Business Travel


ost driven contracts and how to boost business through a “sluggish 2012” remain two of the key


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themes in the business travel sector, experts have said.


Speaking ahead of the Business


Travel Show, which attracted 1,200 travel buyers and 200 exhibitors at Earls Court earlier this week, Katy Savvides, owner of Sabra Travel, said companies were looking for ways to avoid the costs of travel. “Companies are using Skype, video


conferencing and email instead of face-to-face meetings,” she said. Steve Murray, head of focus


operations at Advantage Travel Centres, said he expected to see more consolidation within the sector, especially with airlines and TMCs. “The buying power of SMEs is


restricted – they will be looking for consolidation and airlines will be looking for alliances,” he said.


TRAVEL POLICY RESEARCH Firms warned over ‘policy neglect’


TWO THIRDS of companies have not updated their travel policy in the past year, potentially leaving their travelling employees at risk. This is according to new research by American Express Global Business Travel, which analysed nearly 100 travel policies of a range of different sized companies. The research highlights major gaps in travel policies, including in the areas of traveller security, reimbursement of ancillary fees, the use of mobile applications and guidelines on booking non-preferred airfares. The report added that it had identified 300 areas that companies


35% – small companies


18 09.02.2012


should be regularly reviewing in their travel policy, including security, fees, and hotel compliance. “The world is changing at such speed that failing to review and revise


profile Show The Agents Lounge returned to the show this year, this time sponsored by Sabre


Murray also said the Olympics would impact businesses as employers look to make arrangements for their staff to work at home. “London-based companies will need to look at their homeworking facilities and flexi- hours,” he said. “And it could make it difficult for companies elsewhere who are trying to deal with firms based in London.”


He added that a third runway at Heathrow was also being discussed again, as TMCs become


more vocal over their fears of losing companies to European countries with better international air links. “We fly to only three places in


China from the UK, but in France and Germany, they fly to 10 or 20 cities. We’re going to lose companies to the continent unless it starts being advantageous for them to remain here. More and more commercial companies are saying that the third runway needs to be put back on the agenda,” Murray said.


policy regularly will undoubtedly prove to be an expensive mistake. From cost control to duty of care and corporate social responsibility, the need for an up-to-date, best practice travel policy is simply too important to be neglected,” said Anthony Drury, head of UK at American Express Global Business Travel.


KEY STATISTICS


12% 20% 70%


35%


of companies addressed traveller security


addressed the reimbursement of ancillary fees such as checked bags


companies that do not provide specific travel guidelines about


airline bookings


of small companies require agents to make hotel bookings, compared


with 85% of global companies


Slow 2012 predicted IN BRIEF C


Agents at the Business Travel Show are expecting the sector to be strangled by the ‘cost factor’ and Olympics this year. By Sophie Griffiths


■BE A STARWOOD SPG VIP Starwood Hotels & Resorts has launched a new Starwood Preferred Guest (SPG) programme after it found that just 2% of its travellers drive 30% of its profits. The new benefits includes 24-hour check-in until 10pm, personal travel ambassadors, and a new top-tier “SPG Lifetime” status.


■KEY BUYS UNI-BRAND DELTA Non-profit sector specialist Key Travel has acquired Delta Travel, which focuses on the academic sector. Delta has offices in Birmingham, Liverpool and Manchester, and has strong links with universities in those cities.


■ACT LIKE A LORD AT DU VIN Glasgow’s Hotel du Vin One at Devonshire Gardens has created a new Downton Abbey- inspired corporate hospitality and conference package. This comes with its own butler, maid and chef.


■ABT SETS UP BATH OFFICE Business travel management company ABT UK has opened a new office in Bath. Two full-time staff will work in the office, organising a range of corporate travel from point-to-point journeys to conference planning.


■BRIGHTON UNI CONFERENCE The Institute of Travel and Meetings and the University of Brighton attracted 100 sixth- form students to its “Travel Professionals of Tomorrow” conference. The ITM accredits the university’s International Travel Management BA (Hons) degree.


■TRAVEL EXEC PAY ‘INADEQUATE’ Over a quarter of travel industry executives describe their payment infrastructure as “inadequate”. This is according to a new report from Ixaris, which said only 9% believe their infrastructure is completely adequate. About 34% of respondents said that travel booking fees and the impact of credit card surcharges on their profit margins were their greatest challenges.


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