THE GTMC COLUMN PAUL WAIT
UNLOCKING THE ECONOMY
A vibrant business travel industry is vital for the UK’s prosperity
Y
ou may have noticed that the debate around the future of Britain’s air connectivity seems to have gone a little quiet, with talk of Europe overtaking the issue. But while attention may be diverted momentarily, the
GTMC has been busy reinforcing the link between our industry and economic prosperity to help convince the sceptics that business travel is key to driving the economy forward. A few months ago we commissioned the renowned think- tank Oxford Economics to produce new research looking into the value of business travel on the UK economy. The results are impressive and confirm just how much a vibrant business travel sector can add to the overall economic picture. Throughout the research, there is a clear link between business travel and economic prosperity. Staggeringly, the findings show that if business travel returns to pre-financial crisis levels within the next five years, then £6.5 billion will be added to the value of UK trade. If international air business travel volumes continue on the upward trajectory they have enjoyed since 2010, the return to the wider UK economy would be very significant. The report looked at what the estimated value of business travel is to imports and exports, and to foreign direct investment (FDI). An increase in business travel of 1 per cent grows FDI by 0.3 per cent, the equivalent of a £100 million boost to investment. A return to pre-crisis levels of business travel could grow inward FDI by £1.6 billion. Plus, business air travel plays a greater role in driving exports than imports – a 1 per cent increase in business travel increases exports by 0.05 per cent, and imports by 0.03 per cent, around £160 million and £125 million respectively. Perhaps most powerfully, the report showed that greater trade and FDI provide a boost to productivity. The extra trade and FDI generated from a 1 per cent increase in international air business travel would boost productivity and increase UK GDP by £390 million. The numbers emphatically outline the direct correlation between business travel and imports, exports, FDI and productivity. It shows that travel is not an area to reduce, and greater air connectivity has never been so urgently needed. Thanks to this research, we have proof that international business travel holds the key for British businesses when it comes to unlocking opportunities for growth they may not have considered. It’s up to us as an industry to bring this evidence to wider attention as our ticket to prosperity. We’ve always been clear that travelling for business promotes growth. As an industry, let’s use the research findings to our maximum potential.
BUYINGBUSINESSTRAVEL.COM
Paul Wait is chief executive of the Guild of Travel Management Companies (
gtmc.org)
THE ACTE COLUMN CAROLINE ALLEN
Caroline Allen is the regional director of the Association of Corporate Travel Executives (
acte.org)
RETHINKING BUSINESS TRAVEL
It pays to keep on your toes as regards new industry developments
W
ith a vast array of new products, services, payment solutions, communication channels and apps that can influence the success of your travel programme, it may be time to rethink how to
create and promote the corporate travel policy, literally from end-to-end. Coupled with the business intelligence available through your travel data, your policy can help you redefine and elevate the value of your role to your company. Your travel policy can be a tool to help attract and retain talent. Your travel data is a source of business intelligence that can help identify strategic growth opportunities to enable you to work collaboratively with other internal divisions. Ultimately, you can be a valuable resource to your risk, finance, sales, IT and strategic meetings management teams. ACTE research indicates that the lemon has been squeezed when it comes to air and hotel deals for many mature programmes, so a shift in emphasis is required. Ask yourself: is your policy designed to meet overall company objectives? Is it succinct, accessible and easy to support? Instead of creating policies around preferred suppliers, more travel buyers are focusing on how greater compliance can be achieved. It’s a subtle but important shift. By ensuring the choices in your programme suit the needs of your travellers, greater compliance and increased negotiation influence is achievable. It’s an accepted fact that frequent travellers will often
circumvent and undermine the policy if they think they can find cheaper rates and fares, but changing the way you communicate can have a dramatic effect on adherence. More companies are creating animated video messages, using simple language, to communicate the booking channels and processes that should be used and why. Your policy should be a living document, constantly revisited, updated and tweaked to help you hit your targets. Refining your communications channels can help drive behaviour that supports your overall company-wide goals. The next BBT/ACTE London and Dublin forums will focus on ‘Policy: Design and Integration’, and it will almost certainly be on the ACTE/CAPA Summit agenda (October 26-28). Watch this 60-second video and see why it’s worth your time to attend ACTE’s Autumn Summit:
bit.ly/ACTECAPAGlobalSummit With almost a dozen CEOs already confirmed on the agenda, it is the most important global industry event where you will hear insights and make connections to help you shape your corporate travel strategy and take your career prospects to the next level.
BBT JULY/AUGUST 2016 95
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