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Upgrade Winter 2019
FCM TRAVEL SOLUTIONS MEA
Elevating business travel intelligence
How to realign your
travel strategy during
mergers and acquisitions
CORPORATE TRAVELLERS CAN MODIFY THEIR BOOKINGS AT NO EXTRA COST Turkish Airlines Corporate Club rates allow members to reebok or reroute their tickets to suit their ever-changing business schedules and allow them to save a great deal of money. To become a member and start receiving benefits of Turkish Airlines Corporate Club please visit: corporateclub.turkishairlines.com
Welcome Winter 2019
T
his issue of We also take a look at a new FCM report, ‘Women
in Business Travel’, based on research we carried
Upgrade focuses out recently among our clients’ travellers to gain
on the latest better insight into the preferences of female versus
male travellers, and whether change is needed to
developments in accommodate their needs. Turn to page 19 to find out
travel management why there is actually more gender harmony in business
travel than ever before.
from virtual card
A new year is usually a time when we promise to make
payments and mobile some changes in our lives or business. Change is good. I
wallets to innovations hope this issue of Upgrade helps you to embrace it!
in ground transport.
Winter is also a season marked by change. Our lead Ciarán Kelly
feature on pages 4 to 6 examines how changes in Managing Director
company structure, in the shape of mergers and Middle East & Africa Network
acquisitions, impacts travel programmes. FCM Travel Solutions
Contents EDITORIAL
COMMISSIONING EDITOR
Betty Low
15 Cultural diversity
Interview with FCM’s Asia MD, Bertrand CONTRIBUTORS
Saillet, who manages a region of Catherine Chetwynd, Linda Fox,
different technology, payment systems,
Mark Frary, Bertrand Saillet
content and service expectations
FCM EDITORIAL ADVISER
Vanessa Aves
ADVERTISING
ADVERTISING SALES
Sue Robinson
DESIGN
PRODUCTION & MANAGEMENT
WonDesigns, Caren Johnstone
16 LEAD DESIGNER & ILLUSTRATOR
4 Leanne Armstrong
Solar support & Soweto school DESIGNER
A world of difference FCM staff’s latest fundraising
André Albuquerque
Mark Frary looks at how mergers and and CSR initiatives
acquisitions can cause huge waves in PUBLISHING
travel programmes 17 Women on the move
MANAGER
Catherine Chetwynd looks at a new
Rebecca Talbot
FCM report which examines trends
8 Play your cards right
among women business travellers PRINTING
Virtual cards, mobile wallets,
contactless cards: is a revolution REBOX Group
on the way? Linda Fox finds out Ed Cooling
10 FCM news ©FCMUPGRADE 2018
What’s happening at FCM
Images sourced from suppliers,
FCM Travel Solutions, and stock
Upwardly mobile
Good ground photography
transport
management is about 19 New business enquiries
salesuk@fcmtravel.co.uk
so much more than
appointing a car Rooms for a view Editorial and advertising
12 rental company Brainstorms often require no distractions. enquiries
What UK venues might be suitable? enquiries@fcmupgrade.com
FCMUPGRADE.COM 03
TRAVEL MANAGERS
PROGRAMMES
A world of difference Mark Frary looks at how changes in company structure
can cause huge waves in travel programmes
M
ore than 13,500 mergers
and acquisitions have
been announced so far
in 2018, meaning this
could be a vintage year
for corporate deals. In fact, the amount
“
of money changing hands has topped
some US$2.72 trillion, according to
M&A analysts Mergermarket. Deals
like Comcast’s acquisition of Sky and
Takeda’s proposed acquisition of Shire Supply chain synergies
mean that 2018 is proving to be the
second-best year on record – only going to own the implementation have account for between
2007 was better at this point of the year. signed up to the synergy numbers that
The reasons for this are what John
you have bid on. If you are in a merger 30-50% of merger-
where procurement is half the business
Kelly, Global Head of Integration and
Separation at KPMG, calls “a wall
case, I personally want them to be related increases in
involved in the deal.”
of cash in private equity and
sovereign wealth”. The Walgreens-Alliance Boots merger
shareholder value”
of 2014 is a classic example where The Power of Procurement
Kelly, who has been involved with
procurement was involved early. in Mergers & Acquisitions, Accenture
500 deals over the last 20 years, says,
“People think equity markets are toppy “There was a mismatch between the
out. The team was on the phone with
and want to be down on the stock price of generic drugs across the world –
a senior executive, and everyone
market, there is uncertainty in property they were much cheaper in the UK than
was really getting into issues such as
- so people are looking for a home to in the US,” says Kelly. “Virtually all retail
changing from this or that airline, and
invest. Interest rates remain very low mergers are driven by procurement,
there was a sense of caution. Are we
so there are trillions of dollars waiting where 70% of the benefits are likely to
going to do this or not? Will we lose
to be invested in M&A.” be in that area. Procurement is easy, it
support if we push too hard? And the
is other people’s money – it is fast and
For some travel buyers and procurement executive said, ‘Let’s settle this; I’m
not painful. That is why people are very
directors, the first that they know of a calling the CEO.’ And less than an hour
focused on it.”
merger or acquisition is when they see later, the executive called back with
the headline on their smartphone, but When Chinese computer maker Lenovo the CEO’s unwavering approval. Such
that is not always wthe case. bought the personal computer arm of support was crucial – particularly since
IBM in 2005, combining procurement in general procurement, one of your key
In mergers and acquisitions between
was a priority - and merging travel levers is compliance. The biggest source
companies in sectors where business
policies provided an early win. of leakage is people getting around the
travel is one of the largest indirect
costs, the people responsible for Speaking to McKinsey in 2008, the rules and doing their own thing. We
procurement in general, as well as those company’s chief procurement officer, found that reinforcing travel policies
with a focus on business travel, are Qiao Song, said that getting support represented a sizable opportunity—
much more likely to be involved earlier from the CEO to combine travel policies perhaps one-third of the savings.”
on in the merger process. was vital. The pharmaceutical industry is another
Kelly says: “If I am looking around the He told McKinsey: “There was one example where travel can be an
table, I want to see that people who are moment fairly early on that stands important driver of merger savings.
04 Winter 2019
Here, there are enormous travel costs The advantage of the clean-room behaving better or worse than you,
from the drug sales team visiting approach is that this can be done before they may be using lots of
general practitioners, and attendance the closure of the deal. intercontinental - and you may not
at conferences is central to the whole get any benefit out of it.”
KPMG’s John Kelly adds: “In week
business model. one I want to have all the conversations Another problem is data – or the lack
In other industry sectors, travel may not ready for each of the suppliers, with of it.
be so important. all the combined purchasing data and “What often happens is that the new
on a consistent basis so I can go into bat company doesn’t have a lot of data,”
Juan Antonio Iglesias, Head of Account
with suppliers.” says Iglesias. “The approach then is that
Management for EMEA at FCM, says:
“Where travel is not a big part of their In cases where business travel is not after three to six months, we can see
a key driver of the deal, it is often what we are talking about.”
overall strategy, they will often leave
that aside and maintain the existing viewed as a quick win after the deal While boosting buying power will be
travel programmes separately while they goes through. a priority, there is also the small matter
concentrate on other things.” “Travel will be one of the functions of aligning the travel policies of the
they want to harmonise as soon as two organisations.
Sarah Edwards, a consultant with Festive
Road who has worked on combining possible,” says Iglesias. “It all depends It is usual that the acquired company
on leveraging volume which can normally be transitioned over to the
travel programmes in several merger
automatically provide you with acquiring company’s travel policy
scenarios, says that in some sectors,
better discounts.” in conjunction with the acquired
even though travel is important, there
are other issues at stake. “I have also Combining volume is desirable but there company’s HR and travel department.
worked for clients in the financial sector are often barriers.
where it is potentially more sensitive, One challenge is that the new air volume
and so we have no visibility until after may not be additive. “In travel, 2 + 2
the event,” she says. doesn’t always equal 4,” says Iglesias.
If there is an opportunity for those “The company you acquire could be
in charge of business travel to be
involved early, this is often done
by adopting a “clean-room” approach
where data from the two organisations TOP SECTORS
is shared with a trusted third party, often
a management consultancy
FOR M&A, Q1-3 2018
with expertise in M&A. The third party
then approaches the supplier to see
what deals could be made with the
combined volume. Industrials
and chemicals
“
Cost savings of up
to 15% are possible
Pharma, medical
and biotech
by combining
buying powerˮ
The Power of Procurement
in Mergers & Acquisitions, Accenture
Edwards worked on one merger in the Energy, mining
FMCG sector where they were involved and utilities
in advance of the acquisition. “We
could do a lot of the work in advance to
ensure we had a smooth transition and
employees’ expectations were met,” she Business
says. “However, major airlines are not services
always keen to share one company’s
pricing with another and sometimes
before the acquisition you only have a
rough idea on volume and spend but no Technology
specifics until afterwards.”
FCMUPGRADE.COM 05
TRAVEL MANAGERS
Kelly says there is a temptation for the TUPE regulations in the UK mean that After all this, there is still the sobering
acquirer to think that because they are when a company is sold, the terms and reality that getting mergers and
the ones doing the acquisition, their conditions of employment of its staff acquisitions right is hard – really hard.
systems are better: “The person who must be maintained. This is not The Harvard Business Review says that
has been bought who has a partner restricted to terms and conditions “study after study puts the failure rate
and a family might think ‘If you don’t that are contained in an employee’s of mergers and acquisitions somewhere
pick my system, I have no job’. contract but also cover policies between 70% - 90%”.
This doesn’t necessarily make for outlined in staff handbooks or that
a rational conversation.” have been established through KPMG’s Kelly concludes: “There is
custom and practice. no silver bullet, mainly because
Edwards agrees: “This can be sensitive,
deals require people to take actions.
especially if the new policy is perceived Communication is the key to aligning People talk about having a playbook,
as less favourable, for example if policy, believes Iglesias. “If you don’t a set of policies with which you do a
business class was available for travel do it properly, there is always going merger, but 50% of what goes wrong
more than 6 hours but with the new to be resistance from travellers and is people-related.”
company this could be over 9 hours - or bookers. 99.9% is about selling the
even not allowed at all.” benefits and we make sure that the new “People” have a lot to answer for,
entity has the time to adjust.” it seems.
Kelly says a lot depends on the travel
manager’s ability to get travellers to Mergers also bring opportunities for
follow the new policy. “If an employee consolidation beyond airlines and
is hugely invested in oneworld and
FINDING THE BENEFITS
hotels – specifically around the
someone says they have to use Star number of TMCs involved. FROM BUSINESS TRAVEL
Alliance instead, that is where it starts to
With most large multinational INCREASED VOLUMES
grate,” he says.
organisations, consolidation is Higher spend can lead to greater
It is not always a problem, however, says inevitable, believes Edwards. “In some negotiated discounts with
FCM’s Iglesias: “You find that most of the suppliers and enable greater
instances you may end up with additional
rebates to be secured from
time, in the same industry sector, travel TMCs where the local market is better corporate card programmes
policies are quite alike. You wouldn’t get serviced with an incumbent agency, and
people being restricted to three-star are just brought into the programme as
hotels in one company and allowing five- you would a normal ACCESS TO NEW MARKETS
star hotels in another.” new market integration,” she says. Adding new geographical
markets to a travel
In other situations, travel managers may “The moment you have two TMCs, programme may open
decide to leave two disparate travel you don’t have the full picture,” up working with global
policies in place for other reasons, reiterates Iglesias. suppliers such as airline
alliances
such as the Transfer of Undertakings
(Protection of Employment) regulations
or TUPE.
SUPPLIER
RATIONALISATION
Reducing the number of travel
suppliers and increasing their
market share could lead to lower
costs or more ‘soft’ benefits, eg
GLOBAL QUARTERLY free wi-fi or lounge access
Q1 Q3
BREAKDOWN TREND
2013–2018 Q2 Q4 REDUCED HEADCOUNT
Although the new organisation
Deal Count may be larger in terms of
headcount, the combined
workforce may be smaller
than the sum of the individual
20000 companies, leading to reduced
4000 total spend on business travel
18000
3500
1,199.6 16000
ACCESS TO MARKET
3000 INFORMATION
14000
Deal Value (US$bn)
824.7 The two organisations have access
985.1 933.3 to a wider range of fares, rates and
Deal Count
2500 12000
703.2 fees and can see where they have
870.3
not been getting the best rates in
2000 10000 the market
570.3 853.3
718.0
873.3
8000
1500 1088.3
656.9 1,039.6 BETTER PAYMENT TERMS
6000
751.0
1000 963.7 741.9 Moving from the 30-day
4000 payment terms of one
560.4 company to the 60 days of
500 931.6 the other can help improve
760.6 758.1 2000
570.7 627.9 cashflow
444.0
0 0
2013 2014 2015 2016 2017 2018
06 Winter 2019
in Partnership with
FC MTRAVEL -
™
- SOLUTIONS
www.awardsinternational.ae/our-awards I @Awardslntl
TECHNOLOGY
Play your cards right
Virtual payments, mobile wallets, contactless cards:
is a revolution on the way? Linda Fox finds out
D
evelopments in leisure NOT
YES SURE
travel very often catch on
in corporate travel: think
online booking, peer-to-
peer accommodation and
mobile everything.
Mobile 22%
This is true in the payments world 33%
too - although in some areas, such as wallets
virtual cards, it’s possible the corporate Is your company’s
travel landscape already has the lead. primary corporate
card compatible
But even those are taking time to
with mobile wallets?
really catch on despite their benefits of
speed, security and convenience.
Research conducted by the GBTA and
AirPlus has revealed that although
companies are exploring ways to make 45%
payments easier for travellers, adoption NO
Note: Based on questionnaires
rates are still relatively low. Just over completed by 139 US travel
10% of business travel programmes are managers who had input into Source: GBTA in partnership with
using single-use or “virtual” cards, while payment decisions in January AirPlus, Five Business Travel Payment
23% of respondents say they are likely and February 2018 Trends, June 2018
to adopt them in the future.
The research also looked at the
feasibility of mobile wallets, which
supplier acceptance and spend target the leisure customer, it’s not
enable travellers to store card details
visibility among their concerns about hard to see them and/or regional
and pay via mobile devices. For
the technology. versions catching on in a similar way
corporate travelers, about 22% of their
in other parts of the world for the
companies’ main commercial cards In theory, spend visibility shouldn’t be
speed and convenience they offer to
could be integrated into a mobile wallet, an issue as further automation should
business travellers.
but 45% of travel managers said they make it easier to gain a better overall
could not and a third were unsure. view of real spend. However, the reality The ongoing rise of mobile will also
is that there are often issues around drive development and adoption of
There’s clearly work to be done in terms
integration with other technologies. alternative payment methods.
of education and adoption of new
payment methods. Survey respondents Supplier acceptance is another aspect Another recent report from GBTA, in
highlighted administration issues, to consider. A recent announcement partnership with U.S. Bank, revealed
from Alibaba’s travel platform and that although awareness of mobile
technology specialist Shiji says that wallet and contactless payments is
“
facial recognition is now being used to high, almost 50% of travel buyers don’t
enable travellers to check into a hotel, see the benefits.
receive a room card and authorise
Contactless cards are widely offered by
There’s clearly work payment. Check-in kiosks are being
companies, according to the research,
installed in 50 hotels in China, including
while only 18% offer mobile wallet as a
to be done in terms Marriott and IHG properties.
payment option.
Hotel chains such as Mandarin Oriental
of education and also now accept a wider range of
Those that have adopted mobile
payments say the barriers are
adoption of new payment options for stays and food and
beverage, like Alipay and WeChat.
cardholder education, integrating
travel expense processes and the
payment methodsˮ While these developments cater very card setup process. But, they also
much to the local market, and often cite benefits including better
08 Winter 2019
adherence to travel policy, a Single-use cards
reduction in lost or stolen cards
and improved employee satisfaction. Why don’t more travel programmes use single-use cards?
One of the conclusions of the report
is that developments in the consumer
world will continue to drive adoption
of alternative payment methods. 62%
When tapping a smartphone to pay
for a coffee becomes ubiquitous, then Concerns about administration
business travellers will expect it to
extend to every part of their travels.
US consumers already use Google
Pay and Apple Pay at about 10,000
7-Eleven stores across the country.
The push from the consumer as an 53%
adoption driver is also supported by
research from Amadeus in conjunction Concerns about supplier acceptance
with pymnts.com revealing it as the
biggest drive to investment in new
payment options.
39%
“
When tapping a
smartphone to pay
Concerns about visibility/control
Note: Based on questionnaires Source: GBTA in partnership
for a coffee becomes completed by 139 US travel managers
who had input into payment decisions
with AirPlus, Five Business Travel
Payment Trends, June 2018
in January and February 2018
ubiquitous, then
business travellers
will expect it to schemes or tie-ups with existing service for call centre agents to take
extend to every part loyalty schemes? payment through a link sent by SMS or
email. The customer then completes
Established players in B2B payments
of their travels” such as Conferma have already made
the payment from a smartphone, tablet
or PC.
steps to stay relevant as the market
progresses. In May 2018 the company Finnair has already implemented the
introduced its WALLET functionality, technology and extended it to its
letting prepaid funds be stored for chat-based agents. The Agent Pay
payment of air, rail, car rental and other system also allows alternative payment
The research confirms that most travel methods such as Alipay and PayPal.
services. This allows for fee reductions,
companies, including airlines, hotels real time transactions, automatic More of these initiatives will emerge
and intermediaries, are planning some updates and reconciliation to build in the corporate travel industry as the
sort of payment innovation. greater efficiencies in all aspects travel management community seeks
of business. to improve the experience for buyers
The conclusion from the Amadeus
and travellers. The benefits of not only
report is that we’re almost at “a More recently, Conferma unveiled a
convenience and speed, but also tighter
payments innovation tipping point”, mobile app for cashless payments
spend control and access to data, are
with companies recognising the need which it says reduces the risk of fraud being proven.
for change driven by consumers and and allows for increased control on
the competitive landscape. spend. It also says the app makes And innovation won’t stop there.
There is already a drive towards
It’s too early to say how this will play expense management easier by
super-applications that encompass
out in corporate travel. Could one or removing out of pocket expenses.
all the travel content, the itinerary
two mobile wallets gain traction in the There are further signs that suppliers management features, chatbot
sector over others by providing the and technology specialists are looking assistance and payment mechanisms
best user experience, easy integration to alternative payment methods. built into one, although it is some
with existing processes and incentive Amadeus launched its Agent Pay way off.
FCMUPGRADE.COM 09
NEWS
TOP STORY
Ground transport
booking moves
up a gear
FCM’s ground transport booking services
have moved up a gear with the launch
of Amadeus’ transfers technology
solution. In addition, FCM has partnered
with MYCAB International SA as the
first preferred global ground transfers
provider to be integrated within the
Amadeus’ transfers solution in the UK
and EMEA. MOUNTAIN LOCATION
The move means FCM consultants FOR MEA CONFERENCE
can seamlessly book MYCAB ground
transfers via Amadeus Selling Platform
Connect. Traveller details and dates are Marrakech was the location for FCM
automatically extracted from existing MEA’s latest conference in October 2018.
flight bookings, populating the search But this was no ordinary venue. Some 50
fields. The booking is fully integrated into delegates from FCM senior management
the PNR, which allows for simplified trip headed up to the local Atlas Mountains
servicing and easy access to a transfer for the three-day event where business
booking when needed. sessions took place under canvas in
Amadeus’ solution and MYCAB content traditional Moroccan tents.
is also fully enabled with FCM’s powerful The theme #StrongerTogether gave the
new SEEQA online booking tool. As a group the opportunity to talk about their
result, for the first time, travellers and vision, strategy and success stories in
bookers can arrange point-to-point the region and followed on from their
transfers and chauffeur services at over previous gathering in Muscat in May
300 airports and cities in 75 countries when over 250 global colleagues were
using an online booking tool. Launched also present.
earlier this year, SEEQA is a bespoke
solution built on of the Amadeus Suppliers such as Amadeus spoke about
cytric Travel & Expense tool that allows automation and bringing further cost
FCM to add proprietary functionality savings to FCM clients in the region.
and content.
NEW GLOBAL MARKETING MANAGER
Scott Alboni has been appointed as Global Marketing Manager for FCM Travel
Solutions. He brings substantial expertise across multi-channel platforms, as his career
includes senior branding, marketing and design roles in the business travel and private
healthcare sectors.
Based in London, Alboni will work closely with FCM’s Global Managing Director Marcus
Eklund, and Frits de Kok, Chief Marketing Officer, Flight Centre Corporate, as well
as FCM’s regional marketing leaders, to strengthen the company’s global marketing
position and focus on global strategic objectives.
10 Winter 2019SPEAKING OUT
It has been a busy time for FCM in
terms of taking part in in key business
travel industry conferences. First
up was the annual Business Travel
Tech Talk London on Thursday 6th
September. FCM’s Chief Experience
Officer, John Morhous, was on the
first panel of the day, discussing how
to apply AI and machine learning
to business travel. Next came The
Business Travel Conference on 17th
and 18th September when Paul Jarvie,
FCM’s Head of Account Management,
North UK spoke during a session
entitled ‘Do behave! Getting your
travellers to comply with travel policy’.
Finally, The Business Travel Summit
took place on 17th October. In addition
to sponsoring the event, FCM was also
represented in three different ‘meet the
expert’ sessions by Matthew Heymans,
Enterprise Sales Director, Rachel
Paul Jarvie, Head of Account Management North UK
Newns, Hotel Programme Manager spoke on a panel at The Business Travel Conference
and Andrew Barker, Director of Sales
for cievents.
Industry expert Jo-Anne Lloyd from
global strategic consulting and TAKING THE LEAD WITH NDC
accredited training company Nina &
Pinta also attended the conference
for the second year to give insights FCM is continuing to take the solution design process, integration
into procurement strategies and lead in driving development of and testing of an end-to-end NDC
cultural intelligence. technology to book IATA’s New solution to meet customer needs.
Distribution Capability (NDC) The Beyond NDC program will
“This was a very successful conference
airline content in the corporate ensure that the future booking
in an inspirational location,” said
sector around the globe. of airline product optimises the
Ciarán Kelly, Managing Director for
distribution capabilities of direct and
FCM in Middle East and Africa. “Not Global technology provider Sabre
indirect distribution channels, giving
only did the group spend valuable has named FCM as a launch
FCM customers access to NDC-
time discussing our business in the partner for its collaborative
region, but teamwork activities such enabled product quickly and easily.
initiative ‘Beyond NDC’ in the USA,
as a stunning zip line across the Australia and New Zealand. FCM Meanwhile in EMEA and Asia, as
mountains really got people to work will participate with Sabre in the announced in March 2018, FCM
closely together.” Travel Solutions was the first
travel management company
to partner with Amadeus in
development of the technology
provider’s NDC-X Program. FCM
is already working closely with key
airline suppliers to test integration
of NDC content in Amadeus’
Selling Platform Connect solution.
This will enable FCM’s business
travel consultants to access
an even richer choice of fares
and NDC content in an already
familiar technology environment,
personalising the booking
experience for their clients.
FCMUPGRADE.COM 11SUPPLIERS
Upwardly mobile
Ground transport management requires much
more than just appointing a car rental company…
G
round transport is growing Technology is facilitating
up. It is now a fully-fledged communication and the ability to offer
category that travel a more consistent and comprehensive
managers handle rather service, from pricing to data.
than just purchase.
As the sector develops, the thinking
This has been born out of both behind it also becomes more strategic
necessity and market evolution. and the suppliers are no longer
car rental companies or chauffeur
There’s pressure on travel departments
drive firms but want to be known as
to deliver value for money, whether by
providers of “mobility solutions”.
saving costs or improving the traveller
experience. This has been exacerbated As James Raffo, Group CMO of MYCAB,
by the growing maturity of airline explained, the ability to configure the
relationships, meaning fewer savings service to individual TMC or corporate
opportunities. As this has traditionally requirements is why they think of
been the largest part of any corporate themselves as a travel solution rather
travel programme, the pressure is than a transport company.
going elsewhere. Ground transport solutions can be
New legislation and changing corporate divided into four main sectors:
cultures are also driving change.
Duty of care is now an important
consideration so vehicle usage for
1 CAR RENTAL
Self-drive vehicles, usually from
and to the airport, are the backbone of
MYCAB
business is under the HR microscope.
most ground transport programmes. MYCAB is a good example of the
“Travel managers’ biggest challenge in Although less important in the UK than new generation of companies that
ground transportation is duty of care,” in the US, it is still a significant cost – describe themselves as providers
says Avis’ Julia Kemp. “You know where and source of cost savings – in most of mobility solutions which are
corporate travellers are when they travel budgets. ground transport services for
are in the air or in a hotel - but there’s current needs.
Duty of care is also a major
a need to understand where they
consideration (road fatalities and Founded in Sweden in 2006, it
are on the ground – are they driving
casualties are much more likely than air now operates in 75 countries.
themselves or being driven? The future
accidents). One large multinational’s It owns no vehicles but says it
is with technology to help companies is not an aggregator as it has
policy limits eligibility to drive out of
understand their duty of care.” direct partnerships with small,
the airport to those who have flown less
Technology has also precipitated the than 13 hours, for example. And some local companies and individuals
options for ground transport to evolve organisations restrict how many of its which all use the same technology
from a central solution for car rental same employees may travel together in to ensure consistent data and
and local solutions for everything the same vehicle. reporting and service standards.
else, to enabling what was once a James Raffo, Group CMO, says it’s
fragmented category into one which important for clients to know they
can be managed.
According to Kemp, who is Director of
Global Sales and Partnerships, “change
is being led by globalisation and where
people are going. In India and
China, you’ll want to be driven,
even if you are a regular
car driver.”
12 Winter 2019Managing car rental programmes has
unique challenges. There’s no product 2 RIDE-HAILING
Ride-hailing, a term used
traditionally for the taxi sector, is often
which can take care of the journeys
whose time, origin and destination
differentiation: all offer cars at the same are known in advance. These are
airports. “What differentiates car rental used to describe sharing economy most often used for airport transfers.
companies at the core of corporate alternatives such as Uber and Lyft. Transfers to and from rail stations are
programmes is people, account Both are targeting business travel and also becoming a more important part
managers and rental sales agents,” increasingly becoming part of the of this sector.
says Kemp. “What people want is managed travel programme.
speed - to get people into a car as
quickly as possible.”
More and more travel departments
are negotiating a taxi service for the
4 CAR-SHARING
The principle of car-sharing isn’t
new. Large organisations would often
The differentiators are elements whole organisation to replace a process
lease vehicles for their employees’ use.
of service such as data provision of reimbursing expense claims for
What is relatively new is the concept
(including that for duty of care) and the cash payments to a wide range of
of corporate car-sharing clubs such as
service itself, which is very much driven small companies.
Hertz 24/7 and Avis Zipcar, however.
by location. Their apps do differ, but
not that much.
The big differentiating factor is cost,
3 BOOKED CHAUFFEUR DRIVE
There’s a group of corporate-
friendly organisations such as MYCAB
On demand cars can be dropped at the
traveller’s business or home address,
and billed on a minute or hourly basis.
so negotiations are vital. Day rates
are usually similar, but extras such They are especially beneficial for inner
“
as refuelling and airport taxes are city short trips and one-way trips. Julia
negotiable and can vary significantly. Kemp reports that since launching
Zipcar Flex – the ability to reserve a
In addition, a corporate might receive a car in London up to 15 minutes before
signing-on fee and a rebate dependent Technology is needed and then just use the Avis
on the volume of business transacted. app to open it and go – one-way trips
Another area to consider is insurance facilitating between central London and Heathrow
have zoomed. “This is for people who
and to compare car rental company
insurance with what is covered by the communication and don’t need a car on a consistent basis
but the convenience of having
traveller insurance which a company
already has in place. the ability to offer access,” she says.
a more consistent CONCLUSION
Just as the GDS is no longer the sole
and comprehensive corporate travel distribution channel,
will receive a “reliable service across car rental remains the largest and most
all its staff no matter where they serviceˮ important mobility solution but it is no
are, whether they are in Singapore longer the only option.
or Stockholm or St Louis. There are
Business travellers need the widest
standards to uphold. They turn up on
possible air and hotel content. They also
time, vehicles are clean, the driver is
increasingly want a choice of ground
fully licensed and vetted.”
transport solutions.
The service can be configured
To quote Julia Kemp: “We’re trying to
as required by each client to
put all this together for people who
take account of travel policy
want to have choice and move between
and content is available via
the different mobility options.”
the GDS or a direct API. Detailed
data is available to facilitate
both expense management
and future strategy.
FCMUPGRADE.COM 13INTERVIEW
Cultural diversity
across Asia
Bertrand Saillet manages a region with different
experiences of technology, payments, content and service
A
sia is home to the world’s who left his native France for Bangkok Understanding the nature of the
most economically eight years ago. After working for region’s diversity is central to achieving
buoyant economies. Amadeus both there and in Singapore, a successful travel management
GDP growth in both he joined FCM three years ago and was programme. Many of FCM’s clients
China and India is around appointed Managing Director FCM Asia
are multinationals with an HQ in North
7%, while US and UK GDP rates hover last July.
America or Europe.
around the 2% mark.
TECH CHALLENGES
That means lots of business travel There may be diversity in their own
His challenges around compliance also
and an explosion in the level of intra- region, but “they tend to think of Asia
vary from market to market.
Asia travel. as one. We can help our customers
In a tech-comfortable country like understand Asia better and make more
As Managing Director Asia for FCM,
China where, Saillet explains, “most
Bertrand Saillet is responsible for FCM’s informed decisions,” says Saillet.
transactions are virtual, and cash is
direct operations in China,Hong Kong,
largely absent from everyday life”, He cites the example of a US-based
Singapore and Malaysia, as well as its
70-80% of travel is domestic and travel manager wanting to deploy the
partner network in the region. He is
online booking tool adoption has been same booking tool everywhere: “Once
keen to emphasise how diverse
relatively easy to drive. On the other you arrive in Asia, that’s impossible.
the region is, with each market
hand, he says: “Hong Kong online is That tool might have only some small
having its own distinctive
very low, Singapore a bit better - but in
characteristics and challenges. part of content. All this needs to be
the rest of the region it’s non-existent.
“If you’re in China, Japan or Korea, explained and discussed before making
“In Asia, some people find ways to play a decision.”
you don’t have the same booking
with travel policies. In Singapore and
experience, technology and culture,”
Hong Kong there are a lot of senior Both local and multinational travel
he says.
people who are less likely to follow a managers need visibility of their
CONTENT IS KING travel policy.” travel programme - but it’s extremely
Content, and the access to content, is difficult to gather full data with so many
The region’s corporate clients have high
fundamental - and just one example of booking channels. To consolidate rail
service expectations - but according to
the complexity that travel management
Saillet, also want to reduce their internal data, for example, requires combining
in Asia involves.
demand management costs. information from different channels
“In China it’s Travelsky which works and different booking systems in
Asia has traditionally been seen as
like an international GDS, but it doesn’t different markets.
a low cost labour market. This no
have hotel content so you must use
longer is the case when in many major
a hotel aggregator for local hotel “We are driving expense management
cities like Singapore, Hong Kong and
content,” explains Saillet. “Domestic more and more, especially for the
Shanghai, wages are comparable to
Chinese business travellers to second large multinationals and it’s getting
other big cities across the world. The
and third tier cities will seek local hotel better, but there are still a lot of manual
role of the travel booker is still seen as
chains, rather than the large western
an important one across Asia. While processes behind the scenes.”
chains which are only found in tier
increasing, the adoption of online His positive energy is contagious. “I’ve
one cities. These hotels are not always
booking tools in some markets is still a
available in the GDS. never been happier in my job,” he says.
work in progress.”
“In both Korea and Japan, each airline “This is a company which moves at
has its own distribution system. MANAGING SERVICE EXPECTATIONS a fast pace which suits me very well.
In Thailand, Thai Airways distribute But Asia’s rapid economic growth is Finding new ways to do things is
through one outlet, Amadeus, so if you happening within cultures which value – always valued.”
use another GDS, you have to connect and expect – a high level of service.
to Amadeus.” Saillet himself exudes the same agility.
“There is resistance to technology
It is a good corporate match for a
Being responsible for such a diverse where people are concerned,”
region of booming economies.
region is the perfect job for Saillet, he continues.
FCMUPGRADE.COM 15CHARITY
Shining a light
on energy poverty
SCHOOL KITCHEN
PROJECT HEATS UP
FCM staff’s fundraising endeavours
have paid off, as a total of £100k
has now been raised. This means
work can start on a new kitchen at
the Qhoboheane Primary School in
Soweto, Johannesburg.
As part of Flight Centre
Foundation’s five-year ‘adopt
a school’ initiative, FCM has
already raised money to renovate
classrooms and play areas at the
school. Now the deposit has been
paid and work will soon start on a
new kitchen. This will replace the
current ‘kitchen’ of stove and sink in
a shipping container, where lunch
is prepared for almost 500 pupils
every day, some of whom get there
A
only meal here.
s part of Flight
Staff took on activities such as
Centre Foundation’s
latest initiative, FCM marathons, mountain climbing,
has partnered with Staff at Flight Centre’s Global sky dives and 100km walks, as
SolarBuddy, a charity Conference built 2,000 SolarBuddy well as office-based bake sales,
dedicated to illuminating the future lights, which were shipped to children World Cup sweepstakes and Royal
of those living in energy poverty. in Papua New Guinea and South Africa. Wedding celebrations to raise the
And at FCM’s Focus Conference, much-needed funds. But that’s
Approximately 18% of the world’s
delegates made 400 SolarBuddy not all: staff will soon be heading
population has no access to electricity
lights which have been sent to children to Soweto again to help out at
– that’s around 1.4 billion people living
in Madagascar. the school and see the kitchen’s
in darkness. This severely impacts
education, health, the economy and progress first hand.
the environment. SolarBuddy’s mission
is to help break this cycle and improve
the educational opportunities of six Soweto school kitchen
million children living in darkness, by
providing them with solar lights to
study after dusk.
The gift of a SolarBuddy solar light
helps children living in energy poverty
to continue studying long after the sun
goes down, improving their education
outcomes and overall health and
wellbeing. Early stage evaluations
indicate that children with a solar light
are studying up to 38% longer.
16 Winter 2019TRAVELLERS
Women on the move
A new FCM report looks at trends among women business travellers
T
he number of female travellers has increased by 50% over the
past five years. Nearly two-thirds of travellers today are women,
and women make 80% of all travel decisions. This is significant:
670 million women worldwide control $15 trillion in spending
power, making female travellers a market twice the size of
China’s and India’s markets combined (Harvard Business Review).
The gender pay gap and pressure
for equal pay for equal jobs have
brought fair and equal treatment of
women once more under scrutiny; the
differences between the requirements
of female and male travellers continue
to exercise the mind of the corporate
buyer. A panel at the GBTA convention
last year (2017) debated the need for Duty of care is the legal right of any
travel managers to have a dedicated employee, and traveller well-being
policy for solo women travellers, continues to make its way up the
a topic which polarised opinion agenda as travel buyers realise that
among delegates. people who are well looked-after
perform better and make a positive
WHAT DON’T YOU LIKE ABOUT BUSINESS TRAVEL? impact on the bottom line.
FCM has just released a Women
in Business Travel report (http://
Cultural Note: Percentages refer to the proportion uk.fcm.travel/report/women-in-
differences of 100 each category attracted. Respondents business-2018) which is based on
were able to give more than one answer
Food a survey of business travellers
Men Women All
preferences conducted during summer 2018.
Social According to the report, just 18%
expectations of corporate travel policies address
the safety needs of this group, and
Dislike
traveling solo although 61% of buyers believe it is
important to consider matters of
Nervous
traveller
safety for women, only 44% have
made arrangements to allow them
Safety to recommend female-friendly
concerns
lodging options, which are available
Disruptive in hotels worldwide.
to work
Personalisation of travel arrangements
Away from is also increasingly popular as a means
family/partner
of driving compliance to policy. To that
0% 10% 20% 30% 40% 50% 60% 70% 80% end, travel managers are engaging with
more diverse groups of travellers.
FCMUPGRADE.COM 17PRIMARY REASONS FOR BUSINESS TRAVEL
are. This is despite a notable 70% of
female travellers belonging to an airline
Note: Percentages refer to
the proportion of 100 each loyalty scheme vs 37.2% of men. Pearson
Event/ category attracted. thinks this may be because while men
Conference
Men are loyal to one programme, women
may have numerous memberships and
Women
Project prioritise convenient departure times
All
and routes over earning loyalty points.
Training
The three most frustrating elements
of flying for men and women are time
wasted at the airport, delays and
Internal cancellations and security processes, in
that order for women, and delays and
disruption first for men.
Client
meetings Not surprisingly, location is the most
important factor in the choice of a hotel
0% 5% 10% 15% 20% 25% 30% 35% with free wi-fi a close second. Nearly
60% of the respondents, distributed
evenly between men and women,
Despite a bigger focus on their special sales, trained professionals, support
preferred a property close to their
needs, the FCM survey found that and consultants.
meeting or office.
women and men dislike the same things Although nearly equal proportions of
about business travel. The biggest thing It is much documented that women
men and women travel by air, more
on that list is being away from family/ travellers do not like using hotel bars
women use the train and more men use
partner. They also find it disruptive to and/or restaurants alone, but FCM’s
self-drive. “I think that’s end-to-end
work, dislike travelling alone and have research shows that the restaurant, bar
convenience; you have everything with
safety concerns. and gym are the three most used hotel
you and can work, read and someone
facilities in roughly equal numbers by
More positively, 45.83% of women enjoy else is doing the driving; and it is
both sexes. That said, 42.5% of men
travelling, in comparison with 39.58% of probably a bit more secure to go by
drink alone in the bar, in contrast to only
men. Both enjoy face-to-face interaction train,” says Carolyn Pearson.
32.2% of their female colleagues.
most (60%), followed by meeting Men also prefer to drive to the airport,
Where the controversial sharing
colleagues and the experience of travel. but marginally more women take a
economy is concerned, business
Being away from the daily grind is taxi. And it is interesting that using
travellers are evenly split as to whether
liberating, according to Carolyn an airport lounge as an oasis from
or not they would stay in an Airbnb. Of
Pearson, CEO of Maiden Voyage, a plastic chairs, children and ice cream
this 50%, however, women are more
network of professional women makes only a minor contribution to the
amenable than men (29% v 21.3%).
business travellers: “Professionally, enjoyment of travel, with just 23.8% of
business travellers using one every trip The report concludes, “male and female
I think much more creatively when my and 33.7% doing so occasionally. More business travellers are probably more
senses are being stimulated by new men use them regularly (15.3%) than similar, more homogeneous, than ever
things; I will leave the office and come do women (7.7%), and 24.9% of women before. With just a few exceptions, the
back with 10 million ideas. say they never use a lounge, against tastes and habits of both genders are
18.5% of men. Lounge access, however, the same.”
“Women tend to be doing lots of
things at once – filling the dish washer, is determined by loyalty programme Maybe Venus and Mars are closer to
engaging with their partner, dealing with status or class of travel, so usage may colliding than anyone realised.
children, and it all takes time. When we have more to do with entitlement For sources please consult the full report which
are on a business trip, we are given a than preference. is available for download at uk.fcm.travel/report/
women-in-business-2018
respite… I never turn the TV on at home Class of travel flown
but I do in a hotel; so definitely, I love my is also an eye-opener. WHAT IS THE MOST IMPORTANT FACTOR IN
business travel.” There is little difference CHOOSING A HOTEL?
The research overall found a general below business class
consistency in experience and attitudes but where only 9.7% of
women turn left on the Men Women All
between men and women.
But one notable gender difference plane, 13.5% of men opt
which emerges is the reason for business for greater comfort -
Bar/restaurant
travel. Meeting clients is the single although 78.4% said the on site
biggest reason for men (22.3%), but is choice was determined
Price
only true for 12.5% of women, whose by company policy.
24hr reception
main reason is internal meetings (12.9%) Loyalty programmes
against 10.3% for men. This is surprising, throw up another Free wi-fi
allowing for the profile of those polled – discrepancy: 10% of men
51.98% women, 48.02% men and 33.08% are motivated by rewards Location
managers/supervisors with smaller when choosing an airline, 0% 1% 2% 3% 4% 5% 6% 7% 8% 9%
percentages of senior executives, admin, but only 6.7% of women
18 Winter 2019EVENTS
London-based business’s team meeting
as it’s spitting distance from Green Park
Rooms for a view
station and Berkeley Square.
Andaz London, Liverpool Street
This property oozes history. It was the
Brainstorms often site of the original Bedlam, Britain’s
famous first hospital for the mentally ill,
require no distractions. in the 13th Century. It was also once the
Great Eastern Hotel, one of the most
What UK venues notable of Britain’s railway hotels.
LONDON
might be suitable? If you’re looking for a venue which A hotel, which is right next to Liverpool
guarantees an atmosphere different Street Station, has stood on this
Corporates usually source venues from your office and privacy, you could site since 1884. The Andaz, Hyatt’s
for client meetings, staff training, do worse than use one of London’s luxury boutique brand, is the latest
product launches and team-building. clubs. Even if you (or the boss) aren’t incarnation.
But how about when it’s time for a members of one of the “gentleman’s This cocktail of location and history
brainstorm? Like all meetings the clubs” that line St James’s Street and means it has a unique range of meeting
venue must be matched to delegate Pall Mall, London has a wealth of stylish rooms, from slick designer spaces to
culture and the meeting objective. clubs in which you hold your brainstorm grand Victorian rooms. To really inspire
Some, such as a brainstorm about in splendid isolation from the hubbub of some creativity, you could do worse
expansion or a corporate many meeting venues. than hire the Temple, a Grecian-style
re-structure, will also demand room which is one of two Masonic
Landsdowne Club
complete confidentiality. Temples in the property. It feels very
The Landsdowne Club is half traditional
Non-confidential meetings, such as gentlemen’s club, half modern club. The grand with the marble and original
a staff brainstorm on developing a 18th Century building has only been masonic chairs.
new product or a new marketing a club since 1935, and it has always
campaign, might also demand admitted women as full members
privacy to facilitate delegates’ focus.
With a boardroom capacity for 30, the
An exclusive-use property could be
Landsdowne is brilliantly located for a
the ideal solution.
Some companies believe that venues
with leisure facilities such as a tennis
court or spa might give delegates
a much-needed change of scene –
and mindset – during break time so
that they return to the brainstorm
completely refreshed and ready to
give new ideas.
Participant profile will affect what
kind of venues provide distractions
and which don’t. Many UK football
clubs, Aston Villa and Leicester
to name two, have a great range
of meeting venues but some
participants might start dreaming
of putting goals into the net rather
than new revenue into the company.
On the other hand, others may think
of how much strategy is involved
in football, which might spur more
strategic thinking.
So what kind of venue might help
your delegates at your next
internal brainstorm?
Pennyhill Park Hotel
FCMUPGRADE.COM 19Society M
M25 THE NORTH
The most important requirement for Broadoaks External venues suit brainstorms
some brainstorms might very well be Broadoaks is smack bang in the extremely well as they remove the
participation from teams or people middle of the Lake District, just north potential arrival of a colleague who
coming from different locations. This of Kendal, and quite close to the M6, “wants a word” and smartphones can
is where properties near the M25, making it as convenient for those from be deposited at the door. Focus and
especially those near Heathrow Newcastle and the North East as it is for attention are easier to achieve.
and/or Gatwick, can really score. people based from Lancashire up to the However, the size and style of different
Scottish borders. companies means each might thrive in
Pennyhill Park Hotel and Country Club
If easy access for people coming from Companies can hire the property – different styles of conference facility.
many different places is top of the wish complete with seven acres of garden, Across the UK there’s quite a choice.
list, Pennyhill Park is about as perfect four break-out rooms and helipad for
a location as you could imagine. It’s 50 the CEO, for the exclusive use of up
minutes from central London by train to 32 people. If the accessible
and 20 minutes from Heathrow. There is location isn’t enough to sell this as a CONTACT DETAILS
easy access from the M3, M4 and M25, destination for those who want to
with extensive parking and, should you base their brainstorm in the North,
need it, a helipad. the hotel’s private hire boat could Andaz London Liverpool Street
sway the decision. 40 Liverpool Street
This property is well-suited to almost
any meeting, with 20 rooms of all sizes, London EC2M 7QN
“
formats and layout options. It would 0207 961 1234
suit a small group of 8-10 and, for
Broadoaks Country House
those that have the budget, there is the
Bridge Lane, Troutbeck
option to book all of it for exclusive use,
all 124 bedrooms on 120 acres of
Like all meetings Windermere Cumbria LA23 1LA
015394 45566
parkland including the golf course,
tennis courts, etc.
the venue must be The Landsdowne Club
matched to delegate 9 Fitzmaurice Place
London W1J 5JD
culture and meeting 0207 629 7200
MIDLANDS
Sometimes a brainstorm is necessary at objective” Macdonald Burlington Hotel
Burlington Arcade,
short notice (a launch of a competitive
126 New Street, Birmingham
product, say) so the solution might
B2 4JQ
be to use a local hotel with the easy
0344 879 9019
access, required facilities and a
conducive environment. SCOTLAND Pennyhill Park Hotel
Macdonald Burlington Hotel Society M (Glasgow) and Country Club
Given that it’s only a two-minute A tech start-up or design team based London Rd, Bagshot GU19 5EU
walk from Birmingham New Street in or near Glasgow would do well to 01276 471774
station, it’d be difficult to find a hotel consider the Society M. As befits
Society M
in the Midlands which was any more a sister brand to Citizen M, it has a
60 Renfrew Street
accessible. It may not be the most young and quirky style and its
Glasgow G2 3BD
secluded location, but the Macdonald meeting rooms boast “wipe clean
0141 295 0045
Burlington is well kitted out for a walls”, which make it perfect for
brainstorm in Birmingham. creative brainstorms.
20 Winter 2019DRIVEN BY EXCELLENCE ECONOMY STANDARD BUSINESS FIRST VAN MYCAB helps you and your organisation better connect, everywhere in the world. Highly reliable and exceptional quality airport transfers and black car services available in 75 countries, 300 airports and major cities worldwide. Fully integrated at the point of booking, customisable to travel policy needs and managed to enhance corporate duty of care. When you’re driven to be the best, be driven by the best. Book now through your FCM Travel Consultant.
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