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The Helvetic's Market Specificity

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The Helvetic's Market Specificity 2018 EDITION 2018 BUSINESS TRAVEL MANAGEMENT IN SWITZERLAND The Helvetic’s market specificity THE HELVETIC’S MARKET SPECIFICITY THE HELVETIC’S LES SPÉCIFICITÉS DU MARCHÉ HELVÉTIQUE DU MARCHÉ LES SPÉCIFICITÉS du marché helvétique marché du Les spécificités Les TRAVEL MANAGEMENT EN SUISSE EN MANAGEMENT TRAVEL 2018 ÉDITION 2018 ÉDITION — TABLE OF CONTENTS EDITORIAL 4 1/ SWITZERLAND, A UNIQUE COUNTRY 6 to 11 • Small but diverse geography • Multiculturalism as the starting point • Population 1 • Macroeconomy • Currency • Politics and administration • Foreign policy 2/ OVERVIEW OF THE BUSINESS TRAVEL IN SWITZERLAND 12 to 21 Main figures on the sector Structure of the supplier market and main players • Travel agency or TMC networks 2 • Airports and airlines • Rail companies • Accommodation 2 3/ ORGANIZATION OF TRAVEL MANAGEMENT IN COMPANIES 22 3.1 Benchmarking organizations and practices 23 to 26 3 • Organization and structure of travel management and snapshot of the players • Company maturity • Snapshot of the Swiss traveller • Specificities of international organizations 3.2 Overview of company tools 26 to 30 • Agency and online booking tool • Expense account management tools • Payment methods • Adoption rate of travel & expense tools • Travel policy and validation system • Smartphone use • Inclusion of the sharing economy • Sécurity • Reporting and contract monitoring 4/ OUTLOOKS, EXPECTATIONS AND INNOVATIONS 32 4.1 Economic outlooks 33 4 4.2 Business travel management: what do companies and employees expect? 33 4.3 Innovation 34 The notion of service, key to understanding the Swiss market 36 Acknowledgements 38 Contacts 38 3 — EDITORIAL Swiss Travel Management (STM) was founded in THE HEADS 2015 with the aim of representing corporate travel OF STM managers in Switzerland. Since its launch, the asso- — ciation has worked to share knowledge and expe- rience between its members and partners. We now have over 32 members, including 7 partners, who are involved in our association and contribute to furthering travel management’s horizons. Switzerland is a global market but with a strong regional attachment (26 cantons and 4 languages). You can find all company types with varying Nathalie levels of business travel management maturity and ANSERMOZ strategies here, alongside very segmented suppliers at international and regional level in a country that is only small in size. This publication, an informative tool, brings you relevant content underpinned by unique qualita- tive and quantitative data, trends and prospec- tive innovations in travel management to help you better achieve your potential and goals. For its very first publication, STM wanted to address Ptisem all players, private and public, on the specificities of DJEGHBAL travel management in Switzerland. All aboard the STM to discover a market full of promise: travel management in Switzerland! 4 5 SWITZERLAND, 1A UNIQUE COUNTRY 6 — SMALL BUT DIVERSE GEOGRAPHY With a surface area of just 41,285 sq. km, Switzerland enjoys a huge variety of landscapes. Although its mountain ranges, lakes, hills and rivers have made it a very attractive tourist destination, its geography has also posed a challenge to de- velopment of its transport network. Today, Switzerland has been able to create the necessary facilities to take advantage of its central position, connecting the region from East to West and North to South and becoming an important European hub, as the diagram below illustrates: PARIS FRANKFURT 400 km 280 km MUNICH 260 km BASEL VIENNA 750 km ZURICH BERN LAUSANNE GENEVA LUGANO LYON 90 km NICE TURIN MILAN 230 km 190 km 65 km Source : GGBA Switzerland 7 — — MULTICULTURALISM POPULATION AS THE STARTING POINT Switzerland has a little over eight Switzerland, not only by location million inhabitants, including a but also by design, is a proud mul- majority of young people aged 20 ticultural nation. Situated between to 39, and posts 1% annual demo- France, Germany, Liechtenstein, graphic growth. Life expectancy is Austria and Italy, Switzerland amongst the highest in the world emerged from a military and eco- at 80 for men and 85 for women nomic alliance and has progres- and the HDI (Human Development sively been enriched by outside Index) is 0.939, putting Switzerland influences. The country now has 26 in second place globally just behind cantons and 4 official languages: Norway. German, which is spoken by 62.8% of the population, French (22.9%), There is a very large foreign popu- Italian (8.2%), Romansch (0.5%) lation in Switzerland, accounting and finally other foreign languages for an average 25% of the total representing 5.6%. population. That figure rises to 41% in the canton of Geneva and These regional specificities remain to 32% in Basel. Foreign workers marked and important to the Swiss. have always represented over 20% For over 50% of French speakers of the active population since the and nearly 40% of German and 1960s, topping 30% in 2015. Italian speakers, identification with Nearly 80% of these workers their region of origin takes prece- come from a European Union or dence over attachment to the wi- European Free Trade Association der country. Member State. That cultural perception should be remembered and carefully considered when analyzing and determining future Swiss travel management(s). 8 — Two thirds of employees work MACROECONOMY within a microenterprise or SME as the diagrams below shows: Switzerland’s economy is one of the most prosperous despite the lack of raw materials and coastlines. BUSINESSES Note, however, that the world’s BY WORKFORCE SIZE second-largest shipowner, MSC, is 2% a Swiss company. 8% The country’s success is closely linked to a trade surplus (37 bil- lion francs) and the performance of several sectors, including phar- maceuticals and watchmaking. Its industry specializes in products with high added value and in niche, 90% export-focused markets, sup- n 0-9 ported by major R&D investment n 10-49 (3.4% of GDP). The European Union n 50-249 n is Switzerland’s biggest trading 250+ partner with 63% of total trade, Source : Statistical data on Switzerland, 72% exports and 54% imports. Federal Statistical Office These various factors have contri- buted to making the Swiss eco- nomy the most competitive in the EMPLOYÉS PAR CATÉGORIE DE world for the ninth consecutive TAILLE D’ENTREPRISES year, according to a 2017/2018 report published by the World Eco- 26% nomic Forum. 32% Switzerland’s economic fabric is also unique in its structure: over 99% of companies in Switzerland are small and medium-sized enter- 22% prises (SME) with fewer than 250 employees. The average company 20% size is 8.5 (tertiary sector) and 12 n 0-9 employees (secondary sector). n 10-49 n 50-249 n 250+ Source : Statistical data on Switzerland, Federal Statistical Office 9 Swiss companies’ business ac- MAIN BUSINESS ACTIVITIES tivities are concentrated in the OF COMPANIES IN THE TERTIARY following main sectors: SECTOR (by number of employees) 14% MAIN BUSINESS ACTIVITIES OF COMPANIES IN THE SECONDARY 31% SECTOR (by number of employees) 20% 18% 15% 1% 3% 7% 4% 5% 12% 8% 10% 6% 5% n Wholesale trade 7% n Retail trade 18% n Accommodation n 16% Food and beverage service activities n IT and other information services n Tobacco and agri-food n Financial service activities n Clothing and textiles n Architectural and engineering activities n Wood, papers and print n Administrative and support service activities n Pharmaceutical products n Human healt and social assistance n Metal products n Computers, electronic and optical products, watches and clocks n Electrical equipment n Électricity, gas and steam n Other — CURRENCY The Swiss franc is a ‘strong’ currency by international standards and described by economists as a «safe investment». In other words, it is a currency reputed to be stable, little impacted by geopolitical, financial or economic instability and used by investors to limit the risks in the event of recession. Strong demand for Swiss francs leads to an overva- luation of the currency compared to its fundamental value and lowers the cost of imports. 10 — — POLITICS FOREIGN POLICY AND ADMINISTRATION Switzerland is not a member of the Switzerland is a federal state com- European Union or European Eco- prising 26 cantons, subdivided into nomic Area but remains a major 2,222 communes on 1 January player on the European stage, 2018. The cantons have conside- particularly through its membership rable sovereignty, particularly in the of the Schengen Area, Council areas of health, culture and edu- of Europe, European Free Trade cation, whilst the Confederation Association and OSCE (Organiza- remains responsible for questions tion for Security and Cooperation of foreign policy, security, currency in Europe). Switzerland is also and defence. involved in the promotion of world It is a so-called semi-direct demo- peace and is the seat of interna- cracy combining elected represen- tional organizations such as the tatives, referenda and popular ini- International Committee of the Red tiative, enabling voters to respond Cross and the United Nations. to government decisions. In summary Although it has a relatively small surface area and population size compared to its European neighbours, Switzerland is known for its competitive economy, overcoming its geographical limitations and attracting companies and international organizations. To maintain that economic balance and continue developing its international exports in particular, it requires a comprehensive, high-perfor- mance, managed and innovative business travel offering. 11 OVERVIEW OF THE BUSINESS TRAVEL 2IN SWITZERLAND 12 — MAIN FIGURES ON THE SECTOR The Swiss travel and tourism indus- Geographically, we can identify try represents 2.4% of European three main economic areas: expenditure. It is a market with • Geneva region (French-spea- strong potential whose 2022 value king Switzerland): international is estimated at 43.9 billion CHF, up organizations, watchmaking, 16.6% on 2017. banking and agri-food • Basel region (German-speaking Travel can be divided into two main Switzerland): pharmaceuticals categories: and chemistry • leisure travel, accounting for • Zurich region (German-speaking 28.7 billion CHF (2014), i.e.
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