Opinion ONWARD AND UPWARD
A forward-looking commercial strategy, not endless cost-cutting, is the key to sustained economic recovery
INTERNATIONAL WATCHDOG the Organisation for Economic Cooperation and Development (OECD) has raised its growth expectations for the UK ahead of any other large industrialised country, forecasting the economy to grow by 2.4 per cent in 2014. This is being fuelled, however,
by consumer spending, with housing transactions and car sales up significantly. The government had hoped for a more balanced recovery, with manufacturing, exports and investments driving it, but as of yet this hasn’t happened. British businesses will be
acutely aware of how their growth in profit is being achieved. If it is still through cost cutting, then at some point the bottom of the barrel may be reached. If it is through careful
housekeeping and a strategic revenue development plan, then I know in whom I would invest. Encouragingly, the Guild of
Travel Management Companies (GTMC) Quarterly Review for the third quarter of 2013 shows a continued increase in business travel transactions and, supported by the UK purchasing managers’ market outlook rising sharply, the potential for growth looks promising. We must move, however, from a feeling of ‘hope’ of a continued economic recovery to one of planned activity to increase the UK’s chances of success. Hence my ongoing campaign for business travel to be firmly thought of as a commercial strategy.
It is vital to switch mindsets
from travel avoidance and slashed budgets to one
of measuring a return on investment. Many negotiated agreements are based on historical data, but how relevant is this if a company has a growth plan? Matching future business objectives for revenue growth to an affordable travel programme is not a difficult thing to do. Add to this the developing influence of ‘Generation Y’ travellers and their preference for doing things in different ways, and it would suggest that right now is exciting in terms of change and development, and recalibrating the way people think of travel management in terms of delivering positive outcomes. Shareholders of businesses that don’t currently think travel is an important driver of economic growth should start asking questions. There is a risk of
SEEING THE LIGHT
NATURAL LIGHT IS NECESSARY for good health. Disruption of light-and-dark pattern sequence is the cause of jetlag, which can take its toll on the body and its ability to perform at its optimum. Regular travellers will have
their own tricks and tips to combat jetlag, from re-setting watches on boarding the aircraft to the destination time-zone, to drinking plenty of water and avoiding alcohol in-flight. But corporations, take note: there is evidence to suggest that in addition to feeling ‘ropey’ when a traveller disembarks a long-haul flight, jetlag can also create long-term persistent memory problems, mental dysfunction, mood swings and high blood pressure. Ultimately, jetlag can impact the long-term health and performance of the road warrior. However, through
breakthrough experimentation and research, scientists have
now discovered a molecular basis for jetlag. The research may well lead to a magic anti-jetlag pill, but until such a drug is launched and proven to work, with duty-of- care responsibilities becoming an increasing focus, steps may need to be considered to avoid the potential for litigation. Travel policies may need to be adapted to minimise the negative health impacts of long-haul travel, and increase traveller effectiveness and productivity for business. There is also light at the end of the financial crisis tunnel, as much of Europe trades more positively, despite the significant challenges faced by Greece, Spain, Italy and Ireland. With more generally buoyant trade comes the opportunity for greater investment in people. Training and personal development return to the corporate agenda and interest returns towards environmental issues.
around the world will continue to prioritise projects to meet their business needs and objectives. Whether that primary focus is on the health and well-being of the traveller, cost control or environmental concerns, by working in partnership with the national business travel associations (BTAs) around Europe, as well as planning teams of progressive thinkers, ACTE helps to identify the most pressing issues in each market. ACTE and our BTA partners
all believe in open cooperation without limitation or restriction, and we work collaboratively for the good of the industry as a whole. Being part of the ACTE global community is about investing in your professional development and driving growth and opportunity for your business. Please join us and
encourage your teams to The GTMC column
existing customers being taken for granted, and ignoring the fact that somebody, somewhere in the world is more determined to engage in customer contact and to build customer commitment. They should be concerned that insufficient energy is being put into business development, and searching for new markets and customers – not a good prospect if you are an investor. Let’s encourage businesses
to travel affordably and to facilitate an acceleration of an export-led recovery.
Paul Wait is chief executive of the Guild of Travel Management Companies
The ACTE column
Good duty-of-care is essential, both for travellers’ well-being and increased effectiveness As we enter 2014, companies
attend our education forums in Brussels on February 24, London on March 4, Moscow on March 13 and Dubai on May 20. See the ACTE event calendar for more information and let us know if you would be interested in helping to plan, deliver or support these education events, because ACTE truly is your association.
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Caroline Allen is the Association of Corporate Travel Executives’ regional director. For more information visit
www.acte.org or contact
callen@acte.org
www.buyingbusinesstravel.com
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