The Hotel Expert - A guide to procurement Continuous sourcing: redefining the RFP process - HRS Global Hotel Solutions
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02 | 2018 The Hotel Expert The Magazine for Travel Management and Hotel Procurement A guide to procurement Continuous sourcing: redefining the RFP process Out and about in Delhi Case study – Deutsche Post DHL Group MICE destination check Tallinn
EDITORIAL
Tobias Ragge,
HRS CEO
Dear Readers,
Naturally, we are still right at the beginning As I said, we're still right at the beginning!
of the digital transformation. But even today The results of a global study into hotel
we can digitalise even the most complicated sourcing that we carried out early this
processes to such an extent that in the end year in collaboration with ACTE Global
we are left with the simplest conceivable (Association of Corporate Travel Executives)
solution. The only question is, who are we point towards a future where even the
doing this for? tendering process we have followed up to
now will be redefined; where the annual
In the course of our evolution from a booking sourcing season will be replaced by year-
portal to a vertical expert covering the round continuous sourcing – and thus by
entire value chain for hotel management, we the simplest conceivable solution for travel
recognised early on that merely simplifying management in the digital age.
Cover image: Kirsten Semmler | Vector data: Adobe stock • Editorial photo: Cornelis Gollhardt
the booking processes is not enough to fulfil
our ambition of becoming the innovation Prepare to be surprised at the innovations
leader in this highly dynamic environment. we've got in store for you as your hotel
Or at any rate, not unless we put our solutions provider in 2018.
customers' needs in the field of managed
corporate travel at the heart of what we do. Yours,
We subsequently decided to concentrate on
solutions that take into account the needs
of both travel management and corporate
travellers, a strategy that has now won
over technologies group Siemens. Not
only will we take over all tasks relating Tobias Ragge,
to hotel bookings for Siemens worldwide, HRS CEO
from sourcing to searching and booking
and finally payment solutions, but, with
the aid of pioneering technologies such as
artificial intelligence and blockchain, we
will significantly increase the satisfaction
of Siemens travellers.
2
Table of contents
Hotel sourcing 8 Out and about in Delhi
16
22 26
Travel
4.0 at
Siemens
MICE in Tallinn
Issue 02 | 2018
CHECK-IN TRAVEL MANAGEMENT
News Full transparency in meetings14
Industry news 4 The Deutsche Post DHL Group has been booking
events using the online meeting tool meetago since
COVER STORY 2017. The result? Efficiency, data transparency and
Procurement 24/78 widespread acceptance by employees.
"When it comes to hotel negotiations, savings are
very unlikely." Is this commonly held belief really "The focus is on the overall process"22
true? Or have the right tools simply not been available Thorsten Eicke and Albert Eduard Küng (Siemens) on
until now? A study by ACTE and HRS shows that the the Travel 4.0 system.
industry is currently breaking completely new ground:
"The tendering process is being redefined." The human factor32
For marketing expert Steven Van Belleghem,
BUSINESS TRAVEL there’s no need to worry about digitalisation. The
The boom has just begun16 professional technophile’s mantra is: "Concentrate on
The hotel market in India's capital city Delhi, the the things computers can’t do!"
subcontinent's leading host, is growing rapidly. The
contemporary business hotels segment in particular MEETINGS & GROUPS
has reached a peak in new districts like Aerocity and MICE in Tallinn: The Baltic tiger26
in the suburb of Gurugram. Estonia’s small capital city Tallinn packs a punch
when it comes to IT and cybersecurity. And instead
Delhi: facts & figures21 of bureaucracy, meeting planners can expect a
multilingual population in a unique, medieval city
centre.
IMPRINT
Publisher: HRS Hotel Reservation Service Robert Ragge GmbH, Breslauer Platz 4, 50668 Cologne
Responsible for the content: Björn Zimmer, phone +49 221 2077-5104 | der-hotelexperte@HRS.com
Coordination, editorial work and layout: publish! Medienkonzepte GmbH, Hanover Design: Kirsten Semmler
Editor in Chief: Anke Pedersen Authors: Jürgen Baltes, Stefanie Bisping, Michael Braun Alexander, Tinga Horny and Johannes Kühner
Photographers: Abhishek Bali, Thomas Dashuber, Fabian Weiss and other sources as listed
Copyright: HRS 2018
3
CHECK-IN
TRAINS INSTEAD OF PLANES
Impact of consolidation in the aviation sector
Price increases
Lower capacity
New types of costs
It's better live
Virtual meetings cost sales. Less focus on
customers
That’s the conclusion reached by
the "Chefsache Business Travel
2018" survey conducted by the 76 % 42 % 34 % 33 %
German Travel Association (DRV).
Companies may have saved
time and money by holding
25 per cent of all meetings on
The insolvency of Air Berlin and strategic air transport alliances
Skype et al. last year rather than
are having a negative impact on business mobility, according
Source: VDR business travel analysis 2018, provisional results
meeting in person. At the same to German travel managers. They fear that air travel is
becoming more expensive and pricing less transparent, while
time, however, it was found that service is deteriorating. That’s according to the provisional
businesses achieved 27 per cent results of the 2018 business travel analysis by the German
Business Travel Association (VDR). This is benefiting Deutsche
more sales when they travelled Bahn: 89 per cent of all companies switching from air travel
directly to their customers for a opt for the train – almost 30 per cent in total. However, it’s
not just cost awareness that’s behind all considerations when
meeting. Higher productivity on it comes to business mobility. Although 71 per cent of travel
managers surveyed said that savings remained important,
business trips therefore exceeds
they are equally mindful of employee satisfaction. The full
the time and costs saved business travel analysis will be published this month at
www.geschaeftsreiseanalyse.de.
through virtual meetings.
Just sign
Sixty per cent of all business travellers say that filling in
registration forms is one of the biggest irritations they
face in hotels. That’s according to a survey by American
Illustrations and images: Adobe Stock
Express Global Business Travel in Germany. HRS is now
offering a solution with a service from its smart hotel
initiative. If business travellers fill in their smart hotel
profile in My HRS Account in advance, they will be
presented with a pre-prepared form on check-in and all
they will have to do is sign it. Travellers will be able to
save time in this way each time they arrive at a hotel that
has been booked through HRS.
4
News
5.0
ACTE’s own grading system
Rating
4.0
Rating
The Association of Corporate Travel Executives (ACTE) plans to
introduce its own grading system to check whether hotels are
3.0 suitable for business travellers. It will then list suitable hotels under
Rating
its "Business Conference Hotel Accreditation" scheme. "There are lots
of grading systems, but only for private travellers," Greeley Koch,
2.0
Rating
Executive Director at ACTE Global, explained. Following an assessment
by independent inspectors, the business travel association in future
wants to offer only hotels with well-equipped business centres, safes
1.0
Rating for laptops, conference centres, room service, fitness rooms and a
secure environment. 10,000 hotels are expected to take part up to
0.0 2020 and will pay an annual fee.
Rating
Huge loyalty
Two become one: following the merger of Marriott and
Starwood last year, the companies’ bonus programmes,
which until now have been separate, will be
combined in a centralised account in August.
Customers will then be able to collect points in
6,500 hotels belonging to the 29 Marriott and
Starwood brands. Another takeover looks set
to follow a similar route. Subject to regulatory
approval, Accor Hotels is to acquire Mövenpick
Hotels & Resorts, which currently has 84 hotels
in 27 countries. The purchase price will be around
EUR 482 million.
Conichi: focusing on business travel
Business travellers are changing the doors using a smartphone, optimised
hotel industry faster than the industry sourcing through data analysis).
would change by itself. "Hotels aren’t "Now it’s the corporates that are
adopting new processes as quickly actively pushing our smart hotel
as we would have expected," said solutions into the hotel industry,"
Max Waldmann, who is hoping to Mr Waldmann said in an interview
Photo: Cornelis Gollhardt
advance digitalisation in the hotel with "Business Travel News". HRS
industry with Conichi. However, he has been a partner of Conichi from
added that the business travel sector day one, although CWT and Cytric
was welcoming solutions offered by also collaborate with the software
his start-up (digital check-in, opening provider.
5
CHECK-IN
Dates for your diary
Trend: Digital payments
Virtual payment solutions are on the rise. In a Barclaycard survey
of 250 travel managers, just under half (49%) reported growth in
demand for mobile payment solutions. Two thirds (66%) of travel
managers estimated that this figure will continue to rise, while 37%
Mobility Symposium also believe virtual credit cards are on the way up. Thirty per cent
19/06/2018 | Frankfurt am Main of travel managers surveyed thought that digital payment services
Corporate car-sharing, bicycles for are also becoming more important in the hotel industry, and said
employees and a mobility revolution that introducing virtual payment solutions in their companies would
through blockchain are three breakout become easier as acceptance and availability within the hotel sector
sessions that will take place at the Mobility increases.
Symposium organised by Deutsche Bahn
and Travel Industry Club. Keynote speeches
on intelligent mobility, digital assistants and
smart cities, together with a science slam, A guide to duty of care
will round off the programme. Are travel managers sufficiently concerned
www.travelindustryclub.de
with their duty of care towards travellers?
Travel, MICE and More
Do they keep their staff informed about
28/06 – 29/06/2018 | Mainz
How can new tools help achieve savings, insurance cover and emergency assistance?
what helps minimise safety risks while
The German Business Travel Association (VDR) has
travelling and how can digitalisation help
with end-to-end processes? The programme put together a guide with a checklist comprising fifty
for the BME (Association for Supply Chain
Management, Procurement and Logistics)
questions that travel managers can use to check for
conference looks at these questions relating themselves where action might be required.
to savings, people and digitalisation. There
will be some new features: masterminds Download: www.vdr-service.de
hope to provide fresh impetus for artificial
intelligence and live tracking in start-up
pitches, and it will be possible to enter event
rooms via virtual reality. New ways of working: new travel management
www.bme.de Digital processes will have more and more of an impact on work
flows, places of work and working hours in companies, according
GBTA Convention to forecasts by management consultants Ludger Bals (The Travel
11/08 – 15/08/2018 | San Diego Consulting Group) and Engelbert Wimmer (e&Co.). "The workplace
The world’s biggest business travel event used to be where the machines and the PC were. Now it’s where
with over 7,000 experts. your mobile phone is." Travel managers are starting to notice these
convention.gbta.org effects and "need to move out of their role as static auctioneers in a
specialist department and become responsible directors within digital
Swiss Travel Management Forum ecosystems," the experts emphasised at the Business Travel Forum
06/09/2018 | Zurich held by the German Business Travel Association (VDR) at ITB Berlin.
Conference platform including discussion This means that employees expect a working environment that allows
forums and talks by experts. Networking them to be individuals and organise themselves, and that companies
will play just as much a part in this forum as need to adapt their organisational structures.
specialist presentations.
www.vdr-service.de
Transparent millennials? Yes please!
FVW Congress
18/09 – 19/09/2018 | Cologne Studies are repeatedly showing that the current generation of ca-
Does Facebook want to change tourism? The reer starters is changing the nature of travel. A new survey by
conference will look at this question and at technology provider Travelport suggests that millennials become
artificial intelligence and algorithms, as well frustrated when their companies do not draw conclusions from
as the influence of low-cost carriers on air data from previous trips, for example in order to offer personal-
travel. At the same time, exhibitors will give ised suggestions. Companies that fail to pick up on this trend and
presentations at the Travel Expo. do not try to accommodate millennials will decline in importance,
www.fvw.de said Travelport Vice President Simon Ferguson.
6
News
HRS know-how for ACTE
Growth in the heart of Cologne
Cooperation between ACTE Global and
The HRS Group has several for its strategic growth course.
the Corporate Lodging Forum (CLF):
reasons to celebrate: the HRS had already expanded
HRS will integrate selected content business travel specialist has its presence on the Indian
landed a major coup by gaining growth market in New Delhi
from its series of events into the
Siemens AG as a new large and Bangalore in 2017, while
ACTE Global Summit conference at customer. HRS will from now on another Asian site has been
take over all business processes added in the South Korean
five locations worldwide. The two relating to the global hotel capital, Seoul. This will be
partners "share the same aims in that programme for the technologies followed in 2018 by new offices
group, meaning that HRS will be in San Francisco and Dallas,
they want to train travel buyers in the in charge of processing three and in Europe new branches
million overnight stays per year. will open in locations including
complex hospitality market," Carole
The new global partnership has Stockholm and Amsterdam.
Poillerat, Executive Director for already been toasted at HRS’s The expansion is in line with the
new company headquarters at company’s focus on the business
Industry Relations and manager of the
the central station in Cologne. travel segment: more than two
CLF, said about the cooperation. The The "Coeur Cologne" is not thirds of all overnight stays that
only the centrepiece of the the HRS Group negotiated and
venues will be New York, Singapore, company’s expansion, but arranged last year were for
Paris, Montreal and Sydney. above all is the command centre large international customers
Are you in the right place?
Changes in the order of train carriages shouldn’t cause a panic
on the platform in future. Deutsche Bahn has integrated
a digital display showing the carriage order into its DB
Illustration: Adobe Stock • Images: HRS
Navigator. This will show up-to-date information about
which section of the platform a particular carriage will stop
in. The new service can be found in the Deutsche Bahn
PASS
POR
T
app via an icon in the detailed view for a connection, in "My
Journey" or directly through a booked ticket.
7
TITLE
TEXT: ANKE PEDERSEN
Procurement
24/7
"When it comes to hotel negotiations, savings are very
unlikely." Is this commonly held belief really true? Or have
the right tools simply not been available until now? A joint
study by ACTE and HRS shows that the industry is currently
breaking completely new ground: "The tendering process is
being redefined."
T
he hotel industry isn’t making things easy for hotel
procurement right now. As consolidation progresses,
individual chains are using increasingly aggressive
means to try to exploit the power they have
sometimes enjoyed as dominant players on the market,
whether it’s by extending cancellation periods or adjusting
rates. At the same time, yielding throughout the sector
has reached a dimension that would leave any buyer who
is interested in reliability and the ability to plan ahead
struggling helplessly (negotiation rate? BAR? LRA? NRLA?).
That‘s not to mention direct booking offensives and the
Illustration: Kirsten Semmler • Images: Adobe Stock
expansion of increasingly refined loyalty schemes.
So it may not come as a surprise that during the HRS Corporate
Lodging Forum in Berlin, serious discussions were held about
whether it actually still makes sense to draw up travel
guidelines or whether we shouldn’t simply give travellers
free rein ("traveller centricity"). The results are unsurprising:
while there is "nothing wrong" with a travel guideline, as
Daimler travel manager Bernd Burkhardt asserted, simply
treating staff with suspicion won’t get management very
far these days either. His conclusion was: "Trust is the key.
Mistrust causes too much administration."
8
Hotel sourcing
9
TITLE
Continuous sourcing – the new dimension in hotel procurement
Continuous sourcing is a year-round service that allows travel managers to
maintain an overview of fluctuating hotel rates in the cities that are most
important to their company. To ensure that travellers obtain the best tariffs,
regular discussions are held with the travel managers’ preferred hotel operators,
and comparative tariffs, early booker data and other local factors are taken into
account. The objective is to improve traveller satisfaction while simultaneously
increasing programme flexibility.
Why continuous sourcing? Expected Actual
Cost reductions 65 % 52 %
Traveller satisfaction 57 % 64 %
Greater flexibility in the hotel programme 43 % 52 %
Increased compliance 35 % 44 %
Increased transparency 29 % 24 %
Smaller workload 24 % 20 %
A future without hotel sourcing? So how is travel management set up in 2018? What do
So what does this mean for hotel procurement? Should its sourcing strategies and tools look like? How does it
companies dispense with any kind of sourcing in future and let stay informed of changing requirements, the multitude of
travellers decide for themselves? It certainly sounds tempting. different discount and rate models and market conditions?
Hotel sourcing ties up valuable resources for months on end, And where is optimisation needed? These questions
and the multitude of different rates and discount models, and others were included in a hotel sourcing study that
combined with the fact that there is often no analysis and ACTE conducted jointly with HRS among travel managers
benchmark data available, makes it increasingly difficult for worldwide early this year.
travel managers to make well-founded decisions.
But unfortunately it’s not that simple. Hotel procurement We can’t go on like this!
may no longer be a core competence of travel management, To be clear, more than half of all those surveyed (51 per cent)
as is regularly emphasised by suppliers such as HRS CEO have changed or reorganised their negotiation strategy since
Graphic: Kirsten Semmler • Vector data: Adobe Stock
Tobias Ragge. Nevertheless, this strategic task involves much 2015. Small companies with a budget of less than USD 5
more than simply making sure that travellers are satisfied. million (percentage of those surveyed: 32 per cent) reported
In other words, sourcing remains a vital component of travel this, as did medium-sized companies (14 per cent) and large
management. companies with annual hotel volumes of over USD 10 million
At the same time, however, changes in market conditions (44 per cent). That shows that the sourcing strategy used
mean we need to rethink which tools are appropriate. "We in previous years has reached its limits and that there is
live in a time of information overload and constant change," substantial need for change.
says ACTE Executive Director Greely Koch. This could prove What might this look like? A look at the current situation
expensive for travel managers who fail to react quickly to with regard to global hotel sourcing shows that more than
market trends, "both in monetary terms and with regard to half (59 per cent) of all companies surveyed still carry out
traveller satisfaction." hotel negotiations internally. Only one third (30 per cent)
10Hotel sourcing
Reasons for dissatisfaction with Always up
the current situation to date?
How travel managers keep an
Larger companies
overview of changes in the market,
(Hotel volume p.a. > USD 10 million) in demand and in booking behaviour
40 % Severe fragmentation of the hotel market
40 % Large amount of time and effort required
39 % Rising hotel prices 49 % O ngoing communication with TMC
45 % preferred hotel operators
Ongoing communication with
Medium-sized companies
(Hotel volume p.a. USD 5–10 million)
ngoing communication with
O
21 % operators
34 % Severe fragmentation of the hotel market of online booking tools
31 % Rising hotel prices
14 % with external experts
Ongoing communication
Smaller companies
(Hotel volume p.a. < USD 5 million) 6 % O ther
40 % Rising hotel prices
18 % during the tendering season
None – I only look at these issues
33% Transparency of booking and billing data
outsource this process. However, what is striking is that
this third comprises mainly large corporations: fewer than
half (44 per cent) of companies with an annual budget of
USD 10 million or more still manage their negotiations
themselves.
On the whole, it is nevertheless apparent that the
majority are not really convinced that there are not better
alternatives. The reasons for this relative dissatisfaction
are obvious. The majority of those surveyed complained in
particular about the fact that the hotel market is severely
fragmented, the large amounts of time and effort involved
in sourcing and rising hotel prices. They are therefore The study shows that
seeking solutions that will reduce costs and save time.
There are also calls for transparency with regard to booking
the sourcing strategy
and billing data and benchmark information that can be
used to define targets and assess performance.
used in previous
The decision-makers who were surveyed initially sought
answers to the above challenges within their own
years has reached its
organisation. Are the employees in their team the right
people to solve existing and emerging problems? Are the
limits and that there
hotel programmes in the various regions appropriately is substantial need for
weighted? Do travellers actually book at the rates that
have been negotiated (keyword: rate audits)? change.
11TITLE
A new start with external support
51 per cent of all those surveyed have made changes to their (hotel) negotiation strategy in the
last three years. While large corporations tended to seek support from consultancies or external
hotel management experts, companies with small hotel programmes preferred to cooperate with
a travel management company (TMC); medium-sized companies, on the other hand, mainly opted
to handle all of their hotel sourcing internally.
tart of cooperation
S
31 % with a TMC
tart of cooperation with an
S
29 % external hotel management expert
ll hotel sourcing
A
21 % handled internally
tart of cooperation with a global
S
19 % procurement consultancy
ther
O
33 % changes
Adjustment to changes in conditions? Twenty per
Companies that review cent don’t do this beyond the RFP season
prices and demand for One of the key challenges for an international travel manager
or hotel buyer is always to keep an eye on changes in business
their hotel programme that could have an impact on his/her hotel programme; new
demand in a new geographical region owing to a new project,
all year round instead for example, or an increase in the volume of overnight stays.
Decision-makers were therefore also asked what sources
of just once a year will they obtain their information from to make sure they always
stay informed of the latest developments affecting their
cut hotel costs and also hotel programme (see graphic on page 11).
It’s no surprise that the majority monitor the markets either
increase compliance. through a TMC (49 per cent) or a preferred hotel operator
Graphic: Kirsten Semmler • Vector data: Adobe Stock
(45 per cent). However, it is remarkable that one fifth of
travel managers take changes into account only when the
next tendering season is imminent.
At this point in their study, the experts from the ACTE and
HRS concentrated on questioning those companies that had
redefined their sourcing process. They were interested above
all in the question of whether or not they had outsourced
the time-consuming sourcing process, which is actually no
longer considered to add value. What is interesting is that
the size of a company appears to have an impact on whether
it decides for or against. While companies with medium-
12Hotel sourcing
Falling hotel costs
Willingness to change pays off: every
change in negotiation strategy has
noticeably lowered hotel costs.
Average savings
tart of cooperation
S
4% with a TMC
tart of cooperation with an external
S
7 % hotel management expert
ll hotel sourcing
A
8 % handled internally
tart of cooperation with a global
S
7 % procurement consultancy
ther
O
6 % changes
Figure 2 *These results are based on information provided by travel
managers who have made changes to their hotel sourcing strategies in
the last three years.
sized hotel programmes (USD 5 million to USD 10 million) in What other better way is there to keep an eye on fluctuating
particular had decided to handle all of their hotel sourcing hotel rates than through continuous tendering in markets
internally, just under half (48 per cent) chose the opposite that are relevant to companies? Or "redefining the RFP
path and brought in external experts. process", as Marco D’Ilario, Vice President Sourcing Solutions
at HRS, enthuses. What other better way is there for travel
Continuous sourcing: Redefining the RFP process managers to stay informed than through regular discussions
Either way, the change in strategy has paid off for every with their preferred hotel operators and through the use of
single company, with hotel costs falling by an average of comparative tariffs, early booker data and other local factors
six per cent per year. There was nevertheless one method to obtain the best rates for satisfied travellers?
in particular that attracted the attention of the experts Naturally, no one is going to turn their hotel programme
from ACTE and HRS. Companies that set up a so-called upside down overnight. In view of the cost savings and other
continuous sourcing process, in which prices and demand advantages that those 51 per cent of the surveyed companies
for the hotel programme are reviewed year-round rather that had made changes to their hotel sourcing process were
than just once a year, not only reduced their hotel costs but able to achieve, ACTE is calling on the remaining 49 per
also increased compliance and the frequency and intensity cent to "consider a change, because financial performance
of communications between individual stakeholders (TM, and traveller satisfaction are becoming more and more
assistants, hotel; see graphic). important."
Continuous sourcing is still a relatively new concept in the
field of hotel procurement; only a handful of travel managers
(about one tenth) currently use it. However, ACTE Executive
Director Greely Koch is certain that it will catch on. "As the
concept of continuous sourcing cuts hotel costs, improves
traveller satisfaction and increases programme flexibility,
travel managers should exploit these benefits," he says.
13TRAVEL MANAGEMENT
TEXT: JÜRGEN BALTES
Full transparency
in meetings
Since 2017, the Deutsche Post DHL Group has been booking events using the
online solution HRS Meetings Solutions. This has resulted not only in new levels of
efficiency and data transparency – thanks to accompanying training sessions and
communication, the solution has also been widely accepted by employees.
M
eetings and events are have been integrated into it, so that as well as conference rooms and hotel
generally planned and they can make bookings easily and in rooms. "This is a new industry standard,"
organised by the company’s compliance with guidelines. says Claudia Elke-Uzarek, a MICE expert
own employees. Different in procurement marketing and media
departments and managers organise Integration into Cytric for EMEA.
and book using a wide range of Along with bespoke training sessions and To ensure that the new booking
different channels, which means it’s communication measures, integration tool would meet the company’s
no surprise that conferences and into the trusted Cytric system quickly requirements, individual adjustments
events remain a kind of black box ensured widespread acceptance by were discussed and incorporated in a
at many companies, including large users. "Intensive collaboration with series of workshops. These included
ones. It’s naturally difficult to obtain a HRS led to successful implementation," the integration of the company’s own
consolidated overview here. says Simone Langer, Team Lead approval process and a prescribed
The Deutsche Post DHL Group Procurement Marketing and Media structure in which the cost centre and
recognised this and set itself the goal EMEA at the DPDHL Group. The tool billing address must be entered.
not only of increasing transparency is very convenient for the company’s The structured process and direct
in its conference activities, but also of events planners to use, she adds. access to further services have
offering its users a convenient booking The new way of booking meetings has significantly reduced process costs
solution – and thus also lowering also led to further advantages for the and have introduced a new level
indirect costs. company, with online requests and of financial transparency into the
The MICE team at the DPDHL Group booking saving a lot of time compared conference and group segment. "We
introduced HRS Meetings Solutions for with the traditional offline RFP process. now have a high degree of efficiency
online events booking in spring 2017. At the same time, transparency has and data transparency that we wouldn’t
This had been preceded by an intensive improved significantly as a result of have achieved without HRS Meetings
pilot phase. The adapted solution, consolidated booking using a single Solutions," says Christian Heid, VP
referred to internally as "myMeeting", solution. "One stop shopping" has Corporate Sourcing Manager for
Image: Adobe Stock
is integrated into the online booking enabled additional synergies to be Marketing, Travel and Consulting at the
system Cytric, which DPDHL Group achieved, as services such as technical DPDHL Group.
employees already use to book their equipment, catering, transfers and other The company is also benefiting in
business travel. Preferred suppliers event locations can be booked directly, another respect: to submit a tender,
14The online RFP process
Consolidated booking
using a single platform
saves a lot of time and
improves transparency.
suppliers must accept the Christian Heid, DPDHL Group:
More efficiency and data trans-
standardised payment and
parency
cancellation conditions
stipulated by the DPDHL
Group and the Code of
Conduct. This helps to
ensure compliance with
the CSR guidelines.
The implementation of HRS Meetings Solutions
An end-to-end process The challenge: offline bookings were preventing transparency in the
as the goal simple events segment. The relevant data and services were not available
in a "one stop shop". The strategy: the HRS solution was tailored to the specific
In the next step, the DPDHL Group
requirements of the DPDHL Group in a series of workshops. User workshops
and HRS want to roll out the conference
on site, video instructions and further training materials provided support with
solution to other markets. It will also implementation. The result: data transparency has improved significantly, while
be possible to book other services and indirect costs are being saved thanks to a more efficient process.
add-ons online, such as additional staff,
speakers, entertainment facilities and
The Deutsche Post DHL Group
equipment for events.
The Deutsche Post DHL Group is the world’s leading provider of logistics and letter
For an actual end-to-end process,
delivery services. The group connects people and markets and facilitates global
however, event bookings now have to be trade. It follows the strategic aim of being the first choice for customers, employees
integrated into the established payment and investors worldwide. By doing business responsibly and through its commitment
and invoicing processes at the DPDHL to society and the environment, the group makes a positive contribution to the
Group. This missing piece of the puzzle world. The Deutsche Post DHL Group is aiming to offer zero-emissions logistics
is scheduled to be tackled in 2018. services by 2050.
The group combines two strong brands: Deutsche Post is Europe’s leading postal
service provider, while DHL offers a comprehensive portfolio of services, including
international express delivery, freight transport, supply chain management and
e-commerce solutions. Together, they employ around 520,000 staff in over
220 countries and territories worldwide. The group achieved sales of over EUR 60
billion in 2017.
15BUSINESS TRAVEL
20 minutes until you’re in the
bustle: There are good airport
connections to central Connaught
Place
The boom town of
Delhi is growing by
400,000 inhabitants
per year
16Out and about in Delhi
TEXT: MICHAEL BRAUN ALEXANDER · PHOTOS: ABHISHEK BALI
The boom has
just begun
The hotel market in India’s capital city Delhi, at around 25 million people the
subcontinent’s largest metropolitan region and leading host, is growing rapidly.
The contemporary business hotels segment in particular has reached a peak in
new districts like Aerocity and in the suburb of Gurugram.
B
usiness travellers landing in Delhi can ex- Meanwhile, the Taj Mansingh, also known as the
pect an impressive welcome on arrival in Taj Mahal and a venerable hotel icon of the Taj
one of the city’s top hotels. They will very parent group Indian Hotels Company (IHCL), is go-
probably be greeted at the entrance by ing through a phase of creative destruction. The
Mr Singh, a tall Sikh with a colourful turban on his municipal administration is in the process of auc-
head, a sumptuous uniform on his body and a me- tioning off the Mansingh building to the highest
ticulously twirled moustache. That is respectab- bidder – in a tough, non-transparent, bureaucrat-
le and, stylistically, is simply part of the protocol ic process that no one understands any more, the
in the Indian capital. The Sikhs come mainly from outcome of which is unknown. However, the cur-
the Punjab to the north-west of Delhi and have rent hierarchy among top hotels is clear, says Lou-
a long military tradition. Today they still traditio- is Sailer, who had previously worked for Raffles
nally watch over the reception area and security for a long time and has been running the Leela
at the hotel entrance. They all have „Singh“ („lion“) Palace in the diplomatic quarter of Chanakyapuri
in their name, for religious reasons. as General Manager for almost five years. "There
are only three real top hotels in Delhi: the Impe-
Restructuring in the top segment rial, us, the Oberoi." A triumvirate.
The hotel market in Delhi, India’s largest in terms
of the number of rooms, is currently experienc- A boom in the business hotel sector
ing a dynamic revival. The Oberoi, established in The booming business hotels segment is enjoy-
1965 on the green verges of the Delhi Golf Club ing even greater dynamism than the top group.
and within sight of the world-famous tomb of the "In the last few years there’s been a complete rev-
Mughal leader Humayun, opened its doors again olution in Delhi’s hotels," says Michael Wekezer,
at the beginning of this year following a 20-month whose job as an office manager at international
refurbishment. Opposite stands the no less luxu- tax consultancy Rödl & Partner in Delhi gives him
rious Lodhi (formerly the Aman Delhi), which has expert knowledge of the city’s business communi-
just become India’s first "Leading Hotel" and of- ty. Just a few years ago, he says, there were only
fers many suites with their own private swim- traditional luxury hotels like the Imperial on Con-
ming pools. naught Place and the Maidens in Civil Lines – or
17BUSINESS TRAVEL
Cheap, but slow:
navigating the
metropolis by taxi
simple guest-houses that cost little and were very press train will take guests from the Aerocity sta-
dirty. "Five years ago, India had no middle seg- tion to Connaught Place in central New Delhi and
ment." Puneet Chhatwal, head of IHCL with around the New Delhi Train Station, the main station, in
17,000 rooms in India in total, said in mid-Feb- about 20 minutes. The journey can take an hour
ruary in the "Economic Times" that the most dy- and a half in the rush hour if you travel by taxi or
namic growth in India was currently taking place in a hotel saloon car. "A lot of companies are going
in the middle and budget segments, i.e. below the out there now," Sailer says. "You can get straight
luxury segment that had previously been domi- from the airport to your office. In fast, out fast,
nant for so long. that’s their business model." Room prices in Aeroc-
ity typically range between EUR 70 and EUR 130.
An airport connection is vital They rose 15.4 per cent in the 2016/2017 finan-
A prime example of this trend is Aerocity, cial year, more than anywhere else in Delhi, a sign
a hotel complex located right at Indira Gandhi that the concept is successful.
International Airport (IGI), which for Wekezer is
"a sign that there is now a real market for busi- The suburb of Gurugram is growing again
ness hotels in Delhi." Aerocity, which is around Apart from Aerocity there are other hotel clusters
a square kilometre in size, consists of a cluster scattered all over the entire urban area. Thanks to
of hotels that have sprung up over the last few its good airport connection, the diplomatic quar-
years. Around a dozen hotels have opened, includ- ter of Chanakyapuri is another important loca-
ing Andaz, Holiday Inn, Ibis, JW Marriott, Novo- tion for business travellers. Many embassies are
tel and Pullman, along with a "premier" branch of located here, along with the Leela Palace and the
the fast-growing Indian hotel group Lemon Tree, Taj hotel Diplomatic Enclave, which until recent-
which floated on the stock market in April. Here ly was called the Taj Palace. The satellite town of
things are efficient, modern and less ostentatious Gurugram (until 2016 Gurgaon) to the south of
than in the luxury category; the guards wear prac- the airport is also growing in importance and has
tical dark-blue uniforms rather than turbans. now itself become a metropolitan area with over
It’s the location that is particularly impressive. a million inhabitants. It contains the headquarters
Firstly, the airport terminals are practically on of numerous international corporations and over
the doorstep. At the same time, the Airport Ex- 5,000 hotel rooms.
18Out and about in Delhi
Home-made: 88 per cent
of travel sales come from
domestic travellers
"You can get straight from
the airport to your office. In
fast, out fast, that’s the
business model."
"In the top 6
by 2020"
HRS has three branches in India, in New Delhi,
The hotel industry is booming practically every- Mumbai and Bangalore. As Managing Director,
where south of the Himalayas, with Delhi as Santosh Kumar heads up HRS’s business in
the capital playing a special role and acting as India.
a trend-setter. Of around 120,000 rooms in the
branded segment throughout India, well over You’ve opened the new HRS office in Delhi at the airport
20,000 are currently located in the Greater Del- in Aerocity. Why there?
hi area, or approximately one sixth. The manage- Aerocity is so successful because its location is ideal:
ment consultancy HVS estimates that a further very close to the airport terminals and easy to access via
4,500 rooms are planned. the national highway. That plays a crucial part in short-
However, the main driving force behind this strong ening travel times.
growth is not foreign guests. The World Travel &
Tourism Council (WTTC) in London estimates that Gurugram and Noida have also established themselves
88 per cent of total sales in the travel sector in as business locations in the area around Delhi. What
India are attributable to India’s own population role do these satellite towns play for business travellers
of more than 1.3 billion, who make about 1.6 bil- today?
lion (mostly short) journeys each year, more than Both of them, Gurugram and Noida, have now become
three times as many as 10 years ago. In contrast, booming cities that together with Delhi make up India’s
only nine million foreigners came to India in 2016. most important travel destination.
Delhi’s image abroad Greater Delhi is expected to have close to 36 million in-
One reason for the relatively weak business with habitants in 30 years. What impact will that have on the
foreign guests is problems with India’s image. hotel industry?
"The foreign press is brutal to India," Sailer says. We expect India’s travel boom – driven by the growing
The country’s image in the media is often shaped middle class and improved connections between cities –
by headlines about environmental pollution and to continue over the next few years. India is already the
crime. Delhi in particular is regarded as a health 10th-largest business travel market in the world and will
risk because of its poor air. According to the World be in the top 6 by 2020, thanks to annual growth rates
Health Organisation (WHO), of all the world’s meg- of 11 per cent. Those are good overall conditions for the
acities Delhi has by far the most toxic air; it is hospitality market.
19BUSINESS TRAVEL
A prosperous suburb: The
influx of global compa-
nies has led to a hotel
boom
A hearty welcome: Singh
watches over the
reception area
more difficult to breathe here than in Shanghai, stalled filter systems to provide clean air inside
São Paulo, Mumbai or Calcutta. This is primari- the buildings for their guests’ well-being.
ly due to road traffic and the burning of fields Despite this shortcoming, everything suggests
following the harvest in the surrounding fertile that Delhi has a great future and will continue
plains. However, it is Delhi’s geographical location to grow. One hundred years ago there were just
in a basin that causes smog in the winter months 400,000 people living here – almost exactly the
number of residents currently being added to the
city each year. According to estimates from reli-
"In the last few years there’s able sources, the city’s population will grow to
36 million by 2050 and then around 57 million
been a complete revolution in by 2100, and all of them will need somewhere
to sleep. The boom in Delhi’s beds has only just
Delhi’s hotels." begun.
every year. From about the beginning of Novem-
ber to the end of January, relatively cold air hangs
over the city and is covered by warmer atmos-
pheric layers, so that there is very little circula-
tion. As little precipitation falls in the winter, fine
particles are not "washed away".
The municipal administration is starting to tack-
le the problem following protests by the popula-
tion, for example by imposing selective driving
bans and massively expanding local public trans-
port. The city’s hotel industry is also aware of the
breathing difficulties. Some top hotels – including
the Oberoi – and several embassies have now in-
20Out and about in Delhi
Facts and figures
Travelling to Delhi covers the skin, all types of insect repellent). Dengue fever
Indira Gandhi International (IGI), India’s biggest airport, is occurs in Delhi, particularly in the winter. Malaria is a risk fac-
around 15 kilometres south-west of the city centre (about tor, but business travellers are very unlikely to be affected.
an hour’s drive). Prepaid taxis are a cheap and practical way Safety: Delhi is regarded within India as relatively unsafe,
to get from the airport into the city (counter in the terminals, although in an international comparison, travellers are at no
around EUR 5 to EUR 10). Alternatively, the modern Airport more risk than in urban metropolitan areas in other emerg-
Express train will get you to the city centre in 20 minutes ing countries. The biggest risk is the complex road traffic
(EUR 1 one way). system, which takes some getting used to for Europeans
(left-hand driving). You should be vigilant and exercise good
common sense, particularly after it gets dark. Women should
Local info not take taxis alone.
Transport: Delhi has a relatively good local public trans-
port network and a modern underground rail system. Ho-
tels can arrange all kinds of transfers. Street taxis are cheap Visas
and available everywhere. You should make sure before Business travellers generally require a business visa to enter
starting your journey that the taxi meter is working prop- India (apply online, extensive documentation needed). The
erly, or agree a fixed price. Many taxi drivers barely speak fee is approximately EUR 120 to EUR 240, depending on the
any English. App-based chauffeur services such as Ola and period of validity (www.indianembassy.de). Indian consular
Uber work well. authorities are not renowned for their flexibility or speed.
Seasons: The winter (October to February) is a pleasant
time of year, with low precipitation and temperatures be-
tween 10 and 25 degrees. It is the high season for the ho- Blackout dates
tel industry, although it is also the period with the worst air Delhi celebrates Holi, a colourful and boisterous spring fes-
quality. A brief, mild spring (March) is followed by summer tival, in March. The date varies from year to year (2019:
(until June) with physically demanding maximum tempera- 20/21 March). Diwali, the Festival of Lights, is a major event
tures of well above 40 degrees. The monsoon season (June that is celebrated towards the start of winter. Many Indian
to September), when most of the rains fall, is slightly cool- families celebrate it in great style, comparable to Christmas
er and more pleasant. (2018: 7 November).
Health: The biggest risk to business travellers is gastroin-
testinal intolerance. Visitors should drink only mineral wa-
ter, avoid untreated foods, street food and the like and wash
their hands as often as possible with soap or disinfectant
(hand sanitizer). The air pollution in Delhi can cause irritation
of the respiratory tract or eyes, even after a short time. To
protect against infectious diseases, visitors should protect
themselves in particular from mosquito bites (clothing that
21TRAVEL MANAGEMENT
INTERVIEW: ANKE PEDERSEN · PHOTOS: THOMAS DASHUBER
"The focus is on the
overall process, not
just the price"
The system is called Travel 4.0. And it’s set to catapult travellers at Siemens into the era of digital-
isation. What’s more, its initiators Thorsten Eicke and Albert Eduard Küng have shifted the focus
onto the travellers, breaking with Travel Management’s dominating principle of prioritising pricing.
We asked them to tell us all about it.
Mr Eicke, Siemens has 377,000 employees, over what is happening and showing them where the
half of whom travel regularly. What can they added value for travellers is.
expect from your new travel programme?
Give an example.
Thorsten Eicke, Vice President Global Category
Mobility Services: We’re no longer focusing just Our direct connect contract with Lufthansa. This
on the price, but also on the traveller. By doing contract, which links Siemens and Lufthansa
this we hope not only to relieve our employees with each other directly, is unique. We’re also
of the stresses and strains usually associated cooperating strategically with Emirates, Etihad
with travel, but also to positively influence and others. We didn’t just decide to do this
their behaviour. Naturally we will continue to because of prices. The keyword was "global
ensure that business is supported with the best distribution systems". We asked ourselves:
conditions. What else will this allow us to do?
You’re talking about leakage? And?
Correct. However, the key thing is that price is Since August 2017, all Siemens employees have
no longer the main thing for us. been able to use the lounges of some airlines,
even if they are only flying economy class.
So you‘re talking about nothing less than a They also have the right to priority boarding
paradigm shift. What role does digitalisation and can use the fast lane. With some partners,
play in this? it’s even enough to show a Siemens pass as a
form of ID. The pass is fitted with a chip that
Siemens is a pioneer of digitalisation in many a traveller can use to identify him or herself
areas of business. In Mobility Services we call as an employee in a fully electronic process.
it Travel 4.0. We are therefore driving forward Feedback received to date on this kind of
digitalisation and making it come alive for our customer care has been very good; it increases
employees. We are enabling them to grasp productivity.
22Travel 4.0 at Siemens
What other added value does Travel 4.0 offer able to promote it successfully, we firstly need
Siemens employees when travelling? standardised processes, end-to-end processes
that extend from the world of travel to the world
Our end-to-end strategy combines booking and of expenses. The "world of travel" encompasses
travel costs. We gained the service provider all processes from the point at which we say: I’d
SAP/Concur for this project, which we have like to go on a journey. After that, everything
called E2E Travel@Siemens. The solution offers takes place that leads to the reimbursement of
many new digitalisation opportunities. There’s costs to the employee.
an app to provide support with your entire
Illustration: Kirsten Semmler | Vector data: Adobe Stock.com
business trip. You can also keep a record of But surely Travel Management isn’t single-
restaurant receipts and automatically enter handedly responsible for such a project?
credit card details. Your travel cost report
will therefore write itself. We harmonised our We’re doing it jointly with Human Resources.
policy structure for this approach. The reason E2E Travel@Siemens is a lighthouse project that
for this was that in the past we had different can work only with the special involvement of
travel booking and travel cost billing pages in stakeholders.
the respective countries.
During last year’s Corporate Lodging Forum in
So you’re rolling out the app worldwide? Berlin, you said that this change of consciousness
involved moving away from „dictating to
We’ve set it up as a global project, and the pilot travellers to a certain extent“. The keyword was
has been running since autumn 2017. To be „ownership culture“.
23TRAVEL MANAGEMENT
"Employees know best The programme has already gone live in the
United Kingdom, Ireland and Brazil, and our staff
when they need to go are enthusiastic about it. They’re telling us how
much simpler and quicker the process is now.
where. That means After the first half of 2018 this will be followed
by the USA and Canada, then Germany.
they also have the right
Isn’t it actually impossible to implement a single
to a say in decisions." solution for so many different countries with
their respective legal peculiarities?
Eicke: We’re always guided by the legal provisions
Albert Eduard Küng, Head of Global Travel in the country concerned, and our suppliers
Management: Digitalisation is simply a vehicle help us with this. We have to ask ourselves the
for us. Empowerment, i.e. the traveller’s ability fundamental question: Where do we have extras
to decide certain things for him or herself, is that we can trim off? We need to take a bold and
actually a fundamental requirement for this decisive approach on this point, so that we can
approach. In future, travellers will be able to actually standardise the process throughout.
say what is important to them and will then be
guided through the system. That means we’ll be At the Corporate Lodging Forum, you said
relieving them of the complexity that has been that individual travellers could be given more
involved in processes up to now. Employees personal responsibility for their decisions once
won’t even need to obtain prior approval from their operating expenses have been reduced.
their line managers any more. We’ve completely What exactly did you mean by that?
done away with pre-trip approvals. We’re
convinced that employees want to do the right Küng: The traveller knows very well what the
thing; we just need to make it easy for them to best thing to do is. We simply need to design
do the right thing. the system intelligently so that it integrates all
24Travel 4.0 at Siemens
options, like virtual conferences as an alternative Eicke: That’s why virtual payment is also a big
to travelling, for example. topic for us.
Eicke: Employees see the whole market. They Küng: Ultimately, travel guidelines have to be
know best when they need to go where. That convincing. Employees have to think: "I'm being
means they also have the right to have a say in taken seriously; I understand it." Our goal is to no
deciding what is suitable. It’s also important to longer regard travel as a separate subject, but
us to include shared economy services in future. instead as a means to an end. So we have to get
Line managers will be involved only if a decision our employees to understand what we want.
will cost significantly more and certain overall
parameters will be exceeded. In March it became public knowledge that HRS
At the end of the day, however, the employee will in future take over all business processes
always has a sense of what is right when it comes relating to Siemens’ global hotel programme.
to the "whether" and "how" of the task that he What do you expect from this new global
or she has to perform. We are simply giving cooperation?
employees a basis for making sensible decisions
in their business environment. In the USA, where Küng: This step is the logical continuation of our
the new policy has been implemented since digitalisation strategy: streamlined, innovative
summer 2017, the average price has even gone processes with complete transparency on all
down slightly. That’s exactly what we want to devices, including the HRS app.
achieve. Streamlining is perceived as added
value. Mr Eicke, Mr Küng, thank you for the interview.
At all levels?
Küng: Sixty per cent of all bookings in China are
already made using mobile systems.
25MEETINGS & GROUPS
TEXT: STEFANIE BISPING · PHOTOS: FABIAN WEISS
The Baltic tiger
Estonia’s small capital city Tallinn packs a punch
when it comes to IT and cybersecurity. And
instead of bureaucracy, meeting planners can
expect a multilingual population in a unique,
medieval city centre.
I
t was a sunny day in September. Europe’s heads of sta- of state also find this, she says, adding that it’s easy to get
te had assembled for the digital summit in Tallinn. French talking to people: "Almost everyone speaks English as well as
President Emmanuel Macron took advantage of a free Estonian, while many people also speak Russian and Finnish."
hour to have a look at the old town, an outstandingly The theme of the EU summit, the digitalisation of Europe,
well preserved medieval city centre and Unesco world he- was also typical of Tallinn, the city where Hotmail and Skype
ritage site. Macron strolled across the town hall square, ad- were developed. The basic right to free internet access is
mired the pastel-coloured façades, pointed gables and slim stipulated in the country’s constitution. The government has
town hall tower, chatted to the locals and took selfies. The- been paperless since 2000; parliament votes with a click of a
re were no signs of any security guards. mouse, while the public follows debates live on the internet.
"That kind of thing would probably only happen here," says In the former fishermen’s quarter Kalamaja – right behind the
Anu Metsallik, deputy sales manager at Unique Hotels, which city wall – start-ups and hipster cafés are burgeoning, pro-
has four branches in Tallinn. "Tallinn is small and very safe. viding further evidence that fortress-like medieval buildings
It’s easy to contain risks here." The security staff of heads and a fresh innovative spirit are not mutually incompatible.
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