Winter 2019 UpgradeFCM 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

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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 T 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 from virtual card travel than ever before. payments and mobile A new year is usually a time when we promise to make 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

EDITORIAL Contents COMMISSIONING EDITOR 15 Cultural diversity Betty Low 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 CORPORATE TRAVELLERS CAN André Albuquerque Mark Frary looks at how mergers and and CSR initiatives acquisitions can cause huge waves in PUBLISHING MODIFY THEIR BOOKINGS travel programmes Women on the move 17 MANAGER Catherine Chetwynd looks at a new FCM report which examines trends Rebecca Talbot AT NO EXTRA COST Play your cards right 8 among women business travellers Virtual cards, mobile wallets, PRINTING 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, Turkish Airlines Corporate Club rates allow FCM Travel Solutions, and stock Upwardly mobile members to reebok or reroute their tickets to suit their Good ground photography ever-changing business schedules and allow them to save transport New business enquiries a great deal of money. management is about 19 [email protected] so much more than To become a member and start receiving benefits of appointing a car Rooms for a view Editorial and advertising Turkish Airlines Corporate Club 12 rental company Brainstorms often require no distractions. enquiries please visit: What UK venues might be suitable? [email protected] corporateclub.turkishairlines.com

FCMUPGRADE.COM 03 TRAVEL MANAGERSPROGRAMMES A world of difference Mark Frary looks at how changes in company structure can cause huge waves in travel programmes

ore than 13,500 mergers and acquisitions have been announced so far in 2018, meaning this Mcould 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 Supply chain synergies Takeda’s proposed acquisition of Shire “ 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 you have bid on. If you are in a merger 30-50% of merger- The reasons for this are what John where procurement is half the business Kelly, Global Head of Integration and case, I personally want them to be related increases in Separation at KPMG, calls “a wall involved in the deal.” of cash in private equity and shareholder value” sovereign wealth”. The Walgreens-Alliance Boots merger 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 mergers and acquisitions between in general procurement, one of your key was a priority - and merging travel companies in sectors where business levers is compliance. The biggest source policies provided an early win. travel is one of the largest indirect of leakage is people getting around the 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 get any benefit out of it.” at conferences is central to the whole 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 Juan Antonio Iglesias, Head of Account company doesn’t have a lot of data,” with suppliers.” Management for EMEA at FCM, says: says Iglesias. “The approach then is that “Where travel is not a big part of their In cases where business travel is not after three to six months, we can see what we are talking about.” overall strategy, they will often leave a key driver of the deal, it is often 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 two organisations. Sarah Edwards, a consultant with Festive they want to harmonise as soon as Road who has worked on combining possible,” says Iglesias. “It all depends It is usual that the acquired company on leveraging volume which can travel programmes in several merger normally be transitioned over to the automatically provide you with scenarios, says that in some sectors, acquiring company’s travel policy better discounts.” even though travel is important, there in conjunction with the acquired 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 FOR M&A, Q1-3 2018 a management consultancy 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

Pharma, medical “Cost savings of up and biotech to 15% are possible 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, it seems.  Kelly says a lot depends on the travel entity has the time to adjust.” manager’s ability to get travellers to Mergers also bring opportunities for follow the new policy. “If an employee consolidation beyond airlines and FINDING THE BENEFITS is hugely invested in oneworld and 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 grate,” he says. INCREASED VOLUMES 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 instances you may end up with additional suppliers and enable greater 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 In other situations, travel managers may markets to a travel “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 such as the Transfer of Undertakings alliances (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 BREAKDOWN TREND Q1 Q3 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 824.7 14000 985.1 The two organisations have access 933.3 Deal Count to a wider range of fares, rates and 2500 12000 fees and can see where they have 870.3 703.2 not been getting the best rates in 10000 2000 570.3 853.3 the market 718.0 873.3 8000 Deal Value (US$bn) Value Deal 1500 1088.3 656.9 1,039.6 6000 BETTER PAYMENT TERMS 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

RAVEL™ FC -M- TSOLUTIONS

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

evelopments in leisure NOT SURE travel very often catch on YES in corporate travel: think online booking, peer-to- Dpeer 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 Note: Based on questionnaires NO 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 payment. Check-in kiosks are being “There’s clearly work companies, according to the research, installed in 50 hotels in China, including while only 18% offer mobile wallet as a Marriott and IHG properties. to be done in terms payment option. Hotel chains such as Mandarin Oriental Those that have adopted mobile of education and also now accept a wider range of payments say the barriers are payment options for stays and food and cardholder education, integrating adoption of new beverage, like Alipay and WeChat. 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%

Concerns about visibility/control “When tapping a smartphone to pay Note: Based on questionnaires Source: GBTA in partnership completed by 139 US travel managers with AirPlus, Five Business Travel for a coffee becomes who had input into payment decisions 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 loyalty schemes? payment through a link sent by SMS or extend to every part email. The customer then completes Established players in B2B payments the payment from a smartphone, tablet such as Conferma have already made of their travels” 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 methods such as Alipay and PayPal. The research confirms that most travel 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 to improve the experience for buyers The conclusion from the Amadeus of business. 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 expense management easier by It’s too early to say how this will play super-applications that encompass removing out of pocket expenses. out in corporate travel. Could one or 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 2019 SPEAKING 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 enabled product quickly and easily. region, but teamwork activities such 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 11 SUPPLIERS Upwardly mobile Ground transport management requires much more than just appointing a car rental company…

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. G 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. CAR RENTAL Duty of care is now an important Self-drive vehicles, usually from consideration so vehicle usage for 1 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 policy limits eligibility to drive out of is not an aggregator as it has understand their duty of care.” the airport to those who have flown less direct partnerships with small, 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 2019 Managing car rental programmes has RIDE-HAILING which can take care of the journeys unique challenges. There’s no product 2 Ride-hailing, a term used whose time, origin and destination differentiation: all offer cars at the same traditionally for the taxi sector, is often 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. CAR-SHARING speed - to get people into a car as More and more travel departments 4 The principle of car-sharing isn’t quickly as possible.” are negotiating a taxi service for the new. Large organisations would often whole organisation to replace a process The differentiators are elements lease vehicles for their employees’ use. of reimbursing expense claims for of service such as data provision What is relatively new is the concept cash payments to a wide range of (including that for duty of care) and the of corporate car-sharing clubs such as small companies. service itself, which is very much driven Hertz 24/7 and Avis Zipcar, however. by location. Their apps do differ, but BOOKED CHAUFFEUR DRIVE not that much. On demand cars can be dropped at the 3 There’s a group of corporate- traveller’s business or home address, The big differentiating factor is cost, friendly organisations such as MYCAB 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 and to compare car rental company have zoomed. “This is for people who insurance with what is covered by the communication and don’t need a car on a consistent basis traveller insurance which a company but the convenience of having 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 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 13

INTERVIEW Cultural diversity across Asia Bertrand Saillet manages a region with different experiences of technology, payments, content and service

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 A 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 As Managing Director Asia for FCM, understand Asia better and make more 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,, largely absent from everyday life”, He cites the example of a US-based Singapore and , 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 the region is, with each market you arrive in Asia, that’s impossible. hand, he says: “Hong Kong online is having its own distinctive That tool might have only some small 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 you don’t have the same booking a decision.” 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 The region’s corporate clients have high difficult to gather full data with so many fundamental - and just one example of service expectations - but according to booking channels. To consolidate rail 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 Asia has traditionally been seen as and different booking systems in like an international GDS, but it doesn’t a low cost labour market. This no different markets. 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 role of the travel booker is still seen as better, but there are still a lot of manual 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 one cities. These hotels are not always His positive energy is contagious. “I’ve 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 , 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. Saillet himself exudes the same agility. to Amadeus.” “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 15 CHARITY 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 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, A lights, which were shipped to children World Cup sweepstakes and Royal dedicated to illuminating the future of those living in energy poverty. in Papua New Guinea and . 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 2019 TRAVELLERS Women on the move A new FCM report looks at trends among women business travellers

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 Tpower, 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 a survey of business travellers Food 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 17 PRIMARY 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. The three most frustrating elements Training 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 It is much documented that women about business travel. The biggest thing men and women travel by air, more travellers do not like using hotel bars on that list is being away from family/ women use the train and more men use and/or restaurants alone, but FCM’s partner. They also find it disruptive to self-drive. “I think that’s end-to-end research shows that the restaurant, bar work, dislike travelling alone and have convenience; you have everything with and gym are the three most used hotel safety concerns. you and can work, read and someone facilities in roughly equal numbers by else is doing the driving; and it is More positively, 45.83% of women enjoy both sexes. That said, 42.5% of men probably a bit more secure to go by travelling, in comparison with 39.58% of drink alone in the bar, in contrast to only train,” says Carolyn Pearson. men. Both enjoy face-to-face interaction 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 taxi. And it is interesting that using Being away from the daily grind is travellers are evenly split as to whether an airport lounge as an oasis from liberating, according to Carolyn or not they would stay in an Airbnb. Of plastic chairs, children and ice cream Pearson, CEO of Maiden Voyage, a this 50%, however, women are more makes only a minor contribution to the network of professional women 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 the same.” “Women tend to be doing lots of 18.5% of men. Lounge access, however, 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.  have more to do with entitlement children, and it all takes time. When we 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 Men between men and women. women turn left on the Women All But one notable gender difference plane, 13.5% of men opt for greater comfort - which emerges is the reason for business Bar/restaurant travel. Meeting clients is the single although 78.4% said the on site choice was determined biggest reason for men (22.3%), but is 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 2019 EVENTS

London-based business’s team meeting as it’s spitting distance from Green Park station and Berkeley Square.

Rooms for a view 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 Landsdowne Club room which is one of two Masonic complete confidentiality. The Landsdowne Club is half traditional Temples in the property. It feels very 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 19 Society 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. Pennyhill Park Hotel and Country Club companies means each might thrive in 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. This property is well-suited to almost 40 Liverpool Street 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, Like all meetings Windermere Cumbria LA23 1LA all 124 bedrooms on 120 acres of “ 015394 45566 parkland including the golf course, the venue must be tennis courts, etc. The Landsdowne Club matched to delegate 9 Fitzmaurice Place London W1J 5JD culture and meeting 0207 629 7200 MIDLANDS Macdonald Burlington Hotel Sometimes a brainstorm is necessary at objective” 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 2019 DRIVEN BY EXCELLENCE

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