THE PARTICIPANTS The Debate


SIMON KIDD TRAVEL CATEGORY SPECIALIST, BUYINGTEAM


specifically for SMEs – Star Alliance Company Plus – as these companies didn’t have the volumes to get a route deal. They needed to be rewarded with an off-the-shelf scheme and shouldn’t be left out; they still value some kind of a bonus programme. Corporates can choose either to be rewarded in


the loyalty programme or negotiate a B2B corporate agreement. SMEs find the Company Plus scheme more valuable as often they don’t have the volumes, whereas route deals are typically for the larger corporates. Larger corporates are looking for savings by selecting preferred carriers and participating in RFPs but that wouldn’t make sense for some customers. Some might prefer best fare on the day, but then they get no added benefit from a loyalty scheme. But there are the companies that need flexibility, frequency etc and therefore have requirements for a traveller where price is only an element. It’s not a one size fits all situation. We believe our loyalty schemes offer a huge


cost and value benefit and they certainly work in tieing in customer loyalty. Having the Corporate Plus scheme definitely decides whether we get selected or not in a tender process. Business travellers can acquire status, receive priority check-in perks and access to departure lounges, for example. Corporates can save money through the scheme by buying flights on all participating Star Alliance carriers, or use the points they’ve collected for cash back. It’s very popular, judging by the sign-up we’re getting. We continue to monitor what’s


in the market and use tactical promotions, such as a double miles promotion, to stimulate travel for individuals. We ran a double miles promotion until December 31 where members could earn double miles on all routes. Through the recession the most popular ‘burn’


range of negotiated options. While factors such as schedule and hotel location will influence the decision, there is also a ‘what’s in it for me?’ factor. When travellers spend many hours on the road the thought of frequent traveller bonuses can be seen not just as a perk, but as a pre- requisite and a reward for their efforts. Organisations also have different approaches


to retaining and managing employee talent. In some sectors the fight for top talent is so fierce and there is so much demand placed on individuals that there is little appetite within the organisation to stop the perks. Currently the topic of receiving untaxed benefits by way of frequent traveller points is not something the UK and US tax authorities seem to be thinking of introducing so the accumulation of points continues at an ever-growing pace. I have heard of some organisations banning


" We continue to monitor what’s in the market and use tactical promotions, such as a double miles promotion, to stimulate travel for individuals"


the accumulation of frequent traveller points, but in reality I am not sure how effective this is, as most mileage hungry travellers will find a way round the system some how. Some suppliers have whole lifestyle pro- positions with mileage being collected on the ground when shopping or using related credit card products, so the direct marketing can be aimed at leisure buying but can lead to changes in behaviour when making decisions on business travel. It’s simply not possible for travel buyers to pro- actively manage this. It’s not just about the accumulation of points. Some promotions marketed directly are in direct conflict to policy and often the first time a buyer hears about it is from a frequent traveller. It’s difficult, for example,


is free flights, but that’s always been the case. Our schemes are part of Lufthansa marketing activity and the benefits outweigh the cost and we rely on it to be successful in the market. They will continue into the future without any doubt.


THE INTERMEDIARY Rachel Watson, Director, Opteva


In my view, direct marketing to frequent traveller members benefits suppliers and, for some individuals, frequent traveller rewards remain influential in travel decisions. Frequent traveller membership levels continue


to grow and, during the recent downturn, increased capacity meant higher redemption of frequent traveller points, easing the age-old frustration of never being able to get exactly what you want. Not all programmes have a lowest price policy; some allow the travellers to choose within a


when a preferred supplier uses higher rates to offer upgrades, additional miles, or companion tickets etc. Very often travellers don’t read the small print so the travel management companies are left to figure out how to go about managing the requests, often, without any communication from suppliers. I think there is a real opportunity for suppliers


to get smarter at the way they communicate such promotions. I also wonder if the suppliers' marketing departments are really that disconnected from the account management teams that manage large corporate spend, or if this disconnect is in fact intentional. I have seen tension between suppliers and buyers when promotions are in direct conflict to policy, and while I am not saying that the direct marketing should stop if a travel buyer is given a ‘heads up’ that a promotion is in conflict with the travel programme, it can be addressed. This helps suppliers work the personal loyalty piece in partnership with corporate loyalty. I recognise that it’s not easy but it’s something for suppliers to have a think about.


Simon is a travel category specialist for buyingTeam, a leading European procurement services provider. Simon joined buyingTeam in 2005 and has managed numerous travel projects across many sectors, including media, not for profit, professional services, retail, financial services and oil and gas.


MARIANNE SAMMANN GENERAL MANAGER UK & IRELAND, LUFTHANSA AND AUSTRIAN AIRLINES


Marianne Sammann was born in Klagenfurt, Austria and as a diplomat's daughter grew up travelling around the world. She has worked in the aviation industry for 30 years, holding various functions within Germany’s national airline Lufthansa. After rising to become the head of global corporate business in Frankfurt, Marianne Sammann moved to London in February 2007 to become general manager, UK and Ireland, for Lufthansa, and additionally for Austrian Airlines as of April 2010.


RACHEL WATSON DIRECTOR, OPTEVA


Rachel has over 20 years’ travel industry experience. She has worked for a global TMC, running their largest European call centre and worked globally as a TMC account director for a global investment bank. Rachel co-founded the operational travel consulting practice Opteva Limited in 2005 with her business partner Johanne Young. In addition to supporting a broad range of travel projects, Opteva is the UK’s leading online booking tool implementation consultancy.


WWW.THEBUSINESSTRAVELMAG.COM I 21 19


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48  |  Page 49  |  Page 50  |  Page 51  |  Page 52  |  Page 53  |  Page 54  |  Page 55  |  Page 56  |  Page 57  |  Page 58  |  Page 59  |  Page 60  |  Page 61  |  Page 62  |  Page 63  |  Page 64  |  Page 65  |  Page 66  |  Page 67  |  Page 68  |  Page 69  |  Page 70  |  Page 71  |  Page 72  |  Page 73  |  Page 74  |  Page 75  |  Page 76  |  Page 77  |  Page 78  |  Page 79  |  Page 80  |  Page 81  |  Page 82  |  Page 83  |  Page 84