SERVICED APARTMENTS
Serviced apartment providers are upping their game with enhanced design, workspaces and technology – but access continues to challenge travel buyers
T
HE CAPACITY OF SERVICED APARTMENTS AND CORPORATE HOUSING may have risen by nearly a quarter over the past two years, but obstacles to their widepread use largely remain, according to The Global Serviced Apartments Industry Report (GSAIR) 2018/19. The report, which is produced by The Apart-
ment Service, highlights a continuing shortage of apartments in popular locations; inconsistent quality and service levels; and lengthy booking processes. Travel buyers also cite a lack of clarity in who owns what as a barrier to growth. Mark Cuschieri, global travel lead for UBS, agrees with the
points raised: “We want to grow our programme into more locations, but the current booking process inhibits that. Those processes need to be integrated into online booking tools, so travellers can make side-by-side comparisons with other ser- viced apartments and with hotels as an alternative. Operators need to give corporates access to richer content and to make booking processes more intuitive – not just on request.” The Association of Serviced Apartment Providers (ASAP) wants to remedy this. It has 193 members in 22 countries, all accredited in those countries. “From 1 September onwards accreditation is a requirement for membership and we will ask anyone displaying the ASAP logo who is not accredited to remove it and to leave the association,” says chief executive James Foice. “Our objective is to push the differentiation of due diligence and duty-of-care.” As part of a five-year plan, ASAP will be launching a new website and Foice will be propagating the association’s views through The Hub. “We claim to be the voice of the industry and now is the time to start commentary on the sector,” he says. The association also aims to double in size over the next five years and form ASAP Chapters, including in the Republic of Ireland. “Where there is a trade body already, we will not set one up but will collaborate with it,” he says.
F 124 SEPTEMBER/OCTOBER
WORDS CATHERINE CHETWYND 2018
The dining room at the Residence Inn Amsterdam Houthavens
buyingbusinesstravel.com buyingbusinesstravel.com 2018 SEPTEMBER/OCTOBER 125 NEW
inding your own space
of them allocate up to
40% 20%
l.
accommodation budget to extended stay solutions, and
mandate the use of a specialist agency
36% BBT BRINGS YOU
A CLEARER VIEW, ONLINE AND IN PRINT
IN FOCUS
LOUD CLEAR
& NEW
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of their
Features have been given a makeover, with a fresh, cleaner design and quick-view stats
WORDS ROB GILL REPORT BACK
TRENDING UPWARD
G
serviced apartments for business travel...
NEW
More than half of corporates use
LOBAL SPENDING ON BUSINESS travel is set to rise to more than US$1.4 trillion during 2018 thanks to strong worldwide economic growth, but further increases could be derailed by trade wars. Research from the Global Business Travel Association (GBTA) found global business travel spend rose by 5.8 per cent year-on-year to reach US$1.33 trillion in 2017. This was led by a nine per cent rise in China, the number one market for business travel with spending of US$346.5 billion. In the US, the second largest business travel market, spending increased 3.1 per cent to US$292 billion. UK business travel spend fell by 0.7 per cent in 2017 to US$50 billion, which the GBTA attributes to “a weakening pound, increased inflation and the associated pressure on consumer spending”. But there has been a
rebound, with UK business travel spend forecast to increase by 6.6 per cent in 2018 to US$53.3 billion. It is expected to rise to US$56 billion in 2019 and break through the US$60 billion mark in 2021.
ON THE UP
Global business travel spend is forecast to rise by 7.1 per cent to US$1.4 trillion in 2018, with 18 of the top 20 business travel markets set to outpace their average spending growth over the past five years. On current projections, total business travel spend will reach US$1.7 trillion by 2022. But the GBTA says going into 2019 there are “more downside risks” that could impede
buyingbusinesstravel.com
In each issue, Report Back will examine an industry white paper or piece of research, highlighting the latest trends
GLOBAL BUSINESS TRAVEL SPEND
$1.33 2 01 7
T RILLION
$1.7 202 2
T RILLION
growth, including rising US interest rates, protectionism and slowing economic growth in “developed” markets. Michael McCormick, GBTA’s executive director and chief operating officer, says: “The direction of trade policy is far and away the biggest wild card that could impact our forecast for global business creating uncertainty that could derail the recovery.”
TRADE WAR FEARS US president Donald Trump’s decision to impose tariffs on imports from China, the
DATA
INDIA ON THE RISE predicted annual growth
5.2%
predicted annual growth in global business travel spend, 2018-2022
in business travel spend in India, 2018-2022
11.3% 2018
In each issue, BBT reports on a major industry white paper or piece of research, bringing you the facts you need to know
EU and other countries has resulted in retaliatory measures stoking fears of an escalating trade war. GBTA says there is a clear correlation between world trade volumes and business travel spend. “Intuitively, this makes sense as the movement of goods and services necessitates people, namely business travellers, supporting global commerce,” says McCormick. China is expected to continue to be the top business travel market and is forecast to add another US$129 billion in spending by 2022, which would
take total expenditure to nearly US$500 billion per annum. The US market is predicted to reach US$354 billion by 2022. India and Indonesia are both forecast to grow at a faster rate than China over the next five years with an average annual rise in business travel spend of 11.3 per cent and 8.7 per cent respectively.
October 2015
GBTA BTI™ Outlook ANNUAL GLOBAL
REPORT & FORECAST
PROSPECTS FOR GLOBAL BUSINESS TRAVEL 2018-2022 AUGUST 2018
$56 2019
BILLION
$53 2018
BILLION
$50 2 01 7
BILLION
BUSINESS TRAVEL SPEND IN UK
SEPTEMBER/OCTOBER 33
NEW
Loud & Clear gives leaders a place to share their back stories, opinions and ambitions. In this issue, Carolyn Pearson, founder of Maiden Voyage, talks about her mission to promote female-friendly business travel
Loud & Clear is a new platform for industry leaders to share their stories and ambitions
It wasn’t meant to be a business. In 2008, I had meetings in Hollywood and then in LA. It came to a
The Bigger Picture focuses on innovation in corporate social responsibility
TIME TO EVOLVE As the business travel industry’s one-stop resource for information – with a reader- ship responsible for £18 billion in annual corporate travel and meetings spend – BBT will maintain its partnerships with key industry conferences, shows and networking events. Editor Matthew Parsons said: “I’m pleased to announce the redesign of Buying Business Travel. We’ve recognised
that our readership has evolved, and how the managed travel ecosystem is changing, too. Our new approach to BBT’s content reflects the ongoing innovation in technology and distribution, its impact on corporates and the supplier community, and the new relationships that are being formed across the sector. “We feel BBT is now better positioned at the centre of these networks to bring company travel and meetings buyers a
Saturday night, and I had no one to go out with, so I started thinking of a social network, and wrote some code. I was later asked to talk at a security conference about female-friendly hotels; I didn’t want to talk about hairdryers in rooms! I talked about duty-of-care. In the past few years, everyone’s wanting to work with us. Corporates originally didn’t want to raise the issue [of female-friendly hotels], as managers didn’t want to be seen as patronising. Now TMCs come to us because they’ve had an RFP that asks how they would look after solo female travellers in the Middle East, for example. Corporates have pushed TMCs to think outside the box.
We only work with TMCs who can embrace change.
10 SEPTEMBER/OCTOBER 2018
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010 LOUD AND
CLEAR.indd 10
31/08/2018 13:18
clearer view, both online and in print, of this fast-paced, ever-changing industry. “We hope the new-look BBT gives you the right mix of information, discussion and inspiration.” Meanwhile,
buyingbusinesstravel.com is currently undergoing a redesign, with other special digital projects coming soon. ■ To stay up to date with the latest news, and have your say on the industry’s hot topics, go to
buyingbusinesstravel.com
buyingbusinesstravel.com
As always, we welcome your feedback. Email
editor@buyingbusinesstravel.com 2018
SEPTEMBER/OCTOBER
7
DIARY
4 October 2018 SAVE
DATE THE
Don’t miss these essential conferences,
exhibitions and events. For a full listing, go to
buyingbusinesstravel.com/ diary/month
5-7 November 2018 World Travel Market ExCeL London, Royal Victoria Dock More than 5,000 exhibiting destinations, technology and private sector companies vie for the attention of 51,000 travel professionals, key industry buyers, journalists, digital influencers, students and tourism leaders.
london.wtm.com
Supported by
8 November 2018 BBT Forum One Whitehall Place, London Wellbeing, sourcing and NDC will be debated, with
Katrina Williams, the Crown Commercial Service’s head of travel, the keynote speaker. Now in its 19th year, BBT Forums are held under Chatham House rules so delegates can debate freely in open, two-way discussions.
bbtforum.com
ITM Scotland Summit The Principal Edinburgh, Charlotte Square This specialist one-day event brings together business travel managers and suppliers to explore trends, innovations and best practice.
itm.org.uk
14-16 October 2018 ACTE Paris Global Summit & Corporate Lodging Forum Paris Marriott Rive Gauche Hotel & Conference Center Content is geared towards travel
managers at all levels, and includes Learning Labs in a “silent disco” format and Lunch & Learn sessions.
acte.org
6 December 2018 Travelogix Client Assembly The Centre, Birchwood Park, Warrington Technology company Travelogix provides travel managers and TMCs with networking opportunities as it unveils new platform, Analytixx2
. BBT is the
event’s media partner. travelogixclientassembly. com
EDITOR’S LUNCH THE BIGGER PICTURE WORDS MAT THEW PARSONS
RWARRIORSOAD M
In a new, regular focus on corporate social responsibility, Capstar founder and chief executive Charlie Bowmont tells BBT how his chauffeur business helps injured veterans
ANY COMPANIES COULD BE ACCUSED of paying lip service to corporate social responsibility; Capstar Chauffeurs certainly isn’t one of them. Founded in 2013, the chauf- feur service – which has just signed a dis- tribution deal with Groundscope – actively recruits former soldiers, with one-third of its employees having been injured during their service careers. Capstar’s founder, Charlie Bowmont, himself a former captain in the Blues and Royals (Prince Harry’s regiment), relates how one employee, former Lance Bombar- dier Dan Richards, lost his right arm and shoulder in 2009. He applied for 327 jobs after leaving the army, without securing one interview. But he found employment with Capstar Chauffeurs. For travel buyers and managers wanting to factor in military-grade expertise into their transportation programme, and give something back, Capstar should allow them to confidently tick both boxes. Before Capstar, Bowmont worked for
Jaguar Land Rover as a consultant, organ- ising events. “I wasn’t impressed with the quality of drivers. I said to Ralf Speth, their chief executive, this is a British brand; what if I gave you some drivers?” Bowmont called on fellow ex-officers and, after running several events for the car manufacturer, decided to set up his own company, initially purchasing ten Jaguar XJs and working for family and friends. Then he opened offices in Brentford, near Heathrow.
SAFE HANDS
The first few years began with corporate roadshows, ferrying executives around the country. However, security soon became an extra service as Capstar decided to
30 SEPTEMBER/OCTOBER 2018
Capstar’s Charlie Bowmont spent six years in the Blues and Royals cavalry regiment
capitalse on the drivers’ military back- grounds and trained them up as close protection officers. Providing ground transport along with security at events is also a growing trend, Bowmont found, and Capstar is currently working with a number of upmarket brands. “There’s no crack between the security and cars, it’s all wrapped up,” he notes. Capstar also runs its own security courses, too, has 100 close protection officers on its books, and operations are carried out 24/7. However, perhaps a victim of its own success, the churn rate is high. Drivers are often poached by the people they are chauffeuring – going on to become their
buyingbusinesstravel.com
personal drivers. “Operationally it’s tire- some,” Bowmont says. “But we’ve had cor- porate social responsibility from the start, as we try to employ drivers who are former officers that were injured in service. We nurture them and train them up.” Another speed bump is the length of time it can take his veterans to gain their licence from Transport for London. “Getting a TfL licence is incredibly debilitating for us. It can take up to nine months from the start of the application to receiving the licence,” he says. “It precludes veterans from working with us immediately. And during those first nine months after leaving the army, they don’t want to be doing nothing.”
buyingbusinesstravel.com
However, the number of potential recruits shows no sign of abating as Bowmont believes overseas security work for veterans has quietened down in the past few years, with “conflicts” across the globe decreasing.
ROOM TO GROW Corporate contracts are another growth area, and Capstar already works with Reed & Mackay and Gray Dawes Group. And the business travel sector could be further buoyed by Capstar’s new integration into Groundscope. To date, Capstar has been “swimming against the tide in terms of apps and technology”, as Bowmont puts it, but this
latest development stands to open its services to a much wider audience. Yet with just 30 vehicles, is Bowmont worried about being overstretched? “We’re growing in a controlled way,” he claims. “We want to sit at around 50 cars. We’ve only ever been at the high end of market.” He also says he wants the company to remain nimble and reactive. He claims, in some cases, a car can be called upon within 25 minutes. Overall, he would like Capstar to be
perceived as “a fun brand” and also as one that has remained committed to its original “altruistic” principles. “We’re not just moving people around the country,” he says. “It’s more than that.”
2018 SEPTEMBER/OCTOBER 31
Throughout the year, Buying Business Travel holds ad hoc Editor’s Lunches. These are exclusive, private events held at London’s Royal Automobile Club, bringing together senior travel buyers to discuss a topic of the sponsor’s choice. The sponsor gains valuable feedback from key industry players, over excellent food and wine in splendid surroundings. The sponsor and event are profiled in BBT, but guests can relax and talk candidly under Chatham House rules, reassured they will not be named in editorial coverage. To sponsor a lunch, or register to attend for free as a buyer, email:
events@panaceamedia.com
buyingbusinesstravel.com
21 January 2019 Business Travel Awards JW Marriott Grosvenor House, Park Lane, London The Business Travel Award ceremony is the best night in the business travel industry calendar for good reason. Yes, it’s a big night for the finalists
and winners, but it’s also a celebration of the industry, a great opportunity to entertain clients, reward staff, network with peers and make new contacts. The evening includes a champagne reception, a gala dinner and a full programme of entertainment.
businesstravelawards.com
2018
20-21 February 2019 Business Travel Show Olympia London Europe’s largest specialised exhibition and conference, bringing together 7,500 European travel professionals. Showcasing expert speakers, a hosted buyer programme and much more.
businesstravelshow.com
30 April-1 May 2019 ITM Conference Hilton Brighton Metropole ITM’s Annual Conference is
one of the highlights of the business travel calendar for buyers and suppliers in the UK & Ireland.
itmconference.org.uk
SEPTEMBER/OCTOBER 51
WE TRY TO EMPLOY DRIVERS
WHO ARE FORMER OFFICERS THAT WERE INJURED IN SERVICE. WE NURTURE THEM AND TRAIN THEM UP
PICKING THE RIGHT MODEL For today’s chief executive, it’s not always
about having a flash car, says Charlie Bowmont, chief executive of Capstar. He is eagerly awaiting the arrival of the Audi A8 hybrid model (pictured below) into his fleet. It’s not “particularly shouty” compared to Jaguars or Range Rovers, so offers more discretion and it ticks the eco-friendly box. “We want to be ahead of the curve, and be seen to be leading by example,” he says.
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