7-9 TTGB NEWS 30/1/09 17:31 Page 9
frontline 9
Seeing beyond the short term
The news in pictures
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Lufthansa has opened a premium-class
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Travel buyers should not “We should remember that a above) this April. lounge at Frankfurt Airport. The Welcome
be short sighted when buyer/supplier partnership Weeks said while the Lounge has 1,200sq m of space over two floors.
renegotiating supplier deals, approach is the lynchpin of the economic outlook may seem There is free Wi-Fi throughout, a quiet zone,
according to Doug Weeks, new corporate travel supply chain. It depressing on the surface he bistro and a buffet breakfast.
president of the Association of may be possible to renegotiate a believes creative thinking is key
Corporate Travel Agents. percentage discount to capital- to creating robust, sustainable
The downturn has put buyers ise on current market forces, but purchasing strategies.
in the driving seat for the first goals should be realistic. “It is during challenging
time since 2002, as airlines and “After all, if a buyer can no times that one needs to acquire
hotels scramble for business. longer deliver the volumes new skills, gain fresh insights
But Weeks (inset) is urging promised, by rights the leverage and broaden one’s network,” he
prudent negotiating. “Although should work in reverse.” said. “Better times will return.
it’s a buyers’ market and Weeks, who replaces Richard In the meantime there is still a
corporations are renegotiating Crum of AirPlus, will be officially lot of work to be done.”
supplier deals, they should not introduced to Acte members at ✱ Visit ttgbusiness.com
be too opportunistic and short its global education conference to read the full interview
sighted,” he said. in Washington DC (pictured with Doug Weeks
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Liverpool recorded the highest hotel
occupancy growth in 2008, according to an HRG
Survey shows buyers Consolidate to
report – an 8% increase on 2007. London was
up 3%. The report found that Moscow was the
tightening belts get the best deals
most expensive city in world in which to book a
hotel room for the fourth consecutive year.
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A survey by the Business Travel Show for
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Corporates ought to consolidate their spend
ttgbusiness has revealed the outlook for business with one or two suppliers to ensure they get the
travel is worse than predicted, with almost two best deals this year, according to Virgin
thirds of travel buyers polled saying they did not Atlantic’s general manager Paul Wait.
expect the economic outlook to improve for He said travel management companies should
between 12 months and two years. stop using historical data to predict corporate
Almost two thirds of respondents said they travel spend, as in the current climate it was
would downgrade their air travel, and 11% said almost impossible to predict future spend.
they were planning to in the next six months. “Corporates are acting more like SMEs,” Wait
Just 2% of respondents stated they would said. ”They are looking for best fare on the day,
take more trips as a result of the downturn, they are willing to add a Saturday night stay
while and 38% said they would take the and they are downgrading cabins.” Wait said
same number of trips – but with a reduced the carrier had seen a softening in demand to
budget. New York, but added that Virgin had a broad
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Singapore Airlines has unveiled its new
✱ Full results of the mix of corporates and was not as exposed as its business-class product. It will be available on the
BT Show survey can rivals to the financial sector. airline’s regional and medium-haul routes for UK
be seen on p31 ✱ See Air, p36 business travellers flying onward from Singapore.
.....Green corner: growth outstrips new technology in battle to cut CO
2
emissions, p18.....
ttgbusiness.com❖ february/march 2009
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