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UpgradeElevating business travel intelligence
Summer 2018
FCM TRAVEL SOLUTIONS UK
What are the key ingredients for
traveller well-being?
fadvert
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Lisbon and Portoare closer than ever
Now also from London City Airport with up to 3 daily flights.
100 direct weekly flights this Summer to Portugalfrom London City Airport, Heathrow, Gatwick& Manchester.C
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0518 ad UK Upgrade mag.pdf 1 22-05-2018 13:01:59
At FCM, the start of the
summer season also
marks the end of our
financial year. So it’s not
just a time for looking
forward to a summer holiday, but also
for reflecting on how our business has
performed over the last 12 months.
And what an amazing year it has
been! I am delighted to report that
we have won a record amount of new
business nationally and globally since
last July. And we have also retained
the custom of a record number of
our clients, in particular several major
companies following extensive re-
tender processes.
Much of this success has been due to
FCM’s renewed focus on developing
ground-breaking, innovative,
customer-led technology, such as
Sam, Seeqa and FCM Connect, whilst
also staying true to our ethos of
personal service.
But we can never be complacent.
Business travel will continue to
be a diverse and fast-changing
environment. Rest assured, FCM will
continue to be at the forefront of
that change over the next 12 months
and beyond in order to flex with the
needs of our clients.
In the meantime, have a great summer!
Jo GreenfieldUK General Manager, FCM Travel Solutions
4
Welcome
4 Value creation Traveller centricity? Mark Frary outlines what’s changing and why it matters
8 Healthy choices The stress points of frequent travel and implementing solutions to drive travellers’ well-being
10 Downloading Amadeus Upgrade interviews Rajiv Rajian, Amadeus EVP Business Travel Agencies
12 FCM news What’s happening at FCM
14 Comparing like with like Catherine Chetwynd unravels ‘extras’
17 Singapore Our guide to this financial hub and gastronomic heaven
19 Soweto Support See what FCM UK staff are achieving for one infant school
20 Blockchain unwrapped Linda Fox explains how blockchain could revolutionise business travel.
23 Back to school Tips for where travel managers can gain skills and learn about the market
25 Airport meetings Upgrade highlights some airport venue options
We’re dreaming about our summer holidays. The sun, sea and cocktails beckon but getting there has required online research and booking. And the experience can differ from that for a work trip.No wonder that one of travel management’s mantras is that business travellers
expect what they get in their private lives in their business lives.
This issue of Upgrade focuses on traveller experience, health and well-being and
that’s very much about the convergence of leisure expectations and corporate reality.
For some traveller centricity means an opportunity for bleisure; for others it means
reducing traveller friction and addressing work-life balance.
But how do you adapt your travel programme without reducing compliance or
increasing cost?
A good place to start is by listening to experts and finding out how peers have
addressed these challenges.
This issue has tips on where travel managers can go to ‘learn’.
And where are you going on your summer hols?
Summer 2018
Betty Low, Editor
Contents
EDITORIAL
EDITOR | Betty Low
CONTRIBUTORS | Catherine Chetwynd,
Linda Fox, Mark Frary
FCM EDITORIAL ADVISER | Vanessa Aves
ADVERTISING
ADVERTISING SALES | Sue Robinson
DESIGN
PRODUCTION & MANAGEMENT
WonDesigns, Caren Johnstone
DESIGNER & ILLUSTRATOR | André Albuquerque
PUBLISHING
MANAGING DIRECTOR | Sue Robinson
PRINTING
REDBOX | Ed Cooling
©FCMUPGRADE 2018
New business enquiries:
Editorial and advertising enquiries:
flytap.com
Lisbon and Portoare closer than ever
Now also from London City Airport with up to 3 daily flights.
100 direct weekly flights this Summer to Portugalfrom London City Airport, Heathrow, Gatwick& Manchester.C
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0518 ad UK Upgrade mag.pdf 1 22-05-2018 13:01:59
Value creation
WHAT HAS CHANGED?
Market researchers Gallup have been
measuring employee engagement since
1997. In its most recent study of 1.8 million
employees in 73 countries it found that
companies in the top quartile for its Q12
employee engagement metric significantly
outperform companies in the bottom
quartile: their customers are on average
10% more loyal, productivity is 20% higher
and, perhaps most important of all are 21%
more profitable. More engaged employees
mean your business performs better.
This business philosophy is the
cornerstone in Vineet Nayar’s
best-selling book Employees First,
Customers Second. In it he writes, “The
role of the CEO is to enable people to
excel, help them discover their own
wisdom, engage themselves entirely in
their work, and accept responsibility for
making change.” Nayar, who has made
outsourcing firm HCL Technologies a
$19 billion giant, says this idea is key to
the company’s success.
This employee-led focus intersects with
business travel in a number of ways.
WORK-LIFE BALANCE
Employees are increasingly looking
for work-life balance. This has led
to an increase in employees seeking
bleisure trips, ones that blend business
and leisure. An FCM survey of 6,000
international travellers found that bleisure
travellers were tacking on an average
of two to three days onto their business
trips and dipping into their own pockets
to the tune of $1,000 to $2,000 to do so.
Bleisure trips have come to be
associated with millennials and it is easy
to see why. A business traveller at the
start of their career may well be single
and have no family ties keeping them
at home. However, that is too simplistic
a view and older travellers are also
wanting work-life balance, particularly if
any children have left home.
Work-life balance is becoming so
important that one of Britain’s major
recruitment firms says that employees
are willing to change jobs to find it.1
Travel policy is a vital pillar in an
employee-centric organisation and one,
according to the GBTA Foundation, that
TRAVEL MANAGERS
1UK Salary and Recruiting Trends 2018, Hays. 2Creating a Frictionless Travel Experience, GBTA Foundation.
*Based on FCM global MNC data sourced from ClientBank in April 2018 and 2017 MNC client survey
If you have been to a business travel
industry conference recently, you will
almost certainly have listened to a
session about traveller centricity. Every
magazine seems to have articles on the
subject while industry suppliers raise it
regularly in their discussions with you.
But why should that be? What is it that is
making traveller centricity such a hot topic?
For most of recorded history,
companies have largely been
management or owner-centric – where
great businesses are created by
visionary leaders and employees are
just raw materials like steel or cotton to
be used to produce the final product.
Yet a growing number of companies are
treading a different path – an employee-
centric one in which workers are the most
important part of the business engine.
Traveller centricity has moved beyond a
flirtation with open booking. Mark Frary
looks at where the trend is heading
Staying on for some leisure*
US$1000-$2000Average personal cost
2-3 DAYSAverage add on
04 Summer 2018
TRAVEL MANAGERS
“There is now more of a channel to the
end user and we can show them metrics
on how their booking affects the bottom
line,” says Reddie.
DEMONSTRATING VALUE
A traveller-centric programme can
also help travel managers demonstrate
their value.
“From a travel manager or procurement
sense, we have a lot of clients and
prospects who want to be seen to
be driving
innovative travel
programmes.
They want
to know how
they can use
technology
to drive the
programme,”
says Reddie.
Technology
comes into this
because it can
help reduce the
complexity of
introducing such
a programme.
Travel managers
are often
concerned that
giving travellers
more freedom
leads to less
control.
TRAVELLER EXPERIENCE
Traveller experience is all-important
in a traveller-centric programme. The
2017 GBTA Foundation research cited
above showed that the travel experience
is important for 83% of travellers in
Europe, compared to 79% in North
America. It looks set to become even
more important as younger generations
of traveller move up within companies.
The research showed that for millennials,
88% of travellers in Europe and North
America wanted satisfaction while
travelling to ensure they were satisfied
in their job as a whole.
“Companies are investing a lot more
time in the end-user experience than
they were five years ago,” says Reddie.
Yet more companies are exploring
the idea.
“We are having a lot more conversations
about what would it cost to improve
the traveller experience, he says.
“Companies want to quantify the effect
on their
business of,
say, allowing
business class
over six hours
instead of over
eight hours.”
FCM’s survey
of 6,000
travellers said
that while
access to a
wider range of
content was
key to having a
good traveller
experience,
there are
specifics that
road warriors
are seeking in
this new world.
FCM’s global managing director Markus
Eklund says, “With the New Distribution
Capability programme entering the
market, along with increasing platform
integration it will not only change the
landscape of ancillary services but
enhance the traveller experience in
new ways.”
The survey showed that the ability to
select seating options was particularly
desirable to achieve a good experience
on the road.
The traveller experience is increasingly
going to be delivered by mobile apps. It
is very noticeable while travelling today
how many people have their heads
down in a smartphone rather than the
newspaper or book that might have had
them engrossed in previous decades.
The survey found that travellers are
using an average of three travel apps.
What they want from these apps is
illuminating: they want live updates,
direct contact with their travel
consultant and a single place to do
airline check-in.
can directly affect a company’s ability
to recruit and retain key talent: half of
European travellers say that a company’s
travel programme is a key consideration
when looking at a new employer.2
Scott Reddie, FCM’s Global Director
Account Management, says that this
view of travel policy is becoming
more common and the company is
increasingly reporting on measures
such as traveller friction, the metric
popularised by business travel guru
Scott Gillespie for quantifying the wear
and tear that business trips demand of
regular travellers.
This is particularly common in the high-
tech industries.
“For many Silicon Valley clients, travel
policy is a tool for attracting and
retaining talent. There is high demand for
the services of tech workers and if you
are a tech guy and a company can fly
you business class that is going to affect
where you end up working,” says Reddie.
A traveller-centric travel programme
does not have to mean a free-for-all
where travellers can choose whatever
they want.
“The concept of open booking turned
out to be a little like the threat of the
Y2K bug – it never materialised,” says
Reddie. “We had a few companies that
tested ideas but it never really went
anywhere. Yet we are definitely seeing
more generous travel policies that put
the traveller at the centre.”
GAMIFICATIONGamification, much talked about over
the past few years, is now starting to
become a reality, driven by the traveller-
centric trend.
Data has migrated from a central
hub in which the travel manager sits
to a distributed world where data is
collected and can be pushed out to
the traveller’s smartphone – 5 billion
of them and growing, according to the
latest global statistics.
How old is our traveller?*
30%
30-39yrs 33%40-49yrs
28%50-65yrs
1%65yr+
THE AVERAGE AGE FOR OUR TRAVELLERS IS 41
18-29yrs
9%
Where is everyone sitting?*
71.8%Economy
23.7%Business
2.7%Prem.Economy
1.7%First
TOP 5 INTERNATIONAL DESTINATIONS
Sydney Boston London Dehli Frankfurt
(4hr international flights)
05FCMUPGRADE.COM
This is why FCM has invested heavily in
the launch of its own highly interactive
and travel-savvy Smart Travel Assistant
for Mobile, or SAM, an AI-powered
virtual assistant which helps travellers
out on the road.
While they may use a more traditional
method to book their trip, using a
consultant, by phone or email, or an
online booking tool perhaps, once on
the road, the mobile app is your mobile
travel consultant.
Reddie says, “With the mobile platform,
people use it for changing their itinerary
while the chat functionality with a live
consultant is a massive win. People
like the technology but this is not just
a chatbot flicking back automated
messages, it is a blended experience of
live consultant and smart technology.”
TRAVEL MANAGERS
Traditional vs Traveller-centric
TRADITIONAL MODEL TRAVELLER-CENTRIC MODEL
Traveller phones or emails booker to share general outline of trip. Booker responds with options. Research options may be limited causing traveller dissatisfaction
Traveller carries out own research using online booking tool (OBT), TMC app, supplier websites and online travel agents (OTAs). Travellers can access a wider range of content, making them happier
TRAVEL POLICY
Options returned by booker comply with travel policy. Traveller can request out-of-policy options but this is flagged. Policy will be dictated by airline deals and hotel rate agreements and is likely to focus on best value, or more often, lowest price
Best options offered by OBT and TMC app are within policy although others may be shown. Options booked via supplier website or OTA may be out of policy.
An intentionally traveller-centric policy may offer a wider choice of options and perhaps offer open booking or hotel price caps rather than specifying particular airlines or hotels
Often billed through lodged account and sometimes through personal corporate card
OBT and app bookings through lodged account or personal corporate card. Other bookings through personal corporate or individual credit card
Data collected on all bookings through preferred channel
Data collected on bookings through
OBT and app but probably not
on bookings made through other
channels
Made via booker or through TMC app
Made via booker or through TMC app for preferred channels. Traveller will have to arrange own changes for other channels
Travel manager knows where traveller is at any given time as everything has been booked through the preferred channel. Security and safety notifications delivered through traveller tracking platform, email and mobile
Travel manager has gaps in their knowledge of where the traveller is for bookings outside preferred channels
PAYMENT
ITINERARY CHANGES
DUTY OF CARE
RESEARCH
“We are definitely seeing more generous travel policies that put the traveller at the centre”Scott Reddie
FCM
Integration is vital for SAM. “There
are fundamental things you want
have to rely on and by focusing on
the integration of those, it makes the
platform more relevant,” says Reddie.
“For example, if you are going to land at
an airport, you want to have ridesharing
from the airport integrated into the app.
It improves the traveller experience.”
TECHNOLOGY IS NOT EVERYTHING.Marcus Eklund says, “We are investing
heavily in technology and product
integration to align with growing
demand but in our experience
corporate travellers certainly still want
to talk to people for assistance and
complex bookings. High service will not
give way to an offering solely focused
on technology, it will run concurrently.”
In a traveller-centric world, service is
the bottom line.
DATA
06 Summer 2018
TRAVEL MANAGERS
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It’s not just George Clooney in Up in the Air to blame. Airline ads have a
habit of showcasing their cabin crew
dealing with requests for roast beef
off the serving trolley when they’re
not focused on pouring the claret.
For better or worse, business travel has
the image of being glamorous and a
career aspiration. The reality for many is
quite different.
“A review of past scientific studies
noted, frequent business travel,
especially long-haul travel, accelerates
aging and increases the likelihood of
suffering a stroke, heart attack, and
deep-vein thrombosis.”1
According to another study, “frequent
travel leads to unhealthy lifestyles
(eg, poor diet, lack of exercise, excess
drinking), while jet lag causes stress,
mood swings, disorientation, sleep
problems, and gastrointestinal problems,
all of which impair job performance”.2
The high usage and apparently
unhindered steady growth in business
travel is in stark contrast to executives’
increasing use of online rather than
offline for their communications.
Face-to-face meetings are invaluable
to building business relationships
Its findings included that “the top ‘perk’
of business travel among all groups
is the ability to see new places, and
the top detractor among all groups is
spending time away from the family.
“Choice is a key driver of satisfaction
among those who view themselves as
happiest with business travel. Those who
are able to choose the travel provider
(airline, hotel, car rental provider) are
significantly more likely to be satisfied
than those who are required to use the
employer’s preferred vendor.”4
The importance of personal choice
to a traveller’s well-being was also
the finding of a survey by the Global
Business Travel Association: “Two out
of five of business travellers in Europe
(41%) say they have booked a business
trip out of policy to lower stress/anxiety
while travelling.”5
The GBTA also asked travellers “What
do you see as the greatest challenge
you face when traveling for business?”
and developing new business in new
markets. A study by Oxford Economics
found that both executives and business
travellers estimate that 28% of current
business would be lost without in-
person meetings.3
A strategic business travel programme
can contribute to the financial health of a
company but what does it do to the men
and women who are regularly getting
on planes and spending time away from
family and friends?
DIET AND EXERCISE
Even the most health-conscious
business traveller can struggle to
maintain a healthy diet while travelling.
Most meals will be consumed in
restaurants where fat and sugar are
liberally used to create the food that’s
popular on menus but travellers can
follow a few simple rules to make their
away-from-home diets healthier.
The lack of exercise that comes from
sitting in an airline seat and being
whisked by taxi from destination to
destination can also take a toll but
a strategy of including properties
with gym and fitness facilities in the
corporate hotel programme can go
some way towards keeping travellers’
minds and bodies fit.
To travellers a poor diet and lack of
exercise can pale in comparison to the
effects of being away from friends
and family.
TRAVEL AND TRAVELLER WELL-BEING
Global expense management company
Chrome River conducted research
among US, Canadian, British and
Australian travellers to discover the
relationship between travel policy
and traveller satisfaction. The survey
was completed by 1,456 people who
travelled a minimum of three times a
year for business.
“Even the most health-conscious business traveller can struggle to maintain a healthy diet while travelling”
Healthy choicesBusiness travel may drive company
prosperity but it can have consequences
for traveller health. What might improve
traveller satisfaction?
CONVENIENT/
COMFORTABLE HOTELS
NON-STOP FLIGHTS
A B
BOOKING FLEXIBILITY
PAID TIME OFF FOR LONG TRIPS
1Scott A Cohen and Stefan Gossling, A darker side of hypermobility, Sage Publications, 2015. 2Tomas Chamorro-Premuzic, The Health
Risks of Business Travel, Harvard Business Review, November 3, 2015. 3Oxford Economics, The return on investment of US Business Travel,
2009. 4Chrome River, 2017 Global Benchmark Survey: Business Travel Satisfaction.
08 Summer 2018
TRAVELLERS
Source: GBTA, Creating a Frictionless Travel Experience
The top answers were “The time it
takes” and “Finding a balance between
the time spent travelling and being
away from family/friends”. This echoed
the Chrome River study finding that
“Spending time away from the family”
was the most frequent answer to
“What is the Worst Aspect of Business
Travel?” with 35% of both medium
and frequent travellers as well as Brits
giving it as their answer. This was also
the highest scoring reason for all age
groups although it was thought so by
only 30% of Millennials in contrast to
40% of Generation X and 36% of Baby
Boomers. The differences might very
well be attributed to the likelihood of
family responsibilities at different ages.
An executive may have to travel
to deliver on their corporate
responsibilities but there are things
that corporate travel policy can
address to improve the well-being of
their employees (see chart).
• Impact on ageing
• Exposure to rising radiation levels
• Effects on immune systems
• Higher risk of obesity
• Concerns about mental health
• Impact on stress levels
Health impacts for business travellers
Satisfaction with Booking Process by Managed vs Unmanaged
The GBTA report seems to indicate
that a more flexible travel policy and
delegating some of the decision-
making can make a huge impact on
traveller satisfaction and therefore
well-being. It concludes, “Importantly,
traveller well-being can align with other
company goals. For instance, two out
of five business travellers in Europe
have booked a trip out of policy to
lower stress or anxiety while travelling.
A better travel experience could make
some of these bookings less likely.
Frictionless travel might be impossible
to attain on every trip, but a better
experience can still be the goal and
ultimately can also make it easier to
attract and keep top employees.
Source: Maxis (Met Life and AXA),
Business Travel – Good for business,
bad for health? The potential impact of
frequent, long-haul travel on the health
and wellbeing of your employees
To What Extend do the Following Influence Your Business Travel Experience? % saying "a lot"
62%
54%
40%
39%
29%
29%
25%
17%
CARRIER TYPE
CLASS OF SERVICE
BEING ABLE TO EXTEND A
BUSINESS TRIP FOR LEISURE
BEING ABLE TO BRING
FAMILY OR FRIENDS ALONG
75%MANDATES GUIDELINES
81%UNMANAGED
93%
Source: GBTA, Creating a Frictionless Travel Experience
5GBTA and Sabre, Creating a Frictionless Travel Experience A global study on business traveller
satisfaction, October 2017.FCMUPGRADE.COM
George Clooney at the "Up In The Air" LosAngeles Premiere © Photographer: s_bukley/Shutterstock.com
09
Downloading Amadeus
FCM’s technology partner is a leading player in
the distribution revolution. Upgrade navigated the
changing landscape with its EVP Business Travel
Agencies, Rajiv Rajian
10 Summer 2018
INTERVIEW
IATA, the airlines’ trade body, has
consequently been working with GDSs
and some of their clients to develop and
implement NDC, the new distribution
capability by which travel management
company corporate clients will be
able to have a research and booking
experience similar to that of the airlines’
own web sites.
The onward march of NDC means that
travel distribution and merchandising is
bound to change. Amadeus is working
with selected partners to enhance
the “digitalisation” of the industry and
increase and improve options and
processes for airlines, intermediaries
and their customers.
Amadeus’s role in this evolution is
“massive”, according to Rajian. The
20-year travel industry veteran says,
“The investment to make it work end-
to-end is a massive undertaking for us
but I believe we have the technology to
deliver on commitments.
“There’s more and more content out
there from suppliers. We’re looking
to integrate traditional content and
NDC content and make it seamless for
corporate customers.
“Our goal is to bring NDC to the
forefront.”
According to Rajian the fact that
airlines like NDC because it promises
to generate extra revenue does not
preclude benefit for both corporates
and travellers. He says, “We believe
NDC has the potential to deliver new
benefits of all players. This is why we’re
investing. From a traveller perspective
they want consistency, transparency
and choice.”
And he should know. Rajian himself
is one of Amadeus’s most frequent
business travellers.
“The speed of change in the travel industry continues to increase”
NDC (IATA’s New Distribution
Capability) has been lurking
in the wings for at least
half a dozen years. But this
year it’s taken centre stage,
prompted in no small part by Lufthansa,
IAG and Air France KLM all announcing
their intention to levy booking fees for
any direct bookings made via the GDS.
FCM customers, however, will enjoy an
exemption from charges on BA and
Iberia bookings because Flight Centre
and the two carriers have agreed to
work together on developing the future
roadmap of NDC with a view to begin
integrating content via this channel
during 2018.
Flight Centre is doing this with
technology partner Amadeus.
Amadeus is one of the three large travel
technology companies which distribute
suppliers’ content to intermediaries,
notably travel management companies,
who in turn do the booking and
fulfilment for clients.
It is commonly referred to as a
GDS – global distribution system –
because that is how it started life but
rapid developments in technology
in the twenty-first century mean
that distribution, although still vitally
important, is only one element in the
travel technology portfolio.
It is a trend that Rajiv Rajian, EVP
of Business Travel Agencies, Travel
Channels acknowledges: “One thing that
is constant is the speed of change in the
travel industry and that speed continues
to increase. It’s not static.”
He strongly believes that the changes
in business travel distribution are a
direct result of changing customer
needs. For example, he believes that risk
management has moved from a tick box
to a strategic necessity. “[Corporates
need to] look after their business
travellers so they arrive home safely.
This is more important that it was 10
years ago because parts of the world
are more volatile.”
The nature of the demand for some
elements of travel programmes
that have always been important to
suppliers, TMCs and corporates is
changing. A notable example of this
is content. According to Rajian, “The
business traveler is looking for more
choice and that is accelerating.” He
boasts that Amadeus has the “broadest
selection of content” including over 700
airlines, 800,000 hotels, 90 rail lines,
53 car rental companies and 16
insurance providers.
But corporates’ – and suppliers’ –
attitudes towards content access
are changing. Ten years ago the
familiar refrain was for “full content”
agreements and access. The demand
for content may be greater but
technology and market developments
mean the approach too has changed
and there is more of a clamour for
relevant content rather than full content.
Earlier this year Amadeus announced
NDC-X, a programme to respond to
the inevitable consequence of
increasing personalisation that
“travellers expect brands to know them
and adapt offers accordingly”.
In their private lives business travellers
are accustomed to being able to access
the same information and purchase the
same content on different channels.
This has not been possible in the past
when buying business travel because
the legacy GDS did not contain all
the product information that was on
airlines’ websites. Nor did it allow all
components of a journey – so-called
ancillaries such as seat selection or
a checked bag – to be booked and
purchased at the same time.
Airlines devote a lot of time and money
to differentiate their products through
marketing and develop their websites to
show product differences and provide
greater functionality such as the ability
to pay for extras with the booking.
Margin-conscious airlines crucially want
that revenue and are also seeking a
lower distribution cost per segment
than they have historically paid GDSs.
The GDS has worked well for more than
half a century in delivering one effective
and comprehensive travel platform.
But that legacy system does not have
the rich content and fuller options that
customers want and the airlines want
their customers to have access to.
“We’re looking to integrate traditional content and NDC content and make it seamless for corporate customers”
11FCMUPGRADE.COM
FCM has released a White Paper which examines how
corporates can make use of behavioural economics to reduce
traveller friction.
According to FCM, traveller friction is exacerbated when travel
policies are too rigid or inflexible, fail to factor in the human cost
of travel or prioritise financial savings over traveller well-being.
The report flags warning signs of traveller friction including
employee absence post-trip, resistance or reluctance to travel,
poor employee retention among frequent travellers, frequent
non-compliant bookings and unproductive business trips.
“Behavioural economics looks at how people make decisions
about what they will buy, how much they will pay for a product
or service and what factors drive these decisions,” says Jo
Greenfield, UK General Manager, FCM Travel Solutions.
“Traveller friction can occur when your people are travelling too
much or they are having poor travel experiences in-trip. In order
to address the causes, you need first to identify and understand
the key challenges your travellers face. These insights into
traveller friction can then be used to tweak your travel
programme to achieve better compliance and engagement –
and to reduce the human cost of frequent travel.”
By understanding behavioural economics, travel managers
can implement subtle changes to their travel policy to ‘nudge’
travellers to make cost-effective or time-effective choices, the
White Paper explains. For example, offering travellers a choice
of three different hotels, at different price points, instead of two,
leads to the majority selecting the mid-priced option.
The report also highlights how business travellers value simplicity
within the travel process from the use of digital passports via
smartphones to keyless check-in and cardless payments.
A copy of the White Paper is available on the FCM website
(https://www.uk.fcm.travel/white-paper-download-
behavioural-economics-and-your-travel-programme)
NEW EUROPEAN HEAD FOR FCM
FCM and parent company Flight Centre
Travel Group have joined forces with
Amadeus in the development of its new
NDC-enabled solution for business and
retail travel agencies. The move means
that FCM is the primary TMC customer
working with Amadeus to shape the
technology provider’s NDC-X programme.
Marcus Eklund, Global Managing
Director, FCM said: “We believe NDC
will play an increasing role in travel
distribution and our priority is to ensure
that our customers benefit positively
from the opportunities it presents.
Together with Amadeus, our objective is
to find the best possible way to integrate
NDC content so our consultants can
service their customers quickly and
simply, providing them with an even
richer choice of fares and the option to
Andrew Boxall has been
appointed to the new role of
European Managing Director
for FCM. Based in London
he will be responsible for
overseeing and growing
FCM’s businesses on the
European continent. Boxall’s
extensive career with Flight
Centre Travel Group spans
20 years in diverse retail,
procurement and corporate
product
roles.
For the
last nine years he has held
the position of Managing
Director for Flight Centre
Travel Group in the United
Arab Emirates, playing a
significant part in growing
the business to an annual
turnover of USD 100 million.
FCM DRIVES NDC ROADMAP WITH AMADEUS
Marcus Eklund, FCM Global General Manager with Gianni Pisanello, Amadeus VP NDC-X Program
Summer 201812
NEWS
TOP STORY
Reducing traveller friction
FCM played a leading role at the
Institute of Travel Management’s recent
conference.
The ITM is the UK and Ireland’s buyer-
led organisation with 3,700 members
of which 900 are travel buyers. The
organisation’s annual conference,
which was this year held in early May
in Aviemore, featured an extensive
programme of plenary and break-out
sessions examining trends and hot
topics in the business travel industry.
FCM supported the event as a gold
sponsor and also showcased its new
online booking tool Seeqa on the
TMC’s stand in the exhibition area. Plus
Graham Ross, FCM’s Head of Sales,
represented FCM on a panel which also
included suppliers and buyers entitled
“Fixing a Broken Process – RFP Tennis”.
The session encouraged delegates to
think outside the box when approaching
RFPs rather than automatically
repeating what had been done before.
Ross commented: “These events are
vital for educational and networking
processes for all the delegates and
FCM has announced plans to enhance
its AI ‘pocket travel assistant’
application Sam with extra features for
use by travel managers, in response to
client demand for greater visibility of
their travellers in-trip.
Sam blends a powerful mix of Artificial
Intelligence with the expertise of real
FCM travel consultants to deliver
personalised, relevant information to
business travellers’ mobile devices
through a chat-based interface.
The new version for travel managers,
EAs and bookers will help them to
manage their current travellers and
itineraries, so that they are aware of
potential issues, can take appropriate
action or communicate directly with the
traveller to ensure their wellbeing.
Meanwhile the premium version of Sam
for use by FCM clients’ travellers, which
was launched via the global app store
last November in the UK, USA, Canada,
France and Switzerland, has now been
deployed in 15 additional markets
including: Hong Kong, Singapore,
Germany, Belgium, Netherlands and
the Nordics. Sam’s premium features
include auto-synching the traveller’s
bookings, integrated self-booking
tool,live chat with an FCM consultant
to provide service and make or amend
bookings on the move; and the option
for the user to ‘share location’ via FCM’s
Secure risk management technology.
Sam will also soon provide enhanced
safety and duty-of-care features as
the app will recognise the traveller’s
location via a blend of itinerary
information and GPS and match this
to any critical incidents, triggering real
time relevant alerts with an ability to
respond with appropriate action for the
individual traveller.
Another new feature in the pipeline is
Sam Community – a chatbot assisted
‘community’ for business traveller
users to share tips and advice, anything
from flight delay updates, to quiet and
comfortable places to rest or the best
place to find power-points in an airport
to charge a laptop.
FCM PLAYS LEADING ROLE AT ITM CONFERENCE
SAM ADDS FEATURES FOR TRAVEL MANAGERS
suppliers who attend. These sessions
are extremely useful and you can
guarantee you will learn something you
didn’t know before.”
See “Back to School”, pp 23-24
FUTURE OF TRAVEL TODAY
A new campaign ‘The Future of
Travel, Today’ has been launched
by FCM to showcase the TMC’s
progressive approach to using
technology and innovation to improve
customers’ business travel experience.
At the heart of this journey is FCM
LAB, which brings together experts
around the globe who are dedicated
to testing, building and delivering
ground-breaking new solutions. The
highly visual campaign will feature in
FCM white papers, website and social
media channels.
book NDC-powered ancillary services
within our core booking systems.
“We have been asked frequently if we
are afraid of NDC. But the answer is
‘No’. We see great opportunities and
are proud to be on this journey with
Amadeus in defining how NDC becomes
a reality in the corporate travel sector.”
See “Downloading Amadeus”, pp 10-11
13FCMUPGRADE.COM
Comparing like with likeThere is no standard menu for
what airlines and hotels consider
to be “extras”. Catherine Chetwynd
describes the challenges in evaluating
options and analysing data.
Airline fares were once
all-inclusive – checked
baggage, a designated seat
and a meal. But when low
cost carriers took to the
skies, such so-called ‘extras’ became
an optional extra cost. As a result,
ostensible fares dropped measurably.
Legacy airlines followed suit to compete.
The total cost of a hotel room has been
similarly disaggregated. Breakfast was
generally only included with “executive”
accommodation but use of a gym and/or
pool came with the room rate. However,
because hotels had entered into
expensive contracts with WiFi providers,
access to the internet came at a price.
WiFi is now pretty much a given but
premium WiFi often attracts a charge.
Gym facilities have been upgraded but
are now generally run on a franchise
basis which means income for the hotel
but a fee for customers. Parking charges
vary between city centre, airport or
country and the model on which a
property is run also affects pricing. In
short, it is all much more complicated.
“WiFi has become a commodity and many
hotels do not charge for it,” says hotel
industry consultant Melvin Gold. “Because
people bring along devices and want to
stream content, which can take up a huge
amount of the hotel’s bandwidth, some
hotels have a two-tier system, where you
can easily pick up emails but if you want
to watch football on line, you are going to
struggle or pay for premium WiFi,” he says.
“Where WiFi is not free, it would generally
be packaged with a corporate contract
because it is not worth a hotel losing a
corporate agreement for the sake of
£15 on WiFi.”
“People are now trying to sell other
products on the back of WiFi,” continues
Gold. Hotel companies now commonly
have a coffee bar or café which they
encourage guests and the public to use.
Because these are often franchised, like
gyms, companies can have a Costa or
Starbucks included in their negotiated
room rate. “The traveller enjoys it, it
improves their feeling of wellbeing, their
company is getting a nice cost benefit
and it does not cost the hotel a great deal
to give it,” says hotel product manager –
corporate team leader for Flight Centre
Travel Group Rachel Newns.
A hotel breakfast can otherwise be
expensive – up to £30.00 – and time-
consuming and, if negotiated into the
rate, could leave a company paying for
a buffet groaning with food which their
travellers are not eating.
Radisson Hotels is experimenting with
a grab & go breakfast. “The majority
of corporates want room only. That
applies to 75% of the corporate rates we
have,” says Radisson’s Sean Philby. “We
have a handful of corporate clients who
still require B&B and we will negotiate
that but it is difficult from their and our
perspective because they can’t predict
how many breakfasts they are going to
have to pay for and we don’t know how
many we have to produce or how many
staff we will need.”
If parking is either on arrangement with
an independent provider or rented, a
hotel may increase its corporate rate
to include it. In city centre properties,
travellers can use public transport
but where employees need their cars,
negotiating parking into the rate may be
justified by the reduction in expenses.
The trend for hotel chains to move from
owning properties to franchising and
management contracts has affected
ancillaries. Two Hiltons, for example,
within a stone’s throw of each other
may be operated by different parties, so
even where a company has negotiated
a corporate rate nationwide, it may
negotiate directly with a specific property
as well if it has lots of people staying there.
“NDC is an opportunity to have more imaginative corporate fares”Mark Avery
Head of Business Services, PwC
14 Summer 2018
SUPPLIERS
“Agreements could be reached with one
manager, which are different from what
another manager in the same city might
do, because the company may not be
negotiating with one brand even though
that’s what you see,” says Gold.
For buyers, unbundling causes a number
of problems. “Hotels don’t always classify
items properly, for example food &
beverage, and a bed and breakfast rate
is often not split out but just says ‘room
rate’,” says head of hotels and venues for
PwC Samantha van Leeuwen. “We tend
to bundle WiFi, breakfast, F&B discounts,
parking (if the hotel owns it) but of course
we have to assume the hotel and traveller
monitor this at check-out!”
And according to Rachel Newns:
“Where ancillaries are charged
separately, it is hard to collect the
information in one place. If it is on
billback, it will feature on the invoice but
if the traveller is paying separately and
claiming on expenses, it goes through a
different process.”
“Rather than unbundling fares, the
deals we put together for corporates
are tailored to the requirements of
the account. Most deals include seat
selection and flexibility in the time the
person travels – additions we know
are important for business travellers,”
says head of corporate sales at British
Airways Marie Hilditch.
Delta also takes a flexible approach. “We
have made it possible for customers
to upgrade their flight experience for
tickets,” says country manager UK
and Ireland Nadia Clinton. “Premium
products can be purchased as an add-
on for all or part of their journey.” Delta
Comfort+ specifically applies to tickets
that are bought from an agency and
benefits include four extra inches of
leg room, greater recline and priority
boarding.
“Most of the things airlines are offering
as extras tend to be in the lower classes
but we fly business class long haul and
our deal fares include a package with
all the elements,” says head of business
services for PwC Mark Avery.
“However, we see that changing with
NDC and are trying to get involved
early to influence thinking on how NDC
Baggage Fees
Onboard Services(Food, Seating, Duty Free)
Sales of FFP Miles
Other a la Carte Services
Travel Retail(Hotel, Car, Insurance)
is provisionally delivered,” he says. “It
is seen as an upsell and we don’t need
that; it needs to be delivering additional
value. On a flight that costs £3,000
across the Atlantic, why pay $3 for
WiFi? NDC is an opportunity to have
more imaginative corporate fares and
to negotiate things like that into the fare
so that travellers don’t have to get out a
wallet and card to pay for it.”
Unbundling, it seems, is a bundle
of problems for buyers, who have
to juggle convenience and traveller
well-being with cost and gathering
easily comparable data. Though some
have got it down to a fine art, the
proliferation of ancillaries looks set to
multiply rather than decline, ensuring
the battle will continue.
This graphic depicts the annual worldwide ancillary revenue estimates for 2011 through 2017. Two numbers are offered for each year, the total ancillary revenue and the portion represented by a la carte activities. The latter consist of the amenities consumers can add to their air travel experience, such as: 1) onboard sales of food and beverages, 2) checking baggage and excess baggage, 3) assigned seats or better seats within the same cabin, 4) call centre support for reservations, 5) fees charged for purchases made with credit cards, 6) priority check-in and screening, 7) early boarding benefits, 8) onboard entertainment systems, and 9) wireless internet access.
15
Key Ancillary Revenue Components
Traditional Airlines Outside the US 27%
25% 15%
12%
21%
Source: CarTrawler Worldwide Estimate of Ancillary Revenue for 2017
Distribution based upon analysis of 2016 results of non low cost carriers based outside the US
Ancillaries have become too valuable to disappear
Total Ancillary Revenue
$32.5 billion
A la Carte Portion
$17.5 billion
2011 2012 2013 2014 2015 2016 2017
$36.1 billion
$19.9 billion
$42.6 billion
$23.7 billion
$42.6 billion
$23.7 billion
$59.2 billion
$36.7 billion
$67.4 billion
$44.9 billion
$82.2 billion
$57.0 billion
Source: CarTrawler Worldwide Estimate of Ancillary Revenue for 2017
FCMUPGRADE.COM
fadvert
SingaporeDOING BUSINESS IN
DESTINATION
Singapore is undoubtedly one
of the most prominent and
successful of the world’s
financial capitals which
is why “Friday evening
from Singapore to London” was long
understood as an industry shorthand
for an overbooked flight.
Its strength in financial services, coupled
with a reputation for being a tax
haven, probably go some way towards
explaining why this island city-state has
a high standard of living and one of the
highest GDPs per capita in the world.
GETTING THERE
British Airways, Qantas and Singapore
Airlines all offer direct flights from
Heathrow which take about 13 hours. If
Heathrow isn’t the local airport, a journey
from the UK to Singapore will require a
connecting flight.
There are choices of how to get from
Changi airport to city centre including
hotel transfer services as well as the
bargain option of a train to Tanah
Merah MRT (mass rapid transit) station
Tanah where a traveller can change to
a subway. Taxis from official taxi stands
attract an airport surcharge in addition
to the metered fare; cost will be $20-
$40 depending on destination.
GETTING AROUND
Taxi stands in Singapore are clearly
marked. Taxis are also easy to hail,
metered and the drivers speak English.
MRT stations are well positioned and it is
extremely efficient.
Bertrand Saillet, General Manager, Asia, FCM Travel Solutions
• In Singapore punctuality is much
appreciated but it is generally quite
relaxed. A suit is not expected – for
men, shirt and tie with trousers are
acceptable and for women, a work
dress with heels.
• Singaporeans will spend a few
minutes to get to know someone
when meeting for the first time
before discussing business.
• Many Singaporeans will ask
someone if they have had lunch
or dinner. This is not an invitation
but a way to show their concern
for a guest’s well-being.
• When dining out with a local,
you will often find that food is
shared, especially in a Chinese
restaurant. The bill is also often
split equally.
• Singapore does not have a
tipping culture. Most restaurants
include a service charge in the bill
but it is fine to tip if you receive
exceptional service.
INSIDER’S TIP
17FCMUPGRADE.COM
Oasia Hotel Downtown
Smoke and Mirrors
STAYING THERESingapore is a major business hub so it’s
no surprise that there’s a wide range of
suitable accommodation.
Road warriors will love the Oasia Hotel Downtown with its two roof-top pools,
24-hour gym and Cin Cin bar which
boasts 100 kinds of gin. This 27-storey
modern property is as well-located as
it gets sitting in the Central Business
District and only two minutes away
from Tanjong Pagar MRT and 20
from Changi.
Business people such as consultants
and architects whose trips often involve
more than three nights might opt for
an extended stay property such as
the Capri by Fraser Residences. This
serviced apartment group’s brand
comprises such hotel service stalwarts
as 24-hour gym, concierge and
security in addition to the requisite
separate bedroom, living room and
kitchen facilities.
Those executives who know what they
want and like large hotels might choose
the Fairmont Singapore (769 rooms in
two 26-storey towers) with its in-room
desks, meeting rooms and high speed
WiFi. It also has fabulous views, 15 bars
and restaurants plus the Willow Spring
Spa. “Spa” is misleading. It’s also a
fitness centre including six tennis courts
and a pool on the eighth floor which
is shared with its neighbouring sister
hotel, the Swissôtel.
Its other close neighbour, which is
also managed by Fairmont Hotels, is
Raffles, one of the most iconic hotels in
the world.
DRINKINGRaffles Hotel is famous for being famous.
More than a century ago a bartender
in its Long Bar launched what would
become a global taste for cocktails by
mixing gin with some fruit juice. Ordering
– and drinking – a Singapore Sling at its
birthplace is a quintessential Singapore
experience – but beware, the hotel is
currently undergoing restoration and not
scheduled for reopening until the second
half of this year.
Two other bars to try – both on rooftops
and offering spectacular views of the
city – are Smoke and Mirrors, on top
of Singapore’s National Gallery, and Mr Stork, at the Andaz Hotel.
EATINGThere’s more to Singapore’s global
reputation for cuisine than a bowl of
Singapore noodles but everyone should
sample its street food. Good places to try
it out are in the open at Newton Circus
or air-conditioned comfort at Straits Kitchen in the Grand Hyatt Singapore.
Travellers who plan to entertain a
client might try The Black Swan. Its
location in the central business district
plus its recreation of a 1930s New York
atmosphere complete with chophouse
menu makes it a popular choice for
business lunches.
Well-known Australian chef and
restauranteur Luke Mangan is behind
the Salt Grill & Sky Bar on Level 55 of
ION Orchard in the heart of Singapore.
The views and the food are perfect for
impressing a special client.
Travellers just wanting a meal might head
to Dempsey, an enclave of restaurants
including Atout (casual French dining),
Jim Thompson (Thai Cuisine) and PS Café
(casual American).
18 Summer 2018
DESTINATION
The current kitchen is in a shipping container
FCM UK’s team has been busy – even busier than usual. They’ve been
using their spare time to raise money towards Flight Centre
Foundation's target of the £40,000 needed to rebuild Qhobosheane
Primary School’s kitchen.
The Flight Centre Foundation invests time and money in development
projects in destinations with which it has a commercial relationship. The UK team is
gearing their efforts on one of these international initiatives, the five-year ‘adopt a
school’ project at the Qhobosheane Primary School in Soweto, Johannesburg.
The Foundation has sponsored the
renovation of the Qhobosheane Primary
School. This included the painting of
interior walls, fixing the ceiling, replacing
the existing flooring, electric works, new
carpeting, fitting of chalkboards and
noticeboards, external floor tiling and
built-in pigeon holes as well as erecting
a palisade fence around the play area.
The kitchen still remains to be
completed. The current kitchen is a
stove and sink in a shipping container.
This is where food is prepared for the
school’s nearly 500 pupils every day,
some of whom get their only meal each
day here.
FCM staff raised almost £19,000 of
the £40,000 target in April alone with
members of the team participating in a
range of activities including sponsored
runs in the Paris and Brighton marathons.
One of Flight Centre Foundation’s
projects has been to renovate
Qhobosheane Primary School in
Johannesburg.
Hopes are high that the target will be
reached by the end of July. Twenty-
two Flight Centre employees are being
sponsored for taking on the 24-hour
Three Peaks Challenge while other
colleagues have organised fund-raising
activities at a Flight Centre global event
in Berlin.
Their efforts mean that a new kitchen
to improve the Qhobosheane Primary
School children’s lives as well as being
community resource is getting ever
closer to completion.
CHARITY
FCM UK powers Soweto refurbishment project
Flight Centre staff helped out in the kitchen on a recent visit to the school
19FCMUPGRADE.COM
It’s not only about BitCoin and cryptocurrencies.
Linda Fox highlights some potential ways that
blockchain may transform business travel
Blockchain unwrapped
Blockchain - hype or reality?' -
that Is often the question you
hear when approaching what
is one of the experimental
technologies in travel for 2018.
And the answer is, well, a little bit of
both. Such was the conclusion of John
McQuillan, founder of Dublin-based
TravelTechLabs, who presented at an
Enterprise Ireland event recently.
Hype because of Bitcoin, and other
cryptocurrencies often mentioned in the
same breath as blockchain, the value
of which varies widely on any given
day and the amount of venture capital
that has been invested - some $2 billion
according to McQuillan.
And, reality for the potential of
blockchain to disrupt, and improve, some
industry models, as well as for some of
the projects that have already emerged.
BUT WHAT IS IT?
There are many descriptions out there
but in its simplest form, blockchain is a
database – somewhere to store digital
information whether that be contracts,
biometric information in the case of
business travellers, or transactions of
some sort.
In the travel industry, Sabre Labs, in its
Emerging Technology in Travel report,
has come up with one of the best
explanations of blockchain so far. It says:
"At its core, a blockchain is a concept
for a particular kind of database. Going
back a step further, a database is just a
means for storing a collection of digital
information, usually in a way it can easily
be updated and searched. Information
within a database can be any kind of
value – birthdates, property records,
biometric information, taxes, healthcare
records, etc. - anything."
WHY ALL THE HYPE?
As mentioned before, most of the
noise around blockchain is to do with
the associated Bitcoin and its value.
However, there are also stories out there
of companies adding blockchain to their
names and seeing their share prices sky
rocket overnight.
Stepping away from the Wild West
image it is attracting for a minute, it's
more useful to look at why blockchain
has potential, some of the use cases and
what they could mean for travel.
The Sabre Labs report is useful again as
it lays out the benefits of blockchain such
1. PAYMENTS Making settlements between different parties, like hotels, travel agents and
aggregators, can be an extremely complex process, especially across borders.
Blockchain could streamline this process by reducing the intermediaries and
the settlement timing while increasing the overall flow transparency.
2. TRAVELLER ID VERIFICATION Today travellers are required to show their ID at multiple stages in the journey,
from booking to boarding to checking in at the hotel. Blockchain could make
this more secure while simplifying traveller identification at every stage.
3. BAGGAGE TRACKING Another challenge is keeping track of travellers’ luggage as it changes
hands from airlines to ground handlers at airports. Blockchain will allow all
parties to exchange information even if they are not in the same alliance or
related to the same segment improving the accuracy of baggage tracking
across the industry.
How blockchain can transform the future of travel
Source: Amadeus White Paper, Blockchain: harnessing its potential in travel
as the difficulty of undoing or changing
information held on the blockchain. This
is called immutability.
The transparency, with anyone able
to see a record of transactions, is also
seen as a benefit because it helps to
cut down fraud. In a public blockchain,
the idea is the data is shared around or
"distributed" to many places but even
with a private blockchain, a number of
people can still see the transactions that
have taken place.
One further benefit that has been
highlighted is the bypassing of
third parties with blockchain. For
example, why do you need a bank, if
all transactions are stored in a shared
database distributed to many? And,
some start-ups argue the same for
intermediaries in travel such as the
global distribution giants and online
travel agents.
McQuillan says: "A mutually trusted
virtual computer is what blockchain
intends to deliver."
TECHNOLOGY
£
£
£
A
How a blockchain works
1. A wants to send money to B
'
20 Summer 2018
REAL LIFE TRIALS IN TRAVEL
Winding Tree is one of the main start-ups to emerge in the
travel industry. The company is seeking to disrupt travel
distribution by using blockchain. The idea is that the company
would introduce its own distribution platform, remove the
need for the global distribution companies and offer a
cheaper solution for suppliers.
Lufthansa announced last year that its innovation hub would
work with Winding Tree to bring blockchain applications to its
digital products and services.
Aviation technology specialist SITA has partnered with airlines
and airports including British Airways and Miami International
Airport to experiment with blockchain. One of the areas it has
been trialling is 'smart contracts' whereby blockchain would
act as the "single source of truth" for flight data.
This "FlightChain" blockchain would offer all parties shared
control of the data in a secure environment.
Amadeus is working with San-Francisco based Loyyal to see
how blockchain might be used to make loyalty programmes
more user-friendly. Various areas are being explored including
how points are switched between schemes as well as real-
time access to points and redeeming them. For corporate
travellers this could mean instant redemption at airports or
for transfers or hotel products and services.
A second area that Amadeus is working on is identification
where a traveller's "verified data" is stored via a smartphone
application and can then be used as their official
documentation. Both Amadeus and SITA have highlighted
the benefit of blockchain for identity management and how it
could be used to speed travellers through airports.
A number of hotel projects are also underway. Nordic Choice
is working with Winding Tree on ways to distribute inventory
using blockchain.
Payments is one final area being explored and Travel Ledger,
set up by Dolphin Dynamics CEO Roberto da Re, is working
on using blockchain to create a settlements platform for non-
air products but similar to what BSP does for air.
REALITY CHECK
It's wise to read up on blockchain and follow its progress but
the reality is it's probably some time before it might really
catch on – some say as much as 10 years. There are also a lot
of misconceptions about it that people need to be aware of.
Some of the main ones, as pointed out by McQuillan, include
the fact that it is not anonymous, security is not an "inherent
quality" and it's not only about cryptocurrencies.
He adds to that other downsides such as its slowness and that
it might be expensive.
"One of the things promised was that transactions could
be low cost. The cost of transactions is starting to climb. It
probably will get cheaper but as of now, it's volatile."
WHAT ELSE?
There are public blockchains out there such as the Bitcoin
example which is spread across, or hosted, by millions of
machines. There are also private blockchain where all the
computers storing the information are controlled by one
organisation. A final variation is permission blockchain which
is a sort of hybrid between public and private where the
information is hosted by many but you have to be invited to
become involved.
FCMUPGRADE.COM
POTENTIAL FOR USE CASES IN TRAVEL
A number of ways the travel industry could employ
blockchain have already been identified. Amadeus in its
report on the technology highlights loyalty schemes and
the potential to make them more user-friendly, identity
management, baggage tracking and simplifying payments.
From a corporate travel standpoint all of these cases have
huge appeal because they could remove some of the friction
from the airport experience.
£
££
B
2.
3.
The transaction is represented online as a 'block'
The block is broadcast to every party in the network
4. Those in the network approve the transaction is valid
£
5. The block then can be added to the chain, which provides an indelible and transparent record of transactions
6. The money moves from A to B
21FCMUPGRADE.COM
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AF_A4_ANUNCIO_GUIA_SELLING_TRAVEL_06072018.pdf 1 6/7/18 9:50
“I describe BTiQ as the business travel
management British Library,” says David
Chapple who is responsible for this as
well as being Director of the Business
Travel Show which includes nearly 70
conference sessions at which people
with different levels of knowledge and
experience can learn.
Back to school
Regardless of their party
affiliation, political junkies
are always fascinated by the
cabinet go-round. Someone
without any experience of
medicine moves into the Department
of Health and immediately assumes
responsibility for thousands of doctors
and nurses while someone with no
military service record takes over at the
Ministry of Defence.
Politics can imitate life – just think of
all the people you know who had no
travel market knowledge or corporate
experience who just one day discovered
that they had become a travel manager.
What do they need to learn? Where?
How? Yikes.
CHANNEL CHOICES
Scott Davies is CEO of the Institute of
Travel Management. The UK industry
association has 3,700 members, of
which 900 are buyers. He says, “People
often fall into travel. When you first go
in, you think it’s like everything else and
then discover it’s not.”
Davies is alluding to the seemingly
irrepressible corporate trend for travel
to sit in procurement rather than, say,
facilities or HR. It is not uncommon for a
procurement professional, accustomed
to processes, procedures and templates,
to wake up one day and find that the
travel category has been added to their
portfolio of responsibilities.
He continues, “It’s emotive – taking
people away from their homes and often
travelling over long distances. And how
the ecosystem of travel hangs together,
how money flows around the industry.
It’s bewildering when you first enter.”
The travel buyer parvenu quickly
discovers that there is a plentiful range
of learning sources – and resources.
As well as industry associations, there
are websites and business travel
publications, including Buying Business
Travel and The Business Travel Magazine,
industry conferences and events.
Catherine McGavock is Regional Vice
President EMEA of the GBTA which is
the global umbrella organisation to which
national travel buyer associations, such as
ITM, belong. She points out the value of
different channels for different buyers.
The range of choices include classroom-
based training, mixed audience workshops
and closed sessions such as the “buyer
only” ones which the ITM currently offers.
There are also online repositories such
as the GBTA hub and Business Travel IQ
which both eschew news but contain
white papers, high quality research and
toolkits on best practice in different areas.
“It used to be about procurement and the cost. Programmes are now a lot more traveller-centric and talk is about the value of a trip.”Catherine McGavock
Regional Vice President EMEA, GBTA
Corporate travel managers have no clear career path but they
still need to learn about the market and sharpen their skills
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23FCMUPGRADE.COM
“For the first time this year we had a
workshop for creating the building
blocks of a travel programme – topics
like why use a TMC? policy creation,
compliance, duty of care, reporting.
“This is geared primarily to PAs and
secretaries who are booking lots
of travel but not managing it. Our
‘Fundamentals’ sessions are more
geared to people new to travel in a
professional capacity.”
MARKET V SKILLS
Chapple’s comments suggest that
those providing the knowledge, be they
publishers or industry associations, need
to bear in mind the two very different
kinds of knowledge gaps that travel
managers might have: how the travel
market itself works and professional skills.
The characteristics that distinguish
buying travel from the proverbial paper
clips – perishable inventory, the difference
between price and cost, the dynamic
nature of pricing, the differences in
expectations among sectors, size
of company and markets – are at the
forefront of people’s minds but ACTE’ s
Acting Regional Director EMEA Stephanie
Smook is keen that the skillset needed to
manage travel is not forgotten.
“The profession of a travel executive
is underestimated. You need to know
so much because there are so many
stakeholders – risk management, IT, HR,
etc. You also need to be at the forefront
of technology, but you can’t do it on
your own because there’s usually only
one of you in each company.”
The potential isolation of travel
managers – after all, the main business
of an organisation might be professional
services, energy, manufacturing, retail,
etc so travel managers are often thought
of as part of the business support
brigade – is one reason why everyone
interviewed for this article was keen to
emphasise the benefits of networking
which their events could deliver.
Companies may operate in different
markets and be of different sizes but
some skills are commonly needed
although some are needed more in some
positions than others. This is recognised
in industry associations such as ACTE.
Smook continues, “The skill sets,
such as data analytics, negotiating or
communications, of a travel manager
need to be developed.
“Data analysis is so incredibly important.
You have to learn how to read data, how
to obtain it and how to work with it.”
McGavock adds, “When I got this
job I knew I’d have to do a lot of
presentations so I signed up for a
presentation course.”
She points
out that
membership
of a global
organisation
such as GBTA,
which currently
boasts more
than 9,000
members, can
itself include
development
training.
“Members can
get involved in
committees and
boards. They
share expert
knowledge but
this is also a
great personal
development
opportunity.
This is very beneficial for someone trying
to raise their own profile and build their
own network.”
The distinction between organisation
activity and professional achievement
is underlined by Davies who says,
“Sometimes travel buyers have a good
standing in the business travel community
but in their own company they struggle to
get the air time their programme needs.”
He urges buyers not to “assume you can’t
take learnings from travel buyers who are
working on a very different scale as you.
A large buyer can learn from small, agile
buyers. A small company can learn about
best practice from global programmes.
"There’s more commonality than
people think.”
A CHANGING CURRICULUM
Travel management is not a “dead”
subject as we often describe Latin. It
evolves all the time.
Smook describes how in 2003 she
implemented an online booking tool.
“But what we have now is a whole
different ballgame. We still have them
but they’re so far advanced. How do
you make sure that you have that
technology integrated in all your
systems? How about TMCs? Should
they still be working with you or have a
different role?”
McGavock also points to the dynamic
nature of the content in which buyers
are interested:
“The key areas now are risk, new
technologies and capabilities and
traveller engagement.
“GPDR is the hot topic of the minute”
because of an immediate need to
know but “how to demonstrate an
ROI and measure performance” is a
current focus.
She says, “It used to be about
procurement, the cost and mandated
programmes. Programmes are now a lot
more traveller-centric and talk is about
the value of a trip. What’s the purpose
of the trip? Are there better ways of
doing something?”
Davies, however, reminds us that
knowledge is not the prerogative of
industry associations and publishers:
“TMCs are an invaluable source of
benchmarking. You should expect a lot
from your TMC and what they share with
you. They are the ‘go-to’ place in addition
to your industry peers and contacts.”
Events such as the ITM conference are valuable learning resources
“The profession of a travel executive is underestimated. You need to know so much because there are so many stakeholders.”Stephanie Smook
Acting Regional Director EMEA, ACTE
24 Summer 2018
TRAVEL PROGRAMME
Most travellers just want to go as
quickly as possible through an airport to
get to their destination.
But there’s a cohort for whom the airport
is actually the destination because it’s
the best place to have a meeting.
In certain circumstances airports can
be the most time-efficient venue for a
meeting. Internal company meetings
involving participants from different
destinations can cut down the need for
overnight stays and the total time of
travel. They are also very useful for a
senior manager who is based elsewhere
to catch up with team members based
at a flight connection such as a CEO
based in New York who has been in
Africa on business meeting with British
team members at Heathrow before
boarding a flight to JFK.
Airport hotels are often attractive
places at which to hold client dinners
and conferences which include a fair
proportion of guests or delegates who
do not live in the city – clients’ time is
valuable too.
Just as for any other meeting, booking an
appropriate meeting room is necessary.
The big difference is that there will be far
less flexibility on time. Meeting with the
CEO will mean a very narrow window
when an appropriate room at the right
location (onsite or offsite?) is available.
Effective timing is necessary for the team
meeting to ensure that the time gained by
avoiding travel into the city or the hotel
stay isn’t lost because of the requirement
to sit in a terminal for three hours waiting
for a return flight.
Such meetings are commonly held
either at airports that are hubs, such
EVENTS
Airport meetingsMany people use airports for
meetings. Check out Upgrade’s
ideas for some destinations
as Manchester, Heathrow, Schiphol or
Dubai, or at airports that have a large
volume of daily flights from relevant
business destinations.
Here are a few of our favourites:
HEATHROW
If your corporate travel policy is to use
BA, the Sofitel London Heathrow could
be ideal for either a team meeting or one
with the CEO. It’s connected to Terminal
5 by a walkway so total travel time is
minimised. With 45 meeting rooms this
property can cater for everything from a
small boardroom meeting for 2 to a large
conference for 1300.
Located on the Bath Road the
Renaissance London Heathrow is
perfect for meetings where delegates
The Sofitel Heathrow is connected to T5 by a walkway
The Sheraton Frankfurt Airport Hotel
are arriving from multiple locations. For
those travelling from elsewhere in the
M25 corridor there is ample parking
and there are frequent bus transfers
from every terminal as well as Hatton
Cross underground station. There is
ample choice and capacity for any room
configuration up to 450 theatre-style
in the Westminster suite (360 for that
client reception).
FRANKFURTFrankfurt Airport is very well resourced
for meetings.
The Sheraton Frankfurt Airport Hotel,
which is located at Terminal 1, also
has its own conference centre with 60
meeting rooms to choose from. It can
also be easily reached by Skytrain from
Terminal 2 and has parking for local
participants, making it ideal for both
national and international meetings.
The airport also has its own Airport
Conference Centre, again with extensive
parking and easy access from the
terminals. There are 35 meeting rooms
of various sizes which can be hired on
an hourly basis, if desired.
25FCMUPGRADE.COM
26
The Citizen M Schiphol Hotel © Photographer: citizenM hotels & Richard Powers
Concorde Conference Centre, Manchester; Below, Dubai Airport © Photographer: Helen Pe Patryk Kosmider / Shutterstock.com
AMSTERDAM
Schiphol offers space for all-size and
style of meetings, both landside and
airside. The Hilton Schiphol’s dedicated
conference and meeting facility has a
ballroom which can accommodate 640
while its boardrooms, fully equipped
with state-of-the-art AV facilities, suits
more standard business meetings. It
is only a 10-minute walk via a covered
walkway from the international terminal
so is perfect for
meetings which
require delegates
based in different
countries.
For those who
have the extra
minutes to meet
at a slight distance
from the terminal
on the airport
perimeter there is
the Citizen M which
describes its style as “perfect for a cross-
country brainstorm or international sales
meeting”. Its rooms all come with smart
TV and conference ready connectivity
ports and all the basics – including tea
and coffee! – included.
Planning a meeting at an airport is
quite a different exercise from one at
which all the participants aren’t also
equipped with boarding passes and
Summer 2018
EVENTS
MANCHESTER
The 131 destinations served by
Manchester include direct flights
between the city and all the leading
business centres of both the UK and
Europe. The hotel’s Runway Conference
Centre, which houses an actual
Concorde to explain why it’s also known
as the Concorde Conference Centre, has
the requisite boardrooms and parking
to accommodate a conference for
delegates from different bases.
But if you want something different try
the Quarry Bank which is only minutes
from Manchester Airport. This National
Trust property surrounded by extensive
gardens was once an eighteenth-
century textile and is now open for
conferences. It’s a perfect place to have
a very private meeting which needs air
access from multiple cities but has a
very non-airport environment.
DUBAIGiven its growing
importance
as a hub for
long-distance
international flights
it’s perhaps no
surprise that Dubai
Airport is well kitted
out for meetings.
Business centres
and meeting rooms
are located on
the Arrivals level
in Terminal 3 and
on the Hotels level
in Terminal 5 so
perfect for those
who have a
gap between
changing flights.
checking schedules. The ability to carry
the traditional branding material and
hand-outs will be severely limited and
the planning has to include adequate
time to transfer between aircraft and
meeting room for all without wasting
any participant’s time unnecessarily.
But your participants won’t miss having
a night at home and one less room night
on the corporate accommodation bill.
26 Summer 2018
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