Travel Management Canada Feb 2014

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RIGHT THIS WAY Step into the world of long-term accommodation

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FEBRUARY 2014

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travel

Management

Contents February 2014

canada

04 Travel Procurement Symposium In partnership with

PUBLISHER: Dorothy Jakovina, 416-510-6899, djakovina@bizinfogroup.ca EDITOR: Michael Power, 416-442-5600 ext 3259, mpower@bizinfogroup.ca ART DIRECTOR: Sandy MacIsaac, 416-442-5600 ext 3242, smacisaac@bizinfogroup.ca PRODUCTION MANAGER: Kimberly Collins, 416-510-6779, kcollins@bizinfogroup.ca CIRCULATION MANAGER: Barbara Adelt, (416) 442-5600 x 3546, badelt@bizinfogroup.ca EXECUTIVE PUBLISHER, INDUSTRIAL GROUP: Tim Dimopoulos VICE-PRESIDENT OF CANADIAN PUBLISHING, BIG Magazines LP: Alex Papanou PRESIDENT OF BUSINESS INFORMATION GROUP, BIG Magazines LP: Bruce Creighton Travel Management Canada is published two times a year, by Glacier BIG Holdings Company Ltd, 80 Valleybrook Drive, Toronto, ON, M3B 2S9.

Publications Mail Agreement No. 40069240.

Subscriber Services: To subscribe, renew your subscription or to change your address or information, contact us at 416-442-5600 or 1-866-543-7888 ext. 3258.

Travel Management Canada receives unsolicited features and materials (including letters to the editor) from time to time. Travel Management Canada, its affiliates and assignees may use, reproduce, publish, re-publish, distribute, store and archive such submissions in whole or in part in any form or medium whatsoever, without compensation of any sort.

Printed in Canada

We’re hosting our own travel procurement event!

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05 New Voice, No Boundaries GBTA Canada is keeping pace in 2014.

TRAVEL NEWS

06 Dreamliner Route Comes True Air Canada will begin its first route with 787 Dreamliner this May.

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06 Amex Canada Signs Deal American Express Canada has signed multi-year agreements with Aimia and Air Canada.

06 Travel Price Forecast CWT releases 2014 travel price forecast showing moderate increase.

07 WestJet on the Emerald Isle WestJet will begin flying to Ireland in the summer.

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07 Passenger Demand Up Airlines to see rise in passenger numbers by 2017.

FEATURES

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08 GBTA Convention 2013 Sunny San Diego plays host to over 6,500 GBTA members.

12 Lessons From a Disaster Travel management pros share memories from Calgary floods.

14 Home Sweet Home Tips for sourcing long-term accomodations for executive travellers.

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17 Choices, Choices The ins and outs of car rental policies.

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Editorial

WHAT’S IN STORE FOR 2014 We here at Travel Management Canada are always looking for new and innovative ways to provide the information and best practices you need to do your jobs effectively. Whether it’s attending conferences such as the annual GBTA Convention, holding roundtables to discuss cutting-edge travel management topics or keeping in contact with readers, we’re always looking to provide you with the information you need.

In that spirit, we have a few especially exciting events planned this year that I’m happy to be able to tell you about.

Our sister publication, PurchasingB2B, is holding our inaugural Travel Procurement Symposium in partnership with GBTA at the Fallsview Casino Resort in Niagara Falls, ON. The symposium takes place from September 18-19, and we’re especially happy to hold this event in Niagara Falls. That city is itself a popular travel destination and easily accessible to a large number of people, so we felt that it was fitting to hold our first-ever travel procurement event there.

We’re also very excited to be able to bring you this unique event, a high-level event developed to address the needs of Canadian senior procurement and supply chain management professionals with responsibility for their companies’ meetings, events and business travel spend. Travel is one of the largest spend categories for many companies, so issues relevant to the travel management field are often relevant to procurement, as well.

It was that development—the increasing link between travel management and meetings and events spend plus procurement—that spurred us to create Travel Management Canada in the first place. Now, it has led to the creation of what we feel is a very exciting new event.

We realize that an increasing number of procurement practitioners will need to learn about travel management. Conversely, more and more travel managers must learn about the world of procurement. Practitioners on both sides will be at different levels in their journeys.

That’s why, as a theme for the symposium, we’ve

chosen “The Next Level”. The new event will bring together folks with varying degrees of experience so that beginners in the world of travel procurement can learn from those who have been in the game for a while. As well, those with an intermediate level of expereience can learn from industry veterans. Wherever you are on the journey of your career, we’d like to help take you to “The Next Level”.

We’re working on the lineup of speakers and sessions for the symposium now, and we’re sure to have an array that speaks to a variety of topics soon. I’m confident that lineup will be relevant to you, our audience, while also providing with the information you need to get the job done better.

This symposium is the first we’ve ever put on, and we’re lucky to be doing so in partnership with GBTA Canada. But our partnership with the organization this year doesn’t stop there. We’re also pleased to be both attending and participating in GBTA Conference 2014 | Toronto, which takes place March 19-21.

Attending such events is always a great way for us to meet and speak with our readers. In turn, that helps us learn not only what issues you face in your occupations, but also to discover what kind of coverage you would like to see us feature in these pages going forward.

This year, I’ll act as moderator during a panel session entitled Travel Procurement 101. The panel, which takes place March 20 from 3:15pm to 4:15pm, will look to provide tips and best practices for those new to travel buying. We’ll focus the discussion on best practices for each level managing a corporation’s T&E spend— whether those in the audience are new to the world of travel procurement or they’ve been in the game for a while.Happily, that dovetails well with the “The Next Level” theme of our symposium. For the panel, we’ve pull together an array buyers with varying perspectives and different degrees of experience in the travel procurement field. We’ll look at dealing with TMCs, airline sourcing and hotel booking, duty of care and more. I hope to see you at both our inaugural symposium and GBTA Conference 2014 | Toronto!

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EDITORIAL | Publication Partner

NEW VOICE, NO BOUNDARIES GBTA Canada keeping up with changing travel management landscape in 2014 The New Year brings you a new voice to one of Canada’s most dynamic industry segments, business travel management. In my new role leading GBTA Canada, I’m excited about the opportunities that 2014 brings. There is tremendous movement on the horizon and much excitement within GBTA Canada. I welcome this New Year with enthusiasm as I embrace my role and become fully engaged in the transformation, the next phase of the business travel landscape.

Looking into 2014 isn’t easy, but there are several key indicators. The most obvious is the shift of traditional corporate travel programs. Such programs will continue to exist, as will negotiated contracts with travel suppliers, but it’s how these programs are adhered to, how companies enforce them and how they’re transacted that’s changing. No longer are compliant, managed travel programs and supplier negotiations black and white—influence from travellers, their needs and preferences have affected them. This has caused the industry to morph from black-and-white to shades of grey.

As such, traditional boundaries are breaking down. Airline fare distribution in Canada continues to evolve, while supplier direct connectivity, mobile technology, alternate online booking channels, leisure-based pricing structures and safety and security bleed into traditional managed travel. These are the key drivers behind the transformation. With this, travellers continue to evolve. Increased accessibility of information and technology along with the Millennial Generation’s move into the travelling workforce, are causing companies to forego traditional practices and be more responsive to this shift. As a result, we’re seeing a blurring of lines within business travel and the emergence of an industry without boundaries.

No Boundaries has so many practical references to the business world in which we operate. With business travel, it takes understanding and internal maneuvering as we try to decipher its implications. We should embrace this change and be open to understanding the how’s, what’s

and why’s of travel management without boundaries.

At GBTA Canada, we’ll endeavor to explore removing boundaries on traditional travel management in our 10thannual GBTA Conference 2014 | Toronto, No Boundaries, March 19-21 at the Metro Toronto Convention Centre.

We’re proud to be Canada’s largest travel management conference, with nearly 500 delegates and 50 exhibitors expected to participate this year. It’s here where we can unite as one community to discover what No Boundaries in business travel looks like.

It’s also an opportunity for us to unite and blur the lines between the roles we play as buyers and suppliers. By pulling together, we can understand the impact of these shifts, exchange thoughts and ideas and learn where our Canadian business travel industry is heading. The conference’s comprehensive educational platform promises insights from leading Canadian travel professionals. Delegates will learn from the supply chain on what’s shaping our industry, and from purchasers and travel managers what’s required to move programs ahead. Peer-to-peer exchange will be prevalent and the blurring of boundary lines will continue, allowing delegates to put aside individual roles and connect through our common focus of business travel with No Boundaries.

GBTA Canada is thrilled to bring the Big Night Out to this year’s conference, an off-site evening event celebrating business travel and its professionals. This exciting addition won’t disappoint! Speaking of not disappointing, throughout 2014 GBTA Canada will deliver educational, informational and networking media to the Canadian business travel marketplace. In June, GBTA Canada will hold an oil and gas focused symposium in Calgary. In September, PurchasingB2B—in partnership with GBTA Canada—will host a Travel Procurement Symposium in Niagara Falls, ON. There’ll also be networking, informational events across Canada.

GBTA, its leadership, volunteers and I remain committed to the Canadian business travel community. Together, we can realize the much-needed advocacy and understanding for growth, change and success in 2014 and beyond.

Nancy Tudorache, Director of Operations, Canada, Global Business Travel Association Canada

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TRAVEL | News

Air Canada Announces Dreamliner Routes

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ir Canada will begin operating its first route with 787 Dreamliner aircraft from Toronto to London and Zurich beginning in May and on its Toronto-Tel Aviv route in July, the airline said. As the first three 787 aircraft are introduced into the Air Canada fleet this spring, the airline said it plans to offer a preview of its new Dreamliner service on select domestic and transatlantic flights.

Air Canada will also operate daily flights between Toronto’s Pearson International Airport and Tokyo International Airport (Haneda) beginning July 1. The year-round service will be the only non-stop flight between Canada and Tokyo-Haneda and the first daytime flight to Tokyo-Haneda from North America, Air Canada said.

The Boeing 787 Dreamliners offer contemporary decor and ergonomic seating that features 180-degree lie-flat seats in its international business class cabin.

“The fuel efficient Boeing 787 aircraft will open up opportunities for Air Canada to serve new international destinations and convert existing routes to Dreamliner service, as we continue to renew our fleet and develop Toronto Pearson into a preferred North American gateway and truly global

American Express Canada Signs Agreements With Two Airlines

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merican Express Canada has signed multi-year agreements with Aimia, parent company of Aeroplan, as well as Air Canada. The new agreements extend the relationship between the three companies and include enhancements to the existing suite of premium AeroplanPlus co-branded charge cards with a premium travel credit card.

Amex offers AeroplanPlus cards for consumers and corporations, while Aeroplan will continue to participate in the membership rewards program offered on select American Express cards through which points can be transferred to Aeroplan.

Spend on AeroplanPlus cards qualify towards Aeroplan’s new Distinction program. Distinction is Aeroplan’s new multi-level recognition program that rewards top accumulating members with three levels of exclusive flight reward benefits, bonus mile offers and preferential treatment. Cardholders will also continue to get preferred Air Canada benefits like access to Maple Leaf Lounges and priority check-in.

“Aeroplan is delighted to continue its long-standing partnership with American Express to offer AeroplanPlus card members all of the benefits and privileges that come with being a member of both Aeroplan and Amex,” said Vince Timpano, president and CEO of Aimia in Canada.

“Adding to the excitement is the launch of Distinction, which will provide members with access to better rewards and privileges than ever before.”

airline hub,” said Air Canada’s executive vice-president of chief commercial officer, Ben Smith. Air Canada will begin taking delivery of 37 Boeing 787 Dreamliners in spring 2014.

CWT Releases 2014 Travel Price Forecast

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arlson Wagonlit Travel (CWT) has released its 2014 Travel Price Forecast, which shows worldwide travel prices will increase moderately this year, in line with limited economic growth.

In Canada, airfares may only rise by 0.6 percent, while hotel and ground transportation rates climb as high as 3.4 and two percent.

While airfares continue to rise, the increase is much lower than over the past few years. CWT’s Forecast is divided into air; hotel; ground; and meetings & events: Air – The airline landscape remains dynamic as carriers continue to align, whether through code-share agreements, alliances or mergers. More lowcost carriers are entering the global stage, applying pressure on legacy carriers’ pricing and offering new products and services geared towards the business traveller.

Hotel – Hotels in key business destinations will operate at near capacity throughout 2014. Some destinations will see their highest rate increases in decades while much of Europe will see a decline due to the ongoing economic uncertainty.

Ground – Small price increases look likely for ground transport, while car rental and rail remain viable alternatives to certain types of air travel. Some markets are seeing increases in car rental prices for the first time in years.

Meetings& events – Providers anticipated to raise prices around the world, resulting in increases in daily attendee costs. This could prompt meeting planners to maintain or cut group size compared to 2013.

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TRAVEL | News

WestJet Airlines Begins European Flights With Ireland Service

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estJet Airlines will begin flying to the Emerald Isle this summer— the airline’s first transatlantic flights.

The airline says it will offer daily flights from Toronto, Ottawa and St. John’s, N.L., to Dublin, Ireland from June 15 to October 5. It will also have daily connections between Dublin to several other cities, including Halifax, Montreal, Vancouver, Calgary, Edmonton and Winnipeg.

“WestJet’s innovative foray into the European market represents a willingness to do what it takes to connect Canadians to the world while bringing the world to Canada,” said Chris Avery, WestJet’s vice-president of network planning, alliances and corporate development.

The new international flights follow WestJet’s launch in 2013 of a re-

gional airline. WestJet Encore started last June and now flies 42 flights a day to 12 destinations. The airline has also begun premium seating options and increased flexibility to change travel plans.

Airlines Expect 31 Percent Events Calendar For a full listing of conferences, seminars, trade shows, training Rise In Passenger and more for meetings and travel management professionals, visit our events section online at www.PurchasingB2B.ca.

Demand By 2017: IATA

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irlines expect to see a 31-percent increase in passenger numbers between 2012 and 2017, according to the IATA Airline Industry Forecast 2013-2017, released recently by the International Air Transport Association (IATA). By 2017, total passenger numbers are expected to rise to 3.91 billion–an increase of 930 million passengers over the 2.98 billion carried in 2012, the organization said.

The forecast is an outlook for system-wide passenger growth, IATA said. Demand is expected to expand by an average of 5.4 percent compound annual growth rate (CAGR) between 2013 and 2017. Global passenger growth expanded by 4.3 percent CAGR between 2008 and 2012, largely reflecting the impact of the 2008 global financial crisis and recession. Of new passengers, about 292 million will be carried on international routes and 638 million on domestic routes.

The emerging economies of the Middle East and Asia-Pacific will see the strongest international passenger growth with CAGR of 6.3 percent and 5.7 percent, followed by Africa and Latin America at 5.3 percent and 4.5 percent.

Routes within or connected to China will be the single largest driver of growth, accounting for 24 percent of new passengers during the forecast period. Of the anticipated 227.4 million additional passengers, 195 million will be domestic and 32.4 million international. The Asia-Pacific (including China) will add about 300 million passengers by the end of the current forecast. Of these, roughly 225 million or 75 percent are expected to be domestic passengers, according to the forecast.

With 677.8 million domestic passengers in 2017, the US will be the largest single market for domestic passengers, although it will add only 70 million passengers over the forecast period. This reflects the market’s maturity, said IATA. China comes in second place (487.9 million passengers in 2017, 10.2 percent CAGR).

GBTA Conference 2014 | Toronto March 19-21, 2014, Metro Toronto Convention Centre, Toronto, ON This conference is the largest travel purchasing and management event in Canada! The GBTA Canada Conference will feature general sessions, education sessions, an expo floor with exhibitors and giveaways as well as networking opportunities with peers from across North America. http://bit.ly/1bS8ddh

GBTA Convention 2014 July 26-30, 2014, Los Angeles, CA, USA The GBTA convention, with nearly 7,000 attendees, is the largest, most comprehensive annual gathering of the business travel industry, featuring: over 65 industry-leading education sessions organized into 15-plus specialized tracks geared to specific levels of experience and a variety of disciplines; a 400-plus company exposition; sessions featuring worldrenowned speakers and industry leaders; a selection of professional development opportunities and more. http://bit.ly/1dO4XPC

2014 Travel Procurement Symposium September 18-19, 2014, Fallsview Casino Resort, Niagara Falls, ON An exciting, inaugural travel procurement event brought to you by PurchasingB2B magazine in partnership with GBTA. Join us September 18-19 to learn about travel procurement and network with colleagues at the Fallsview Casino Resort in Niagara Falls. The event will feature a welcome reception, keynote speakers, general education sessions and more! www.TravelProcurementSymposium.com February 2014 — Travel Management Canada | 7

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FEATURE | San Diego Convention

GBTA CONVENTION 2013 SHOWS NO BOUNDARIES Close to 6,500 delegates showed up for the five-day event, one of the organization’s best-attended ever

By Michael Power

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he sun shone and the weather remained beautiful as San Diego welcomed thousands of travel industry professionals for the GBTA Convention 2013, held last year from August 4-7. Delegates gathered at the San Diego Convention Center to hear everyone from travel industry experts, CEOs and former first ladies share their experience, anecdotes and expertise.

A total of 1,531 buyers attended the event, which saw 6,469 attendees overall. GBTA said it was one of the largest attendance numbers ever for the event and one of the world’s largest gatherings of travel professionals. The theme for the event overall was “No Boundaries.”

In 2012, former US presidents George W. Bush and Bill Clinton spoke during the conference, and GBTA kept up the impressive roster of keynotes this year. Laura Bush, former first lady, acted as keynote speaker August 7. Former first lady and secretary of state Hillary Clinton spoke the following day.

Bush, an experienced traveller, visited all 50 US states and nearly 80 countries during her husband’s presidency. She spoke about her passion for literacy and education, her time in the White House—including experiences during the September 11 tragedy—and life back in Texas.

“Every child in America should learn to read,” she said while speaking on the importance of education. “Literacy is essential to the foundation for democracy. Books have the power to not just move people, but to transform a nation.”

During her keynote address, Hillary Clinton discussed the increasing global interdependence, the importance of travel and face-toface connections, the State Department’s global terror alert and her experiences as secretary of state and first lady.

“Travel is an industry that helps to keep our economy moving and helps connect us to the world in a time of increasing global interdependence,” she told the audience. “Boundaries are dissolving, but travel is still one of the best ways to understand what’s happening.

In an age where we can be anywhere virtually, people want us to be there, actually.”

When discussing the threat of terrorism, she said: “it’s important to remain vigilant, but not paranoid. It’s important to pay attention to alerts, but don’t’ stop making connections. Please don’t pull back from the world. Please help us to strike the right balance and provide tools for Americans to continue travelling safely.”

Although the convention officially opened August 5, there was no shortage of pre-convention events and sessions. Among them was a panel covering the characteristics of a “global” travel program, an event sponsored by Egencia. Joe Bates, head of research for the GBTA Foundation, introduced the session, which focused on the future of global travel programs and how such programs will impact how organizations select a travel management company.

Bates noted the concept of “global” could cover several topics, including consistent policy enforcement, data collection and risk management internationally, compiling travel data program information, negotiating globally with suppliers or all travellers following the same policies wherever they go.

Bates electronically polled the panel’s audience, with the majority considering “consistent policy enforcement, data collection and risk management” the most important aspect of the concept of “global”.

A worldwide survey that the foundation conducted with 1,400 travel managers yielded the same result, Bates said.

Panelists discussed challenges associated with going global. Jennifer Zimmerman, sourcing specialist with ManpowerGroup, noted that the organization’s biggest challenge was both communication and ensuring that communication was consistent internationally.

“We can be more restrictive with our policy in our countries or regions, but we can’t be less restrictive,” she said. “Making sure that communication coming out is consistent and uniform and has executive support to help make it enforceable (is the biggest challenge).”

Fellow panelist Raymond Williams, senior manager, global travel, meetings and reimbursements at Starbucks, agreed that communication was one of his top issues. Each of the organization’s markets was different, he said, with different cultures, views and values all playing a role.

“What we find challenging is making sure we can connect with each of our country markets and understand what their needs are.

Depending on the country, (those needs) are a little different.”

For Williams, global means having connections with international markets. But while setting parameters was important, that doesn’t mean having absolute control.

“It’s about coming to an agreement to make sure we’re all going in the same general direction, and doing that across multiple regions, cultures and countries,” he said.

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The 6,500 attendees to GBTA Convention 2013 were able to connect face-to-face, and could also visit the expo floor to discover the latest technologies, tools and travel trends.

At the beginning, those relationships are best built through faceto-face communication, rather than strictly through email and telephone calls, Williams noted. Organizations can spend up to one year learning about each other, including visiting the country or region with which the organization wishes to do business. After that process, it’s possible to put policies and procedures in place.

Zimmerman agreed it’s important to cultivate face-to-face trust.

She planned to travel to Brazil to help build that trust with associates there rather than relying on email for initial interactions.

Fun and games Technology, cross-generational workplaces and social media featured prominently within many sessions during the convention. Social media platforms like Facebook, LinkedIn and Twitter—along with their role in the workplace—was the focus of a panel session entitled Playing The Game: Non-Traditional Compliance Tactics Today. Moderator Alicia Tillman, VP of marketing and business services for American Express Global Business Travel, noted during the session that business loyalty programs had a long history, dating to at least the 1930s with supermarket stamps that could be redeemed for merchandise. Recently, those programs have moved away from cards to online. Studies show that such programs are popular with older users as well, she said.

“These are not just platforms that are being used by your younger generations,” Tillman noted. “They’re platforms that are being used across all generations.”

With $50 billion spent in the US each year on loyalty programs, money was a major factor for organizations that use them, said panelist Chandar Pattabhiram, VP of Worldwide Marketing for Bad-

geville. There’s been a shift away from traditional programs towards a hybrid approach offering users a more personalized experience, he said. That approach has led to what he called “brand stickiness”.

Organizations can use loyalty programs to engage employees and push for compliance with travel programs, said fellow panelist Elizabeth Langlois, Corporate Strategy, Accenture. The millennial generation relies on personal experience when deciding what they expect from a company, she said, so it pays to make it easy for employees to “do the right thing” regarding travel programs. Many employees will use booking platforms that are not approved by a company provided those platforms get them to their destination, Langlois noted.

Company booking platforms must be as user friendly as possible to encourage employees to use them, she said.

Corporate travellers are also consumers, said panelist Steven Rahman, senior manager of procurement for Citrix, and consumers look for connections with what they want. It’s difficult for organizations that don’t have that connection to their travellers and consumers, Rahman noted, with the old-school notion of simply insisting travellers obey policy no longer a feasible option.

As in past years, the convention featured impressive keynote speakers.

Reach for the sky While negotiations can be a tough process, a panel session during the convention sought to provide tips for making the process easier for travel managers. It’s best that a negotiator “reach for the sky” during the process, even when that negotiator knows the requests are unattainable, said Jack Moriniere, senior vice-president, ARCADIS U.S./ Inc, one of three panelists who spoke during the session.

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FEATURE | San Diego Convention

Former first lady Laura Bush spoke about literacy, education and her time in the White House during her keynote speech.

Hillary Clinton discussed global interdependence, the importance of travel and face-to-face connections and her experiences as secretary of state and first lady.

Fellow panelist Mark Pestronk, of the Law Offices of Pestronk, advised the audience not to fall for “deadline tactics.” If a contract expires by a certain date and the vendor gives a deadline for putting a new one in place, there will likely be no negative consequences if the deadline is not met, he said. As well, he advised that IT contracts often don’t have a description of what a system is supposed to do.

For such contracts, Pestronk recommended including a description and ensuring that the vendor promises to deliver.

As well, what the deal is called has little bearing on what’s expected of both parties, said Pestronk. For example, there is little difference between a sale and lease, accepted statement of work and a contract. He cautioned against getting too hung up on terms and encouraged audience members to focus on what the duties of each side would be under a contract.

“Mean what you say—say what you mean—and put it on paper,” she said. “You should have everything nailed down and it should be clear to everyone—you don’t need to pretty it up with legalese.”

Pestronk agreed, noting that management reports could sometimes lack clarity if they contained passive statements like “reports will be issued monthly.” Such statements were good examples of the passive voice introducing ambiguity into documents.

Pestronk also noted that buyers often wanted to insert termination clauses into contracts, while sellers often preferred to avoid them.

While often there’s a compromise, buyers should bear that in mind when negotiating with service suppliers like airlines and hotels, he said.

The convention also featured GBTA’s signature Airline CEO Panel, sponsored this year by the Boeing Company. The panel included Glenn Johnson, president, Horizon Air; Craig Kreeger, CEO of Virginia Atlantic Airways; Derek DeCross, vice-president, global sales, American Airlines; Dave Hilfman, senior vice-president, worldwide sales, United Airlines and Steve Sear, senior vice-president, global sales, Delta Air Lines. Hudson Crossing analyst Henry H. Harteveldt moderated the session. The executives shared views on airline consolidation, customer service and the importance of the customer experience.

For Horizon Air’s Johnson, everything the airline did—like driving innovation within the organization—revolved around improving that customer experience. “The possibility of innovation is everywhere,” said Johnson. “Creating an experience that is predictable, manageable and hassle free is the goal.”

The later part of the panel featured the sales executives of the three major airlines taking the stage together. The panel discussed IATA’s new distribution capabilities proposal, the benefits of consolidation and what to expect from each of their airlines in the near future. They agreed that consolidation benefits the consumer and also allows supply to match demand.

At the Luminaries of Travel panel, Philip Wolf, founder and retired

“The possibility for innovation is everywhere. Creating an experience that is predictable, manageable and hassle free is the goal.” ~ Glenn Johnson, president, Horizon Air In speaking about form agreements, the session’s moderator, Maribeth Minella, senior VP and corporate council, World Travel Inc, warned the audience that while they could sometimes be glossed over, the words in an agreement remained powerful. Choose those words carefully, go over the agreement’s grammar, use the active voice in sentences and do away with clutter within the content in order to avoid ambiguity, she recommended.

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Delegates networked and enjoyed the San Diego weather during the GBTA opening reception, held in front of the Hilton Bayfront Park,

From left: Concur CEO Steve Singh, Best Western International CEO David Kong and Travel Leaders Group founder Michael Batt shared the stage during the Luminaries of Travel CEO Panel.

chairman for PhoCusWright, moderated a panel comprised of travel suppliers including Michael Batt, founder & chairman of Travel Leaders Group; David Kong, president & CEO for Best Western; and Steve Singh, CEO & chairman of the board of directors for Concur.

During their conversation the panel addressed topics such as the power of technology to challenge traditional business travel approaches, the role of the sharing economy in business travel and open booking.

“Business travel is no different from any other business when it comes to the need to understand technology,” said Best Western’s Kong. “Technology is changing the world and you need to embrace technology as a change agent to be successful.”

In addressing how they looked at the future, Concur’s Singh noted, “Companies must incorporate change into their business plans.

They must plan for it in order to be successful.”

TMC, along with the environment, Mundinger said. Since the solution provides a complete search and looks at all available options, there can be cost savings of up to 35 percent, he noted.

An August 6 panel session looked at how organizations these days are saving and controlling meeting costs via supplier negotiations, as well as mitigating financial and security risks, through best practice eRFP management. In speaking about the hotel chain had done to address the eRFP globally, Rodahl Leong-Lyons, vice-president of sales, Hyatt Hotels—Americas, noted that with hotels in 50 countries, the process is complex. The proper technology might not exist in every country, some cultures may prefer to do business face-toface, currency conversions or language differences can all add difficulty that might not exist when executing an eRFP at home, she said.

The key to eRFP success globally is due diligence during the roll out process, said Tracey Boreham, head of group and hotel services with HRG. Boreham also recommended ensuring that technology is in place to pull data together for reporting purposes Panelist Darell Stokes, said that pairing young and more mature employees boosts collaboration and ensures support for all generations. For example, younger workers are able to learn relationshipbuilding skills from older workers, Stokes said.

In terms of eRFPs, Stokes also noted that the process is difficult without being able to speak with the end user. He recommended speaking with the third-party sourcing provider, who will likely have direct contact with the stakeholder. “They’re your best resource,” he said.

In conclusion, the convention earned its slogan of “no boundaries,” given the breadth of sessions offered during the event. Technology’s evolving role in travel and meetings management played a lead part, giving delegates a feel for what’s available to help them do their jobs more efficiently.

The GBTA Convention 2014: Business in Motion will be held in Los Angeles from July 27-30, 2014.

Hub-to-hub Another session, entitled Total Trip Planning—The Door-to-Door Approach to Corporate Travel, gave delegates a unique way of looking at planning business trips. Dr. Jochen Mundinger, chairman and CEO of routeRANK Ltd., explained that “total trip planning” includes different means of transport and their various combinations, rather than a simple “hub-to-hub” approach.

For example, RouteRANK provides a new web-based software solution for travel planning. To provide an example of the benefits that total trip planning tools bring corporate travellers, Mundinger logged into BCD Travel for a sample search for a trip from Boston to Washington. The results provided approximately 60 different routes, with one example including driving by car to the airport before taking a flight to Washington, followed by another car trip. The online tool was able to measure productivity, price, emissions and other data for the trip, as well as providing various filters such as for maximum trip price.

Such solutions provide benefits for the traveller, company and

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FEATURE | Lessons from Calgary

LEARNING FROM A DISASTER Calgary panel catalogs best practices in wake of flood

By Jessica Patterson

A

ttendees left armed with more than lessons learned at Travel Management Lessons from Calgary, a morning conference held in Calgary last October 24 and hosted by the Global Business Travel Association (GBTA).

A conversation-stimulating panel of local business leaders told the raw truth about the flood of June 20 in Calgary and Southern Alberta, highlighting its affect on business travel and businesses.

“It’s about recognizing what happens during these life-altering events and understanding what worked and what didn’t, and using this to shape our future in disaster preparedness,” Nancy Tudorache, director of operations for GBTA Canada, told attendees.

Panelists included Shelly Lewchuk, manager for corporate travel at Canadian Natural Resources Limited; Terry Wallis, lead for travel and aviation at Encana; Joseph Clohessy, general manager at Calgary Marriott Downtown; Ian Race, vice-president of sales and client service for Vision Travel Solutions (formerly Vision 2000); Edgar LaPointe, group fleet manager at Enterprise Holdings Inc.; and Linda Lee, corporate travel coordinator at TransCanada. Crisis management specialist Johan Selle of iJET moderated the panel.

In June, massive floods swamped significant areas of Calgary, with 26 neighbourhoods evacuated and 110,000 city residents evacuated. The Bow river peaked at 2,400 cubic metres per second, forcing the closure of more than 20 bridges, several major routes, 16 LRT stations and 30 parks. More than 34,000 locations lost power.

Lewchuk told the crowd that while she knew the water was coming, she had no idea of the impact it was going to have. For safety, she told her crew not to come into to work. “We were pretty confident we had a plan that worked, because everyone could work remotely,” she said.

Lewchuk said that traveller tracking was key. “One of the things we did differently, that was smart, was we tracked all of our travellers,” she said. “We knew that travellers were getting alerts. We knew where everyone was and they knew what was going on.”

The organization learned a lesson regarding domestic workers, Lewchuk said. Canadian Natural Resources Limited flies people back and forth all of the time, including more than 1,300 people a week that they move to and from the Horizon Oil Sands Project plant north of Fort McMurray.

“They’re not included in that traveller-tracking program, because they’re just going back and forth to work, we know where

they are,” Lewchuk said. When the flood hit, Canadian Natural Resources needed to find out who was flying the following Monday through Wednesday, to ensure those workers arrived at work and no shifts were delayed, Lewchuk explained.

Businesses spend time getting ready for overseas disasters but are generally less prepared for local disruptions, said Race. Although it’s easy feel safe operating close to home, “anything can happen, anywhere.” Such situations can hit an organization out of the blue and the company wasn’t expecting the floods.

“When our staff turned out the lights the previous day, they didn’t expect to take watercraft to work the following day,” said Race.

Race said Vision 2000 made sure their staff were safe and could work remotely the day after the flood. But the power outage Calgary experienced during the disaster led to its own set of challenges.

“Once the power went out, 50 percent of our staff didn’t have phones due to our switchboard outage,” Race said. “We weren’t able to direct those lines directly, because our backup office was also in Calgary.”

But, he noted, Vision Travel Solutions learned a significant lesson from that experience. When a company’s main office is three blocks away from it’s backup office, external support is crucial.

“When the only support for our Calgary office was our other Calgary office, it was an oversight that required immediate change,” Race said. “There has to be an immediate ability to redirect phones from any group of regional offices to another region, to ensure service continuity.”

Communication is key Communication was an important lesson learned for all of the panelists and their companies. Participants noted that they were able to disseminate information to their employees and clients, whether by phone, messaging, texting, email or social media. For Linda Lee, corporate travel coordinator at TransCanada, communications was key to keeping operations running smoothly after the flood. The company’s communications team disseminated information via conference call each morning, she noted. If email or phone calls couldn’t reach someone, texting provided yet another way for employees to communicate. “We included the entire Trans Canada family so other employees in other areas of the country were aware of what was going on,” she said.

At 6:30am the morning of the flood, Joseph Clohessy, the general manager at Calgary Marriott Downtown, was on the roof of

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“It’s about recognizing what happens during these life-altering events and understanding what worked and what didn’t, and using this to shape out future in disaster preparedness.” cured. “This is where the revenue is generated, so protecting the asset was top priority, to make sure it could start generating revenue and 300 people could come back to jobs,” Clohessy said.

Yet despite the hardships the flood created, the event taught him the importance of knowing who to rely on during such situations.

“You really figure out people,” Clohessy said. “The ones that will do anything for you, no matter what you ask, and the ones who will run for the hills—in a crisis, you figure that out in a heartbeat.”

In conclusion, participants left the discussion armed with several best practices, including the notion that organizations must tailor emergency or disaster preparedness plans to location as well as company, and staff and managers must be trained so that they’re prepared for emergencies.

In the time before a crisis, organizations are well advised to plan, prepare, train and practice, Selle advised. During the crisis, respond, using that training and that plan. When the crisis is over, spend time reviewing lessons learned.

Photo: Reuters/AndyClark

his hotel with his engineer, staring at the water creeping up on three sides of the building.

“And then the backup generator started,” he told the assembled crowd. “We had no power, the backup generator would only keep the essential services going for a couple of hours. We proceeded to empty the hotel. It was about getting them somewhere else. I just needed to get them out of danger.”

After clearing the hotel, said Clohessy, the next step was to set up a command centre.

“In knowing that we were going to be there for the long haul, it was really important to set up command and control,” he said.

“We built a command centre right in the middle of the lobby. We made sure it had power and connectivity. We wanted to ensure we had the right information coming in and going out.”

The command centre was also headquarters for logistics. Linens had to be changed out of nearly 400 rooms, freezers and kitchens had to cleaned out, spoiled food disposed of and the building se-

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FEATURE | LONG-TERM ACCOMMODATION

HOME AWAY FROM HOME BRINGING EXTENDED ACCOMMODATION SPEND UNDER ONE UMBRELLA

By Jacob Stoller

L

ong-term accommodation, where an employee

remains away from home in one location for an extended period, has traditionally been one of the gray areas of business travel. It’s not really a business trip, and it’s not really relocation. Many companies don’t have clear policies on this unique aspect of their travel spend, and either wind up spending more than they should, or having their employees live for extended periods in undesirable circumstances.

“Often the long-term accommodations are booked by different people in the organization,” says Yon Abad, Director of Hotel Solutions at Carlson Wagonlit Travel (CWT) in the Americas. “In one large organization that we worked with, there were 10 different stakeholder groups involved.”

Familiar travel channels do play a large role here. Most major chains have programs geared for long-term guests, and according to Abad, it’s typical for companies to use hotels for half of their long-term accommodation requirements.

Hotels have some advantages. In addition to conveniences such as room service, breakfast buffets, fitness centres, and meeting facilities, they also have a certain “savoir faire” about the needs of travellers that many prefer. As well, hotels can be arranged through traditional channels and therefore are easy to integrate into a travel spend program.

The high cost of hotel stays, however, as well as the desire for a more home-like environment, has spurred demand for a rapidly growing sub-sector—the provision of turnkey housing solutions for extended stays.

“Temporary residences can be anything from a one bedroom apartment, to a four-bedroom detached home; all fully furnished with utilities, cable, internet and phone,” says Jeff Brookhouser, President and CEO of Premiere Executive Suites Limited. “They have full kitchens, dedicated dining and living areas as well as separate bedrooms.”

The providers in this space are essentially specialized real estate companies that rent and purchase properties and service them for corporate clients. “There are more and more companies that are dedicated to this,” says Abad. “They provide relocation lodging, long term lodging, and related services.” These companies typically manage utilities, cleaning, maintenance, and other details.

“Everything is done so as to minimize the administrative work from the client’s perspective,” says Abad.

According to the Global Serviced Apartments Industry Report 2013 / 2014—published by The Apartment Service in the UK—

“demand for serviced apartments has grown dramatically in the last 10 years, fuelled by gradually improving product knowledge, understanding of the benefits of serviced apartments amongst corporates, improving standards of apartment and the arrival of major brands into the sector.”

The growth of the sector has largely put a stop to the practice by large companies of buying and managing their own properties.

“Companies are tending more and more to have contracts with these apartment providers rather than trying to own apartments,” says Abad. “I think owning apartments is something of the past. There are so many opportunities on that market that this doesn’t make sense.”

On the other hand, long-term accommodations are not as easy to arrange and manage as hotel stays. According to the study, for example, 62 percent of serviced apartment operators are not represented on Global Distribution Systems (GDS). “Global deals between Relocation Management Companies (RMCs), TMCs, corporates and serviced apartment operators remain the exception to the rule,” says the study.

Consequently, it may not be possible to book an extended stay through a company’s preferred TMC, which in turn could make it difficult to manage the expense under the overall travel spend portfolio.

Another challenge from a management perspective is that these companies are much more diverse in terms of the options available.

In countries like Saudi Arabia, for example, people of foreign origin tend to live in compounds, while a unique category called condo hotels can be found in South America. Consistency of supply is another issue—shortage of apartments in required locations was cited in the survey as the biggest barrier to using serviced apartments.

Unfamiliarity is another deterrent. Travellers and their managers may have old-fashioned ideas about apartments. According to the study, many believe that serviced apartments involve signing longterm leases and getting involved in all kinds of management overhead.

Basic Requirements Because these facilities are so diverse, it’s critical to have a thorough understanding of basic requirements before establishing a portfolio of suppliers. According to Montreal-based Ronny Aoun, Associate Partner in Aon Hewitt’s performance, reward and talent practice, travellers’ basic necessities come first.

“Medical and security are probably more important than the quality of the housing where he or she will be,” he says. “Security risks have increased in the last 10 or 15 years, even in what we call safe countries.”

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Security in particular can be a challenge for smaller firms. “Large firms are more equipped and invest more into these things,” he says.

“But the reality today, particularly in Canada, is that you have a lot of small- and medium-sized companies that have international interests and international operations, and they are moving people—maybe not 100, but five or 10. But the situations and risks are similar. But they may not have the means to invest in this sort of program.”

In situations where the employee brings family along, the situation can become far more complex. Access to schools is one area cited when choosing accommodation, and this factor can be extremely costly. If the employee works on-site in a remote area, for example in the mining industry, it might make sense to house the employee near the site, and the employee’s family in a nearby city, notes Aoun.

Creating a Policy Yon Abad uses a three-step process for helping his clients develop policies around long-term stays. They are: • Assess needs: Survey needs from both the traveller and the company perspective. What are the purposes of the trips? Will there be families involved? Do the travellers prefer staying in a downtown environment, or a quiet residential area? What are the budget considerations? The three categories to use are family considerations, location, and length of stay.

• Establish vendor relationships and contracts: Narrowing the list of suppliers in this complex market is an extensive and time-consuming task. “For one large client, we looked at 300 potential suppliers, including specialty chain, apartment provider, and corporate housing,” says Abad. These may vary by region, and by length of stay.

• Reinforce the policy: Compliance is tough in all travel areas, especially so when it comes to long-term stays. Clear communication, and an ongoing dialogue with travellers is an absolute requirement. This isn’t just an instruction to deal with a preferred chain—managers need to know which properties are available in which regions, and what steps they need to take if one of their team members requires an extended stay.

Because of the rapid changes in the industry, any travel policy involving extended stays will have to be reviewed on a continuous basis. For example, as major players expand their portfolios, it will become easier for companies to establish relationships with providers of long-term stay facilities. Supply is also growing in some of the underserviced areas, such as South America.

It’s even more important, however, to stay in touch with the changing needs of long-term travellers. Housing for months at a time can touch on many personal issues, and these can only be addressed adequately if there is continuous dialogue between travellers and those who manage the travel spend.

February 2014 — Travel Management Canada | 15

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FEATURE | Corporate Car Rental

CHOICES, CHOICES Why it pays to have a car rental policy

By Michael Power

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ented cars provide one of the few private spaces for the busy traveller, so relationships with vehicles and car rental companies can get personal. With the choices now available, combined with potential risks, it’s critical to have a global strategy for managing car rentals.

Companies in Canada usually choose from the “big three” vendors who represent the vast majority of the market: • Avis (includes Avis and Budget) • Enterprise Holdings (includes Enterprise, National and Alamo) • Hertz (includes Hertz, Dollar and Thrifty) Whether a company is working directly with car rental companies or through a travel management company, it’s important to back up the vendor agreements with a company-wide policy, typically administered by HR, spelling out the procedures for employees. “Everything starts with a good policy,” says Bill Knepper, ground transportation subject matter expert for Advito, BCD Travel’s consulting arm. “If you have a good policy, and management buy-in, the chance of exceptions and problems is minimized.”

A good policy is typically a three-page section of an overall travel policy covering hotels, flight bookings and other spend areas. The document will usually include: • Who can rent and for what purposes; • Preferred vendor; • Types of cars that can be rented; • Rules for duration of rentals; • Allowable options (for example GPS tracking device); • Instructions for booking cars and obtaining insurance coverage; • Internal reporting procedures; and • What to do in case of accident.

Policies shouldn’t be merely a set of rules, but a means to safe, comfortable and economical travel. The hard part is getting consensus on the main priorities. Here are key areas to consider:

Risk management Risks connected with rented cars fall into two categories: traveller and financial risk. Companies using unknown brands, typically outside of North America, can find employees stranded without a vehicle, driving unsafe vehicles or lacking proper insurance coverage. The administrative hassles from problems can be significant.

The risks become greater with “black car” services where a driver is provided. “What we find is C-level executives riding in cars that belong to companies that nobody knows anything about,” says Knepper, “and when you start peeling the skin of the onion, what you see is an owner-operator with no accountability.

There’s no driver training, no background check, no safety check

on the vehicle—it’s a really dangerous situation. Sometimes companies put high-level executives of their clients in these cars.”

Knepper warns against relying on consolidators, who offer convincing-looking websites for booking cars, but provide no accountability.

Negotiating insurance coverage for all situations should be a key priority—it protects against inadequate coverage and saves money by avoiding daily collision damage waiver (CDW) charges.

Reducing unwarranted expenses Keeping costs in line is always a concern, and with the options available from car rental companies, risks of spending getting out of line are greater. Here are the most common cost drains: • Not renting from preferred suppliers: This means there’s no advantage of the preferred rate. Costs are tougher to capture and track, and there could be inadequate insurance coverage.

• Failing to refuel: This is one of the most common infractions and it often leads to an unnecessary $100 or $150 fueling charge.

• Unnecessary insurance: Travellers take the insurance option, even when it’s covered under credit card or company policy.

• Un-needed options: For many travellers, there is no need to pay a daily rate for a GPS tracking device when they can easily use their smart-phone for directions.

• Unnecessary rentals: Sometimes it makes more sense to take the airport limo and use taxis, especially if there are multiple travellers for a single event. Cars should not be rented automatically. Gas and parking add to the cost of the rental, particularly in a downtown location, and there may be better options.

Employee productivity Keeping employees productive on their trips is a primary objective. Preferred customer status with an established vendor means that travellers no longer have to wait in line at car counters, or spend time filling out profiles, asking about options, or calling to find out about insurance coverage.

For example, one service offered by Enterprise Holdings (which includes Enterprise, National and Alamo) is that Emerald Club members can receive Emerald Alerts—emailed communications that include arrival and return alerts. The alerts provide a travellers reservation number, information about their National rental location and directions to the rental centre.

“Return Alerts, sent four hours in advance of a scheduled car rental return, feature the return location address and airport name, a link to a map guiding the customer to the return location and the contact number to call if a reservation extension is needFebruary 2014 — Travel Management Canada | 17

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FEATURE | Corporate Car Rental

“A car rental program will provide no benefits if employees don’t follow it.” ed,” says Don McPhail, assistant VP for Enterprise Holdings.

National also offers a mobile app, for example, providing travellers with one point of contact to manage rentals, with features that include rental tracking, Emerald Club profile management, rental locator and roadside assistance. Members can also get Emerald Alerts through the app, McPhail notes.

Online tools let travellers adjust reservations from mobile devices. “If a traveller is renting from an airport on-site location, a message regarding current inventory at the location is pushed to their mobile device, allowing for car selection in advance,” says Melanie Benedetto, senior consultant of Ground Transportation for CWT Solutions Group (CWT’s consulting division).

There are, however, a few of caveats. “Travellers whose companies use direct bill are not eligible for the counter bypass program because they are required to show ID,” says Melanie Benedetto. On the other hand, when travellers book directly, the TMC will be unable to make adjustments to the booking on their behalf.

Choices of vehicles As vendor fleets become more diverse, personal preferences are likely to play a role in vehicle selection, and policies should make it clear what is permitted. Avis have recently expanded their line to include more luxury vehicles. “A lot of our travellers are looking for something different,” says Joanne Cormier, regional VP, corporate sales, Avis Budget Group in Montreal. “We’ve just brought on BMW as a selection vehicle, and we have some Audi’s as well.”

While companies typically allow only senior executives to rent luxury vehicles for business, a traveller who extends a trip to include a weekend might swap out a mid-sized vehicle for a sports car.

The major vendors also have loyalty programs, and provide free upgrades and other perks to employees who rent frequently.

These credits may be applied for their personal use. Online tools are making it easier to monitor these benefits. Vendors also offer more fuel-efficient cars and these can be used as the default choice for companies with green policies.

Long-term rentals The longest period for a “normal” car rental is 30-days, beyond which the company should use an extended rental or lease. Extending a car beyond the 30-day limit can add expense and also cause inconvenience, as the car must ordinarily be returned after 30 days and the contract re-issued.

If travellers rent for extended periods, it’s important to have an agreement in place. Major brands provide an option where a car can be rolled over to a longer-term agreement with a better rate.

“CWT recommends that clients who have an abundance of project-driven travel have a long-term car rental negotiation in place,” says Benedetto, “as significant discounts are oftentimes available due to reduced overhead costs to the supplier.”

A

Renting by the hour An interesting alternative has recently emerged—the car sharing service. This allows renters to book cars online, then pick them up at a parking lot using a smart card. Charges are according to a fixed hourly rate that includes gas and insurance. This is gradually becoming more widely-used by businesses.

Many businesses, particularly in downtown cores, find the cars available right in their building, so employees can have a car on an as-needed basis without incurring parking costs. Car sharing is frequently used for local trips as an alternative for the employee using his or her own car. This eliminates the hassle of monitoring and claiming kilometer usage of employee-owned cars.

“There are a lot of benefits to car sharing,” says Agata Kazimierski, marketing manager for AutoShare, a Toronto car share service. “Employees don’t have to use their own vehicles, and they don’t have to spend the time filling out their expenses to get reimbursed. So from an accounting perspective, it’s a lot easier.”

Avis also purchased Zipcar, a similar service operating in Toronto and Vancouver, and several centres in the US and UK. “This acquisition gives our corporate customers the option of renting for a few hours, or renting for an hour instead of taking a taxi,” says Cormier. “They get special rates for corporate customers.”

Avis has brought Zipcar into 25 major North American airports, providing a convenient getaway for travellers with long layovers.

Ongoing management A car rental program will provide no benefits if employees don’t follow it. Management needs to determine which aspects of the program are mandatory, and clearly communicate requirements.

Reporting of the major vendors has improved, allowing expense monitoring according to different cost centres, and to watch exceptions. The challenge isn’t getting the data—it’s using it. “You can’t just put the program into place and never monitor it,” says Knepper. “The suppliers are very good—they have this data.”

Knepper recommends travel managers meet with rental companies once a quarter to review reports, determine key non-compliance areas and decide on appropriate actions.

A car rental policy is similar to any travel policy—it should be a live document. What a company gets out of its car rental policy relates to what’s put in.

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