p12 news Sept25 23/9/09 18:40 Page 12
news conference report
ttglive.com
The Advantage Conference • September 18-20 • Radisson Edwardian Heathrow Hotel
DISTRIBUTION. BUSINESS TRAVEL.
‘Tailor product or lose out’
TRAVEL companies have been told they must
Agents face PCI rule
offer exclusive product and tailor their
programmes to customer demands if they are
Lee Hayhurst.
“We are working in an environment where
to prosper in the next decade. COMPLIANCE with rules on handling credit card we are required to be PCI compliant but in an
Nick Longman, Tui Travel’s distribution data is one of the biggest issues facing business industry which is not required to be PCI
director, told delegates the days of pushing travel agents, a conference session on sharing complaint.”
product out to consumers that companies best practice was told. The banks’ stance impacts all travel firms
believe will sell were over. Banks, keen to reduce their exposure to taking customer credit card details but is
“Rather than give them what we think they fraud, have set an October deadline for travel particularly problematic for travel management
want, we are changing our product line-up,” he companies to adhere to Payment Card Industry companies.
said. (PCI) rules first established by major credit card Many will book hotels on a bill-back basis
“If you have just got commodity products, you firms in 2006. Companies that fail to adhere using their own credit cards, but hoteliers not
will not make any money in the next decade. It’s could see their terms of business change or subject to PCI rules require sensitive informa-
about having product others do not have.” even have their services withdrawn. tion about the card and even passport details of
Longman told delegates that he was at the What is expected of firms to meet compliance a member of staff before they will take the
conference to thank Advantage agents for is based on their level of credit card business, booking.
their support, saying Tui needed third-party with the larger companies expected to meet the Julie Oliver, managing director of Business
distribution. strictest standards. Travel Direct, said: “It’s right what the banks are
“We have no plans that say we want to sell all But it is feared there is a lack of understanding doing but there needs to be more education
of our holidays through our own channels,” he in the travel sector generally and that this could across the board especially on the hotel front.”
said. mean the security of data cannot be guaranteed. Oliver said agents risked huge bill-backs if
“We always have to think about consumers. Simon New, Inntel commercial director, said: card details are leaked through no fault of their
We have to give consumers choice of when they “Certainly one of the hot topics for us is PCI own. And she said hotels should be aware of the
want to book and where they want to book.” compliance. implications of asking for such information.
FUEL. COMPETITION.
Sunvil in 100% fuel hedge
Big TMCs ‘not a
SUNVIL Holidays has opted to buy all its fuel
upfront for 2010 for the first time to take some threat’ over SMEs
uncertainty out of its projections for next year.
Managing director Noel Josephides said the THE THREAT to smaller independents from the
decision was a “matter of being careful”. big players in the corporate travel sector
He was also worried about what will happen to seeking business from small to medium-sized
the value of the pound, but described currency enterprises has been dismissed.
hedging as “just like gambling”. Asked to respond to the launch of HRG’s new
Tui distribution director Nick Longman said product for SMEs, James Beagrie (pictured),
some of the pain of the strong euro had been managing director of Meon Valley Travel, said
offset by hoteliers and suppliers dropping prices. the big players had never been effective in going
He said in previous years, when continental after SME business.
currencies were strong, destinations had relied “They are just like big sausage machines “From the numbers I have seen they are
on domestic markets to make up the shortfall that are not flexible, that do not focus on margin, anything up to 40% down,” he said.
from the UK, but this year that had not been the that do not teach people how to sell and that do Colin Body, a director at Meon-owned Quorn
case and there was actually good value on offer not promote the personality of their company,” Business Travel, and Simon New, commercial
in the eurozone. he said. director at Inntel Travel, did a job swap for a
Beagrie said a new focus on margin this year session at the conference.
had helped turn around the fortunes of his com- The pair agreed that Advantage members
Advantage 2010: The Advantage Conference pany from 20% down year-on-year to 40% up. should do more to share best practice among
in 2010 will be held in Lucerne, Switzerland, on He said Meon’s performance proved each other.
May 21-23, marking a return to holding the companies could be profitable by properly New said the swap could lead to Inntel’s back
annual event overseas. Consortium bosses said incentivising staff and giving them the freedom and front office systems being offered to other
they felt “morally obliged” to hold this year’s to be commercially flexible. Advantage members, while Body suggested
conference in the UK during the recession. Beagrie offered an explanation for why the big members form partnerships to win business
players might want to target SMEs. they are unable to secure alone.
12 25.09.2009
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