Saudi Arabia
traditional travel companies, has left clients wanting more.” For global travel buyers whose companies do business in Saudi, the solution is often to rely heavily on their TMC. As a buyer for an aerospace multinational puts it: “Dealing directly with travel arrangements in Saudi can throw up all kinds of curve-balls. Although we operate a relatively small part of our programme there, I leave the details to our TMC.” Andy Taylor, head of UK accounts
for HRG, says there is a now a divide between local corporate cultures based on high-touch, high-service expectation and the demand for globalised programme delivery. “We’re finding that large multinational and global clients, in particular, are trying to drive consistency across their programmes and no longer accept local traditions as a reason for a programme not to work.” It’s that elusive consistency global buyers want, to maintain smooth-running travel programmes. Bernadette Basterfield is global head of corporate travel and events at Credit Suisse. She says: “We run an exceptionally tight data-reporting global programme with Amex, and it can be an administrative pain if the set agreement criteria can’t be met – in Saudi we had to switch payment methods because the system we had in place was not acceptable there.”
HIGH END, HIGH COST Together with the high-end expectations come high costs, but corporates today also want an element of cost containment in their programmes, adds HRG’s Taylor. “It means we’re having to work hard with clients and suppliers to find an acceptable balance and tackle traditional offline methods to provide that consistency.” He says the
deployment of online booking tools has been poor to date. “This is partly because of the complexity of visa requirements for travellers across the region, but also due to a reluctance to rely on technology – as opposed to the classic methods used for a high-touch service.” However, advances are being made.
“Very recently, some businesses in Saudi have made themselves ready to be consolidation centres for the region. This suggests an absolute appetite in that particular market to compete,” says Taylor. He reports that in the past six months a number of corporates have announced more aggressive plans to roll out online booking in the region. FCM Solutions is planning to open a partner office in Saudi within the next year. This is because local corporates wanting to integrate industry developments and technologies to better streamline and improve their processes have neither the knowledge nor skill sets to introduce the changes themselves, claims
“Some businesses have made themselves ready to be consolidation centres for the region”
Andrew Boxall. Sourcing reliable information on the market and various laws governing the travel industry in Saudi are the primary challenges, he says. Opening a business there will allow the immediate transfer of expertise and guidance for clients through the implementation of new processes. “We feel confident we can re-energise the market and lift the expectations and delivery of travel services by introducing new
VISAS & SECURITY
BUSINESS VISAS are stringently regulated and neither simple nor quick to obtain in Saudi. Most corporates or their TMCs purchase them through a specialist provider. Basic advance requirements include a sponsor invitation, location/length of stay, specific air or overland point of entry/ exit, and itinerary. A period of several weeks is required between application and collection prior to travel. A separate, approved handling agency permit is required for visiting Mecca. Constant detailed monitoring of multiple
entry foreign workers is essential, says Pippa Strasser-Ganderton, head of global marine and energy account management at Instone Marine and Corporate Travel. Tough labour regulations require the employment of one Saudi worker for every foreign worker. Hefty fines, or worse, accompany abuse of this and other laws. Legal disputes involving the sponsor company can result in the visitor being refused exit from Saudi. In contrast, security is only medium risk,
according to Matthew Judge, managing director of crisis avoidance group Anvil. “Expat workers frequently report they feel safer in Riyadh than they do in London,” he says. UKTI produces an extensive list of do’s and don’ts for travellers to Saudi Arabia. The overriding advice is: behave yourself or face frequently dire consequences.
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technology solutions and global sourcing of suppliers,” says Boxall. Taking into account advancing technology, BCD’s De Lantivy reckons it could be at least five years before the market matures to suit global parameters. “In the meantime, there is no real barrier to prevent corporates employing individual processes or online infrastructure tailored to their needs,” he says.
Riyadh
All of which begs the question: how long will it take a comprehensively high-touch market to bite the inevitable bullet of virtual no-touch travel programming? ■
MARCH/APRIL 2013
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