The Year Ahead SIGNS OF THE TIMES


Six industry pundits came together in December to gaze into the proverbial crystal ball and discuss what the next 12 months may bring to the business travel industry. Gillian Upton has the details


A MIXED bag of opinions on trading conditions for 2011 and beyond summed up the views of half a dozen industry punters as they met over lunch and tried to make sense of the disparate issues challenging the industry both now and in the future. These ranged from the merits of negotiated rates and British Airways' new payment fee structure, to managing MI for unbundled services and hotel rates during the 2012 London Olympics. The London Bridge Hotel, in the shadow of


the soaring Shard development and London Bridge station, was the location of this meeting of minds. The one overwhelming issue that united all around the table was how the buyer- supplier relationships were of paramount importance in these ever-changing times. This view echoed the common thread from


our own conference, TBTC2010, when the word partnerships – rather than business relationships – was the buzzword.


Similarly, the theme of partnerships was the


nub of the speech from ITM's UK chair Jamie Hindhaugh, buyer at the BBC, when addressing the GTMC conference in November. He called for buyers and suppliers to “work together more than ever as an industry” in order to survive the peaks and troughs. He suggested more cross industry staffing and wants to see more buyers moving into the TMC sector (see full story on page 38). Increased costs are the most worrying trend


for this year and beyond. “That’s the challenge,” said CWT's Andrew Waller. “The pressures are that demand is going up and costs are going up, yet your bosses are beating you up to keep a lid on the budget so how do you square it?” he asked. BCD's Tony McGetrick believed a lack of capacity will also have a major impact on rates this year and next. On the hotel front, rises of between five and 15 per cent were cited although realistically,


these will be more around the five to seven per cent mark, believes Claire Rowley of The Buying Team. “The priority is to build up a relationship with suppliers,” she stressed. “Clients who have strong relationships and a well managed travel programme should expect to see minimal rises.” CWT's Waller concurred. “British Airways


were vocal that they would reward loyalty,” he said, while Jo Layton from apartment specialist


THE PREDICTIONS


• business class fares to rise by 2 to 4.5% • economy class fares to rise by 2.5 to 6% • london hotel prices to rise by 7% • new York hotel prices to rise by 13% • airline mergers to impact on negotiations. advice to negotiate with individual airlines rather than a Jv


• Focus on spot buying Source: Advito, the consultancy arm of BCD


14 I THE BUSINESS TRAVEL MAGAZINE


BIGSTOCKPHOTO


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