1 / 23

Corporate Travel... Extracting Value in a Recovering Market

Corporate Travel... Extracting Value in a Recovering Market. Chris Reynolds (CIPS) Nick Hurrell. CIPS, Manchester and North West Construction, 16 November 2010. Introductions and Agenda. Corporate travel trends : 2010 – 2011 Value: Smarter Buying Travel management companies

amethyst-reid
Télécharger la présentation

Corporate Travel... Extracting Value in a Recovering Market

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Corporate Travel...Extracting Value in aRecovering Market Chris Reynolds (CIPS) Nick Hurrell CIPS, Manchester and North West Construction, 16 November 2010

  2. Introductions and Agenda • Corporate travel trends : 2010 – 2011 • Value: Smarter Buying Travel management companies Technologies • Where to next ?

  3. 2010...The market is growing • Business Travel Growth ‘Steady but strong’ A 12% increase in air travel transactions exceeds 2008 levels for the first time • BA back in the Black Before tax profit of £158 million during the first half of this financial year • Ryanair profits leap 17% increase in half year net profit to €452m • Capacity cuts boost AerLingus profits 35% increase in profits in July, August and September. • Virgin Trains increases Market share Manchester-London: 69% to 85% • UK Hotel occupancy rates growing London 87%, Regions 75%

  4. The Market Outlook - Air

  5. Airfares: likely outcome- 2011

  6. Airline Consolidation • Global Alliances • Star Alliance • One World • Sky Team • BA/Iberia • IAG ‘Interested’ in 12 carriers • Continental/United • North West/Delta • American: Largest US to 4th in a year

  7. Europe -3.2% Nth America -1.6% M. East -2.6% ASPAC -3.0% Africa +7.5% Sth America +4.5% Average Daily Hotel Rates 2010 Source: Advito

  8. Europe +2.5% Nth America +3.5% M. East +4.5% ASPAC +5.0% Africa +4.0% Sth America +6.0% Predicted Hotel Rates 2011 Source: Advito

  9. “Unbundling” • 2011 ancillary revenues forecast at $22b • Ryanair alone: £600m in 2009 ! • Little transparency of cost • No like for like comparison at point of sale • Swallowed up in expenses • Latest charges • Blankets/Pillows on flights • Mileage multipliers • Credit Card surcharge on hotel bills

  10. Value: Smarter Buying A Managed Travel Programme..... Key Drivers: • Transparency of spend • Safety and Security of employees • Pooling of volumes • Traveller Confidence

  11. Value: Smarter Buying • Airlines: • Contract or Best deal on the day? • Hotels: • Contract is a ceiling only • Negotiate on the extras • Manage your meetings spend • Rail: • Book online and in advance

  12. Value: Travel Management Companies Too big a focus on agency fees • Accounts for only 2.5% - 5% of spend

  13. Travel Management Companies

  14. Travel Management Companies • Should offer online and telephone booking • Separate pricing for online and offline booking • Global TMC, smaller agent or specialist? • Choice of payment method

  15. Travel Management Companies • Mandate or encourage ? • Compliance to booking process and preferred suppliers • Reduce leakage • Consistent data

  16. Travel Management Companies • Multi channel sources • Capture last minute reductions • Strong relationships with their suppliers

  17. Travel Management Companies • Online and real time data • Understand data sources • Ability to hand off to 3rd parties (traveller tracking, expense management, etc)

  18. Travel Management Companies • The right person is vital • Thought Leadership • Culture fit • Confidence • Should provide travel alternatives • Offer additional products only when they are right for you • Can be outsourced

  19. Where to next?

  20. New Aircraft = More unbundling Flexible Cabins: Personalised Service...Unbundled pricing

  21. Rail - more prominent • Other Operators will use High Speed 1 (Channel Tunnel) • High Speed 2 likely • Airlines / Rail will market together • Increasing Road Congestion and Environmental issues

  22. Technology (again...) • “On the go” booking • Video Conferencing? • Social Networking • No longer for the under 30’s...

  23. Thank You... Questions ? Contact 3SIXTY Global at: chris.reynolds@3sixty-global.com or:enquiries@3sixty-global.com Tel: +44 (0) 8456 808 360

More Related