AIRPORTS CONFERENCE
EU airport charges under fire
MAJOR EUROPEAN AIRLINES HAVE HIT OUT at the “inadequate” and “ineffective” EU directive around airport charges. Airline lobby group A4E wants airport charges to be cost-related, efficient and non-discriminatory. It said in its current form, the EU Airports Charges Directive has “fallen well short” of its objectives. “In its current state, the Directive is inadequate and ineffective in protecting airport users and consumers from airports’ abuses of their market power,” said Thomas Reynaert, managing director of A4E. “Airport charges account for up to 20 per cent of airlines’ total cost. In order to protect the interests of passengers, it is vital that charges are justified.”
HOTELS
Average UK hotel room rates drop 20%
AVERAGE HOTEL ROOM RATES in major UK cities dropped by up to 20 per cent in Q3 of last year, according to research from hotel booking specialist HRS. The quarterly figures showed that all major cities across the UK saw a fall in average room rates for this period. Comparing it with the same quarter the previous year, the study showed that Cardiff experienced the largest fall by 20 per cent (£95), with Edinburgh dipping by 17 per cent (£124) and Bristol prices dropping 16 per cent (£103). Down by 15 per cent, Liverpool offered the cheapest average room rate in the UK at £84 a night. The HRS study found that London retained its reputation as the most expensive place to stay in the UK with an average night’s stay at £153. Across Europe, the majority of key
cities saw a “steady” rate rise in Q3 2016 compared to the same period last year. Zurich is now the most expensive city in Europe with average room rates at £160 a night.
18 BBT January/February 2017 Amsterdam
ACTE-CAPA Global Summit
BBT rounds up some of the key themes from the Amsterdam conference
KLM CEO PIETER ELBERS asked the conference: what will be the disruptor in the airline industry, after Airbnb in accommodation, Netflix for TV and Uber for taxis? He also spoke about airline digital strategy and how generic apps, such as Facebook Messenger, are the future.
DISTRIBUTION CAPA’s executive chairman Peter Harbison predicted “dramatic changes ahead” for distribution and started his session with some statistics around the use of business travel: “Between 2014- 16, only 2 per cent flew in business class on flights over 9,000km, flights over 15,000km 4 per cent and over 17,000km just 9 per cent.”
CHINA David Scowsill, president and CEO of the World Travel and Tourism Council, predicted that major industry growth will be driven by the Gulf region and China: “Look what Beijing does in the next few years to see where this sector is heading.”
SHARING ECONOMY One travel buyer at the conference said buyers needed to decide whether to “fight it or embrace” the sharing economy. They added that traveller demand in their company had driven
them to incorporate sharing providers into the travel programme. Another buyer addressed security concerns by carrying out a lot of internal processes, and reminded hoteliers that “they have security issues too”.
AIRLINES Easyjet’s head of business, Anthony Drury, said the airline was starting to look at more of a retail approach to ancillaries. “We have a contained customer for 1-4 hours, we see that as a great opportunity to become a retailer,” he said. “We are starting to digitise the shopping trolley on board and make that more of a retail experience.” EY’s travel buyer, Karen Hutchings, said change won’t be driven by factors such as emerging markets but by the travel- lers themselves. “People want ease of travel no matter where they’re from – access to book quickly and simply.”
HOTEL CONSOLIDATION HRS CEO Tobias Ragge warned hotel average daily room rates (ADRs) will rise on the back of increased consoli- dation in the industry. “Consolidation will be driven by the Asian and Middle East market,” he said. “This will lead to higher ADRs as higher consolidation means more market power.” n Watch video highlights of the conference –
bit.ly/2gvoLQK
BUYINGBUSINESSTRAVEL.COM
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