GUEST COLUMN IN BRIEF
• MARRIOTT International is making a move into the budget sector with the launch of Moxy Hotels. It will take on the three-star economy sector by launching 150 hotels across ten countries in Europe, and will combine “contemporary stylish design, approachable service and an affordable price”. The brand is being launched in cooperation with Ikea’s sister company, Inter Hospitality, and will make its debut in Italy – most likely Milan – next year. It will subsequently target the UK and Ireland together with the likes of Germany, France and Scandinavia. Guest rooms will be decorated using a colour palette of neutral tones and will each feature a signature fl oor-to-ceiling ‘art wall’. Amenities will include large TVs, upscale bathroom facilities and free wifi access.
• SAFETY and security are the biggest concern for corporate travel buyers, according to research from the ATPI Group. Over 50 per cent of respondents rated it the most important factor when planning a global travel programme, followed by 30 per cent who rated cost savings as the most signifi cant factor. Peter Muller, ATPI Group's chief operating offi cer for Europe, says, “Geopolitical uncertainty is a factor of doing business in a world of changing and emerging economies. The message from business travel buyers is that they are clearly very aware of this, with safety and security measures considered ahead of other pressures.”
• GROWTH in corporate travel won’t necessarily come from online business, says one travel management company. Travel Counsellors handles less than one per cent of its corporate travel arrangements online and claims a robust start to 2013 suggests online bookings aren’t the only way forward. Sales for January and February were up by more than 25 per cent over the same period in 2012. Managing director, Steve Byrne, says, “We expect sales to grow by around £15million in 2013, and one of the key factors behind this is our personal, tailored approach. We don’t rely on the internet to handle bookings. That’s not to say that the internet can’t play a supportive role, but our success in the corporate travel world is testament to the fact that the future for the industry lies in personal customer service.”
The price is right... I
TRADITIONAL route deals remain the preferred discount mechanism for organisations, according to a poll at the recent ITM Conference. Some 44.7 per cent of the audience voted for this, above the 39.5 per cent who used spot buying and the 15.8 per cent of those utilising SME programmes. The poll was part of a session called The Price is Right, which also looked closely at how to clinch the best price and questioned whether buyers know when they have actually achieved it. Alex Tolweth of Lufthansa gave
the audience a lesson in yield management, which sets out to achieve the right price at the right time. “The high cost of high demand flights offsets the losses on low demand flights,” he explained. Antony Elliott of HRS advised
buyers to carefully choose the channel they buy their hotel rate through as this impacts the price. “The cost of sale to a hotel influences the cost most of all so
while breakfast, wifi and LRA can add £5 or £10 each to the rate, cost of sale can be as much as £30 from having to pay TMCs and GDS fees. So a hotelier will only see £70 of a room fee of £100,” he said. Adam Knights of ATP, defending
the TMC's corner, advised buyers to settle TMC fees via a management fee – rather than transaction fees – as this was a “more competitive mechanism” and gives a “more linear income line versus the variability of transaction fees”. He added that, “Management fees are easier and more likely to cover costs as a minimum requirement.” A poll at the end of the session
saw an equal split between the audience when asked which type of fees suited their business best. But when it came to whether buyers had a transparent financial model with their TMC, the picture was different, with 70.8 per cent answering No and 29.2 per cent Yes. “Trying to nail a transparent fee down is impossible,” said ATP's Knights.
LODGE card provider AirPlus is forging ahead with a development to provide a virtual card facility on mobile phones and will launch by the end of 2013. “Smartphones will become
AIRPLUS PLANS MOBILE PAYMENT TRIAL However, in practice, merchants
payment tools and it should also be there for virtual cards,” says Patrick Diemer, AirPlus chairman. The company already offers AIDA virtual payment solution, which extends the acceptance of the AirPlus Company Account and can be used to pay for hotels, car rental, low-cost carriers and any merchant that accepts MasterCard.
often request to view a real card rather than accept the print-out. AIDA was originally launched to offer richer MI for those corporates using low-cost carriers but it also became useful for hotel billback. “It’s our single fastest-growing
product in the UK,” says AirPlus UK MD, Yael Klein. “TMCs say it helps them capture all their merchant category data into one account.” AirPlus also has a first prototype
of a mobile payment solution and this summer it will go into pilot phase with two providers.
Matt Chapman Chief Technical Offi cer, Vibe Software, & Head of Development, P&P Associates
n the last few years we have all seen corporate travel trends moving in one direction – online and mobile. A combination of recessionary pressures, advances in technology and changes in business traveller behaviour has driven strong growth in the online corporate travel marketplace as companies implement online booking tools or accelerate their online adoption. Around 20 per cent of our
corporate travellers are signing up for mobile access and this is set to increase. They are looking for itineraries to synchronise automatically across multiple devices, and technological integration will be key in ensuring consistency across calendar tools, email confirmations and message alerts. Mobile technology offers new opportunities for corporates to add value through personalised content such as weather, traffic reports and airport terminal guides. With the increasing demands on
technology, online booking tools need to react by developing the booking journey and connections with both desktop and mobiles. Today's modern web browsers support advancing technology and the pressure is on online booking tools to constantly refine their offering to stay one step ahead. Corporates should look for flexible technology, in-house expertise and bespoke capability. A user interface and booking
process must meet the travellers’ and bookers’ requirements. The booking journey needs to be simple, self-explanatory and quick to load. Gone are the days of lengthy training courses and manuals. Users need to find the booking tool and immediately know how to use, search, and book their trip quickly and effortlessly. Advance fare capability is
increasingly popular for getting better value for budgets, while helpful pop-ups, flexible search functionality and personalisation are just some of the newer developments requested by users. And all this needs to be delivered
by the online booking tool, with access via the desktop and new smaller mobile devices.
THE BUSINESS TRAVEL MAGAZINE 49
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