www.buyingbusinesstravel.com
Interview
driven primarily by client fees. “Our revenues are over 80 per cent on this basis – in effect this demonstrates the success of our model.” Therefore, he says, acquiring a TMC still driven by the first, more traditional model would be “a step backwards” for HRG. The second reason he gives for holding back from TMC acquisitions
another expense management provider, or vice-versa, or the whole package.” This gives Radcliffe a relaxed attitude to the competition. “One man’s enemy is the same man’s friend in a different environment.” Why has HRG invested heavily in producing in-house technology, whereas TMCs often rely on third-party
Interestingly, we’re also seeing that
where clients don’t mandate policy, there is increasing adherence by travellers
is that HRG now has a footprint everywhere in the world that it needs to be. However, he says, “we are keen to do more acquisitions on the services side”, following the buyout of expense management specialist Spendvision last year. He says more and more large corporates are looking for an end-to-end service – as are government departments, as demonstrated by HRG winning the Canadian government travel contract earlier this year. He adds that Spendvision gives HRG flexibility: “We can work with whoever the client wants – either as a TMC with
developers? “Many years ago, we were looking at strategies and the future of TMCs and the industry as a whole,” he explains. “At the time the OBT [online booking tool] had just arrived and the internet was still fairly new. We took a brave view – we didn’t know at the time, but we said: ‘The internet is very important but, eventually, will just become another route to market.’” He says they looked to build a
‘super platform’ that acts as a chassis for all distribution technologies, but remains independent of them. “What we designed was a pipe – one end of the pipe could go wherever
the inventory is, and the other end wherever the client is. By definition, we can work with all methods of distribution.” He says HRG is now reaping the benefits of this big investment in technology a decade ago. “It’s paying off because, unlike the majority of our competitors, when we bid, we can bid knowing that if we have to bend or flex, we can. Some of our competitors are in hands of third-party technology providers, often for whom travel isn’t necessarily their main business. So for us you’ve got this services group with commonality of corporate travel.” This is why he insists that HRG’s title of ‘corporate services company’ is much more than a branding exercise. “It makes sense when clients see us talking about our online booking tool, tracker tool or expense management tool – all of which can work with other TMCs. Of course we are a big TMC, butwe can go to see a client as a specialist in different services – they don’t have to buy everything from us.” He cites an example of a recent deal signed to supply technology to a global distribution system. “That’s not a TMC at work – that’s an industry technology company.” n
Experience Global Apartment Living
Choose from the exclusivity of Ascott The Residence, the vibrancy of a Citadines Apart’hotel or the homely warmth of a Somerset Serviced Residence. Wherever you stay, you’ll benefit from the privacy and space of your own apartment while enjoying the services and convenience of a hotel - perfect for an overnight business trip or longer term stay.
In Europe, choose from 43 locations including 7 in London: • Citadines Prestige Trafalgar Square London
• Citadines Barbican London
• Citadines Prestige Holborn-Covent Garden London • Ascott Mayfair London • Citadines Prestige South Kensington London • Citadines St Mark’s London
• The Cavendish London To book, call 0800 376 3898 (local toll free), go online at
www.the-ascott.com or email
london@the-ascott.com
The Ascott Limited is a member of CapitaLand. It is the largest global serviced residence owner-operator in Asia Pacific, Europe and the Gulf region, managing the Ascott, Citadines and Somerset brands in over 70 cities across more than 20 countries.
Buying Business
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