Business Travel - Q1 - Feb 2019

Q1 / 2019 AN INDEPENDENT SUPPLEMENT BY MEDIAPLANET

SANDY MORING How travel risk management (TRM) can protect your business travellers. » p4

ADRIAN PARKES In a world of technology, are face-to-face connections still the way to go? » p4

DAVID CHAPPLE Top trending topics for 2019: consumerisation, personalisation, data, distribution and Brexit. » p6 CREDIT: ENCRIER

Business Travel BUSINESSANDINDUSTRY.CO.UK

Traveller safety is more important than budget control What is most important to travellers in 2019? According to our annual survey, our buyer members’ results showed that, once again, the top scoring priority is traveller safety. Cost reduction and budget control came close second and third, respectively.

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lthough traveller safety was cited (on average) as the key focus area for 2019, it’s worth highlighting that a third of the respondents didn’t place traveller safety within their top four. Why is this? Well, every travel buyer is working within a unique business with its own agenda and they are running a rather unique travel programme.

Travel programme management is unique from one company to another and each organisation will be at a different state of development and prioritisation at any one time.

We also asked how many of our travel

buyers plan to renegotiate with suppliers in the coming year and what format the process will take. Year on year, there is a reduction in corporate appetite for air programme request for proposal (RFP), with only 11% planning this in 2019.

Supplier negotiations are still a priority Despite the much-debated trend towards dynamic pricing in the accommodation sector, 33% of our buyer members said they still planned a full hotel RFP in 2019, although this does represent a reduction from 42% in

SCOTT DAVIES CEO, Institute of Travel Management (ITM)

the previous year. More action is predicted for the travel management company (TMC) segment though, with 36% of respondents declaring that they intend to RFP in 2019 versus 24% in 2018.

Brexit is likely to make travel planning more complex Very few, if any, travel buyers would describe their role as simple, so it must have been particularly exciting for over 95% of them to report that they expect Brexit and its associated potential scenarios to make their lives even more complicated. It is therefore no

surprise that corporate confidence levels have somewhat decreased compared to a year ago.

2019 will be a year for managing change within business travel It’s likely that 2019’s biggest focus will actually be how well we can all navigate the sheer volume of change and how we make things work, not only for our travellers and organisations but for the business travel industry as a whole.

Read more at businessandindustry.co.uk

TRAVEL TRENDS FOR 2019 The biggest challenges for the year ahead according to 134 European buyers No plan for Brexit

Bigger budgets for 2019

65% of travel managers don’t have a post-Brexit plan in place

30% of buyers will have bigger corporate travel budgets in 2019

Flights will cost more

Rise in hotel nights booked

27% of buyers have experienced an increase in airline pricing due to NDC (New Distribution Capability)

40% of buyers will book more room nights this year

Globalisation

More will be spent on hotel stays

Companies will have to set global travel policy due to organisation growth or department consolidation

35% of buyers will have more to spend on accommodation this year

TMCs will have to improve tech

The pound will be weaker

61% of buyers feel let down by their TMC's technology offering

The weakness of the pound and strength of the Euro is a concern for 2019

SOURCE: BUSINESS TRAVEL SHOW Follow us

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CREDIT: DEN-BELITSKY

The ROI conundrum of corporate travel and expenses How combining travel and expense management solutions with CRM systems is helping companies calculate ROI — and challenging the world of business travel.

MANOJ GANAPATHY Founder & CEO, SalesTrip

Byline: Tony Greenway

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s an entrepreneur, I have been continually frustrated by the world of corporate travel and expenses — both as a travelling employee and as CEO of my own company.

For example, I remember being given my team’s total travel costs for the month; but working with a siloed and unsynchronised travel and expenses system meant I could never stand back and see the bigger picture.

I couldn’t see where individual team members were travelling to, or which customers they were meeting — or, crucially, if the overall travel spend was offering a positive return on investment (ROI).

I’d wonder why we had spent £75,000 on travel in one month when we’d only spent £50,000 the month before. Had the tickets been more

expensive? Were we needing to travel more? And ultimately, were we going to get 50% more sales because of it? I just didn’t know.

Simplifying the business of travel Part of the problem is that individual bits of travel data are often hidden away on multiple platforms that don’t ‘talk’ to each other. When I was organising my own travel, it was frustrating to have to pull all that information together from various sources. I’d have to go into my calendar and emails to sort out my flights and hotel bookings. I also had to make calculations myself, such as: ‘If I have a meeting at 8am, is it more cost-effective to take the first flight in the morning or the last flight the previous night and stay over?’ That

I couldn’t see if the overall travel spend was offering a positive return on investment.” was time-consuming. I’d rather have been doing more meaningful work and generating more revenue for the company.

The need for integrated business travel systems Businesses require travel management systems that balance ROI against travel expenses and are linked to a company’s financial and operational data such as that found in Customer Relationship Management systems (CRM).

Integrating straightforward booking and expense

systems not only makes the business of travel more efficient, making it a better experience for employees all round and increasing productivity, but it also allows managers to understand whether their team’s travel results in increased revenue. A system that comes equipped with realtime analytics also enables decisions on whether a trip is worth it or not to be based on solid data rather than gut instinct.

Travel should be viewed as a mechanism to drive business growth by seeing tangible ROI — not as an uncontrollable cost or hindrance to business activity.

Reducing costs Consolidating your travel and expense systems into a single platform comes with added benefit too. You’re

reducing the number of paid systems in your company - and as a result, reducing unnecessary third party costs through the elimination of transaction fees. When you pay just one fee, whether you’ve made one booking a month or hundreds, CFOs know they will always be given the best deal for their needs.

Sponsored by

Read more at salestrip.com CREDIT: MARTIN BARRAUD

Should you sacrifice profits to better serve customers?

Great service is the key to acquiring and retaining customers. It can be the difference between you and your competitors. But what if the cost of providing that great service is eating away at your profits? International clients and currency exchange rates can affect the revenue.

What is the customer expectation for business travel?

The minimum a customer expects is for the price they are quoted to be the price they pay. Going further, the customer might also expect some flexibility in how they pay that price – maybe a payment plan, or an invoice a month later.

As a travel business dealing in different currencies, meeting both of these expectations can leave you at the mercy of currency fluctuations.

The impact on profit margins can be damaging if you do not apply a hedging strategy. But if you do hedge, it can be damaging operationally.

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Are you paying to meet those expectations?

By the time your customer pays the agreed price – perhaps months later – currency fluctuations could result in profit margin erosion.

Some companies add two or three per cent to the price they charge the customer as a way of insurance.

However, markets can drop more than this over a time window of 48 hours, let alone an entire month, which means that profit margins are eaten into.

Of course, we all know the volatility of the market can sometimes work in our favour. But why roll the dice with your company profits?

How hard are you working to keep up?

For many businesses, a huge amount of company time is spent calculating exposure across currencies and reconciling forward contracts.

The demands of inefficient payment set-up and back office processes can consume both resources and time, resulting in profits being eaten away through operational expenditure.

International tasks that used to be long processes, such as flight bookings or money remittance can now be done at the click of a button.

If businesses are to offer this level of service, they had better ensure their back office operates at the same speed to protect profits.

OLIVER AYRES Head of Travel & Ecommerce, EQ Global

Automation is the way forward For businesses to move forward, automation is essential. Technology can be used to automatically lock in profits by pricing in a customer’s local currency; guaranteeing the rate received over the agreed payment period. Whether a customer pays in a month, or in three months, your original margin is safe.

Providing great customer experience shouldn’t be at the expense of your bottom line. Automating operational processes unlocks value to customers while also having a positive impact on profits.

ABOUT EQ GLOBAL EQ Global are a specialist international payments technology business providing innovative solutions for the travel industry.

For more information on visit equinitiglobal.com or contact the team on EQGlobal.Enquiries@ equiniti.com or 0844 776 1836

Sponsored by

Read more at equinitiglobal.com BUSINESSANDINDUSTRY.CO.UK

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Protecting your business travellers with travel risk management (TRM) SANDY MORING Director of Education, Institute of Travel Management (ITM)

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ravelling is a key enabler of conducting business so when companies send their best assets around the world to represent them and need a profitable return on investment on the trip cost, it is essential that they are looked after. Travel risk management (TRM) is a crucial part of that journey to ensure hazards are mitigated by having a proactive duty of care programme in place to increase safety, security and ultimately, protect the bottom line.

In 2007, the introduction of the Corporate Manslaughter Act, and in Scotland, the Corporate Homicide Act, was a landmark in law. According to the Health and Safety Executive, “For the first time, companies and organisations can be found guilty of corporate manslaughter as a result of serious management failures resulting in a gross breach of a duty of care.”

Duty of care to travellers for their safety, security and wellbeing continues to remain the top priority for travel managers as recorded in a survey by the Institute of Travel Management in December 2018.

Taking a proactive approach to mitigating risk by having a TRM programme encourages travellers to adopt better practices when ‘on the road’ and provides structured procedures to communication, pre and during trip processes, responsibilities for ongoing management of the programme, risk response roles and responsibilities and increased protection of the corporate identity. A TRM programme can be implemented to automatically update travelling employees with risk information about their travel plans.

It can also alert users to local medical and security services that may be useful to them, should the need arise.

Your duty of care as an employer TRM is applicable whether travelling domestically or internationally but comes into its own when the risk environment is higher. That may be influenced geographically or politically and additionally, often by the traveller involved. Identifying travellers who have not previously visited destinations that have more challenging environments should be flagged up as a risk that may require pre-trip authorisation to travel. The TRM Programme would ideally then educate and train the individual to prepare for the environment to be visited. It should ensure their arrival and stay is effectively managed with the support of local offices and/or preferred suppliers, such as a meet and greet car service to take them to the contracted hotel or company office.

Duty of care as a traveller Regular road warriors can equally be a challenge as they might underplay the risk having “survived” previous trips and start cutting corners in the processes put in place to mitigate risk. These travellers need to be reminded of the need to follow the TRM Programme and keep alert. Travellers also need to understand that they have a duty of care to themselves to keep safe.

Locating and communicating with business travellers By nature of the world we live in, something will always be happening that we have little or no control over. At these times, being able to locate and support travelling staff fast is often key to the final outcome of the incident.

Communication channels need to be established with the support of either the appointed TRM company or via the booking source, such as a Travel Management Company (TMC). To respond and control the potential of further risk, working together is essential.

Looking after the wellbeing of your travelling employees Having concrete travel risk management has also been linked to a company’s corporate social responsibility (CSR) programme. Beyond liabilities, organisations should have TRM programmes in place for the wellbeing of their employees as well as to mitigate any business disruptions that can have an impact on the bottom-line. Employee wellbeing may impact their feeling towards their employer and their work as a whole. This could result in higher staff turnover and lower productivity levels, which may significantly affect your profitability.

Read more at businessandindustry.co.uk

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In a world of tech, businesses still rely on face-to-face connections Technology has made it easy to connect people, there’s no question about it. And yet it’s been demonstrated that businesses thrive from face-to-face connections.

ADRIAN PARKES CEO, GTMC

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s companies grow, staff often need to be mobile, whether it is to close those all-important deals or meetings with existing clients. And if not managed properly, the costs associated with that mobility can spiral. In a world with so much choice at our fingertips, it’s easy to be lured to the internet under the impression of being able to find the best deal.

In reality, letting staff book costly elements such as flights and hotels can be a huge financial risk.

Travel management companies have leveraging power for getting good deals Employing the expertise of a travel management company (TMC) to deal with staff travel and logistics can ensure they are managed efficiently and in the most cost-effective way.

TMCs leverage their buying power to negotiate the best rates and fares for clients. Experts will take over the whole procurement process to get the best price and build the most convenient schedule for your travellers. This, in turn, stops your team wasting precious time booking travel and, instead, gets them where they need to be in the most efficient way.

In practical terms, this might mean choosing flights that reduce connection times, securing a hotel close to the intended meeting venue, or getting a business-class upgrade so your top salesperson arrives fresh for negotiations.

How a TMC can help your travel plans At the start of your relationship, a TMC can help design the best travel policy for you. This will set rules on types, cost and class of travel available. Each time a trip is

planned, travellers will be offered a range of itineraries that meet the criteria to choose from. This way, you are always guaranteed to be booking the most cost-effective and suitable journey.

Staff don’t have to worry about petty cash and travel receipts At the same time, TMCs lead the way in automated payment for travel services such as hotels. Options such as virtual cards and hotel billback means travellers do not have to pay on departure, which saves on expenses-claim admin or the headache of dealing with petty cash.

Another key area of expertise for TMCs is helping clients with duty of care. Employers are legally bound to look after workers, and travelling for business can throw up a range of issues.

The 2010 volcanic eruption in Iceland, which shut down western airspace for six days, and the more recent drone occurrences in Gatwick and Heathrow, demonstrated how issues outside of your control can wreak havoc with travel plans.

TMCs offer a comprehensive support function globally, so they can locate travellers at all times and take steps to rebook flights and accommodation in the event of an emergency.

Visas, jabs and risk assessments are checked by a TMC TMCs will sort practicalities such as visas and inoculations and typically offer risk assessments for travel to destinations worldwide – a vital service in today’s uncertain landscape of political upheaval, global health scares and natural disasters. Specialist TMCs, such as

those working in oil and gas, will even organise security for workers in volatile areas of the world.

As well as staying the right side of the law, looking after staff is proven to increase productivity and reduce turnover – another great saving for your business.

Spotting travel trends could identify new business opportunities TMCs provide comprehensive ‘management information’ reports, which can be used to monitor spend, establish savings made, judge the effectiveness of trips and help with expense handling. These reports mean managers can also identify trends – perhaps staff are travelling to a particular region, for example – helping you prioritise where the growth areas of your business may be. Can you afford to run your business without it?

ABOUT GTMC Representing a diverse range of travel management companies – from global companies to small independent specialists and top regional agencies – GTMC, originally founded in 1967, is the voice of business travel and acts to lobby those who have an impact on the business travel community, together with promoting the activities of its members as the best in quality and value to the business traveller.

Read more at gtmc.org MEDIAPLANET

CREDIT: KATSAPURA

businessandindustry.co.uk Get in touch for the next edition +44 (0)20 36420738 kirsty.elliott@mediaplanet.com uk.info@mediaplanet.com @mediaplanetUK

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CREDIT: FRANKPETERS

How to manage travel in 2019 Are your employees happy to travel for work?

ADRIAN PARKES CEO, GTMC

Travel management companies (TMCs) are essentially your travel requirement outsource and partners for corporate travel. They come in all shapes and sizes to handle the travel needs of businesses from SMEs to giant multinational corporations.

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f you run a business or perform at a senior executive level, you would likely never attempt to tackle complicated legal issues by yourself. You would no doubt consult a lawyer to guarantee you’re acting on the right side of the law. The same can be said about your accountant, who is on speed-dial to ensure you minimise your tax liability at year-end. Managing travel for your staff can be just as complex, particularly as companies grow and teams are often required to travel further afield.

Reduce turnover by looking after your employees’ travel Having a TMC in charge of your travel can ensure it’s managed efficiently and in the most cost-effective way. Another key role for TMCs is helping clients work to policies that adequately consider duty of care, overall traveller wellbeing and compliance. After all, looking out for your biggest asset, your employees, is proven to increase productivity and reduce turnover.

While duty of care has been a hot topic for employers for some time now, health and wellbeing of travelling staff and what companies can do to help improve this, is a growing priority.

Business travel can lose its appeal Employees enthusiastically welcome travelling for work, but after a while the novelty can wear off. Different time zones, jetlag or the pressure of keeping up with the workflow while away on business, often takes its toll on the body and mind of the road warrior.

Occupational health specialists also advise that time away for home and loved ones has an enormous impact on travellers’ wellbeing and this should not be overlooked. Furthermore, they advocate that the responsibility to look after employees the entire time they are away for work, needs to sit with the employer and the organisations’ duty of care policies.

Ensuring a work-life balance with a TMC Travel policies often cover all types of unpredictability such as natural disasters, terrorist attacks and even flight cancellation or lost passports. It is, however, crucial to place the same importance in travel wellbeing and work-life balance. As the UK’s leading representative body for the business travel sector, we at the GTMC urge organisations to work closely with TMCs in order to have clear policies regarding their responsibility for employee health and wellbeing while abroad. All in all, ensuring your employees are happy and healthy is more than a legal obligation, it’s a business decision that, in return, will make for a productive work force.

Read more at businessandindustry.com

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DAVID CHAPPLE Group Event Director, Business Travel Show

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ehind every gallant road warrior lies a hard-working travel manager: the piggy in the middle between the organisation’s commercial goals and the traveller’s desire for comfort and convenience. It’s not an easy job.

The travel Jack of all trades, a travel manager be must be all things to all people. On the one hand, you have stakeholders pressuring you to cut costs and increase compliance.

On the other, you have travellers demanding a more personalised experience that prioritises comfort and convenience. With a renewed focus – from all industries, not just travel – on employee health and wellbeing, these requests can’t be ignored.

But profit is profit, right? So how do travel managers keep everyone happy? And what are the big business travel trends heading your way that can help them achieve a happy equilibrium?

Incoming travel trends for industry Thanks to the impact technology has had – and continues to have – on the travel industry, evolution in business travel is fast-paced. It’s critical for travel managers to keep a finger on the pulse of trends affecting travel, travellers and business. There are your evergreen challenges to keep in mind, such as rising costs, supplier consolidation and traveller risk, safety and security. Trending topics incoming for 2019 include consumerisation, personalisation, data, distribution and Brexit.

Engaging travel consumers through mobile apps Technology has been instrumental in changing the way we book travel, both at home and for work. The ubiquity of mobiles has driven a seismic shift in the number of travelrelated apps available. We use our phones to book flights, train travel, accommodation, to check in, hail a cab, look up directions, monitor departure times, translate for us, find

“Trending topics incoming for 2019 include consumerisation, personalisation, data, distribution and Brexit.” a local restaurant… This, coupled with the increasing number of millennials now travelling for business, has forced the corporate travel sector, in particular, travel management companies (TMCs), to also introduce similar, user-friendly apps with the aim of simultaneously increasing convenience and compliance.

Anticipate the business traveller’s personal needs Designing technology around traveller needs is just one element of a growing trend towards traveller centricity. Travel managers are becoming more aware of a need for personalisation: moving away from a one-size-fits-all approach and considering individual travellers’ preferences. This could be as simple as not wanting to travel before 7am or at weekends, asking to stay in a hotel chain with a gym, or perhaps a particularly tall traveller requesting an airline seat with extra leg room.

The idea behind personalisation is simple: a happy traveller will be more productive both on the road and back at the office, which leads to improved health and wellbeing, loyalty and retention. Chasing the cheapest option is not always the most costeffective solution. Spending a few extra pounds in the short-term to put the traveller first can easily pay for itself ten times over.

Using data to create a better travel experience and save money Using data is another tool driving personalisation. Travel managers and TMCs are both learning how to collect, analyse and apply data in a way that can both deliver better experiences for travellers and improve efficiency and profitability.

The industry is terming this

movement ‘predictive analytics’, and TMCs in particular are using technology to create powerful algorithms to find new ways of saving money.

Major players are changing inventory distribution One of the biggest trends to affect the industry in recent years is new distribution capability (NDC). Travel inventory – flights, hotel rooms, rail tickets – have previously been held on the global distribution system (GDS), which first- and third-party sellers have access to. This is changing.

Spearheaded by the International Air Transport Association (IATA), some airlines (including British Airways) are removing their flights from the GDS, which will allow them to sell direct and sell differently.

Intermediaries – like travel management companies – are currently doing deals with NDC partners to ensure travel managers can still access this inventory free of charge. 2019 is a pivotal year as the first flight has already been sold through the NDC, and IATA wants at least 20 airlines to have 20% of their indirect bookings to be made using NDC by 2020.

The ‘B’ word (Brexit!)

No article is complete without mentioning the ‘B’ word. Brexit could influence where and how airlines operate, rising travel costs thanks to currency fluctuations and the performance of sterling, the movement of travellers between the UK and the EU, and the process for visa and passport applications as well as other travel documentation.

ABOUT BTS The Business Travel Show takes place on 20-21 February at Olympia London.

Read more at businesstravelshow.com MEDIAPLANET

CREDIT: PAOLO PARADISO

The importance of being there Technology has changed business travel forever. But while expectations have changed, priorities haven’t. For business travellers, safety, efficiency and comfort remain the holy trinity.

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or some, gone is the nine to five and the sweaty commute,replaced by remote offices, “wfh” (working from home) diary blocks, and conference calls from your kitchen.

But as humans we crave contact and building relationships with other people. As business people, there’s a benefit to shaking hands, looking people in the eye and engaging in small talk that is invaluable.

At a time where most interaction is done through a screen, it has never been so important to make time for that personal interaction, to be there and to build that rapport with colleagues, clients and potential new business.

Safety, efficiency and comfort: priorities for business travellers David Savage, UK General Manager at mytaxi has been in the business travel industry for 15 years. He has seen the industry evolve across airlines and taxis; he has seen how the introduction of the smartphone, online bookings and smart expense management tools have changed the face of business travel. He says that, while expectations have changed, priorities haven’t. For business travellers, safety, efficiency and comfort remain the holy trinity.

How do you think business travel habits are changing?

Dramatically. Technology has made people much more engaged in their travel plans.

In terms of taxis, people want seamless transfers; a cab waiting for them with a driver they already MEDIAPLANET

know the name of, contact details, the route and shareable ETAs. It reassures people that they are in safe hands, knowing their driver is fully-licensed

As humans we crave contact and building relationships with other people. As business people, there’s a benefit to shaking hands, looking people in the eye and engaging in small talk that is invaluable.”

and knows where they are going.

Clients should feel in control of their travel choices Travel apps must make the customer experience as clear, easy and engaging as possible for clients. Web bookings allow travel managers, PAs and EAs to book travel on one site, in real time, without having to leave their desks.

Sites with admin panels enable travel managers to keep track of reporting, usage and, importantly, costs.

Increasingly, businesses are looking for socially responsible

brands that care about the cities in which they operate, the wellbeing of the drivers who use their app and their vehicle’s environmental impact. At mytaxi, for example, we believe in constructive disruption and pride ourselves on working in harmony in the 100 cities in which we operate.

By efficiency, do you just mean getting to your destination on time?

Getting there on time is certainly part of it. We’ve all been there – you’re rushing to get to a meeting, it’s chucking it down and you can’t get a cab. Then you arrive flustered, drenched and set back for the rest of the day. That is why we have worked hard to get our wait times down to under two minutes in central London. We also work with black cabs, so they can whizz down the bus lanes where others can’t. But efficiency in terms of the journey isn’t the whole story.

Interconnected tech makes business travel more efficient Expense management can be a major pressure point for travel managers.

They are looking after thousands of employees across multiple locations and they need services that have integrated reporting. Connection to expense management tools makes the admin side of things more streamlined and efficient. Our business accounts grew by 123% last year alone, which I believe is testament to us taking the time to understand what business travellers

DAVID SAVAGE UK General Manager, mytaxi

and travel managers actually value.

What do you think is the biggest challenge for travel managers, PAs and EAs? Keeping everyone happy! Most companies have people from four generations under one roof and juggling the priorities and expectations of each of them is not an easy job. Studies show that business travel has a huge impact on overall job satisfaction1. According to this study, a huge number of travellers – 84% – say the quality of their business travel experience impacts their business results at least somewhat - so it is in a company’s interest to make it as smooth and enjoyable as possible!

Increasingly, we want everything on demand and in one place at the tap of a screen, and this is especially true when travelling. One thing we are often told is that companies want one provider that they can use in multiple locations. In 2018, we saw our cross-border traffic increase by 200% across Europe. We are looking forward to what 2019 has in store!

1: https://www.sabre.com/insights/releases/globalbusiness-travelers-identify-top-challenges-theyface-on-the-road/

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ABOUT MYTAXI London taxi drivers know the city better than anyone, do you know any interesting insights on London?

We actually asked drivers that use the app some questions on London. Here are a few insights they shared: Some London taxi drivers’ facts: ● London is the only city in world to have a restaurant from every country in the world ● The Mall is designed to be a runway ● Blackfriars train station is the only station to have entrances on both sides of the river Top restaurants recommended to passengers by London taxi drivers:

● Langan’s, Mayfair ● The Ivy, Covent Garden ● Rules, Covent Garden

Read more at mytaxi.com/uk/business/ account

● Ciao Bella, Lambs Conduit Street BUSINESSANDINDUSTRY.CO.UK

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