THE PARTICIPANTS The Debate


THE TECHNOLOGY PROVIDER Hugo Ehrnreich, Head of Hotel Distribution, Amadeus Since the initial financial crisis in 2008, Britain's economy seems to swing between the proverbial rock and a hard place. Talk of double- dip recessions, eurozone crises and civil unrest has added to the sense that we are continuing to trudge through the worst of it. While some companies are forging ahead with new business deals thanks to weaker sterling, the majority of us have been adjusting to life in a slightly more austere era. But business travel has nevertheless regained some of its lost impetus. Increasingly, businesses have been returning to the road, rails and skies to offer the all-important handshake that is likely to seal the deal. Businesses need to demonstrate they will literally go the extra mile to meet customer demands at a time when competition has never been fiercer. While many companies have recognised the importance of a face-to-face approach, it has become imperative to demonstrate value in everything we do. It will be a long time before we see a blasé approach to booking air travel or accommodation. With budgets being squeezed and every penny needing to be accounted for, it has never been more important to demonstrate value and control when it comes to spending. For TMCs and corporations


this means being able to demonstrate full control over their negotiated rates and prove they are doing all they can to get the best deal available. This can be challenging given the number of different rates out there, with the problem of squatter rates adding another layer of complexity. Squatter rates are becoming a growing challenge for travel management companies as a number of unscrupulous hotels 'hijack' a corporation or TMC's rate code. By loading their own rates instead they hope


to secure bookings even though the chain or property is not on the approved supplier list. In many cases this goes unnoticed and can


lead to travel management companies booking substandard accommodation for clients at undesirable rates. At a time when competition is at its most cut-throat, TMCs cannot be seen to fall short on their clients’ expectations. Companies need to effectively audit their negotiated hotel rates, ensuring that they don’t get less than they bargained for. Furthermore, they need to demonstrate to their clients that, in line with their own money-saving efforts, they are doing all they can to deliver value and control costs.


The importance of investing in business travel


is overwhelmingly clear. But if companies are to continue investing they need to be confident their money is being well spent and that they are getting the best price available. A good travel management company and the right technology partner are key to demonstrating that all-important value.


THE BUYER ASSOCIATION Simone Buckley, CEO, Institute of Travel & Meetings Hotels, hotel chains and GDSs know the problems that rate squatting causes for both TMCs and, ultimately, their travel buying customers, and I'm surprised that this problem has not yet been solved. Auditing a hotel rate programme is one way


of identifying if rate squatting is happening but it is labour intensive for the TMC or HBA and therefore ultimately has a cost attached. Even frequent audits don’t solve the problem – they don’t stop rate squatting from happening. While some independent hotels do practice


" Squatter rates are a growing challenge for TMCs as a number of unscrupulous hotels 'hijack' a corporation's rate code"


rate squatting it is more common in hotels that are part of a chain. This is possibly because the code is shared or, more often than not, it is where a hotel or chain was previously on a customer’s hotel programme but is taken off perhaps because of a change in chain ownership or through customers change in policy. As a customer’s rate code within the GDS doesn’t change the hotel can still use it and the customer is reliant on trusting those hotels not to use it and not to share it. Some suggestions for


consideration: firstly, put financial penalties in any contract with a hotel chain relating to the use of the rate codes. Customers can work with their travel management company or hotel booking agent to make sure that their contracts also support this philosophy. Secondly, talk to your GDS about developing


some quality control technology within the system to filter non-preferred hotels at the point of sale. This would mean that the hotel rate code wouldn’t be the only identifier to signal a positive sell to the booking agents. It would also assist with customers who use self- booking tools. Thirdly, understand why you have to keep the


same rate code each year. Maybe rate codes can be changed more frequently and this might help prohibit rate squatting. Finally, an appeal to those rate squatters who might be reading this! This practice causes security, environmental and financial issues for our business travel buyers. If you are found to be rate squatting the chances are that you will be black listed. Is it really worth it?


RUSSELL GREEN DIRECTOR OF CORPORATE SALES, UK & IRELAND, INTERCONTINENTAL HOTELS GROUP


Currently responsible for all corporate sales revenue for IHG sourced from the UK and Ireland, Russell joined IHG in 2004. Prior to joining IHG, Green was head of UK sales for Queens Moat House Hotels. Before moving into the hotel industry, he worked for a variety of FMCG brands including Eastman Kodak, Cadbury, Reebok, Lego and British American Tobacco in sales and brand management roles. Green has worked in emerging markets in Eastern Europe as well as the US in a career that spans over 25 years in sales and marketing.


HUGO EHRNREICH HEAD OF DISTRIBUTION, AMADEUS


As head of Amadeus hotel distribution, Hugo is responsible for working closely with hospitality providers and travel distribution partners. Based at Amadeus headquarters in Madrid, he joined the company in 2006 and has over 12 years of experience in business development and project implementation across professional services and retail industries. Before joining Amadeus, Hugo was general manager of a specialist software house in Italy.


SIMONE BUCKLEY CEO, INSTITUTE OF TRAVEL & MEETINGS


Simone has a wealth of experience in the business travel industry having held various roles over the last 18 years in operations, account management, sales and marketing at travel management companies. Most recently Simone co-founded the travel consultancy, Bouda. Previously she held the position of managing director at Capita Business Travel where she was responsible for the strategy, sales and overall management of the company targeting both the public and private sector. Simone joined ITM in January 2012 as chief executive officer.


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