policy is very low. Being UK only also makes business travel a lot simpler for our staff.

Q What are the biggest challenges you face when it comes to arranging travel for your employees?

A. Getting hotels within budget as, being a charity, we keep budgets very low. The problem is greatest in London, otherwise it’s relatively straightforward.

THE BUSINESS TRAVEL MAGAZINE 23

BACK TO THE FUTURE

ONBOARD SEATING

2008



Economy class bunk beds Issue 8, Jan/Feb 2008 The Business Travel Magazine,

2008

Now...

IN 2008 The Business Travel Magazine reported on a range of novel aircraft cabin concepts, including a triple-decker bunk bed ‘sleeper-class’ devised by Lufthansa.

Benjamin Coren brings things up to date

Then...

As reported in the Jan/Feb 2008 issue of The Business Travel Magazine Frequent business travellers coerced by corporate policy to fly economy class are used to flights of fancy. How much better, they muse, as they squeeze into seats designed for the vertically challenged, to enjoy the extra legroom in premium economy, or to be served superior meals in business and first class, before reclining for a good night’s shuteye.

The good news, albeit still very much a pipe dream, is that Lufthansa has been musing along similar lines. Not to lavish Krug and Beluga caviar on the budget-minded masses, you understand, but to offer them less fitful sleep.

The idea is to install fully flatbeds in economy class cabins on long-haul flights. Hold your horses! They are not talking about the type upfront that transforms from seat-cum-office into something like the divan at home. Instead, the airline has in mind tripledecker bunk beds, stacked in the cabin from floor to ceiling in a herringbone pattern to utilise unused space above passengers.

Lufthansa has released computer-generated images of the concept, described by one cynic as a cross between a school dorm and a troopship.

A spokeswoman for the airline said: “We are going to analyse the results [of a customer survey] and then we will decide whether to proceed or not.”

The beds would be in a so-called Sleeper Class and consist of seats that recline through 180 degrees to form tiered bunks after take off. They would possibly be installed on the airline's Boeing 747-800s and Airbus A380s, with fares costing up to ¤200 more than a flexible economy ticket.



24 THE BUSINESS TRAVEL MAGAZINE

In other news from 2008: Ryanair reveals its biggest expansion plans to date, adding 50 new routes for its summer timetable, including services from six UK airports.

Lufthansa’s novel bunk bed concept received mixed responses at the time, but was praised by some for its innovative approach to cabin design. Ultimately, the concept never progressed any further and the tripledecker bunk beds remain just that – a concept.

“Internally, we didn’t follow up on it. It was just interesting to find out what possibilities exist”, said a spokesperson for Lufthansa. Although it didn't get any further than the drawing board, the need for new designs demonstrates the importance to airlines of maximising the use of space on board.

“We need to ensure fares are competitive and that we make the most of the space available to us on board,” said the spokesperson. “Our focus in recent years, in terms of cabin development, has been on our premium economy class.

“Our objective is to fly profitably with competitive fares while offering comfortable seating solutions.”

So what chance of any revolutionary cabin concepts taking to the skies in the near future? The Civil Aviation Authority says manufacturers wouldn’t create this kind of product – or any other design that is a departure from the norm – unless some serious research shows that passenger demand is there.

More pertinently, perhaps, is that any new seat designs would need safety certification.

And logistically, it could prove difficult to retrofit aircraft with any sort of design that is a dramatically different.

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FEATURE SUStainable travel

Green

Days

Do corporates really have sustainable travel policies back on the agenda and, if so, what are suppliers doing to help them, asks Rob Gill

Following numerous terrorist attacks around the globe, duty of care for corporate travellers has risen to the top of the priority list for travel managers, alongside the evergreen issue of controlling costs. But what impact is this having on the importance of sustainable travel and is it more of an after-thought within travel programmes?

The answer depends on who you ask and what sector they work in, though it’s hard to find any company or organisation of significant size that does not have some sort of sustainability policy that encompasses business travel.

As one UK-based corporate buyer says: “We have a corporate sustainability programme which includes capturing data on emissions from travel. But while we encourage employees to book ‘greener’ travel options where appropriate, there are other more important issues currently, such as safety and security, and using travel to grow the business.”

Sustainable travel tends to come further up the priority list in the not-forprofit sector, according to travel management company Diversity Travel.

26 THE BUSINESS TRAVEL MAGAZINE

“We find that many of our clients hold sustainability at the top of their list of priorities and do so because of transparency, ethics and value for money,” says Head of Sales, Sean de Lacey.

“Clients are often more proactive at cutting emissions in other areas of their business than travel” TMCs and other suppliers commonly provide carbon calculators to show the impact of individual journeys and travel decisions. Use of carbon offsetting programmes is also widely available.

Andrew Newton, Head of Corporate Travel at Colpitts World Travel, believes clients mostly view carbon emissions from travel retrospectively and are more proactive at cutting emissions in other areas of their business.

“Carbon emissions in travel appears to be a retrospective consideration compared with taking a more active approach to green issues with recycling, low carbon product usage and simply

turning the lights off,” says Newton.

“With travel, these and other initiatives – like planting trees to offset carbon emissions – tend to be most helpful in reducing the overall impact of the company’s operations.”

Some companies are leading the way in being more proactive in cutting emissions from travel, including global accountancy firm PricewaterhouseCoopers (PwC) and business consultancy Capgemini. Both have won awards for their sustainable travel initiatives.

PwC admits business travel is its “single largest generator of carbon emissions” and now represents 70% of the company’s global carbon footprint – most of which is accounted for by air travel. Flights are responsible for 59% of all PwC’s emissions. Ironically, its success at reducing emissions in other parts of its business – notably energy – has thrown more of a spotlight on travel.

The firm has vowed to stop travel emissions from rising between 2007 and 2017 and is currently on track to achieve this goal. But it’s not a straightforward ambition, especially with PwC seeing travel emissions rise by 7% in 2015 as an upturn in the global economy led to more international trips.

This is the conundrum faced by many firms that need to travel more frequently

FEATURE SUStainable travel

but want to cut emissions from flights and other travel services at the same time. Fortunately most suppliers within the industry have been taking this subject more seriously in recent years.

Aviation gains Most major players in the airline world, particularly in Europe, operate some kind of sustainable travel strategy. The biggest development in this field is the introduction of more efficient aircraft – producing fewer emissions – into their fleets such as Boeing’s 787 Dreamliner and Airbus’ A320neos and A350s.

Lufthansa Group, Europe’s biggest airline company, says aircraft will create a “new era of eco-efficient flying” and it’s not just about the planes themselves.

Lufthansa says it has introduced 500 fuel efficiency initiatives since 2013 including several designed to reduce aircraft weight – such as using 30,000 new lightweight onboard trolleys.

Meanwhile, Virgin Atlantic has been working on a project with the London School of Economics to help its pilots fly their aircraft more efficiently and use less fuel. The airline says this has already saved more than £3.3million in fuel costs as well as reducing emissions by 21,500 tonnes of CO2.

“Air travel accounts for the vast majority of emissions but accommodation should not be ignored” There have also been several initiatives by airlines to use biofuel for flights. One of the most recent to take this approach has been South African Airways, which conducted its first flights using fuel made from tobacco plants between Johannesburg and Cape Town in July.

One of the most high-profile biofuel schemes pioneered by British Airways has become the victim of the slump in oil prices over the last couple of years.

The GreenSky London project had been due to supply jet fuel created from household waste to the airline from next year. But the company due to run the plant, Solena Fuels, filed for bankruptcy in late 2015 and British Airways abandoned the project earlier this year.

Airports are also talking about their sustainable credentials. Gatwick, for example, says it is “using less water, electricity and gas, emits less carbon and gets more passengers to the airport by public transport than ever before”.

The Sussex airport says it cut carbon emissions by 32.6% over the last five years despite rising passenger numbers.

Hotel moves While air travel accounts for the vast majority of emissions in travel programmes, accommodation as the other major element of most business trips should not be ignored.

Most of the global hotel brands have sustainable programmes in place. French group Accor, for example, runs its Planet 21 initiative, which features 21 sustainable development commitments including goals such as reducing the use of energy, using ‘eco-labelled’ products in its hotels and taking part in the Plant for the Planet reforestation project.

InterContinental Hotels Group (IHG) says every year more travel buyers are asking for information about the environmental footprint of its properties.

The IHG Green Engage programme automatically sends data on hotels’ sustainable metrics, such as carbon use and waste management, to all corporate clients who request it.

Sustainability is also becoming a more important issue for independent hotels, according to Considerate Hoteliers.

Benedetta Cassineli, Business Development Director for the organisation, says: “The responsible procurement of business travel is a core focus and more companies are looking for data to support this as part of the RFP process. Smaller independent ➔

THE BUSINESS TRAVEL MAGAZINE 27

FEATURE SUStainable travel

➔ hotels are also increasingly focusing on sustainable travel as they look to retain their fair share of these key accounts and be in a position to provide data in the RFP process.”

The group offers a sustainability system, Con-Serve, to help hotels, service apartment operators and conference venues to reduce emissions and identify inefficient practices.

Ground force Local UK councils and universities have been among the vanguard of organisations reducing the environmental impact of ground transport through initiatives such as car-sharing, greater use of public transport and cycling schemes. There are also signs that these kinds of initiatives are taking off in the private sector.

James Robey, Capgemini’s Corporate Responsibility and Sustainability Director, says: “We encourage people to carshare, whether they are making their regular commute to the office, attending training sessions, or visiting clients or business partners. We also encourage them to travel by public transport.”

Technology is making it easier for companies to compare carbon footprints and other factors across different modes of transport, particularly for domestic business journeys.

For example, rail technology firm SilverRail has launched a Rail Benefits Calculator this year, allowing corporate clients to identify and compare the costs and benefits of taking a train compared with an equivalent flight.

The interactive dashboard shows buyers the price differences, CO2 savings, employee productivity and journey times for the respective between train and plane journeys.

28 THE BUSINESS TRAVEL MAGAZINE

This type of technology is increasingly being harnessed by TMCs to help their clients and travellers choose more sustainable options where possible.

Julie Oliver, Managing Director of Business Travel Direct, says: “We can use online booking tools that automatically populate a domestic rail fare alongside a domestic air search.

“By breaking down the cost, the journey time and the released emissions for both we can prompt the traveller to think twice before opting for a domestic air ticket,” she explains.

“Technology should help make the procurement process more transparent when it comes to sustainable air travel”

Booking behaviour All these sustainable moves will help companies to reduce the average airline emissions clocked up by their travellers, but how does it play into individual booking and purchasing decisions when it comes to selecting flights?

Clive Wratten, CEO of CTI, says communication is the key when encouraging clients to choose flights with lower carbon footprints.

“I believe only by talking and explaining why we recommend the 10:30 departure to New York over the 11:00 because one is operated by a brand new B787 Dreamliner and the later flight by a 30-year-old B747 and the carbon footprint is therefore much reduced,” he says.

“Telling someone why to make this choice is vital, then we report via technology of the positive impact of that choice,” adds Wratten.

Technology should also help to make the procurement process more transparent when it comes to sustainable air travel, says EQ Travel’s CEO, Franc Jeffrey: “As technology improves and new aircraft become more efficient, I think we’ll see tools that allow travel managers to make informed decisions before signing supplier deals.”

As in so many areas of business travel, technology should usher in a new era of transparency on the sustainability and carbon footprint of types of travel.

While it may not be at the front of buyers’ minds when negotiating with suppliers, it’s no longer something that can be ignored and increasingly forms a vital part of the travel buying process.

Case study: Formula E The Formula E motor racing championship holds events around the world, including London’s Battersea Park, using electric-powered cars.

Race organisers work with Flight Centre’s Corporate Traveller to provide its travel management, which includes a commitment to make its travel more sustainable – business travel is one of Formula E’s top three contributors to CO2 emissions.

Corporate Traveller and sustainable software specialist Susterra provide Formula E with a full analysis of its travel carbon footprint after each race, as well as “highlighting ways they have been efficient and making suggestions to be more efficient in the future”.

Lucy Pearce, Client Relationship Manager at Corporate Traveller, adds: “To help Formula E minimise its footprint, we advise that travellers take the most carbon-efficient logical option for their journey, even if this means choosing an alternative airline.

“We also provide a detailed analysis of all travel options available for a race before booking commences so that Formula E is aware of the potential footprint of each option and can therefore make a knowledgeable selection of who to fly or travel with.”

Stephen Humphreys Head of Global Sales, British Airways

Two years into his second phase with British Airways, Stephen Humphreys tells Andy Hoskins about his career in the travel industry and role at the airline IT WAS Almost two decades ago that Stephen Humphreys joined British Airways for the first time, working in his native Australia. Since then his career has included roles in the UK, Australia and New Zealand, and all but one of them in the travel industry.

The notable exception is a five-year stint as CEO of professional rugby league club, Wests Tigers, in Sydney, a team he was very familiar with.

“I had played for them for eight seasons when they were semi-professional,” says Humphreys. “They were the team I’d played for and supported all my life.”

He was approached in 2009 to head up the club and says it was “the right time to go and give it a crack.” Humphreys continues: “I had some of the best and some of the worst moments in my professional career there” – a reflection, perhaps, of the mixed fortunes of the club during his tenure as CEO. The call of the travel industry was strong, though, and in 2014 he was “talked into returning to British Airways in the UK” by Drew Crawley who now heads up parent group IAG's cargo division.

He re-joined the airline as Head of UK & Ireland Sales and Marketing and describes his return to the UK as “quite a big move”. With his family of eight children to consider, that might be considered something of an understatement.

There's no question that the professionalism of negotiations with corporates has evolved.

They're well prepared and more open But he was soon into his stride, rising to Head of Global Sales only a year after to returning to the airline, and says the returning to the airline after a long period away from it was insightful.

“Some things had changed dramatically, others hadn’t. The scale of the joint business is now very different. Previously it was only Qantas, which was relatively small, but now it’s American Airlines, Japan Airlines and Finnair. It’s a very different way of working. We’re also part of the IAG group now which is growing in strength and power,” he says.

30 THE BUSINESS TRAVEL MAGAZINE

He also believes the way companies are managing their travel needs has changed for the better.

“Corporates are still focussed on driving best value – striking a balance between cost, comfort and convenience – but there’s no question that the professionalism of negotiations with corporates has evolved. They’re well prepared and more open.”

Turning to the currently unsettled state of the economy, he adds: “There’s no doubt corporates are generally cautious about the economic outlook and their investment decisions. It’s part of normal economic cycles and how it manifests itself is different from one corporate to another.”

Humphreys is also busy communicating with travel manangement companies: “They are a huge part of our business and make up a large part of our premium revenue. I spend a good amount of time talking to TMCs around the world and understanding what they want and what they are hearing from their clients.”

A refreshed Club World product could be on that wish-list for business travellers. BA was one of the pioneers of flatbed seats in business class but its product has not changed dramatically in recent years.

“We continue to refine Club World but new designs are often aligned with fleet developments,” explains Humphreys. “Our Airbus A350s, due in 2018, will come with the next generation of Club World and we're pretty excited about that.”

Exact details are a closely guarded secret, but it is rumoured the new cabin will retain the alternating forward and rear-facing seating configuration but, crucially, all passengers will have direct aisle access.

And what about any lingering concerns that partner carrier American Airlines' product is not up to scratch?

“The AA product and experience has improved enormously in recent times,” says Humphreys. “They’re investing heavily and one of our tasks has been to get customers to try the AA experience. When they do, they’re pleasantly surprised. It’s a great product.”

He is also confident the airline's four-cabin offering – economy, premium economy, business and first class – is the optimum operation. “It's fundamental to our business model,” he says. “I think we have it pretty well right and the products are pitched well.”

THE CoNVERSATIoN STEPHEN HUMPHREYS

in brief...

Do you have such a thing as a typical working day?

No one day is the same as the next.

I manage a large team across the world, working with corporate clients and trade partnerships. I'm based at Waterside, our headquarters, but I do a fair bit of travel – the role demands it. On average I'm probably away from the base a third of the time.

How are your new routes performing and what's up next?

Our Austin (Texas) route is doing fantastically well and we've already upgauged with bigger aircraft. San Jose (California) is also looking strong. Lima (Peru) and San Jose (Costa Rica) are obviously more leisure oriented but there’s a strong growing sector of more adventurous travellers. London Gatwick to New York is working very nicely too – it was something we’d been looking at for a while. We have flights to Tehran launching in September, Gatwick to Cape Town in November and Heathrow to Santiago (Chile) coming in January.

How is British Airways' short-haul business performing?

The short-haul business has never been in better shape. Feeding our long-haul network is always important but the point-to-point business is doing really well.

What do you make of Lufthansa's DCC fee?

We’ve been watching with interest and listening to what Lufthansa has said.

It’s a watching brief and we’ll see how it plays out. It’s important to us to work with partners to reduce distribution costs but at the same time improve the way products are presented.

PROFILE

STEPHEN HUMPHREYS is Head of Global Sales at British Airways. He began his career with the airline in 1998 in his native Australia, before moving to the UK in 2000. In 2003 he returned to his homeland to work for Qantas and in 2009 moved to New Zealand to head up Stella Travel Services. A five-year stint as CEO of professional rugby league club Wests Tigers followed, before he rejoined British Airways in the UK in 2014.

And what about NDC developments?

It’s a big step change for the industry and it will take all players a while to get used to it and work out how it can benefit the business. It gives us stronger retailing opportunities and helps sellers of our product understand it to a far greater level – the richness of information and how it’s presented. GDSs, to their credit, have really started to improve things but it’s a big gap to bridge.

THE BUSINESS TRAVEL MAGAZINE 31

THE DEBATE MEETINGS & EVENTS

Article 50 might not be triggered for several years, but has the Brexit result knocked the confidence of events planners? An agency and a hotel group report on their experience

Will Brexit affect the events industry?

Jane Dibble Director of Business Development, Inntel

YOU WOULD have thought that in the build up to the referendum a vote for Brexit would have set us on the fast track to industry collapse. In fact, a month before the vote we published an article saying that while we can’t control the outcome, we can control our own attitude.

As an industry we’re used to dealing with change and as a company we will roll with it. That said, we can’t really report on the ultimate aftermath of the vote since we haven’t hit the Article 50 button yet.

Right now we’re still dealing with uncertainty and the real consequences of Brexit are yet to come.

As an independently owned agency, we haven’t changed our recruitment decisions based on the uncertainty or our ongoing schedule for investment in IT and geographical presence.

However, looking at our latest figures, we have seen a small drop off in enquiries in Q1 and Q2 of 2016 – even though our actual client spend was up 11% on last year and we have already bid on 20% more tenders this year.

Following on from Q1 and Q2, July this year has been pretty stable in terms of enquiries compared to July 2015.

In terms of how things appear to be going, we have done some initial research among our meeting and events clients and they are telling us that they still need to hold events that have a serious business objective. In fact, some have actually organised new meetings with the explicit purpose of updating or reassuring their own client base following the referendum vote.

None of our clients have cancelled any significant events and there has been no slow down or caution observed in our client bookings. We already have confirmed event bookings for 2018, although the per-delegate budget has not increased.

We have also noticed that while London is still our clients’ top destination for meetings, many more are looking at non-UK destinations too although they are clearly considering a narrowing range of destinations due to security concerns elsewhere.

32 THE BUSINESS TRAVEL MAGAZINE

Raj Shah

Commercial Director, Arora Management Services

IT GOES without saying that this is a time of uncertainty and there’s a lot of speculation across the board as to the potential impact of Brexit.

Ultimately, no one can predict the future and it’s vital that businesses aren’t panicked into making knee-jerk reactions.

There are negatives and positives to any decision of this scale, and it’s clear that while the decision is having some negative economic fallout, there are positive effects as well.

“We’re likely to be on a bit of an economic roller coaster for some time but I can’t see any major changes on the horizon” For example, there’s been an increase in inbound tourism – both business and leisure – that looks set to continue. We’re likely to be on a bit of an economic roller coaster for some time but I can’t see any major changes on the horizon and certainly it’s business as usual for us at the Arora Group.

Our portfolio includes hotels at Gatwick and Heathrow Airports as well as the InterContinental London – The O2 on the Greenwich Peninsula, close to London City Airport. And, to date, we haven’t noticed a drop-off in enquiries or bookings for our meetings and events spaces.

There is no doubt, however, that it is going to be increasingly important that businesses are nimble and adaptable. Businesses must be able to react in a considered way to any longer term impacts of the vote, although it’s hard to plan too far ahead when facing such an unknown quantity.

Looking to the future as a company, we have only ever invested in the UK and our immediate strategic direction will not change – we’ll continue to invest here.

Provided businesses remain on the ball and ensure they’re continuing to innovate with targeted packages and offers to appeal to a range of industries and business cultures, the UK M&E sector can remain competitive.

The Advantage Business Travel Symposium From Vision to Reality...

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Hear from corporate buyers and industry leaders including: • Dean Forbes, CEO, KDS • Andy Wakeford, Head of Fares and Retail Support, ATOC • Keesup Choe, CEO, Pi • Nikki Rogan, Global Travel Manager, Symantec • Jenni Joynt, Travel Business Partner, Hilti Moderated by Paul Tilstone, Managing Partner, Festive Road.

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FEATURE CORPORATE CARDS

Card control The corporate cards market might not have the highest of profiles in travel management, but the latest developments mean travel managers must take heed, says Catherine Chetwynd

The corporate card market has been fairly stable in the UK for more than 30 years but the status quo is now being challenged.

A raft of products has been developed to answer to changing corporate needs and, as a result, there are now lodge, corporate and virtual card numbers (VCNs). And then there's the evolving world of mobile payments too, being used in varying combinations to encourage compliance to policy, provide convenient payment methods for travellers and to allow travel managers to aggregate data to good effect. And there is more to come.

However, the commercial cards market has had its cage comprehensively rattled by external factors. The main three being Brexit and the attendant falling value of the pound, fintech developments such as Apple/Samsung Pay, and regulatory changes.

“The EU Interchange Directive and the UK regulators’ interpretation of those regulations have yet to be fully felt, but

34 THE BUSINESS TRAVEL MAGAZINE

the landscape will change,” says Marketing Director of Diners Club International, Adrian Steele.

In brief, the directive allows for numerous payment network options on a single card and no requirement for outlets to honour all cards.

“In theory, an outlet could accept a Visa Credit Card but not a Visa Commercial Card – a communications challenge for retailers and cardholders alike,” says Steele.

The shifting of liability and payment responsibility from individual to corporate will remove the imperative for travellers to submit timely expense claims but may also reduce compliance, with the repercussions prompted by submitting non-compliant expenses removed. This is likely to lead to more centralised control, something that is inherent in virtual cards.

Virtual reality In fact, the rise and rise of virtual cards is driven by their advantages to all

parties. It can be defined to a T: date, number, value of transactions and length of validity.

“And the company can require the raiser to enter a load of information such as name of traveller, name of booker and date of travel to facilitate reconciliation,” says Managing Director of AirPlus, Caroline Haywood, of the company’s own virtual card, AIDA. Because the card number is valid only for the lifespan of the card, this form of payment lends itself particularly well to those who travel infrequently and consultants and contractors on shortterm contracts.

In addition, “There are examples in the industry of companies using them to pay for supporting displaced employees during disruptions – weather related or

FEATURE CORPORATE CARDS

otherwise,” says Head of Commercial Cards for Global Transaction Services EMEA at Bank of America Merrill Lynch, Mel Gargagliano.

Similarly, if an employee’s wallet is lost or stolen, a VCN can be raised quickly to pay the traveller's hotel bill.

Meetings and events are a strong contender as well. “There are often several payees – production company, AV, venue, F&B – and a virtual card allows organisers to bring all those elements together, rather than having fragmented payments,” says Chief Executive of virtual card specialist, Conferma, Simon Barker.

“The great thing is the quality of the data and that allows them to see exactly what they were purchasing, when and for whom.”

Conferma has seen a huge increase in the adoption of virtual cards. “We are growing at about 100% a year in volume of card spend,” says Barker.

Although Conferma spends much more time on implementation than education, AirPlus’s Caroline Haywood finds educating travellers is still difficult.

Barker says mobile payments such as Apple and Samsung Pay have helped raise the profile of virtual cards.

There is, however, a crucial difference between mobile and virtual payments.

Mobile takes a walking plastic or virtual

card number but does not transmit that number. Instead, it creates a token to transmit to the acquirer.

It works using near field communication (NFC) in the same way as contactless payment debit and credit cards. Its main drawback is that suppliers must be able to accept contactless payments.

A virtual card, which can also be carried on a mobile, is a number without a plastic incarnation and allows all the controls explained above.

“Where we see mobile more prevalent is in the delivery of virtual card solutions to the end user while they are on the move. That is relatively new technology,” says Julian Mills, Commercial Head for Global Corporate Business at ATPI. Nevertheless, Juniper Research predicts that mobile phone and tablet users will make 195 billion mobile commerce transactions a year by 2019.

“Digital payment has really taken off with technological advancements and the increased used of mobile devices,” says Barclaycard's David Bell. “One in ten payments are now made on mobile devices. It is a large market out there.”

“Expense management is expensive but generally corporates don’t have the systems in place to optimise the process”

Expensive expenses “Expense management is expensive but generally corporates don’t have the systems in place to optimise the process,” says Mills.

“Think about what travel agencies are doing for their corporate clients, all their processes – expense management tools, corporate booking tools – are about reducing cost and making it less impactful for an organisation.”

A survey undertaken by HRS with the GBTA at the end of 2015 concluded that it costs ¤53 to process an ➔

THE BUSINESS TRAVEL MAGAZINE 35

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FEATURE CORPORATE CARDS

➔ expense report for a single hotel night and ¤48, on average, to correct one expense report. Said night is paid for either on an employee’s own card or the company card to allow the organisation to be able to see what is going through its cost centre and to reimburse employees – if expensively.

One reason for this outlay is that corporate card statements do not come with the detail inherent in level 3 data.

Instead, it states name of hotel group or airline and the date charged, so marrying this skeletal information up with traveller, date travelled, itinerary, location, hotel brand, VAT and more is quite some task.

Corporate cards are, however, invaluable in the marine, energy and shipping sectors, where many operatives are not allowed cards and travel is often to and/or from nonmainstream destinations.

“We are often moving ships’ crew or oil rig workers from remote locations to meet their ship or helicopter transfer to the rig,” says ATPI’s Mills.

“They don’t have a card and many don’t have a wallet – on oil rigs they are not allowed cards. With our door to deck programme, we will try wherever possible to work with a card solution with the employer and where the employer doesn’t use one, we have our own arrangement with card providers.”

Corporate cards also still have the advantage of removing the need for travellers to fund their company’s activities until reimbursed. And when married up with an expense management system, they gather all information from the card into a pre-populated expense form, saving the traveller a lot of time. However, they can be stolen or lost, as can receipts from their use.

Although they are traditionally associated with larger companies, SMEs can also benefit from the controls they bring. “There is a necessity for any company of any size to capture travel spend and it is the primary solution for on-trip expenses – the type of spend

that generates the most transactions – for frequent travellers,” says Brooke DiNatale, Head of Large Market Commercial Products at MasterCard.

“Companies can complement this with a prepaid card for infrequent travellers or temporary employees and lodge cards and/or VCNs for bookings made via travel management companies.”

To mitigate this effect, HRS installed virtual card technology around 18 months ago. “We provide the technology and customers just need an account with a card provider that we support,” says Managing Director, Jon West. Every customer’s hotel booking information – including level 3 – is aggregated and presented on one bill each month to the company.

“That means that the corporate is paying one invoice, all reconciled with individual travellers, cost centre or department, as opposed to the hundreds or thousands of invoices they would have been processing if the traveller had to claim their expenses,” he says. “And they will increase adoption of their programme with the virtual card because that will be the only option for paying.”

“Corporate cards have the advantage of removing the need for travellers to fund their company’s activities until reimbursed”

Lodge evolution Lodge cards remove some of these problems. They are held by TMCs, allowing air and hotel spend to be

➔

THE BUSINESS TRAVEL MAGAZINE 37

FEATUrE CORPORATE CARDS

“A downside of cards generally is that not all products are global – some work only in core markets”

➔ charged to one central card. reconciliation of the invoice (supplied by the traveller) with the statement (from the card provider) is still required but expense claims are not. Lodge cards also allow TMCs to provide enhanced data such as class of ticket, passenger, itinerary information and customer reference fields. In addition, payment can be embedded in the TMC booking process.

However, because companies are repeatedly using the one number and have to give a hotel/airline enough information to be able to transact on the card, they are vulnerable to fraud.

“We had a lodge card before and a pizza and a flight were bought on it, which is pretty easy to spot when you are a hotel company,” says HrS' West.

“The card number becomes so prevalent, the perpetrator of fraud could have access to it in lots of places.”

Furthermore, “If you are trying to book a low-cost carrier or pay a hotel billback, a lodge card does

38 THE BUSINESS TRAVEL MAGAZINE

not work because it is not a unique number,” says ATPI’s Julian Mills.

To address some of these issues, Travelport is setting up a payments division to improve speed of settlement and robustness of fraud checking. The company’s eNett virtual card will not fall under this umbrella though.

“We will be able to provide payment solutions which we think will significantly reduce fraud. These will be built into the agency workflow to give a higher level of confidence in card transactions,” says Travelport's Chief Marketing Officer, Bryan Conway.

A similar treat awaits airlines through the GDS credit card authorisation process which will provide improved bill settlement and fraud prevention. Virtual credit cards are also in the offing.

Meanwhile, AirPlus has launched its lodge card in virtual form, removing the security threats listed above and, at the beginning of the year, launched the ability to circumscribe cards in the same way as virtual cards. ➔

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THE TRAVEL COMPANION

FEATURE corporate cards

➔ A downside of cards generally is that not all products are global. “Some work only in core markets and if a company wanted the merchant of record to be in its office in Albania, not all suppliers provide something that works for employees in from every market,” says ATPI's Julian Mills.

Prepaid possibilities Having existed largely in the leisure travel domain, prepaid cards are now making their way into corporate life.

Typical is AFEX CurrencyPass, which was launched last year and is a strictly business product, which can issue cards to any organisation with a registered office in Europe.

In brief, companies sign up for the card and get access to a portal or online administration platform. They

“Employees can use prepaid cards like debit cards to withdraw cash and pay a restaurant bill, for example” fund the account with the required amount and are charged a 0.5% load fee. If, for example, the organisation puts £5,000 in the account, they can then convert it into one or more of 14 currencies and allocate this to individual travellers’ cards. The platform does the conversion and the charge for that is the interbank rate (aka LIBOR).

Currencies and top-ups can be managed from the portal and if an

40 THE BUSINESS TRAVEL MAGAZINE

employee wants to use the card in a country whose currency is not on the card, they can use it and be charged for the conversion from sterling.

“And because it is at the interbank rate, that is more favourable than other cards on the market,” says Head of Prepaid Cards for AFEX, Heather Ribbans.

Employees can then use the cards as they would their own debit card: to withdraw cash from an ATM, pay restaurant or hotel bills, make an online purchase, etc.

“Employees do not have to use their own money and employers have control of spend: transactions are in real time, so they can see who is spending what and where. And we work with MasterCard, so the card is accepted in 35 million locations worldwide,” says Ribbans. If a traveller runs out of money or finds themselves in need of emergency cash, the account can be loaded at once.

When there are funds remaining at the end of a trip, they can be left on the card, put back into the online wallet or converted into another currency and allocated to another card. Managers can also download an expense report to see where travellers are spending.

To marry that up with other expense management MI, AFEX would have to be integrated into the company’s expense management system.

The future 'The future of corporate travel payment', research undertaken by AirPlus, highlights three payment

➔

Loyalty: playing your cards right Spend on corporate cards is static in the UK, according to loyalty products and services provider Collinson Group.

“That is happening for two reasons,” says Group Commercial Director, Mark Roper. “There is potentially stagnation in T&E spend and there is increasing concern that companies are not mandating spend on corporate cards. As a result, employees are using their personal cards to enjoy rewards points and other benefits, so they are putting business spend on their personal card and claiming expenses.”

However, Roper says companies can help themselves by allowing travellers to earn points on corporate cards, rather than keeping them for corporate use. And there are other ways to ensure that walking plastic remains a flexible friend rather than a fiend. “One of the best benefits is airport lounge access and we provide Priority Pass,” he says.

“The majority of people only get airport lounge access if they have status with an airline,” says Roper. “But add that to corporate cards and employees see it as a benefit.

They can get into an airport lounge regardless of what class they are flying.

“It may involve incremental cost but it gives huge value to employees and to the employer in terms of engagement of the employee, who can work for a couple of hours while in an airport terminal,” he says.

Another option is offering assistance as a benefit of cards as a matter of duty of care, so that employees are looked after if there is an incident.

FEATURE corporate cards

➔ trends – virtual, mobile and invisible – that are merging to create digital payments, all of which will be controlled by a centrally billed account.

The invisible aspect is already here in the form of mobile payments.

And MasterCard has announced it is digitising plastic corporate cards for mobile devices, using tokenisation technology – ie, storing a dummy 16-digit number in a phone as a token for the real card number, which is not stored. MasterCard also predicts that traditional PIN number security will eventually give way to biometrics.

AirPlus believes this is the future of payments: invisibility, where neither the buyer nor the seller will need to see a card number. The likes of Amazon and Uber do this already in the consumer world: once a costumer has registered a card with either party, they can order respectively an item with one click or a taxi, without entering or reconfirming the card number each time.

One innovation from AirPlus is the piloting of invisible airport parking payment with Frankfurt Airport owner Fraport. Drivers’ vehicles are recognised by their registration plate as they arrive and exit, and the relevant payment is deducted from their company’s centrally billed account.

Invisible is quick, secure, efficient and very much on its way.

Changes in technology and legislation means the corporate card – or payments – industry has a lot on its plate. The last word goes to Diners Club’s Adrian Steele: “Does the industry have the tools, the willingness and the capability to change? History suggests yes but only time will tell.”

42 THE BUSINESS TRAVEL MAGAZINE

“Changes in technology and legislation means the corporate card and payments industry has a lot on its plate”

who offers what AirPlus: Company Account (lodge card), corporate cards, A.I.D.A. virtual payment.

American Express: Corporate card, corporate purchasing card, corporate meeting card, dollar and euro cards, lodge card, vPayment (virtual card).

Barclaycard Global Commercial Payments: Barclaycard Corporate Card, Barclaycard Purchasing Card, Barclaycard Precisionpay – virtual card, Barclaycard Tracker – virtual card used for hotel payments, Barclaycard Travel Management Account – virtual account used for airline payments, Barclaycard Fuel+, Barclaycard Prepaid.

Diners Card: Travel Account – lodge, including virtual card capability; Corporate card; Trainline Statement Account – credit account for SMEs using trainline.com; General Expenses Account – virtual card.

MasterCard – Central Travel Solution lodge card, MasterCard in Control virtual card.

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FEATURE Traveller tracking

SAFETY

FIRST

Rarely has the need to keep tabs on business travellers – and prepare for the worst – been so acute. Linda Fox gets to grips with traveller tracking

Paris, Nice, Brussels, Munich – it sounds like a list of the latest fashion catwalk events but, sadly, it's just a handful of European destinations to have suffered terrorist attacks this year. What it shows, more than ever, is that traveller safety needs to be at the top of the corporate agenda and that there is no such thing as a risk-free destination.

Recent research from risk management consultancy Anvil shows high-risk incidents have tripled in the past two years compared with the previous four.

Its Group Managing Director, Matthew Judge, says businesses need to be increasingly risk savvy and highlight not only the duty of care aspects but also the duty to warn.

According to Judge, some of the ‘less well-publicised’ prosecutions have been over this ‘duty to warn’. What this means is that companies have a responsibility to make sure employees are supplied with up-to-date and accurate information about the locations they are travelling to on business. In addition, it puts further responsibility on businesses to carry out risk assessments on these places so that a strategy can be put in place.

Among Anvil's golden rules for risk assessment are not assuming that a

44 THE BUSINESS TRAVEL MAGAZINE

place is safe just because it's close by and familiar, and that things change, so having the latest information easily to hand is vital.

Security strategies One sobering thought is that it's believed almost two-thirds of companies have still done nothing to address the safety and security of employees.

Speaking during a panel session at the GBTA Convention in Denver this summer, Matt Bradley, Regional Security Director for the Americas, International SOS, said the Paris attack in November had caught many companies unaware.

He said it raised basic issues such as how to communicate with people, where they were, how many were affected and how and what to feedback to internal stakeholders.

However, about four months later many organisations were still not prepared, with those same issues cropping up.

He added that in his experience, nine months after Paris, organisations are still not sure who they have in a location or any 24/7 response strategy in place.

“We still find organisations are lacking a crisis response plan. The same types of incidences happen over and over again and they make the same mistakes,” says Bradley.

It seems crazy that companies haven't woken up to the need to have a strategy in place and aren't taking advantage of readily available products and services from travel management companies – and risk management specialists – to help track and communicate with travellers.

Portman Travel recently relaunched its SafeTrack service to bring in more communication and information capabilities.

Additional elements allow users to communicate directly with travellers whether via blanket email, push notifications or text message to individuals’ phones.

Commercial Director, Adrian Parkes, describes the service as a multilayered approach in terms

FEATURE traveller tracking

of pre-trip, what happens during a trip and how the TMC and client work together to resolve any issues.

He adds that recent events have led to heightened awareness around duty of care and, in turn, traveller tracking.

“All reports show duty of care has risen to be one of the top three priorities for most companies,” says Parkes.

John Lyon, Vice President of Global Client Management for American Express Global Business Travel supports this view. He says what has changed is that for those companies which thought they could “loosely manage” business traveller safety and security, it is now a big area of focus.

“Executives cannot get away from the responsibilities around traveller care and that's driving some change in behaviour in the company,” says Lyon.

“They are much more focused on having visibility of where travellers are and that's driving compliance in booking through the preferred channel.”

Recent months have also seen developments using mobile devices, including Sabre's SafePoint which was launched at GBTA in Denver. The technology uses the TripCase app to monitor a company’s trips and enables employees to check-in and provide a GPS location if required.

Security teams and travel managers have access to a dashboard detailing events impacting their travellers that can be viewed across desktop, tablet and mobile devices.

Coordinate assistance: “you probably won't be able to help them all at the same time so focus your resources on those who specifically need assistance.”

Crisis response

She adds that services are evolving rapidly but that many companies are not even using a managed travel programme. “If you don't have visibility you don't have any idea how you can proactively help them,” says Wilk.

She points to recent integration of Uber and Airbnb data with TMCs and security specialists as evidence of how the space is developing.

Wilk also highlights the need for traveller safety to be recognised as a shared responsibility across various roles within a company – travel booker, security, human resources and employees themselves.

“More often than not I've run into ➔ companies where this responsibility

At the same risk management session at the GBTA Convention, International SOS’ Bradley went on to share his ‘five Cs’ of crisis response for the first few hours after an incident: Classify the threat: understand what is happening through vetted services that provide reliable information.

Communicate advice: “information without advice generates panic”; Calculate your exposure: you have the information and the advice to give, who are you communicating it to?; Confirm their status: you've sent information and advice to affected travellers and now you need to be able to confirm their status;

Traveller visibility Erin Wilk, Global Travel Safety and Security Program Manager for Facebook, is no stranger to dealing with incidents involving corporate travellers.

In her former role at Bank of America, employees were caught up in the Mumbai terrorism attack in 2008 as well as the plane that landed on New York's Hudson River in January 2009.

She says she is always surprised by the number of companies she hears anecdotally that have no procedures in place. At Facebook, she is implementing much of what she put in place at BoA and stresses that the “worst time to make a plan is when you need one.”

One particular issue that Wilk is keen to highlight is “standard of care”, whereby companies can be judged by the standards of other companies because they are deemed to have not done as much as they could.

“We still find organisations are lacking a crisis response plan. The same types of incidences happen over and over again and they make the same mistakes”

THE BUSINESS TRAVEL MAGAZINE 45

FEATURE Traveller tracking

➔ falls on the shoulders of someone who has another full-time job or does not have the expertise,” she says.

Wilk adds that employees also have some “skin in the game” in terms of a duty of loyalty – business travellers are representing the brand and therefore must act responsibly.

“Despite recent terror attacks, the top three incidents that affect travellers are health issues, weather and petty theft” Randall Gordon-Duff, Head of Product, Corporate Travel at Collinson, says more clients are asking for traveller awareness training on top of traveller tracking systems.

“There's lots of little things you can focus on such as with airport pick-up and verifying the driver is who they are supposed to be.” A review of procedure can help highlight these element, he says.

Facebook's Wilk agrees that training is now critical and that the best opportunity to mitigate risk is definitely before travellers leave on a trip.

Sharing information With many travel security specialists agreeing that it's more a case of ‘when rather than if’ as regards companies being impacted by an incident, the conversation around using GPS to track travellers has moved on.

Amex GBT’s Lyons says the need to keep travellers informed while on trips

46 THE BUSINESS TRAVEL MAGAZINE

is helping get past the privacy issues concerning tracking, GPS or otherwise.

He adds that it still depends on company culture and the types of location travellers are going to and says that for most corporates an opt-in system works well. This means travellers check-in with their travel manager or security expert several times a day.

Collinson's Gordon-Duff agrees there is generally less push back from travellers now because of heightened awareness of risks and the difficulty of predicting when something might happen and where.

Wilk says the issue still gets misunderstood and stresses that most companies don't really want or need to know where employees are all the time.

However, for higher risk destinations where it can be justified, the whys and wherefores need to be communicated to the travellers.

Despite the horror of recent events across France, Turkey, the US and other destinations, it's worth noting that the top three incidents that effect travellers are still severe weather, health issues and petty theft.

The final word goes to Bradley of International SOS who concluded his talk at GBTA by advising the travel community to prepare for the worst. “If you plan for the worst you will be ready.”

Who does what Anvil Group: aims to act as a single place for all things to do with traveller security – monitoring, training, technology and consultancy.

Collinson: offers a variety of services to the corporate travel space including round-the-clock support and emergency assistance.

Control Risks: helps companies understand and manage the risk of operating in difficult environments. iJET: provides risk management services to corporates through travel intelligence.

International SOS: specialises in the health and safety of travellers while in location and helps companies assess risk and formulate response strategies.

Maxwell Lucas: a security company that specialises in travel risk management and assistance as well as providing consultancy services.

Red 24: helps companies ensure risk to travellers is minimal as well as providing round the world assistance for travellers.

ADVERTISEMENT FEATURE

Risky Business

Wings is 25 years ahead of any other TMC when it comes to traveller safety A recent business travel survey revealed that 49% of travellers feel less safe on business trips than they did 12 months ago and 94% would opt for GPS tracking if travelling to a high-risk market.

Hardly surprising given the unpredictable world we all live and work in. Not a week goes by without terrorist attacks, social unrest, the refugee crisis, or flight disasters hitting the headlines.

Each tragedy serves to reinforce the onus on companies to take their traveller’s security seriously, continuously assess the risk while they are on the move, and know exactly where their travellers are if something goes wrong.

owned offices and now have fully controlled operations in North America, South America, UK/ Europe, Africa and the Middle East – a key point of difference to our competitors.

“From day one, Wings also invested in a single global technology platform so that all staff around the world can provide consistent service and access a client’s travel records regardless of where the booking originated,” added Sofianos. “This is crucial for tracking and re-routing travellers in times of emergency. We also operate our own global emergency

A new mobile app to provide travellers with automated travel risk alerts specific to each trip, as well as real-time itinerary and flight status updates combined with a comprehensive risk management suite integrated with Wings’ global platform and fully owned operations Risk management and traveller safety are nothing new to Wings Travel Management. The company has carved a niche over the last 25 years as a trusted travel provider for corporates heading to high risk destinations and unpredictable markets, particularly in the energy, construction and financial services sectors, where travel is an integral part of their business. Wings has always been ahead of the curve in terms of giving clients critical safety support, due to the nature of their travellers’ complex and often hazardous travel needs.

“Since Wings was founded in 1991, our commitment to risk management has been at the core of our operations,” said Tony Sofianos, CEO, Wings Travel Management. “We took the decision to establish each of our global locations as wholly

centre, Wings24™, staffed by specialists trained to handle urgent travel requests any time of the day or night.”

Now Wings Travel Management is stepping up its commitment to risk management and traveller safety even further with the launch of GoSecure™, a sophisticated risk and alert portal which Wings consultants can use to locate travellers and send fast, accurate notifications to travellers and bookers in times of emergency A unique aspect of GoSecure™ is that clients can opt to link the risk management portal with Wings new intuitive mobile app VIMA™ (Virtual Itinerary Management Application). Travellers have the option to download VIMA™ to conveniently view their flight itineraries, check for flight status updates, departure gates and

weather at their destination.

However, if Wings’ clients also subscribe to GoSecure™, then VIMA™ becomes a vital security alert tool as consultants can send high-level notifications relevant to the individual traveller, for example, telling him or her not to board their plane, or to remain in their hotel due to a terrorist threat.

GoSecure™ features four dashboards showing: Who’s Where; Who’s Flying; Locate an Individual; and iJet World View. Wings consultants or client bookers view travellers on interactive maps and can see what stage each traveller has reached on their itinerary. As well as finding current locations, such as Paris during recent terrorist atrocities, it would take just one click to determine if travellers had been in a region before a risk such as Ebola or Zika become apparent.

Tony Sofianos sums up: “We understand risk management and traveller safety like no other TMC. Our staff’s expertise, combined with worldwide wholly owned offices and the latest technology gives us the edge when it comes to delivering seamless and competitive business travel in these uncertain times.” www.wings.travel infouk@wings.travel @WingsTravelMgmt

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THE REVIEW SEPTEMBER/OCTOBER 2016

the

Review

GTMC UPDATE p51

“There is a clear correlation between business travel and economic growth”

MIA UPDATE p55

“When resources are stretched it can be easy to dismiss entering industry awards”

Only the business travel news that really matters

PLANNING AHEAD What’s in store for business travel in 2017? (p50)

ON THE GROUND p52

Taxi-hailing app companies in European merger

IN THE AIR p53

Singapore Airlines to fly transatlantic from Manchester

THE ROOM REPORT

p54 Report reveals rapid growth for the serviced apartments sector

MEETING PLACE

p55 MIA urges event bookers to look nationwide, not just in London

THE BUSINESS TRAVEL MAGAZINE 49

THE REVIEW THE LOWDOWN

IN BRIEF Gray Dawes

Radius addition

Gray Dawes has joined the Radius network of travel management companies, joining Portman Travel as only the second UK-based member of the global network.

Radius manages more than $30billion of annual corporate travel spend worldwide.

ATPI Group

Global expansion

Travel management group ATPI has continued its expansion into Australia with the acquisition of Melbourne-based Plan B Travel. It follows the purchase of Australianbased Voyager Travel in 2012 and the recent acquisition of Business World Travel in New Zealand.

Fly Fly Travel has joined ATPI as a partner to provide support for clients across the Balkans.

A NEW REPORT, the 2017 Global Travel

Price Outlook, has highlighted six key risks that could impact both the travel industry and the wider economy in 2017.

Financial market turbulence,

programmes,” says Jeanne Liu,

emerging market performance,

GBTA Foundation Vice President

geopolitical risks, uncertainty

for research.

surrounding Brexit, potentially

“The outlook shows only

fluctuating US interest rates and oil

marginal increases or flat travel

prices were identified as six possible

prices, but for 2017, the key to

threats in the report from the GBTA

building successful travel

and Carlson Wagonlit Travel.

programmes will be watching

The research indicates that air fares will increase 'only slightly' in 2017 while mega-mergers in the

and reacting to an everchanging global landscape.”

Kurt Ekert, President and Chief

hotel sector are unlikely to effect

Executive Officer of CWT, adds,

pricing until 2018. Modest increases

“We are seeing relatively low,

in delegate costs for meetings and

inconsistent and in some cases

events are expected in Asia and

fragile economic growth.

North America but are forecast to stay relatively flat in Europe.

“Travellers and travel managers need to understand their travel

“While business travel repeatedly

patterns and spend, and be alert to

demonstrates its resilience, the high

the impact of economic uncertainty

level of global uncertainty we face

and volatility. Proper planning will

heading into 2017 means travel

put them in position to make

buyers have to be more nimble and

changes when necessary and to

flexible than ever in crafting travel

avoid downside financial risk.”

London City Airport gets green light for expansion The government has approved a

and will have capacity for up to

£344million expansion plan at

6.5 million passengers annually,

London City Airport that will

up from 4.3million last year.

enable it to increase capacity by over 50%.

The privately funded investment

Under the plans the airport can add around 32,000 flights by 2025 and open up opportunities

project will add seven new aircraft

for airlines operating to longer-

stands, a parallel taxiway and

haul destinations such as the

passenger terminal extension,

Gulf, Russia and US East Coast.

50 THE BUSINESS TRAVEL MAGAZINE

CTM

 Nearly a quarter of business travellers believe it is OK to make exaggerated expense

Russia focus

Corporate Travel Management (CTM) has expanded its global footprint after signing a partnership with Moscow-based Unifest Travel, one of the top ten TMCs in Russia.

claims (Concur) Contract wins

Round-up

NYS Corporate has been appointed BGL Group’s travel and meetings management agency. BGL's brands include comparethemarket.com, Junction, BeagleStreet.com and Frontline • Inntel has won the contract to provide meetings and event management services to the Royal London Group • ATPI Group has landed the contract to manage the travel programme for leading Malaysian international offshore oilfield services provider, Bumi Armada Berhad • Simplexity Travel has been reappointed as the official travel management partner of Norwich City Football Club • Colpitts World Travel

Direct takeover

US-based Direct Travel has acquired Colpitts World Travel in a deal that includes the purchase of Colpitts’s two Scottish offices in Edinburgh and Aberdeen. The TMC will continue to trade under its current brand and management teams for the foreseeable future.

THE REVIEW THE LOWDOWN

GTMC UPDATE

IN BRIEF Collinson Group

London launch

The Collinson Group has launched Intana Global, an integrated medical and security assistance service for the London market. The new brand replaces the Specialty Assist name following its acquisition by Collinson last year.

Paul Wait Chief Executive, GTMC

I

n times of economic uncertainty, some companies may put a hold on spending and

Reed & Mackay

see where costs can be saved.

Changing hands

Travel management company Reed & Mackay has been sold to new investors as it seeks its “next phase of growth”. Private equity firm Inflexion has taken over the TMC from ECI Partners and Livingbridge. The law, insurance, finance and energy specialist has grown its client base by over 68% since 2011 and surpassed total transaction values of £200million for the first time in 2014.

When it comes to business travel, ascribing this essential

REGULAR visitors to the US can

function to the cost column

now book appointments to enrol in the country’s Global Entry scheme at a temporary London centre.

rather than taking a step back to

Global Entry, a US Customers and Border Protection

about the state of an organisa-

(CBP) programme, allows for expedited clearance of

tion’s health, this precarious

pre-approved, low-risk travellers. An enrolment centre

approach also risks jeopardising

Zibrant

will operate at the US Embassy in London for 60 days

customer and partner relation-

beginning on September 26.

ships that need careful nurturing.

UK-based meetings and events agency Zibrant has been acquired

by BCD Meetings & Events. BCD says the takeover will help strengthen and diversify its events business in the European market.

“Zibrant brings size, scale and expertise to our UK presence, allowing us to better compete in a strong events market,” says Scott Graf, BCD M&E President.

To register for Global Entry, UK citizens must apply

Acquired by BCD

Amex GBT

Sabre

Traveller tracking

Sabre has introduced SafePoint to help companies get to grips with travel risk management. The tool monitors all of a company’s trips and, for travellers using the popular TripCase app, will track their whole journey, including out of programme bookings. Travellers can also 'check in' with their employer by providing their GPS location in times of disruption.

a counterproductive strategy.

Aside from sending a red alert to investors and competitors

While the virtual world has

through the UK Home Office website and pay a £42

made it easier to do global

processing fee. If they pass the UK vetting process,

business, one fact remains.

applicants will receive a ‘UK Access Code’ that is

The only way to connect on a

required when applying for Global Entry through CBP’s

personal level and build long-

Global Online Enrollment System (GOES). The non-

term trust with those most impor-

refundable application fee for a five-year Global Entry

tant to your business is through

membership is $100 and applications must be

face-to-face contact. No amount

submitted online. Once the application is approved, a

of Skype calls or emails can

CBP officer will conduct a scheduled interview with the

cement the relationships built in

applicant and then make a final eligibility determination.

person. So why, in a competitive

KDS onboard

American Express Global Business Travel is set to acquire travel technology specialist KDS. It comes as part of a “broader investment strategy by GBT to develop an industry-leading suite of travellercentric online and digital services”.

The TMC has also launched data analytics tool, Premier Insights.

appreciate its financial benefits is

marketplace, might you give yourself a disadvantage?

Trio of TMCs sign deals with Airbnb

Having recently worked on the

 42% of Brits are

American Express Global

concerend about

GTMC’s ‘Value of International Business Travel’ report, one of the key messages in the research was the clear

Business Travel, BCD Travel

terrorism affecting

correlation between business

and Carlson Wagonlit Travel

their travel plans

travel and economic growth.

has each teamed up with home rental specialist Airbnb to give

(YouGov)

When you consider the average international business

travel managers access to

trip is responsible for generating

millions of accommodation

a £34,000 contribution to GDP,

choices worldwide. Airbnb says it

what becomes increasingly

has tripled its corporate business

evident is that business travel is

this year and the TMC deals come

an investment that future-think-

hot on the heels of its recently

ing companies can’t put on hold.

launched business travel booking

So, if you’re serious about

tool. Nevertheless, corporates

thriving rather than surviving, it

remain cautious about the use of

could be time to rethink your

Airbnb (see pages 18-19).

business travel strategy.

THE BUSINESS TRAVEL MAGAZINE 51

THE REVIEW ON THE GROUND

IN BRIEF Avis

App launch

Avis Now, a new app for Avis Preferred loyalty programme members, allows users to cancel or extend a rental, choose the exact car they want before arriving at the rental location and return the car without assistance.

Addison Lee

Tristar acquisition

TAXI booking specialist Hailo is merging

with Daimler-owned Mytaxi to create the largest company of its kind in Europe.

The newly-formed business will

company claims 70 million

operate under the Mytaxi brand,

passengers and around

with all Hailo taxi services and

100,000 registered drivers.

operations in the UK, Ireland and Spain rebranded by mid-2017.

Mytaxi is available in Austria,

 43% of people say traffic and roadworks are the most frustrating

“By combining Hailo and

wastes of time

Mytaxi, we have created the

(Europcar)

largest European taxi e-hailing

Germany, Italy, Poland, Portugal,

company,” says the new company’s

Spain and Sweden. The combined

CEO, Andrew Pinnington.

Addison Lee has acquired Tristar Worldwide in a deal that forms Europe's largest executive car service. Combined, the operation will have almost 1,000 premium vehicles worldwide.

Club Class Chauffeurs

Heathrow hub

Club Class Chauffeurs has opened its fourth regional base at London Heathrow, joining the company's established operations in Sussex, Gloucestershire and Leicestershire.

THE REVIEW IN THE AIR

ACTE UPDATE

IN BRIEF British Airways

Codeshare deal

British Airways will gain access to the domestic Chinese market thanks to a new partnership with China Eastern Airlines.The carrier will start selling flight to Xi'an, Kunming, Nanjing, Hangzhou and Chongqing. BA has also recently completed the refurbishment of all 18 of its Boeing 747s.

Aer Lingus

Double launch

Irish carrier Aer Lingus is launching flights to two new North American destinations in September, adding to the eight US cities it already serves. A daily service from Dublin direct to Newark, New Jersey, took off at the beginning of the month and a four-times-weekly service to Hartford, Connecticut, takes off on September 28. The airline operates connecting flights to Dublin from 19 airports across the UK.

Greeley Koch Executive Director, Association of Corporate Travel Executives

dire predictions, the United Kingdom did

THE MAYOR of London has urged

Delta Air Lines

Delta Air Lines and Virgin Atlantic are to fully co-locate at London Heathrow's Terminal 3 as of September 14. Delta will transfer its Atlanta, Detroit, Minneapolis, Salt Lake City and Philadelphia flights from Terminal 4 to join its services to New York-JFK, Boston and Seattle that already operate from Terminal 3. Joint venture partner Virgin already operates solely from Terminal 3.

Flybe

Partnering up

Regional carrier Flybe has signed a codeshare deal with airberlin.

The arrangement strengthens Flybe's 'One Stop to the World' proposition for its regional UK customers. The airline has also signed a new interline partnership with Singapore Airlines.

Air New Zealand

Fleet investment

Air New Zealand is refurbishing its fleet of Boeing 777-300 aircraft – which operate to/from London – and is spending over £55million increasing the number of Business Premier and Premium Economy seats on its B787-9s as demand for premium travel grows.

not sink into the sea during the

the PM to make a swift decision on airport expansion – and made clear his support for Gatwick.

two months that followed the

The Mayor of London, Sadiq Khan, has written to Prime

shortcomings of the previous

Minister Theresa May urging her to approve a second

government’s failure to explore

runway at London’s Gatwick Airport.

the 'what if' of a Brexit reality are

Khan says the decision on additional airport capacity

referendum to leave the EU. While suffering a number of setbacks, some of which have already been reversed, the

still surfacing. Yet the fact

in the South East of the country should be a ‘top

remains that the UK is going to

priority’ for the government and would send a message

remain an essential trading

that the capital is open for business. A decision could

partner to Europe and the world.

be made as soon as October.

The business travel climate is

In a letter to the PM, the Mayor says a second runway

Heathrow relocation

C

ontrary to a number of

fragile on the best of days. It does

at Gatwick is the right choice as it would bring

not improve when blinded by

substantial economic benefits to the country but would

uncertainty. Right now, there are

not come with the significant environmental cost of the

dozens of questions regarding the

alternative at Heathrow. “London’s economy needs

disposition of passports, visas, the

additional aviation capacity in order to stay competitive

reinstitution of border regulations,

with other major global cities,” said Khan.

the flow of manufactured goods, and tariffs or taxes imposed on flights out of Britain, to say

Singapore Airlines to fly from Manchester to US Singapore Airlines will introduce

nothing of insurance regulations regarding duty of care. All of this is just the tip of the iceberg.



services between Manchester

Qantas has posted

and Houston this autumn and

record profits – the best

begin flying non-stop between Singapore and Manchester. The five-timesweekly Singapore-ManchesterHouston service will commence

in its 95-year history – and a 57% improvement on FY2015

Issues will become compounded by deadlines and pressure for instant resolution.

The onus will be on professional business travel associations to protect industry interests by getting answers to these questions.

Brexit has become the focus of

on October 30, with the latter

the Association of Corporate

sector becoming SIA’s first

Travel Executives’ Amsterdam

service between the UK and US.

conference. We have some of the

Flight SQ52 will depart

best minds in the business on

Singapore at 0235 and arrive in

both sides of the issue, plus the

Manchester at 0900 before

power of CAPA, The Centre For

taking off again at 1015 and

Aviation working on this. Got

arriving in Houston at 1535.

questions? Send them to me at

The airline currently flies to

gkoch@acte.org and put 'Brexit

Manchester via Munich and to

Question' in the subject line. I

Houston via Moscow.

guarantee you’ll get a response.

THE BUSINESS TRAVEL MAGAZINE 53

THE REVIEW THE ROOM REPORT

IN BRIEF GHM

Mid-market ambitions

General Hotel Management (GHM) has partnered with Van de Bunt Partners to launch a mid-market accommodation brand, Tin Hotels. It intends to expand the brand swiftly, starting with the launch of its first hotels in Dubai and Oman and over the course of the next few years to grow within the Gulf region towards its target of 35 properties by 2022.

Pulitzer Amsterdam

Iconic hotel reopens

The iconic Pulitzer Amsterdam hotel has opened its doors after extensive restoration across its labyrinth of 25 canal houses.

The re-opening of the Prinsengracht canal side of the hotel sees the unveiling of areas including the main entrance and lobby, inner gardens, a two-storey gym and a further 145 guestrooms and suites.

There is a total of 225 guestrooms and suites, with lead-in rates starting from around £235.

THE APARTMENT sector has doubled in

size over the last eight years and is on course to exceed one million units worldwide.

The statistics were among the key

entering the apartments market.

findings of The Apartment Service’s

According to the report, nearly half

sixth edition of the Global Serviced

of buyers are increasing their use of

Apartments Industry Report. Supply

serviced apartments and around

has grown more than 10% year on

70% of inventory is bookable online.

year, to 826,759 in over 10,000

“Sector expansion has brought a

locations worldwide. In 2008 the

proliferation of new brands by

figures stood at 401,000 units in

operators who are personalising

6,700 locations.

their offerings to different niche

The report identified three key

audiences, though few of these

 Actor Robert De Niro has been granted

trends: businesses switching from

are enjoying widespread

planning permission for

hotels to apartments post-recession;

consumer recognition so far,”

a new Hotel in London's

an increasing focus on duty of care;

says Charlie McCrow, CEO of

Covent Garden

and the diversification of new brands

The Apartment Service.

London usurped as most expensive European capital

SACO branches out with new aparthotel brand

Average hotel rates in London

Serviced apartment company

have dropped by seven per cent,

SACO has launched a new

meaning the city is no longer the

aparthotel brand called Locke.

most expensive European capi-

The first property under the

tal according to Q2 data from

new brand is due to open in

hotel booking portal HRS.

October on London’s Leman

Oslo, with average rates of

Street, in Aldgate, followed by

£186 per night, has taken the

a second in Edinburgh and

number one spot as most ex-

further properties to be rolled

pensive city in Europe, though

out across the UK and Europe.

London remains top in the UK with average rates of £148.

Zurich is the third most

Guests can expect larger living and work spaces, communal areas and hotel-style services.

expensive city in Europe, with

Average stays are expected

Copenhagen taking fourth place

to be shorter than in SACO's

and Stockholm fifth.

traditional serviced apartments.

54 THE BUSINESS TRAVEL MAGAZINE

Hilton

Edinburgh opening

Hilton Hotels & Resorts has opened the Hilton Edinburgh Carlton on the city's famous Royal Mile. The property, which previously operated as The Carlton Hotel, has 211 guest rooms, including junior suites and executive rooms, and seven dedicated meeting spaces for up to 200 people. The main event room, the Highland Suite, has panoramic views across the city and natural daylight with high arch windows and ceilings.

Dorsett Hospitality

Second London hotel

Dorsett Hospitality International will add a second hotel in the capital, with the Dorsett City property due to open in the first quarter of 2017. The 13-storey building will comprise 275 guestrooms, two restaurants, a bar and 1,600sqft of meeting space once fully converted. It is located next to Aldgate tube station and the hotel will be ‘sleek and sensitively designed’. The group currently owns and manages 30 hotels, with a further eight due to open in the next two years.

THE REVIEW THE MEETING PLACE

MIA UPDATE

IN BRIEF Bath Racecourse

Conference addition

A new multimillion-pound conference facility, The Langridge Stand, has opened at Bath Racecourse. With views across the city, the main events space is the Royal Crescent Suite which has capacity for up to 300 delegates theatre style and benefits from natural daylight and a large private roof garden that can be used as a breakout space. There is also a balcony with track-side views overlooking the finish line.

Select Event Solutions

Agency launch

Former MeetingRooms.com executives Clare De Brett and Caleb Parker have launched a new MICE agency called Select Event Solutions. It uses the latest technology for venue procurement and event management to help planners and PAs streamline the meetings and events booking and management processes.

Inntel

Business growth

Meetings, accommodation and travel management specialist, Inntel, reports an increase in overall client spend for the first six months of 2016. Client spend was up 11%, with the majority of the increase attributable to a 20% rise in spend on conference-related business travel.

Regus

Northern Ireland expansion

Flexible workplace provider Regus is expanding into Belfast city centre with a new opening on Bridge Street this November.

The new workspace extends to 6,000sqft and the Arnott House property has undergone a major refurbishment in the communal areas and first floor. This is the first letting in a number of planned acquisitions for Regus across Northern Ireland.

Jane Longhurst Chief Executive, Meetings Industry Association (mia)

W

hen resources are stretched it can be easy to dismiss

entering industry awards as you weigh up the time and effort

THE Meetings Industry Association

is supporting the #LondonIsOpen campaign but urges event bookers to look nationwide.

gain from being shortlisted or

The Mayor of London, Sadiq Kahn, launched the

and its employees stand out

#LondonIsOpen initiative to show international partners

from the crowd.

– and those in the UK – that London retains its entr-

New event space

The new £3million West Park Teaching Hub events space is now open at the university. It features five lecture theatres, two seminar rooms and a central learning and exhibition zone.

even winning.

But they can in fact be one of the simplest and inexpensive ways to make your business

As well as providing a huge

epreneurial and creative spirit despite the referendum

pat on the back – which can

vote to leave the EU. The mia has expressed its support

have an exceptional impact on

for the campaign but is urging leaders and event

morale and energise the team

planners to look beyond the capital too.

– just being shortlisted offers

Jane Longhurst, Chief Executive of the mia, says

kudos, credibility, peer recogni-

“Following Brexit, the mia has been actively encouraging

tion and an all-important

the meetings, conferences and hospitality industry to

industry benchmark.

embrace the referendum result, not sit back and rest on

They help provide a comp-

its laurels. We should be optimistic for the UK’s future.

etitive edge as clients like being

“We have a unique opportunity to take advantage of

associated with winning compa-

international trade and business and should be looking at

nies. It can help sway purchasing

developing plans to diversify and attract trade from not

decisions as prospective

just within the UK and Europe but the world.”

customers choose to be associ-

She also said that London could benefit from

ated with a high-quality company.

discussing best practice with talented independent

And there are other benefits.

venues in the regions who been creatively marketing

We know from talking to those

themselves to attract both domestic and international

entering the prestigious annual

trade for much longer.

miaList (the winners will be announced at a ceremony in

London's QEII Centre adds new banqueting floor

 Searcys and M By Montcalm have

The sixth floor of London's QEII Centre will be transformed into an open-plan banqueting space with views of the London city skyline.

Loughborough University

required against the potential

unveiled Urban Coterie Events, a new events space in London

London on 16 September) because the application forces you to stop and look at your business from a different perspective and compare yourself against your competitors – a process that can often prove more valuable than the title itself.

The refurbishment is part of a

Ultimately, industry awards

£12million project, with work

celebrating those outstanding

scheduled to be completed

and passionate individuals and

by the of September. It will

teams who go above and beyond

deliver greater flexibility to the

the call of duty encourage organi-

space with a retractable wall

sations to lift their game right

creating one larger space.

across the entire sector.

THE BUSINESS TRAVEL MAGAZINE 55

THE REVIEW DATA

POST-BREXIT TRAVEL

Data analysis highlights early trends Hotel rates are declining and

F L I G H T D E L AY S

monthly unique travellers.

searches for flights to the UK are on

“The longer-term impact of



the rise according to some early

Brexit on global politics and

post-referendum research.

financial markets will undoubt-

New York was the top

edly take years to play out,”

origin city for UK hotel

it is too soon to draw conclusions

says ADARA, “but we are

bookings both pre- and

on Brexit’s effect on travel, one

already seeing the impact of

organisation has highlighted some

Brexit on travel to and from the

notable findings.

United Kingdom.”

While many industry bodies say

Travel data specialist, ADARA,

Airlines are falling short in the level of customer service provided to passengers with delayed flights, according to a Bott & Co survey

post-referendum

Its summary? Inbound travel is on

compared pre- and post-referendum

the rise but Brits are staying close

travel trends based on 450million

to home. See below for more.

62%

FLIGHTS TO THE UK POST-REFERENDUM VS PRE-REFERENDUM

+15% Flight searches

....of passengers said the airlines didn’t provide information about how long the delay would be

+25% Flight bookings

61%

...of passengers said the airline didn’t tell them the cause of the delay

AVERAGE DAILY HOTEL RATES

-8% The average daily

rate of hotel rooms is

£214 pre-Brexit £196 post-Brexit

starting to decline

72%

ORIGIN CITIES OF LONDON HOTEL BOOKINGS

...of passengers felt unsatisfied with the level of information about the reason for the delay

Americans are taking advantage of the post-referendum exchange rate

1 2 3 4 5 6 7 8 9 10

Pre-Brexit New York Dublin San Francisco Los Angeles Paris Chicago Amsterdam Boston Hong Kong Frankfurt

56 THE BUSINESS TRAVEL MAGAZINE

Post-Brexit New York San Francisco Los Angeles Chicago Boston Paris Atlanta Dublin Philadelphia Hong Kong

-1%

72%

Outbound flight

bookings from the UK fell 1% following the referendum

...of passengers felt they were not provided with the level of food and drink they would expect in relation to the length of their delay

THE REVIEW THE CALENDAR

FROM conferences and exhibitions to gala

dinners and golf days, here's the best of the business travel industry’s upcoming events



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THE BUSINESS TRAVEL MAGAZINE 57

In association with

THE REVIEW ON THE MOVE

ITM UPDATE

Doug Anderson Emma Jones Simone Buckley Chief Executive, Institute of Travel Management

I

JOINS: VIRGIN ATLANTIC

JOINS: AMERICAN EXPRESS GBT

Sophie Krishnan

JOINS: TRAINLINE

AS: Vice President, UK Sales

AS: Chief Executive Officer

AS: General Manager, Business &

FROM: EY

FROM: Carlson Wagonlit Travel

Ancillaries FROM: Egencia

Emma Jones joined Virgin Atlantic in August as Vice President of UK Sales, with direct accountability for all UK corporate and agency sales. She joins from EY where she managed over £500miilion in annual travel spend, and has also worked for British Airways, HRG, GSK and Credit Suisse.

Industry veteran Doug Anderson has been appointed CEO at American Express Global Business Travel. He has over 30 years' of global management experience, including his most recent role as CEO and President of Carlson Wagonlit Travel from which he stepped down in April.

Sophie Krishnan has joined Trainline to oversee its corporate offering, Trainline for Business, and will report to CEO, Clare Gilmartin. Sophie joins Trainline from Egencia, Expedia’s business travel arm, where she was most recently Vice President of Product and Marketing.

’ve had to prise myself away from the TV in order to write this column. I wasn’t sure

whether the Olympic Games in Rio would conjure up the same magic and excitement as London 2012 did but, as I write, Team GB is on course to accumulating its biggest ever medal haul and I have loved every second.

From the track and field events, to the cycling, diving, rowing and gymnastics (and even the tennis and golf, which aren’t really proper Olympic sports!),

Debbie Carling

Guy Snelgar Jong Rae Kim

our athletes have continued to perform and deliver.

Last year one of our greatest

JOINS: TRAVELPORT

APPOINTED BY: KOREAN AIR

PROMOTED AT: CTM

ever Olympians, Sir Chris Hoy,

AS: Commercial Director

AS: UK&I Regional Manager

TO: CEO EMEA FROM: CTM

made a keynote speech at our

FROM: Diners Club

REPLACING: Mr. Ju Min Kim

Europe Chief Operating Officer

Guy Snelgar has joined Travelport to lead its UK Sales and Account Management teams. He has over 25 years' experience in the travel industry having worked for all three GDS platforms, Portman Travel and, most recently, Diners Club International.

Jong Rae Kim has taken over as Korean Air's regional manager for the UK and Ireland following spells with the airline as general manager of its regional cargo sales office in Seoul and a four-year stint at its regional office in Guangzhou, China.

Debbie Carling has taken over as Chief Executive Officer EMEA at Corporate Travel Management (CTM). She fills the role vacated by Chris Thelen who has become CEO North America for the TMC. Debbie has over 30 years' experience in business travel.

annual conference.

He talked about elite sportsmen and women and how everything comes down to fine margins and split seconds.

Winning, he said, is about immaculate preparation, constant training and doing whatever it takes to gain the edge on the competition.

These principles are applicable to anyone operating in a competitive environment.

In the current climate of political change and economic uncertainty, it is crucial that travel managers are prepared for almost anything.

ITM has established an industry affairs advisory forum as part of the Industry Affairs Group (IAG – not to be confused with the airline group).

The aim of this is to encourage more collaboration between travel buyers and suppliers during this period of uncertainly.

Afterall, it is in everyone’s interests that we win together.

58 THE BUSINESS TRAVEL MAGAZINE

ALSO ON THE MOVE... MARCUS EKLUND is the new Global Leader for FCM Travel Solutions and is based in London • LAUREN GOODWIN has been appointed Group Sales Director for UK hotel management company Jupiter Hotels • Small Luxury Hotels of the World has appointed CARSTEN LIMA to the newly created role of Vice President of Sales, EMEA • EMILY BAKER has been promoted to Business Development Manager at London events venue Church House Westminster • Clarity Travel Management has expanded its sales and account management team with the appointments of NIGEL CLEUR as Strategic Account Manager and ESTHER JEFFERS as Lead Generator • Mövenpick Hotels & Resorts has appointed OLIVIER CHAVY as its new CEO • PAULA LACEY takes up the role of Group Commercial Director at The Advantage Travel Partnership in September • SIMON CASSON has been promoted to President, Hotel Operations EMEA at Four Seasons Hotels and Resorts • The InterContinental Hotels Group has promoted KARAN KHANNA to Vice President, Operations, UK&I • Exclusive Hotels and Venues has appointed STEPHANIE HALL to the newly created role of Group Sales Manager • GAIL GRIMMETT is the new President of Travel Leaders UK, comprised of Protravel International UK and Tzell UK • Business travel agency arrangeMY has appointed ANDY HUTHWAITE as new Business Development Manager • AccorHotels has appointed CHRIS CAHILL in the newly created role of Chief Executive Officer, Luxury Brands, following Accor's acquisition of FRHI

EXECUTIVE SEARCH AND RECRUITMENT SPECIALISTS Dedicated to the business travel sector info@sirius-cv.com • +44 (0)845 605 9055 • www.sirius-cv.com

PHOTO GALLERY

Avis Budget UK hosts guests at the Henley Regatta The Business Travel Magazine was delighted to once again partner with Avis Budget UK at the Henley Royal Regatta where guests from across the industry were treated to a day of fine hospitality on the banks of the river Thames. This year’s event

was also co-sponsored by Melia Hotels, ANA All Nippon Airways, Qatar Airways and Virgin Atlantic Airways, while a now traditional sweepstake and an auction generated just over £2,000 for the day’s chosen charity, MacMillan Cancer Support.

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FEATURE AIRLINEs UPDATE

Cleared FOR

TAKE OFF Dysfunctional at the best of times, the aviation industry is navigating a series of new challenges and opportunities. Gillian Upton assesses the state of the sector in our comprehensive annual airlines review

IATA, the International Air Transport

Aviation intelligence specialist IAG, for

before, access to travel has

Association, has been on something of

example, has warned of a ¤220million

become far easier, consumers are

a high of late. It's excited about the

hit this year, citing Brexit, bad weather,

more aware about what aircraft

industry’s increasing prosperity and

the French air traffic control strikes and

to fly on and there are more efficient

anticipating over $40billion in profits for

terrorism. What had been a promising

aircraft available now such as the Airbus

its member airlines for 2016. But it’s only

year for all – fuelled by the continued

A350 and A380. All these factors have

a minority of them making significant

sharp slide in oil prices – is now in doubt.

fallen into place at the same time.”

profits, many of them in the US.

Tarry feels that 2015 will be viewed as

“Those airlines are making a profit slightly more than last year, which is a great achievement,” says aviation

more of a peak year than 2016.

Unfortunately for passengers, airlines have largely chosen not to share their

analyst, Chris Tarry, of CTAIRA. “Running an airline isn’t easy and how quickly things can change.”

Cathay Pacific is a case in point, recently announcing a plunge in profits of 82% for the first half of the year. The airline blamed a slowing Chinese economy, a decline in premium

Another future dampener is that too much capacity is going to oversubscribed markets such as Europe and the North Atlantic and this will push fares down. It all points to the cyclical

“Too much capacity is going to oversubscribed markets such as Europe and the North Atlantic and this will push fares down”

nature of the aviation market.

largesse with their customers but

The fallout from Brexit

bumped up their bottom lines instead.

But what does the post-Brexit ‘new

One upside of low fuel prices is greater attraction to new entrants.

The fledgling Wow Air, for example, is operating between Europe and the United States, via its base in Iceland, utilising A320 and A321 aircraft.

passengers and fierce competition.

In Europe, meanwhile, air traffic control strikes, Brexit currency turbulence and terrorist attacks in the

Aviation analyst Alex Macheras

normal’ mean in the long term for the

crucial summer months have forced

believes it’s the coming together of

UK? “It’s far too soon to tell,” says Tarry.

many airlines to issue profit warnings as

multiple factors, not just low oil prices.

“It’s in everybody’s interest to maintain

they watched shares nosedive.

“More people are travelling than ever

the status quo,” he says.

60 THE BUSINESS TRAVEL MAGAZINE

➔

FEATURE AIRLINEs UPDATE

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“We need to start trading more with South East Asia and spend less time travelling short-haul, to the EU countries, where growth is lowest”

© sas scandinavian

➔

Paul Cruttenden, Marketing & Digital Sales Manager at Cathay Pacific, points to a definite dampening of demand but

that it “masks the fact that demand has been plateauing at a constant level [pre-Brexit]. Global GDP output is not growing at the levels forecast.”

One airline breaking away from the status quo with a post-Brexit strategy is Ryanair. Its ebullient Chairman, Michael O’Leary, announced it would “pivot its growth away from UK airports, cut capacity at Stansted this winter and focus more on growing at our EU airports over the next two years.”

Dublin-based Ryanair is well placed if the current, deregulated aviation market within the UK and Europe does not survive once we’re outside of the EU. Meanwhile, EasyJet has applied for a European Union licence to continue flying across Europe should these

regulations change after a split from Europe is finalised.

Paul Wait, Chief Executive of industry organisation the GTMC, offers a more macro viewpoint, based on data that highlights far more lucrative long-haul markets. “Don’t stop travelling but make different choices,” he says. “We need to start trading long-haul, to southeast Asia, and spend less time travelling short-haul, to the EU countries, where growth is lowest of all the continents.”

Sir Richard Branson’s ordering of 12 A350s at the summer’s annual showcase for the aviation market, the Farnborough Airshow, certainly gave a fillip to the post-Brexit summer of gloom and doom.

Airline consolidation One market characteristic showing no sign of abating is consolidation. Just three airlines now control 75% of the ➔

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“Industry observers are watching the Chinese HNA Group very closely as they try to get a foothold in Europe, sniffing around Monarch Airlines”

➔ airspace in the US, for example. And the

Route additions A selection of notable long-haul route additions from recent and forthcoming months: Singapore Airlines’ first ever transatlantic flights from the UK to the US – a five-times-weekly Manchester to Houston service – begin on October 30th. At the same time it will begin flying non-stop between Manchester and Singapore (instead of via Munich), part of the Singapore-Manchester-Houston complete route).

British Airways launched Heathrow-San Jose (California) this summer as a daily service as well as Gatwick-Lima (Peru). It will belatedly begin flying between Heathrow and Tehran (Iran) in September (six times a week initially, moving to a daily service). Next is a thrice-weekly winter service from Gatwick to Cape Town (from November 24th) and a four-times-weekly service from Heathrow to Santiago (Chile) from January 3rd.

Cathay Pacific adds a four-times-weekly service from London Gatwick to Hong Kong from September 2nd, complementing a similar schedule from Manchester and a five-times-daily operation from Heathrow.

64 THE BUSINESS TRAVEL MAGAZINE

activity continues, with Alaska Airlines purchasing Virgin America and a flurry of activity on this side of the pond.

IAG has acquired Aer Lingus, Etihad acquired Air Berlin and rescued Alitalia by buying a 49% stake, Qatar Airways has upped its shares in IAG, purchased up to 10% of LATAM’s total shares and struck a new bilateral agreement with Malaysian-based Malindo Air in July.

So who’s next? Maybe British Airways, who needs a partner in China. Industry observers are watching the Chinese HNA Group very closely as they tried to get a foothold in Europe, sniffing around Monarch Airlines.

Elsewhere airlines are cutting their cloth according to market demands. The depressed oil markets in the likes of

Nigeria and Houston have forced United to cut services on Houston-Lagos, while British Airways have reduced services on Houston-London, for example.

Meanwhile, both United and Delta have reduced capacity on some routes between the US and UK, each citing slowing post-Brexit demand among its reasons for doing so.

Smarter management Similarly, airlines are managing aircraft utilisation and yields better. “It’s difficult to find a seat anywhere these days,” observes Gary Hance, Director of Yield & Operational Improvements at ATPI. Airlines want aircraft with greater range but with less seats so they can be sure of filling them, and new aircraft are providing that. ➔

A studio instead of a seat.

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#Reimagined | etihad.com | The Etihad A380 flies daily from London Heathrow to Abu Dhabi and onwards to Sydney, Melbourne and Mumbai.

Flying Reimagined

FEATURE AIRLINEs UPDATE

➔ Airbus has the A321LR with 200 seats, for example. JetBlue is one airline making the most of A321s, flying domestically out of New York JFK. The two-engine wide body A350, meanwhile, offers 25% lower seat-mile cost. The biggest orders for it have come from Etihad, Qatar Airways, Singapore Airlines and Cathay Pacific, with the latter deploying it on a new

“Airlines want aircraft with greater range but with fewer seats so they can guarantee filling them”

© ana

service from London Gatwick to Hong Kong this September.

The aircraft has a seat capacity of between 280-360, has 25% less fuel consumption, 25% cost efficiencies, and is 50% quieter and offers 25% lower carbon burn per passenger kilometres.

Moreover, the aircraft is pressurised to an altitude of 8,000ft (rather than 6,000ft) and the cabin air is changed

more frequently, the combination of which means more oxygen in the air to ease jetlag and fatigue.

Like the A350, the two-engine B787 Dreamliner is able to fly long non-stop routes. And with only 240-330 seats onboard it can operate to smaller markets and test new destinations.

Norwegian has had great success with it on new transatlantic routes from Gatwick. “The airline has made it cheaper to fly to New York than to Spain,” quips Alex Macheras.

B787s are also flying in the AsiaPacific region and Vietnam Airlines – rated Most Improved Airlines in the Skytrax awards – is using them on nonstop services between Heathrow to Ho Chi Minh and Hanoi from its new base at Heathrow T4 with fellow SkyTeam partner airlines.

British Airways is using a 787-9 for its longest route on its long-haul network, and that’s the 14-hour journey between Heathrow and Santiago, capital of Chile, which launches in January 2017.

At the other end of the scale is the two-deck, four-engine A380 'super ➔

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➔ jumbo' aircraft that seats around 500.

It’s helping to free airport slots and feed networks to the biggest demand airports, including the likes of Dubai, Heathrow, Hong Kong, Paris, Frankfurt Amsterdam, Singapore and Seoul.

It enables airlines to fly the world’s longest routes, such as Sydney-Dallas, Los Angeles-Melbourne, Dubai-Los Angeles and the longest of all, DubaiAuckland, taking 17 hours, 15 minutes.

ANA, Asiana, British Airways, Emirates, Etihad, Air France, Lufthansa, Malaysia Airlines, Singapore Airlines, Qantas, Thai Airways, China Southern and Qatar are among A380 customers.

By far the biggest A380 operator is Emirates, which already has over 80 in its fleet, servicing multi-frequencies to the major world hubs such as London, Bangkok, Paris, New York, Munich, Manchester, Amsterdam, Zurich, Los Angeles and Barcelona.

The A380 is dominating key routes to Asia-Pacific too. Airbus stats show some

52% of A380 flights are to/from the region. Some 70% of A380 carriers are flying to/from China while Europe to Middle East/Asia are the biggest flows.

There's no doubting that airlines are able to more accurately align the right equipment to the capacity on the route.

“These new aircraft are truly and absolutely opening up new routes,” says Star Alliance’s Bob Schumacher.

“Some routes would not work with larger aircraft on them. It’s a question of finding the sweet spot – that’s the economics of flying.”

Partnering up A strategy to shave costs, expand networks at lower costs and create synergies between like-minded airlines is the concept of alliances. Thankfully, some early mismatches have faltered and consumers are more indifferent to who they’re flying with.

Two alliances dominate the industry, Star Alliance – coming up for its 20th ➔

“The benefits of alliances are much clearer now that airports are accommodating whole alliance groupings under one roof”

FEATURE AIRLINEs UPDATE

© JET AIRWAYS

➔ birthday next year – and oneworld.

SkyTeam is a distant third.

The benefits of alliances for the customer are much clearer to see now that airports have been able to accommodate whole alliance groupings together under one roof.

Heathrow T2 is a prime example – it houses all Star Alliance members that operate to/from the airport, except Air India. Passengers have a single check-in point for whichever member airline/s they’re flying, fast-track security through frequent flyer status and more besides.

Moreover, passengers can choose to interface with staff and receive full service, or go self-service and check-in via a kiosk and not see a single soul.

“Then the first person you see is at security,” says Schumacher. “There are battle-weary travellers who want DIY all the way through the airport.”

There are still big gaps in alliances – the 'white spots' as Bob Schumacher calls them – and these are the majority of the Middle Eastern carriers. Oneworld member Qatar Airways is an exception.

Another key benefit of alliances was flagged up as travel managers being able to strike global deals and be serviced by a single point of contact.

Few corporates are eligible for them, however, and more commonplace are commercial deals struck through the joint ventures.

Fleet developments Going green New generation aircraft are better in terms of fuel burn and emissions – all part of what airlines are flagging up as 'responsible' flying. The Airbus A380, for example, burns 20% less fuel per seat than its nearest competitor, while the A350 has 25% lower emissions.

Some airlines are going one step further and using a biofuel mix. Cathay Pacific is one airline in the vanguard, using a biofuel mix made of sustainable sugars on some A350 flights. IAG, meanwhile, has consolidated all its sustainable goals on carbon dioxide emissions and improved them by 9% across the whole group, with a goal of reaching them by 2020.

It’s no surprise to learn that the Middle East carriers snap all of the new aircraft up as soon as they come off the line.

Having said that, Pegasus Airlines has been one of the first new customers for the smaller A320 Neo which suits short and mid-haul routes.

Long-haul carrier Cathay Pacific is in prime position as a Hong-Kong-based carrier with half the world’s population living within five hours of its primary hub. The carrier feeds an incredible short-haul network but is also focusing on trans-Pacific expansion to North ➔

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product developments

➔ America now that it is phasing out its fleet of 747s with over 50 of the 777300s and 777-300ER aircraft types.

They are ideal for routes such as Hong Kong-New York. The airline is using its new A350s for the likes of Madrid “and other long and thin routes and smaller primary hubs such as Gatwick,” says the airline’s Paul Cruttenden.

“What these new aircraft give us is network planning and in theory better load factors,” he says. “The A350 with 280 seats is perfect for routes with lower demand but the aircraft still gives us better operating efficiencies in terms of costs and fuel burn.”

Onboard developments

© Korean Air

Purchasing new aircraft gives airlines the perfect opportunity to innovate onboard and this is where we’re seeing

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new cabins and concepts materialise, with each airline attempting to raise the bar in its premium cabins in particular.

United claims to be introducing “a new gold standard” in business class when it launches its Polaris business class in December. It is focused around a better sleep-inducing seat design and shorter and better quality meal service to maximise sleep time. On the ground, the airline is introducing pre-dining, a sleep area and showers to its lounges.

Inflight connectivity will be a first for Cathay Pacific on its A350s, as well as an evolved business class with new entertainment system, HD screens, more storage, a wider bed and a greater sleeping surface area.

The airline’s premium economy cabin will have seats with a larger recline and more storage space. Passengers can experience the new look from September 2nd on its new GatwickHong Kong services.

British Airways’ order of 11 B787-9 aircraft will mean a new first class cabin (business class stays the same), with just eight seats that have more storage areas, an adjustable foot stool, an ottoman, somewhere to hang your coat, powerpoints and updated entertainment consoles with new handsets.

“We’re excited about our new fleet,” says Marie Hilditch, Head of Corporate Sales at British Airways. “We’re not about bling but high quality.” ➔

Air New Zealand: has launched biometric-enabled self-service bag drop system and is exploring electronic bag tags.

Air France/KLM: full connectivity is being rolled out across Air France’s long haul fleet.

Alitalia: self-service kiosks and bag drops at Fiumicino Airport, a chauffeur service for premium customers, and a tablet-equipped Transit Team to help connecting travellers at Rome Airport are all new.

British Airways: is introducing a new First class product on its B787-9 aircraft and has revamped its First class lounge at Heathrow T3, opening this autumn.

Cathay Pacific: has added self-tagging and bag-drop facilities at Hong Kong International Airport. At Heathrow it now has a larger lounge akin to The Pier in Hong Kong with dedicated first and business class areas and a restaurant in the First class section. It will also introduce inflight connectivity for the first time on its fleet of Airbus A350s.

Emirates: has launched interactive amenity kits in economy class utilising augmented reality technology to unlock immersive content on mobile devices. It has also unveiled a new B777 business class seat with 72-inch seat pitch that converts to a fully flat bed incorporating 23-inch TV screens, and the airline has upgraded its ICE entertainment systems on its A380s.

JetBlue: has a refurbished lounge at NY JFK T5 and plans for home-printed bag tags.

Lufthansa: is developing a Rimowa electronic tag baggage solution and touchless bag drop, and has added a tablet-based pre-flight shopping experience.

Qantas: is upgrading business class amenity kits to include Australian-made spa products. It is also building a global flagship lounge at Heathrow T3 which is due to open in 2017.

Qatar Airways: is retro-fitting its fleet of 53 B777s.

Singapore Airlines: has launched a Premium Economy cabin and is trialing self-service at Changi Airport.

Turkish Airlines: ongoing, wide-ranging strategy to improve the customer experience.

United Airlines: is launching its new Polaris business class cabins with walk-up bar from December this year on all intercontinental flights.

My place to be: sofa 22H.

Premium Economy Class is available on the long-haul fleet

The new Premium Economy Class: for those who want more

FEATURE AIRLINEs UPDATE

➔ The next cabin change will be British Airways' fleet of A350s in 2018 but there are no details available as yet.

What is known is that high-speed wifi connectivity will arrive by the end of 2019 on all BA's long-haul flights.

“Emirates' first class product is the gold standard, with private suites and sliding privacy doors, personal mini bar and a la carte dining”

Rise of the ‘mE3’ The big three Middle Eastern airlines – Emirates, Etihad and Qatar Airways – are way ahead of the game, introducing new levels of luxury in the air.

From its beginnings in 1985, Emirates is now the seventh largest airline in the world, the third largest international airline by passenger kilometres flown and the largest in the Middle East in terms of revenues. Not bad going in just 30 years of operations.

Emirates’ first class product is the gold standard, with private suites and sliding privacy doors, personal minibars, a la carte dining and, on its A380s, a shower spa and onboard lounge.

Newer rival Qatar Airways is only 19 years old but groaning under the weight of multiple Skytrax awards flagging up its quality product offering.

Its first class cabin boasts leather seats engraved with copper and there's caviar on the menu.

It’s very likely that the Middle Eastern carriers will grow even stronger. The likes of Emirates, Etihad, Qatar and even Oman Air appear to own huge fleets that can jump on new routes with a moment’s notice.

With such capacity flooding the market, and competitive pricing, it’s easy to see why hubbing over Dubai or Doha makes sense.

capacity constraints The Middle Eastern airlines’ dominance is stealing a march from Europe’s regional key hubs, not least Heathrow, which is hanging out its 'no vacancies' sign. The political inertia surrounding the decision on a new runway in the southeast is frustrating. ➔

UNDERsERvED ROUTEs A major report from flight data specialist OAG revealed the top 50 underserved international routes earlier this year, ranked on the number of one-stop bookings made between two destinations.

Top of the list was Jakarta to Jeddah, second was New York JFK to Tel Aviv and third was Bangkok to Paris CDG airport.

Fourth, and the first UK entry in the top 50, was London Heathrow to Bangkok. Although there were over 357,000 non-stop bookings between the cities in 2015, there were a further 230,542 passengers that made one-stop bookings between the cities.

The UK’s next entry on the list was London Heathrow to Manila (60,938 non-stop bookings versus 139,133 one-stop bookings) in 24th position.

At 27th was London Heathrow to Hong Kong.

Despite over 686,000 non-stop bookings between the two cities, a further 135,000 passengers booked one-stop connecting flights.

And three further destinations from London Heathrow featured in the top 50: Orlando, 32nd; Dubai, 40th; and Phuket, 49th.

The report’s conclusion noted: “Airports such as London Heathrow and Bangkok feature repeatedly in the Top 50 underserved routes, a direct consequence of the lack of capacity for new air services.”

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➔ The longer the delay, however, the more Gatwick Airport will fancy its chances of getting the nod for a second runway – rather than Heathrow – and that is certainly the preferred option of Mayor of London, Sadiq Khan.

Quieter A350 and B787 aircraft resolve much of the resistance to expanding Heathrow, however, which still appears to be the most popular choice of the business community.

“I’m confident that the aviation industry will have worked on all the issues stopping a capacity decision in the southeast,” says the GTMC's Paul Wait, who predicts that a decision will be made before the Conservative Party Conference in October.

Aviation analyst Macheras says the indecision is costing the UK £6million every day. Post-Brexit, increased capacity seems even more necessary to show Britain is open for business and has a comprehensive network of nonstop global connections.

The summer’s good news that London City Airport would be expanded doesn’t help the overall capacity issue as it is a STOL airport (short take off and landing), and is therefore limited by the size of the aircraft that can be utilised and its range of destinations.

Low-cost long-haul There is no such limit it seems on capacity increases over the Atlantic – at least for leisure travellers – as

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“Increased airport capacity seems more necessary than ever to show Britain is open for business and has good global connections” Norwegian offers bargain fares from Gatwick to the likes of New York, Boston and San Francisco. The restrictive fare types, in terms of cancellation and change charges, often doesn’t suit large swathes of the business community, nor a twice a week schedule compared with a legacy carrier’s twice a day schedule.

However, access to No1 Lounges and fast-track through security for its loyalty scheme members are real benefits for those business travellers who can be flexible on when and how they fly.

Norwegian’s order of the Airbus A321LR means that it has other long haul destinations in its sight after delivery in 2019.

WestJet has launched a swathe of routes from Gatwick to Canaadian cities, again targeting the leisure crowd, while JetBlue’s rumoured transatlantic debut could push prices lower still.

Short-haul stutters Elsewhere, low-cost carriers Ryanair and easyJet have carved up the short-haul market and changed the dynamics forever. Legacy carriers have emulated ➔

FEATURE AIRLINEs UPDATE

➔ the LCC business model as they need to keep a short-haul service alive for feeder traffic into their more lucrative long-haul network. Some have launched new business models while others have looked elsewhere.

Enter stage left regional carriers who have found a niche as feeder airlines for the big flag carriers. In the UK, bmi regional, Eastern Airways and Flybe are typical of those that operate codeshare, wet lease arrangements and subcontracting deals on behalf of the legacy carriers.

Flybe flies on behalf of SAS and Brussels Airlines and codeshares with Virgin Atlantic, among others, while Cityjet does the same for Air France.

Most recently, Singapore Airlines announced a deal with Eurowings to ‘supply high-quality feeder flights’ into its long-haul network.

Legacy carriers will keep European business class alive so that long-haul premium travellers can transfer to/from the same class of travel short-haul.

“They want lounge access, luggage allowance and that empty middle seat,” says Macheras. “Fly on a Wednesday evening off-peak and you’ll get an empty seat anyway so you’re really only paying to sit in front of the blue curtain rather than behind it.”

Buying behaviour Sitting behind the blue curtain is more often than not companies' regular choice. “Cost is still the major driver for every major corporate,” says BA's Marie Hilditch, “but compliance is an issue too, particularly in mature travel policies, to check travel is necessary. Risk management is another issue. We have to hit that sweet spot of balancing value and price. We sell the total value proposition of schedule, network, our Executive Club, and our partner airlines Iberia and American Airlines.”

The big push in certain industry verticals has been for lowest fare on the day and that’s most prevalent in the hard-hit oil and gas sector companies.

“There’s real pressure on air fares from our clients,” confirms ATPI's Gary Hance.

“Some operate a benchmarking system and check fares with other travel management companies for cheaper fares, and it keeps us on our toes, keeps us nimble and we don’t mind that.”

Deals on regular point-to-point routes still make sense, however, if a corporate can provide the big volumes required.

And any savings made by the TMC are often split on a 50/50 revenue share with the customer enshrined in the contract. This helps fund the fares teams who spend their entire time checking the GDS, web fares and any fare that is publicly available for opportunities to book a lower fare than when it was originally booked.

There may not be much scope for cost savings on a London-Frankfurt fare but on long-haul services there are definite opportunities. “Combining multiple journeys and combining two tickets are other strategies. It’s intelligent buying,” explains Hance.

The other big change in corporate buying behaviour is wanting an end-toend booking. “Customers want a journey planned from home to point of destination now,” says GTMC's Wait. “It’s based on price, travel time and value.”

A combination of airport beacon technology and apps are making the seamless journey a reality. Business travellers can check in on smartphones, receive alerts on gate numbers, flight cancellations and the like.

“A combination of airport beacon technology and apps are making the seamless journey a reality” Gaining precious time in this way could influence how many use self-booking tools says GTMC's Wait. He predicts a move away from them due to productivity issues.

“If it's a London-Paris trip then yes, use an SBT, but if you take into account £120,000 as the average salary of a business traveller, against £23,000 as the average salary of a TMC, it makes sense to pick up the phone to your TMC and get them to plan your trip.

“I’m not dissing automation but it’s about choice and with more complex travel it makes no sense to self book.”

The reality of NDC Choice is behind IATA's plan to introduce NDC, a new style of airline retailing.

Most airlines want to adopt it, and why wouldn’t they as they can earn even ➔

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➔ more from selling ancillary products, already a big cash cow. The proponents point to greater transparency, the ability to comparison shop and how it will help users understand the options.

“It will help with compliance,” believes BA's Hilditch, “as you can see the full product offering. It’s more enhanced information for corporates.

“It’s the deepness and richness of the content offering. It’s a better look, taste and feel. You can see a first class seat or a club class seat from every angle.”

“Proponents of NDC point to greater transparency, the ability to comparison shop and how it will help users understand the options” Hilditch also lists other benefits as easier ticketing, faster processing, the ability to sell more ancillaries and the opportunity for TMCs to sell more too.

At a recent NDC Forum in Geneva there were large corporate customers in attendance and some still voiced “a degree of sceptism,” says Hance.

“They fear NDC will be used to upsell.”

Airlines in live trials with NDC are using it to sell pre-assigned seats – mainly in the leisure market – among other options, and Hance has an idea how it will impact corporates.

“Potentially for the TMC community NDC will create more complexity. Hand baggage-only fares are not hard to sell and with no extra complication for the TMC; the same for checked baggage.

However, when you get to wifi, meals

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and lounge access, these items are not standard globally. If you’re booking on a big legacy carrier with hundreds of planes they won’t be able to guarantee that particular service or amenity.”

Furthermore, while the big carriers can absorb the cost of NDC into a marketing budget, any second tier carrier might not, so there is the potential for TMCs having to book NDC carriers and non-NDC carriers.

“Four years on and NDC hasn’t quite got to the critical mass IATA thought it would have,” says Hance.

Business class capacity The top 20 business class destinations from the UK. Data supplied by OAG and based on business class seat capacity in September 2016

Distribution evolution NDC was supposed to put the GDSs out of business but having dragged on for so long, the major GDSs think they can achieve the same. They have a product honed over many years, with global penetration and global access, that is handling millions of bookings a day.

“There is potential for development but it’s a big piece of work,” says Hance.

Ultimately, airlines’ goals are to reduce distribution costs and their sales strategy has been to push direct sell while still keeping the TMC channel open.

One viable GDS alternative comes from Travelport – probably the most advanced – with its selling platform for agencies, Smartpoint. It offers real-time content from over 400 airlines, shows pictures of the cabins and seats and allows comparison of fare types within a selected flight on a single screen.

Such innovation will have to accelerate as the industry tries to keep abreast of tech-savvy travellers who want greater that is accessible from devices in the palm of their hands.

Rank

From

To

Seats

1

London Heathrow

New York JFK

33,518

2

London Heathrow

Dubai

24,702

3

London Heathrow

Paris CDG

23,388

4

London Heathrow

Los Angeles

13,320

5

London Heathrow

Chicago O’Hare

12,974

6

London Heathrow

Hong Kong

12,742

7

London Heathrow

Frankfurt

12,436

8

London Heathrow

Singapore

11,536

9

London Heathrow

Amsterdam

11,387

10

London Heathrow

Munich

10,444

11

Manchester

Paris CDG

9,927

12

London Heathrow

Madrid

9,386

13

London Heathrow

Boston

9,342

14

London Heathrow

San Francisco

8,897

15

Birmingham

Paris CDG

8,400

16

London Heathrow

Rome FCO

8,320

17

London Heathrow

Washington Dulles

8,176

18

London Heathrow

Johannesburg

8,082

19

London Heathrow

New York Newark

7,946

20

London Heathrow

Mumbai

7,860

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beginner'S guide Dynamic pricing

A beginner’s guide to...

Dynamic pricing

Dynamic pricing is very much standard practice among suppliers today. Chris Pouney, partner at business travel consultancy Nina & Pinta, explains what it is and what it means for buyers

What is it?

Dynamic pricing is the practice of pricing at a point based on a customer’s ability to pay. In travel, last minute corporate travellers, travelling at peak times requiring flexibility to change or cancel are likely to pay much more than leisure travellers pre-paying rooms at off-peak days.

How has it evolved?

In the early 90s, dynamic pricing was in its infancy. An airline example was that when travelling within Europe, business travellers typically had two air fares to choose from. Only by staying a Saturday night – which business travellers couldn’t or wouldn’t do – would qualify for lower fares. It was simple price segmentation, but hardly very dynamic!

Then came the low-cost carriers, offering one-way pricing and the whole practice was thrown up into the air.

Airlines were caught between needing to remain competitive against these new upstarts and retaining profitability on existing previously lucrative routes.

Dynamic pricing was born.

The hotel industry has gone through a similar process. Simpler pricing in the 90s and early noughties have been replaced by complex yield management models based on everything from prebooking period, industry sector, length of stay and likelihood to spend money

“Forward-thinking buyers recognise that there is a time and a place for dynamic pricing”

on F&B. Other areas such as early checkout fees, black out dates, seasonality, and reducing the number of ‘standard’ rooms where last room availability would apply at peak times are all examples of dynamic pricing in operation. The advent of OTAs has complicated the issue still further.

Hoteliers employ revenue managers that are highly talented mathematicians with more knowledge of price elasticity theory than knowledge of hotel beds.

How prevalent is it?

All suppliers employ dynamic pricing in one way or another.

Filling hotel rooms is no longer the measure of success – filling it at the correct price, driving ancillary revenue and managing risk through having an appropriate mix of traveller types is key to having a profitable business.

What are the pros?

It allows a hotel to be competitive against its peers and make profit at times of high demand.

Buyers can save money by booking lower cost periods – a Monday night rather than a Wednesday, for example.

And the cons?

While fixed pricing offers consistency, lower rates may be available through other channels at low periods. Conversely, use dynamic pricing and business travellers may get confused as to why they pay differing amounts, and it doesn’t help the budgeting process.

What’s the future?

Procurement want assurance of cost to enable effective budgeting, but forward-thinking buyers recognise there is a time and a place for dynamic pricing.

The greater rewards are to be had by adopting intricate demand management techniques to steer their travellers to purchasing decisions which demonstrate the greatest value.

Smart buyers don’t demand last room availability (LRA) everywhere, but have a mix of allocations, LRA and spotbuying strategies in order to have a dynamic buying mix.

Don’t think that the onset of the sharing economy sounds the death knell for dynamic pricing – Uber’s ‘surge pricing’ is just another take on dynamic pricing.

THE BUSINESS TRAVEL MAGAZINE 83

TECHNOLOGY PERSONALISATION

TAILOR-MADE TRAVEL EXPERIENCES Things are getting personal as suppliers step up their targeted offerings, but what do travellers actually want, asks Linda Fox THE personalisation versus privacy debate continues to have many twists and turns as travel companies and intermediaries continue to try and improve the traveller experience.

Not long ago, the conclusion was that travellers, particularly millennials, were willing to give up some information in return for a better overall experience.

A report from data specialist Boxever published earlier this year revealed more than half of travellers would be willing for

conduct research of its own into personalisation.

The Digital Business Traveller study asks business travellers what information they are willing to share if it means a more personalised experience.

Responses differ depending on where travellers come from, with more than half from Spain happy to share their preferences on hotels services, flight times and airline and hotel brands.

When it comes to travel history and preferred leisure

“It shouldn't be difficult to build up a detailed profile of travellers and use the information to help them during the booking process” hotels and airlines to share their data if it made for a better trip.

Fast-forward six months and new research from Boxever shows consumers don’t want brands to have any of their personal information. It’s a debate clouded by high volumes of clutter, irrelevant offers and information today’s travellers are bombarded with.

The problem, it seems, is that travel brands don’t really know their customers. The latest Boxever report shows threequarters of people think Google knows them well in terms of preferences and interests.

By comparison, it seems only 42% think travel brands get even the basics about them right. However, the GBTA has partnered with Sabre to

84 THE BUSINESS TRAVEL MAGAZINE

activities the numbers drop.

For example, only 23% of Dutch travellers would share information on travel history but 40% of Italian travellers and a third of Spanish travellers would.

The bottom line, if the GBTA research is to be believed, is travellers want personalised services – more than threequarters of Spanish and Dutch business travellers feel personalised offers are important or very important, and the picture is similar in North America.

Many travel management companies have been introducing elements of personalisation over the past year. Both CWT and Egencia aim to offer a more personalised hotel booking

experience by offering less options but are instead based on previous hotel stays.

Further research, from Sabre, shows the industry will benefit financially with travellers willing to spend £61 more on air products for a better experience and £56 on hotel products.

It shouldn't be difficult to build up a detailed profile of travellers and use it to help them during the booking process and during their business trip. Things such as recognising if a traveller is alone or with family and populating online searches with preferences is a good start.

The technology is getting more sophisticated in building up a profile of traveller history, and also of where and how things might have gone wrong.

This sort of information goes a long way to helping brands gauge how travellers might be feeling and enabling them to take steps accordingly.

+44 (0) 20 7368 8801

Sustainability Brexit

Opportunity knocks for the travel sector The outcome of the referendum might have slowed the economy but it’s not all bad news, says Roger Gardner On many issues, the Brexit decision has unleashed negative predictions and press about risks of steady decline.

However, there is reason to be optimistic about the environment as the UK has a strong track record as a leader in driving environmental performance and in exploiting opportunities in various business segments. For business travel, we have that same possibility now: to mark out the UK as environmentally responsible.

While the UK will need to maintain its commitment to many environmental laws and directives coming out of Brussels, we have the opportunity to make sustainability a market differentiator.

The government has now pledged to match existing investment levels to science and innovation and Sir John Kingman, new head of UK Research and Innovation (UKRI), has said research could be at the heart of Britain's post-Brexit industrial strategy. That will be good for many aspects of the travel trade business through boosting innovation in

86 THE BUSINESS TRAVEL MAGAZINE

transport, energy efficiency and new construction.

While investment in renewable energy and other low carbon technologies may dip for a while at home and slow the trend of environmental improvement, we have greater freedom now to develop markets abroad and thus exploit capabilities and brands

of travel services.

Doubtless there will be some international infrastructure constraints – such as potentially less open skies – that could affect the efficiency of the business travel network.

“TMCs, hotel companies and a range of other service providers have the potential to make sustainability a key selling point” with international recognition.

UK TMCs, hotel companies and other service providers have the potential to make sustainability a key selling point when forging new market connections. A number of countries, such as India, are already showing signs of wanting to strike early trade arrangements and the business travel community should be pitching for strong representation in those negotiations.

It remains to be seen whether the new government will be as committed to climate change control in the new reality of Brexit. It would be good to see it making a virtue of retaining emissions reduction and improvement targets.

For companies in the business travel sector it is a ‘no brainer’ to push sustainability, developing new green products and using that as part of the British branding

Perhaps counter-intuitively from an environmental perspective, it is also important now to make a rapid decision on where a new runway should be located to show the world that we are outward looking and in favour of growth.

New noise and emissions commitments from the main airport protagonists are chipping away at the environmental hurdles and helping to support a greener aviation future.

Travel flows between the UK and mainland Europe and beyond will not dip for long in light of Brexit.

The business travel community should seize the initiative and invest in sustainability. The imperative to keep innovating for a better environment and pushing sustainable travel practices is as strong as ever. After all, we want to see environmental advances through innovation and corporate commitment, not through economic slowdown.

DEPARTURES SHEFFIELD

MEETING IN...

SHEFFIELD

Sheffield is Yorkshire’s second city (after Leeds), famously building its fortune on steel manufacturing. Today, its thriving commercial centre is home to a number of high-quality cutlery producers, but professional services, retail and the knowledge industries are increasingly important, says Emma Allen.

On a Shoestring

Church St, Sheffield S1 1HG

this modern, energy efficient building is home to the university’s computer science faculty and Diamond Building, 32 Leavygreave Rd, offers excellent AV and IT Sheffield S3 7RD facilities. It can host up to 120 0114 222 8822 / withus.com delegates in its lecture theatre and The University’s new, state-ofit can be paired with the threethe-art Diamond Building has storey light-filled Cantor earned a reputation as a high Atrium. There's also a number quality conference venue, with wow factor of meeting rooms available. nine tiered lecture theatres Cutlers Hall PRICE DDR from £25 (+VAT) and conference space for up to 3,000. The University also 0114 276 8149 Out of town has its own 38-bed boutique cutlershall.co.uk hotel, Halifax Hall.

Chatsworth House

0114 276 8149 / cutlershall.co.uk

PRICE

The Wow factor

Cutlers Hall

This historic building (pictured above right) has a lavishly decorated interior and a fine art collection that give guests a sense of the city’s history. The Main Hall can host up to 500 guests and smaller spaces are available for receptions and meetings.

PRICE

DDR is from £35 (+VAT)

Quirky venue

Sheffield Winter Gardens Surrey Street, Sheffield S1 2HH

0114 2736895 / welcometosheffield.co.uk

This vast glass structure is one of the largest temperate greenhouses to have been built in the UK, and houses more than 2,500 plants from around the world. The venue can host up to 300 and offers a spectacular setting for evening receptions and parties.

PRICE

Hire from 6pm is £800 (+VAT)

MORE meeting in... www.thebusinesstravelmag.com

University of Sheffield



DDR from £25 (+VAT)

Bakewell, DE45 1PP

01246 565300 / chatsworth.org Small but perfectly formed

The Chimney House 4 Kelham Island, Sheffield S3 8RY

0114 276 7885 / thechimneyhouse.com

This red-brick grade II listed building in Kelham Island has been transformed into a funky, ultramodern event space popular for private dining and parties. There are three flexible rooms available for up to a total of 55 guests, decked out with stylish fittings and furniture, created almost entirely from reclaimed materials.

PRICE

Room hire is from £180 (+VAT)

This stately home (pictured above left) is less than 20 miles from Sheffield city centre. Its various event spaces include the Carriage House restaurant for 180 guests, and the Stables complex, which can hold up to 80 in the recently refurbished Hartington Room.

Groups can also enjoy activities and team building days.

PRICE

DDR from £40 (minimum

ten delegates) GETTING THERE Sheffield’s central location makes it easily accessible by road and rail networks. Regular train services operate

Wired up

between Sheffield and London St. Pancras (just over 2

The Cantor Building

hours), Birmingham (1.25 hours), Leeds (1 hour) and

Sheffield Hallam University, City Campus,

Manchester (1 hour)

Howard Street, Sheffield S1 1WB

For further information, contact Conference

0114 225 5555 / shu.ac.uk

Sheffield on 0114 273 5978 or see welcometosheffield.co.uk/conference

A short walk from the train station,

THE BUSINESS TRAVEL MAGAZINE 87

JAPAN’S ONLY 5-STAR AIRLINE

ANA is Japan’s largest airline and one of only eight airlines to have been awarded a 5-star rating from Skytrax.

ANA flies daily from London Heathrow Terminal 2 to Haneda, Tokyo’s most central airport.

From Haneda, a hub for 40 of ANA’s domestic routes and 19 of its international routes, ANA also connects you to Sydney with a daily non-stop flight.

www.ana.co.uk

JAPAN’S ONLY 5-STAR AIRLINE

DEPARTURES SYDNEY

ON BUSINESS IN...

SYDNEY

SYDNEY is Australia's largest city and a major regional hub. The financial centre of the Australian economy, its surrounding state has a large and diverse manufacturing base while the city itself has a rapidly growing professional services sector in health, design, engineering and science. Tech companies abound, doing all things digital, and the city also ranks highly with start-ups. The research sector also thrives with five universities based in Sydney.

SLEEPING

Generally, the nearer you stay to the harbour the more expensive the hotel, but nothing beats a view of the Opera House or the Harbour Bridge. Swissotel and Hilton put you in the heart of the CBD, for views pick The Shangri-La, Park Hyatt and Four Seasons. Darling Harbour is the place to be from December when the new AU$1.1bn Sydney International Convention Centre opens as part of an upgrade to the area. Accor will operate a Sofitel there or, for a quirky alternative, check out Ovolo 1888.

EATING

Sydney is one of the most multicultural cities on earth and this ensures it is a foodie's heaven.

World-renowned and rising-star

MORE ON BUSINESS IN... www.thebusinesstravelmag.com

chefs compete to make their mark and new openings include Long Chim, a Thai street food eatery, and Eleven Bridge, which has taken over the property that formerly housed Neil Perry's iconic Rockpool fine-dining haunt. Head to Circular Quay for al fresco Sydney rock oysters and seafood platters with views of the Harbour Bridge, or jump on a ferry to Watson's Bay for fish and chips at Doyles.

MUST-SEE SIGHTS First stop has to be Circular Quay – Sydney Harbour – for its iconic Harbour Bridge and the Opera House. If the Bridge Climb Experience seems a little strenuous, stroll across the bridge at road level to view the city from the other side.

Alongside Circular Quay and the Opera House are the city's lush Botanical Gardens, popular with joggers and for picnics. Or head

GETTING THERE

The options for flying to Sydney are plentiful and include services with Emirates (in partnership with Qantas), Etihad Airways and Qatar Airways via their Gulf hubs, British Airways via Singapore and Asian carriers Cathay Pacific, Singapore Airlines, Malaysia Airlines, Korean Air, Asiana, Philippine Airlines and Thai Airways via their respective hubs. A newer option is ANA All Nippon Airways' service via Tokyo Haneda which launched last winter.

to the other side of the quay for The Rocks historic area, good for souvenirs and gifts. To experience the famous Aussie beach life take a ferry to Bondi or Manly beach to watch the surfers do their thing.

CARBON COST Return flights from London to Sydney cover upwards of 37,000km and produce over 3.25 tonnes of CO2. Offset these flights with CarbonNeutral from £50.90.

GETTING DOWNTOWN

Sydney Airport is only 13 minutes by train from the city and there are stations at both the international and domestic terminals. Trains run every 10 minutes. There are also regular buses to the city while taxis take about 20 minutes (outside rush hour) for around AU$30.

THE BUSINESS TRAVEL MAGAZINE 89

Finnair is Europe’s first airline to fly the new Airbus A350 XWB. Experience a new sense of flying at A350.finnair.com

Finnair flies to all major cities in Asia and over 60 destinations in Europe.

DEPARTURES CHINA

FOCUS ON...

As the UK seeks to strengthen its trade relationships beyond Europe, Colin Ellson has the lowdown on China’s top business destinations

china

Pictured: shanghai's modern pudong district

neWly aPPointeD chancellor Philip Hammond flew to the city of Chengdu, in central China, for the first gathering of G20 policymakers since the EU referendum in July. The chancellor told his audience in Chengdu he would concentrate on boosting the UK’s trade opportunities beyond Europe. “Britain is open for business and one of the most attractive destinations for international investment,” he told his audience.

The UK has a strong relationship with China, one of the BRIC nations forecast to dominate the international stage in spite of its slowing economy. The value of Chinese investment in Britain is forecast to reach £30billion, including the amount China has promised for the HS2 rail project and the £6billion earmarked for the Hinkley Point nuclear plant.

MORE FOCUS ON... www.thebusinesstravelmag.com

China is the world’s second-largest economy but, according to the World Bank, if the country is to sustain significant expansion, far-reaching policy adjustments are needed to address issues like inequality, urbanisation, and environmental sustainability. None of which need concern executives following hard on the heels of Hammond in the quest for Sino-British trade deals, with UK Trade and Investment listing opportunities across the board.

All the destinations in our survey can be reached on direct flights from the UK or one-stop services from Europe or the Gulf. The growing importance of the Chinese market is illustrated by several new services launched this summer from the UK, including Tianjin Airlines to Chongqing and Cathay Pacific to Hong Kong, both from London Gatwick; and Hainan Airlines from Manchester. ➔

THe Business TraVeL magazine 91

DEPARTURES CHINA



FACT FILE

BEIJING

CHENGDU

Mandarin GMT+8hrs Located in north eastern China, the capital of the People’s Republic is one of the world’s most populous cities.

It has a rich history and is noted for opulent palaces, temples, parks, ancient walls and seven UNESCO World Heritage sites. One of the most important industries is financial services together with real estate, road vehicles, electronics and pharmaceuticals.

Machinery, electronics, hi-tech products; vast overseas investments.

Infrastructure, social welfare services, consumer goods, developing rural and interior regions, oil and gas, financial services, industrial machinery.

CHONGQING

Sichuanese Mandarin GMT+8hrs The capital of Sichuan province in western China, Chengdu is one of the most important economic, financial, commercial, cultural, transportation and communication centres in the region. It has a prosperous manufacturing sector and is known for its fiery food and collection of giant pandas. Big names in town include GlaxoSmithKline, Microsoft, Toyota, IBM and Nokia, and half of the world’s iPads are assembled in the city.

Machinery, electronics, hi-tech products; vast overseas investments.

Infrastructure, consumer goods, insurance, oil and gas, aerospace, healthcare.

Sichuanese Mandarin GMT+8hrs A major city in south west China, Chongqing became a municipality in its own right in 1997 to foster growth. Its remote location has traditionally been a barrier to exports. Instead, there are a number of military R&D establishments in the area and there has been a proliferation of factories producing consumer goods for the domestic market. Nevertheless, the metropolis is China’s third-largest manufacturer of motor vehicles and Ford has three major plants in the area.

Minerals, machinery.

Developing the infrastructure, consumer goods.

REGIONAL ROUND-UP CHINA Capital city: Beijing China has 56 recognised ethnic languages, but the official one is Standard Chinese, based on Mandarin. Cantonese and English are spoken in Hong Kong GMT+8hrs Renminbi (CNY) £1= 8.74CNY 00+86

HONG KONG

SHANGHAI

Cantonese GMT+8hrs Long one of the world’s leading financial centres, the former British colony was handed back to Chinese rule in 1997. By then, its GDP had grown by a factor of 180 in 36 years. Fears that the Chinese would exert tighter control have been unfounded. Market forces and the private sector have been allowed to determine practical development.

Finance apart, the economy is based on management, IT and business services.

Electronic and medical equipment, gems, machines, plastics, clothing.

Airport and rail development, electric vehicles, healthcare.

Language

92 THE BUSINESS TRAVEL MAGAZINE

Time zone

Shanghainese Mandarin GMT+8hrs Strategically located on the Yangtze River Delta in eastern China, Shanghai is the commercial and financial centre of mainland China and has the country’s first free trade zone. A popular tourist destination, it is noted for historic land marks such as The Bund and City God Temple. The city’s industries include financial services and shipbuilding and it is big into conferences and meetings.

Ceramics, pharmaceuticals, mechanical equipment, textiles.

Insurance, oil and gas, business training, infrastructure, aerospace, power generation, renewable energy.

profile

D i a ll i n g c o d e

exports

Other key cities Guangzhuo, Shenzhen, Tianjin, Suzhou, Hangzhuo, Nanjing, Xi'an, Wuhan, Harbin, Foshan, Dongguan, Qingdao, Kunming, Pudong, Changsha, Macau, Yantai, Zhengzhuo, Jinan, Nanning, Shijiazhuang, Guilin, Shenyang, Dalian, Xiamen

opportunities

Currency

MORE FOCUS ON... www.thebusinesstravelmag.com

DEPARTURES CHINA

SPOTLIGHT ON... GUANGZHOU Northwest of Hong Kong, this sprawling city was once a major terminus on the historic Silk Road and today is a major port and transportation hub. The city is home to the annual Canton Fair in April and October, the largest trade fair in China, and has a long-established textile industry and factories producing machinery, steel and paper. The airline China Southern is headquartered in the city and flies non-stop to/from London Heathrow once daily monday to Friday.

MORE FOCUS ON... www.thebusinesstravelmag.com

THe Business TraVeL magazine 93

DEPARTURES CHINA



WHERE TO STAY

REgional hotel groups A selection of China's prominent hotel groups and details of their presence in the region.

Gloria Hotels & Resorts With an expanding portfolio, the group plans to operate 120-150 hotels worldwide within three years.

It has seven properties in China, including Chengdu.

Offering five models, including deluxe, premium leisure, business and boutique brands, Gloria’s focus is on expanding its network to China’s developing cities, with 14 properties in the pipeline.

Jin Jiang International 6,000 worldwide, with almost 400 hotels and inns across China.

Shanghai (10), Beijing (10)

look for public rooms, new

THE GLOBAL PLAYERS

restaurants and guest rooms doubled in size.

Hilton Worldwide One of the largest and fastest-growing hospitality companies in the world, Hilton operates 13 brands in 570 locations worldwide. It has over 30 hotels across China and is represented in all the cities in our survey.

Chongqing (1).

State-owned, covering a variety of chains, including J.Hotel and Metropolo, Jin Jjiang is China’s largest hotel operator and was a pioneer in developing budget

Shangri-La Hotels & Resorts Over 90 worldwide, including 58 across China.

Locations include Beijing (6),

accommodation. It is particularly

Shanghai (3). Hong Kong (4)

well represented in the financial

and Chengdu (1).

centres of Shanghai and Beijing.

IHG The InterContinental Hotel Group operates almost 5,000 hotels worldwide, with 265 in China, including all the cities in our survey. Among the key openings this year are new properties in Chongqing and Shanghai.

Based in Hong Kong, Shangri-La claims to be Asia-Pacific’s leading

Peninsula Hotels 10 luxury hotels in major cities in Asia, the US and Europe.

Locations include Hong Kong (1), Beijing (1) and Shanghai (1).

The group has two hotels under development. Meanwhile, The

luxury hotel group. It has been in

Also Consider...

launched the Hotel Jen brand, renaming Traders hotels under the new title. The group has announced it will open another hotel in Hong Kong.

Peninsula Beijing has recently been refurbished with a complete new



China since 1984 and in 2014

Home Inn, China's largest budget hotel operator; the luxury Mandarin Oriental brand; and Rosewood Hotels, with three new hotels in the pipeline

Swire Hotels

Hyatt Hotels & Resorts: Chicago-based Hyatt operates almost 600 properties worldwide and is represented in all the major cities in China. The group operates 11 brands, most of them covered in the 28 development projects underway across China.

5 in China and 1 in North America, marketed under the House Collective brand Locations include Beijing (2), Hong Kong (2), Chengdu (1).

Swire was created to manage character properties in Hong Kong, mainland China and the US. A further hotel is due open in Shanghai next year, and the group set up a restaurant division in 2013.

NUM B ER OF p r o p e r t i e s

94 THE BUSINESS TRAVEL MAGAZINE

Pictured Above: Swire Hotel's The Opposite House; Left: Shangri-La Hotels & Resorts; Right: Hilton's Conrad brand

REGIONA L PRESENCE

profile

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DEPARTURES CHINA



FLIGHTS

key Destinations in China served by non-stop services from the UK

Pictured: Chengdu

BEIJING



GETTING AROUND

China has built a comprehensive transport network in the past

SHANGHAI

decade, including high-speed rail links. For most business visitors with

CHENgdu

a multi-stop itinerary, however, the

CHONGQING

country’s much improved air

56

HONG KONG

The total number of weekly flights between London Heathrow and Hong Kong

services will be the preferred option – especially as one of the key business routes, Beijing to Shanghai, is 663 miles overland. The major domestic carriers are Air China, Shenzen Airlines, Tianjin Airlines, China Southern and Hainan Airlines, who together cover much of the Chinese mainland. The government

Below are the destinations in China that can be reached directly from the UK with a single flight and without touching down at intermediate destinations.

Destination From

Weekly With frequency

BEIJING London Heathrow

London Heathrow

Manchester

Air China British Airways British Airways

14 7 7

CHENgdu London Heathrow

British Airways

5

CHONGQING London Gatwick

HONG KONG London Heathrow

London Heathrow

London Heathrow London Gatwick Manchester

Tianjin Airlines

2

Cathay Pacific British Airways Virgin Atlantic Cathay Pacific Cathay Pacific

35 14 7 4 4

SHANGHAI London Heathrow

London Heathrow

London Heathrow

British Airways China Eastern Virgin Atlantic

10 7 7

Selected flight information supplied by aviation intelligence specialist OAG.com

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Selected flight information supplied by aviation intelligence specialist OAG.com. Where destinations are served by non-stop services from the UK alternative one-stop options with other European, Asian and Middle Eastern airlines have not been included.

lifted restrictions on privately invested carriers in 2013 and startups have since made at least nine route applications, with the focus on low-cost operators. The budget sector is currently represented by operators such as West Air, 9Air, China United and Spring Air, who account for 7% of the overall market in total and can offer significant savings on fares.

Destinations requiring onestop connections from the UK One-stop flights to China from their European hubs are offered by numerous carriers, including Air France, KLM, Lufthansa, SAS and LOT. Finnair, for example, flies from Helsinki to Beijing seven times a week, as well as Chongqing (4) and Shanghai (7). It takes the so-called Great Circle Route which gives the shortest flight times to China. You can also fly to the destination via the Middle East, with Emirates, Etihad and Qatar Airways, as well as with various Asian carriers via their regional hubs.

THE BUSINESS TRAVEL MAGAZINE 95

DEPARTURES REALITY CHECK



FLIGHT THE FLIGHT

Flight UA929 from

FLIGHTS / HOTELS / APARTMENTS / CAR HIRE / TRAIN JOURNEYS / CHAUFFEUR DRIVE / AIRPORT PARKING

UNITED AIRLINES, BUSINESS-FIRST and rear-facing seats. I had earlier

London Heathrow's Terminal 2 to

selected a forward-facing aisle seat

Chicago O'Hare, departing at 07.50

as window seats do not have direct

and operated by a B767-300.

aisle access. The seats have a 76-inch

THE CHECK-IN

I've travelled from

pitch, are 20 inches wide and convert

Heathrow's Terminal 2 several times

to a 180-degree flatbed. Upholstery

now but, two years after opening, the

was a bit tired and scuffed in places

hub for Star Alliance member airlines

but the IFE screen, entertainment

is still hugely impressive. Despite

options and noise-reducing

rows of vacant self-check-in kiosks,

headphones were good.

I queued briefly at United's staffed

THE SERVICE

Drinks were offered,

check-in desks as I had a couple of

menus and amenity kits (in large

queries about a connecting flight.

metal tins) were handed out and my

THE LOUNGE

After clearing the

jacket was taken and hung up all

fast-track security area, I made the

before take-off. A breakfast of

long walk to the 'B' section of the

spinach and mushroom omelette,

terminal – for long-haul departures –

yoghurt, cereals and pastries was

right on time – and the product was

and entered United's business class

served once we were in the air. Lunch

good too. That said, the fact United is

lounge. At this early hour it was very

– I chose the (excellent) tandoori

introducing a brand new business

quiet but soon began to fill up.

chicken – was served a couple of

class seat and service, Polaris, at the

There's a wide range of seating

hours before landing and was

turn of the year suggests the days of

options, a long bar, showers and a

followed with cheese and port, ice

this existing product are numbered.

hot and cold breakfast buffet. The

cream sundaes and coffee. Snacks

departure gate was nearby and

were available at all other times.

boarding was swift and orderly.

Wifi access was available for $17.

THE SEAT

The BusinessFirst

THE VERDICT

The service was well

cabin had a 2-2-2 configuration

above standard on this transatlantic

with alternating pairs of forward

flight – which departed and arrived



HOTEL

THE HOTEL

With 1,059 guest

THE BUSINESS

property set over three wings. It is

in Europe, holding up to 3,000

located in the heart of London, a

delegates. There are 42 meeting and

two-minute walk from Edgware

event rooms – including several

Road tube station and ten minutes

suites that can hold up to 1,600 –

from Paddington for express

several rooms that can be converted

connections to Heathrow airport.

into hospitality suites or boardrooms

fares starting from £2,038 in Sep/Oct, including taxes. united.com ANDY HOSKINS

and a business centre. Meeting room

Monday evening and several others

hire is from £250 for 16 delegates.

were checking in at the same time.

There’s a dedicated reception for

Staff were efficient and courteous

delegate registration.

and I later discovered there is a

Chicago, with return BusinessFirst

The hotel claims

one of the largest conference centres

It was a busy

“The service was well above standard on this transatlantic flight”

United flies three

HILTON LONDON METROPOLE

rooms the hotel is a sprawling

THE CHECK-IN

THE DETAILS

times a day between Heathrow and

THE FACILITIES

The 23rd floor

separate check-in area for the West

Kojawan restaurant serves Asian

Wing in which I was staying.

cuisine and the adjoining ‘O’ Bar has great views of London. On the

bustling and somewhat impersonal

Superior room. It was more spacious

ground floor, the Edg Bar and

feel, but this is more than compen-

than most London hotel rooms I have

Lounge is a large, open space and

sated for by the super-efficient and

stayed in and decorated in darkish

attracts plenty of non-residents.

very friendly staff. The hotel has been

but ‘warm’ tones. Very contemporary

There's also a sports bar that serves

through a major renovation and this

and ultra-comfortable, the room felt a

burgers and home-made pizzas, a

is most obviously seen in the bright

little ‘business-like’. There was a work

whisky lounge and the Fiamma

and contemporary reception area.

station and chair, flatscreen TV,

restaurant, which serves breakfast.

coffee maker and fridge and a well-

There’s also a LivingWell Health Club

stocked mini-bar. Wifi was free and

with fitness centre, indoor pool,

fast (and also complimentary in the

sauna and steam room.

THE ROOM

I was in a King

public areas). In-room dining and laundry service is available 24 hours.

96 THE BUSINESS TRAVEL MAGAZINE

THE VERDICT

Its central location,

size and layout gives it a busy,

“My room was more spacious than many London hotel rooms I've stayed in”

THE DETAILS

Hilton London

Metropole, 225 Edgware Road, London W2 1JU. Rates for a King Superior Room start from around £260 a night. hiltonlondonmet.com STEVE HARTRIDGE

DEPARTURES REALITY CHECK

MORE REALITY CHECKS... WWW.THEBUSINESSTRAVELMAG.COM

�

APARTMENT

THE HOTEL

This is the first

SACO THE CANNON, LONDON multi-socket plugs with integrated

aparthotel in the City of London

USB ports, and superfast wifi. A

from SACO, the serviced apartment

modern and stylish kitchenette

company. Immediately across the

included a full set of mod cons, like

road from Mansion House tube

a dishwasher and washing machine,

station, it features 77 studios and

and there was water and milk

one-bedroom serviced apartments.

waiting in the fridge. The bathroom

I was one of the first guests to stay

had a walk-in monsoon shower,

when it fully opened in the summer.

demister mirrors, underfloor heating,

THE CHECK-IN

A reception is

staffed around the clock so there’s no need for access codes at the

heated towel rail and L'Occitaine toiletries.

The centrepiece

THE FACILITIES

property. I was met at the door with

of the property is the club-style

a smile and the registration details

Lounge – a new concept for SACO.

were completed swiftly. I was shown

It has a fireplace, plush sofas,

to ‘The Lounge’, a communal area,

complimentary tea and coffee, a

soundproofing. It is in a great

and then escorted to my apartment

library, large communal table for

location with a range of facilities –

on the third floor. From early 2017,

guests to work on their laptops and

supermarkets, pubs, restaurants –

guests will also be able to use a

free wifi. There is also a small gym.

all within a few minutes walking

SACO app to check-in and access their apartment doors.

I was in a good-

THE APARTMENT

THE VERDICT

extremely well-appointed and my

stations. The only negative: the

apartment was a good size,

property was fully open but there

sized and spotlessly clean, one-bed

although perhaps a little ‘dark’. Its

apartment. It included a king-size

dark woods and silver sleek kitchen

bed and a living and dining area

facilities gave it an ultra-modern and

complete with a sofa and designer

functional rather than cosy feel, but

soft furnishings. The living area

it was still very comfortable and it

featured a HD flat screen TV,

also benefits from extremely good



HOTEL

THE HOTEL

The Warwick Denver

balcony with views over downtown and the distant Rockies.

THE BUSINESS

meeting rooms and a number of

uptown meet, and is a 15-minute

halls, with maximum capacity for

walk from the city's Colorado

350 delegates for receptions or 225

Convention Center.

theatre style. Private dining spaces

or so before the official check-in time and, although quickly attended

bedroom apartment start from around £160 a night. sacoapartments.com STEVE HARTRIDGE

patio adjacent to the swimming pool.

THE FACILITIES

The hotel applies

an 'urban retreat fee' of $15 which

short wait for an available room.

includes wifi access, complimentary

The traditional,

44-46 Cannon Street

are available for hire, as is a rooftop

to, I took a seat in the lobby during a THE ROOM

THE DETAILS

London EC4N 6JJ; Rates for a one-

The hotel has 11

Street, where downtown and

I arrived half an hour

was still some minor work going on.

of all, though, was a generous

North America from Warwick Hotels

THE CHECK-IN

“The centrepiece of the property is the club-style Lounge – a new concept for SACO”

WARWICK DENVER

Hotel is one of six properties in & Resorts. It is located on Grant

distance and close to three tube

The aparthotel was

tea and coffee in the lobby from

upmarket decor of my deluxe

5am-11am, a glass of wine each

category room was consistent with

evening and access to the fitness

the hotel lobby and public areas.

centre, business centre and recently

Think patterned carpet, heavy

re-opened rooftop pool. Dining

great location, just far enough from

curtains and, in the bathroom,

options include a rooftop pool bar

the hustle and bustle of downtown

striped wallpaper. The spacious

and the ground floor Randolph's

to provide a relaxing retreat. It has a

room had a king-size bed, sofa, desk,

Restaurant and Bar that includes an

good range of facilities, including the

two wardrobes (with safe and iron/

outdoor patio and pub-like bar area.

popular renovated rooftop pool.

ironing board), coffee machine, LCD

It serves 'modern Coloradan cuisine

HD TV and air conditioning (very

bursting with hearty local flavour'

much required). A large bathroom

and is popular with both locals and

had separate bath and walk-in

hotel residents. Guests can also

shower while and came with Gilchrist

make use of complimentary bike hire

& Soames bathroom amenities. Best

to get around the 'Mile High city'.

THE VERDICT

THE DETAILS

“Randolph's Restaurant and Bar is popular with guests and locals alike”

The hotel is in a

Warwick Denver

Hotel, 1776 Grant Street, Denver, Colorado 80203. Room rates start from around £100 off-peak. Tel: +1 303 861 2000; see warwickhotels.com ANDY HOSKINS

THE BUSINESS TRAVEL MAGAZINE 97

The Final Word

Once you pop...

Onboard eating habits, top airport songs, magicians and airport toilets – Cameron Roberts takes a look at the quirky side of travel

F

rom former PMs to European influences, there's a whole host of things that affect the buying habits of Brits on-board short-haul flights.

EasyJet, for example, has revealed the nation’s onboard refreshments preferences, with several products showing major leaps in popularity – and some surprise picks touching down too!

The largest year-on-year rise was in sales of paprika flavoured Pringles crisps.

The airline believes the surge in popularity is down to former PM, David Cameron, who was caught on camera scoffing down the crisps on an easyJet flight last year. Sales rocketed up by 30%.

Charlotte Bunney, the airline's Head of Inflight

Passengers on an EL AL flight from Luton to Tel Aviv were recently treated to a magic show onboard – perhaps the magician could work some wonders at the airport too! (see right)

98 THE BUSINESS TRAVEL MAGAZINE

Top ten...

Airport-themed song titles London City Airport has become the first airport in the UK to play music during security screening. It will alternate between two playlists – ambient electronica and upbeat acoustic – but we prefer its novelty selection of airport-themed songs. Here's our pick of the best.

1/ Fly Away – Lenny Kravitz (pictured) 2/ The Passenger – Iggy Pop 3/ Around The World – Daft Punk 4/ Come Fly With Me – Frank Sinatra 5/ Leaving On A Jet Plane – John Denver 6/ Homeward Bound – Simon & Garfunkel 7/ One Day I'll Fly Away – Randy Crawford

Retail, says, “After hitting the headlines and having its five minutes of fame last summer, sales of paprika Pringles onboard our flights have gone through the sky.”

The report also suggested that the traditional bacon sandwich is no longer the preferred breakfast choice of British passengers.

Instead, the croque monsieur was chosen by more passengers flying out of the UK. While Pringles and croque monsieurs are flying off the trolleys, the good old cup of tea remains a favourite onboard, with sales of Twinings English Breakfast Teas 9% higher than anywhere else in Europe.

8/ This Flight Tonight – Joni Mitchell 9/ Aeroplane – Red Hot Chilli Peppers 10/ We're Going To Ibiza – Vengaboys

The only way is up at Luton Airport

L

uton Airport has landed the unfortunate title of worst UK airport in a recent survey from OnePoll and cheapflights.co.uk.

The airport languished in last position across all but one category in the survey of 15 UK airports, including general cleanliness, the check-in process, efficiency of security channels, shopping facilities, dining options, and even the toilets.

In the provision of wifi category, Luton is kept off the bottom only

by Stansted Airport.

The survey was not kind to London airports, with Luton and Stansted joined in the bottom five by Heathrow and Gatwick.

At the opposite end of the poll, Newcastle Airport was declared the overall winner, scoring highest in six categories including check-in process, the immigration experience, cleanliness and departure lounge.

Runner up was Edinburgh Airport which was followed by Liverpool, Cardiff and Glasgow airports.

“Our poll shows the UK's regional

airports are a clear favourite with travellers, with larger airports struggling to deliver a consistently positive passenger experience, proving that bigger isn’t always better and more choice doesn’t always equate to satisfaction.”

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