Issue 44: May/June 2010
EDITOR'S COMMENTS
THE VOLCANIC ASH CRISIS brought unprecedented disruption to the UK and Europe. Unprecedented - a word often overused in crisis situations. It has been bandied around with monotonous regularity over the past few weeks. On this occasion, however, it is entirely accurate. Although no lives were lost, it was an emergency of colossal magnitude.
Hundreds of thousands of people were stranded across the globe, a significant figure dwarfed when compared to the amount of money lost by the airlines. For the corporate travel sector the landscape of crisis management will change forever.
Travel management companies once again demonstrated their indispensability in terms of traveller tracking and driving the repatriation effort. The perceived added value of a reactive out-of-hours service will do their relationships with buyers no harm at all. Since the air travel ban was lifted, my inbox has been battered with scores of press releases from TMCs trumpeting their pivotal role in rebooking travellers abroad, bringing them home and the consequent savings made for clients. You all deserve a big pat on the back. But it's not all that simple...
If you're a travel buyer, expect a phone call from your TMC in the not too distant future. The resources employed by TMCs in order to adequately deal with a crisis of such proportions were unprecedented. Owner-managers and directors of independent agencies were forced on to the phones to handle the volume of rebooking requests while front-line consultants worked late into the evening and gave up their weekends to assist valued clients.
But that level of service was never factored into any commercial agreement between TMC and corporate. One director told me his agents make one booking in every three calls on a normal day, but the ratio slumped to one in eight when UK air space was on lockdown. A low-margin, transaction fee-based business model can't be sustained under such conditions. The Icelandic president Olafur Grimsson has warned of a second eruption, so agencies will be scrambling to make sure their pivotal role does not ultimately cost them for the privilege. I don't envisage any TMCs to boldly profiteer from the situation.
But discussions will have to take place regarding how corporates can support their agency in these unprecedented times.
I'M DELIGHTED TO TELL YOU that we are launching a summer event for the corporate travel industry. Summer in the City, in association with Qatar Airways, will be held at the salubrious courtyard at Haberdashers' Hall in the City of London on Thursday, July 1. With the support of sponsors Sabre /Get There and Expotel we expect this exclusive event to become a permanent fi xture in the industry calendar. There are a limited number of tickets, so I'd urge you to book early.
One other date for your diary: The 2011 Business Travel Awards is being held on January 24 at the Marriott Grosvenor on Park Lane, London. A updated list of categories and entry requirement will be published in the July/August issue of Buying Business Travel.
Martin Ferguson, Editor
DESTINATION GUIDE
Africa - WORLD CUP FEVER
As South Africa limbers up for the 2010 FIFA World Cup, Bob Papworth looks at how football's premier tournament will benefit the entire continent.
INTERVIEWS
Making basic changes | details
Incoming ACTE president Chris Crowley talks to Bob Papworth about his plans to boost the industry’s relevance in the age of the 'empowered traveller'
Corporate contender | details
Paul Simmons, Easyjet's general manager for the UK, talks to BBT editor Martin Ferguson about the airline's move on to the GDSs and its growing credibility in the corporate travel arena
LEGAL
Body scanners and human rights and the ATOL saga
MOVERS & SHAKERS
Details
FEATURES
Political Progress | details
Analysis - The business travel sector needs to make its voice heard if it is to keep up with changing times, says David Churchill
Simples? | details
Buying technology - Bob Papworth asks if there is still such a thing as a one-stop-shop for travel products
X Marks the Spot | details
Election Special - As voters get set to go to the polls on May 6, the political parties put forward their last-minute cases for the business travel vote. Martin Ferguson reports.
Tackling Intangibles | details
Buyer-supplier Relations - Jonathan Hart looks at the widening gap between buyer and supplier - and what can be done about it
Getting On Track | details
Rail Travel - Dave Richardson traces the evolution of the train e-ticket.
Corporate Card Supplement: May/June 2010
COMMENT
The very first Travel and Entertainment (T&E) cards were made of cardboard and sported, on their reverse, a list of the 28 restaurants and Manhattan nightspots where the cards could be used. Cards have come a long way since the inception of Diners Club some 60 years ago.
Times have changed dramatically too, with the communities that use or issue the cards evolving in their requirements or in the sophistication of their solutions respectively, but the convenience of a cashless transaction, and the cashflow benefits, resonate more than ever.
As the world tentatively emerges from a financial crisis, there is an increasing focus on eliminating wastage from all areas of business, not least the expense management process.
By automating the travel experience end-to-end, from seeking approval to travel, through to payment of the expense claim, organisations are driving value beyond the bottom line.
Card payments continue to evolve, becoming more integrated into the wider expense process, supporting the changing needs of the business. Citi is delighted to sponsor the Buying Business Travel Corporate Cards Supplement.
We hope that the subject matter covered in this year’s edition will prove beneficial and perhaps shape your thoughts around the use of card payments in 2010 and beyond.
Manish Kohli
EMEA wholesale cards head, global transaction services, CitiM
Opportunity knocks | details
Prospects arising from the economic recovery
Changing times | details
The developing habits of the business traveller
Credit where it’s due | details
Corporate cards and the SME sector
A card for all reasons | details
A successful company-wide programme needs support
Virtual reality | details
The latest in payment technology
Billback conundrum | details
A solution to the perennial payment problem?
Merchant of menace | details
Will UK buyers have to absorb the merchant fee?
Get it together | details
The end-to-end expense management market