TO NDC OR NOT TO NDC? THAT REALLY IS THE QUESTION

Not since APD has a three letter acronym caused such a stir in the business travel industry. And those three letters? N, D and C, of course.

New Distribution Capability is a new business model proposed by IATA member airlines that – if approved by the US Department of Transport – will allow greater visibility of the airlines’ products at point of sale. Seats will no longer be distinguishable purely by price and carrier alone. Consumers will be able to compare class, seat type, service levels and ancillary costs, as well, in the same way that hotels are sourced and booked.   

The introduction of greater visibility means that airlines will no longer compete on price and brand awareness, but rather on a more accurate like-for-like product basis. The travel industry understands the need for this change and agrees it is a good thing for the airline industry, the manager and the consumer.

However, the NDC proposition is also stirring up a cloud of controversy in the travel industry. Why? For two reasons. Firstly, IATA has excluded travel managers, travel agencies and trade organisations from strategy meetings. And secondly, because the new technology gives airlines the capability to ask buyers to input demographic passenger profiles pre-search.

All airlines already hold extensive amounts of passenger data, which is used in targeted marketing campaigns, competitive intelligence and to establish the viability of new routes, which is essential for opening up emerging markets.

But none asks for that information pre-search. Doing this means the airlines could – note, not would – discriminate based on the pre-search data, raise prices artificially and charge higher prices to those travellers they feel are able to pay more: corporates. And in a time when managing costs is still very high on the travel managers’ agenda, the possibility of paying more – and artificially so – is understandably grating.

By David Chapple

David Chapple is event director of the Business Travel Show, which takes place each February in London. Find out more at www.businesstravelshow.com. Comment on this blog below, or contact David on Twitter @btshowlondon 

THE HEATHROW DEBATE - WHAT'S THE ANSWER?

We posted a news story on our LinkedIn page yesterday about business travellers wanting another runway at Heathrow Airport. Richard Charman, research manager at HRG, posted a reply. See below. Food for thought, isn't it? We'd love to hear what you think - @btshowlondon or Business Travel Show group on LinkedIn. 

If you look at the IoD's own member research - it shows a significant regional split on where expansion should be focused. Having read numerous submissions my gut feeling is that Gatwick may be given an additional runway, Manchester Airport will get an additional runway, Birmingham Airport will have a significantly expanded runway by the end of 2014, Boris Island or similar will be promoted as a long term alternative to Heathrow, by the Government, whilst expansion at a number of other airports will also be permitted. It is already happening at Llydd Airport.  Personally, I would like Heathrow Airport expanded to accommodate two more runways but, I do not see how the Government can get that through Parliament or the courts because of the environmental impact. The promotion of one additional runway might be acceptable - but some argue that is only an interim not, a long-term solution. The likely outcome of the Davis Commission exercise is an attempt to direct development to a number of airports around the country to try and encourage balanced airport expansion because this implies balanced economic development - such simplistic logic ignores failed attempts to get airlines to use Stansted which is currently a white elephant used many by low cost airlines. Such a scenario could do a great deal of harm to UK earnings from aviation and encourage expansion at airports outside the UK. We are already suffering significant political and economic damage as a result of the imposition of Air Passenger Duty which should be abolished or as a minimum reduced significantly.

By Richard Charman

GUEST BLOG: HOW TO SLASH ACCOMMODATION COSTS BY UP TO 40%

A recent survey conducted by the Association of Serviced Apartment Providers (ASAP) has found that its 56 members are optimistic about the sector’s growth in the UK & Ireland for 2013. With occupancy rates as high as 89%* in London last year, it’s not surprising that providers are feeling positive about the forthcoming 12 months.

Thanks, in part, to the many benefits the sector offers business travellers, the serviced apartment sector is finally starting to take a well-deserved place in the limelight. These benefits include:

•          Earlier check-in and later check-out times
•          Discount vouchers for local restaurants/bars/spas/tourist attractions
•          Continental breakfast
•          Gym membership: discounted membership or vouchers to access local gyms;  or free  gym on site
•          Complimentary wi-fi, depending on length of stay
•          Loyalty programmes
•          Butler Service
•          Free parking
•          Free movies

Perhaps more importantly, the serviced apartment sector also offers massive benefits to corporate travel buyers as well as travellers, not least of all starting with price.

ASAP founder member Marlin Apartments has calculated that corporate buyers can save between 30% and 40% on their accommodation costs by switching from hotels to serviced apartments. Booking a serviced apartment in central London can save 31% or £80.29 per night when compared to the equivalent standard hotel. And booking a Marlin serviced apartment in central London will slash 37% or £92.45 per night off the bill.

For major corporate buyers managing accommodation for, say 100 travellers staying in London for 30 nights per year, this is the equivalent saving of £277, 350 per annum. And, as you’ll see from the benefits list, travellers don’t miss out at all from making the switch. In fact, a serviced apartment gives corporate travellers the freedom to spend their down time as they please rather than being tied to the inflexibility of a hotel stay, helping them to comply with policy.  

Both Marlin Apartments (stand AC5) and ASAP are exhibiting at the Business Travel Show, which takes place on 5-6 February 2013 in London. Registration is open at www.businesstravelshow.com. Visit them and find out how you can slash your accommodation costs.

*October 2012 was the month which delivered the best occupancy for the final quarter of the year: 89% for London and 82% in the regions.

For further information, please contact:

Ed Rogers, Marlin Apartments; edward@marlinapartments.com

Joyce Cawthorpe, ASAP; jcawthorpe@theasap.org.uk          

GUEST BLOG: THE MUST HAVE TRAVELLER APP

Smart phones are an essential tool for business travellers, largely owing to the fact that information can be accessed instantly and easily. With the vast majority of corporate travellers now organising themselves with hand-held devices, leading corporate travel and events business, the ATPI Group, has recently introducing an expanded and upgraded version of its popular On the Go app. 

Version 2.0 of the app has been developed in response to demand from users to meet the increasingly specific needs of business travellers. The interface has been made as straightforward as possible, following feedback from users who expressed a desire to have information presented in a clean and simple way and to avoid any flashy gimmicks.

Since its initial global launch this time last year, usage of the app has continued to grow and the new upgraded version is already proving to be a popular tool for busy corporate travellers. Entering its second phase, the enhanced app now includes flight booking functionality for both scheduled and low cost carriers and an improved mobile itinerary, where ticket numbers are recorded in all flight bookings. The performance and speed of the app has also been optimised, and security features have been upgraded. Also, included in the app’s features is an itinerary display application which gives users access to all flight bookings in their name, while a flight status report allows users to track progress of any flight number – either arrival or departure.

Smartphone users can add a photo of travel documents such as passports or cards to the app safe in the knowledge that this data is stored on the phone with an extra security layer providing protection in case the phone is lost or stolen.

Since the launch of its first generation On the Go app, the ATPI Group has maintained an open dialogue with users to ensure it can respond to their feedback and take actions based on their ever changing requirements. As a result, the business has been consistently able to make strategic improvements to the app to ensure clients can get to their place of work quickly and efficiently.

Available free via iPhone, Android and Blackberry worldwide from the respective app stores - iTunes, Google Play, and Blackberry App World, the app can also be downloaded by any smartphone user.

Additional features of the 'On the Go' app include a currency converter, world clock and details of all the ATPI Group office locations and telephone numbers worldwide. A separate destination guide section offers handy tips on where to go and what to see in cities around the globe.

For more information and to test out the On the Go app, visit the ATPI Group at the Business Travel Show at Earls Court on 5th & 6th February 2013. Register now at www.businesstravelshow.com 

GUEST BLOG: HOW CAN AN AIRLINE HELP YOUR BUSINESS MEETING?

Tell me where you are flying and I’ll tell you how comfortable your trip will be. Everyone's gotten used to the fact that airlines have made passenger comfort a priority on long-haul routes. We've come to expect better seats and better service, especially on international flights. However, it’s a different story if we're talking about short-haul flights. For quick flights, like between the capitals in Europe – standard service is somehow seen as good enough. And if a traveler has no choice but to take a short-haul red-eye flight to get to meetings early in the morning? That's just something you have to calculate into your plans.

Transaero Airlines has been flying between Moscow and London since 1998 and has had enough time to notice that more than half of all the passengers on the route are business travelers. Quite a lot of them take a flight departing from Heathrow in the evening to get to meetings in Moscow early in the morning.

With a view to establishing the maximum level of comfort for those traveling on business, at the beginning of 2013 Transaero plans to install new ultramodern "cocoon-style" flat-bed seats on its Boeing 737-800 aircraft that fly from London to Moscow overnight. The spacious new seats, which recline to a fully 180-degree flat position, provide maximum comfort even on a short trip. A personal area for the passenger is secured by a partition.

So, who says you can't get comfortable on a short flight? A good night's sleep is half way to success for any business meeting. Why don't you give it a try?

Konstantin Tyurkin, Mass&Social Media Relations Head, Transaero Airlines.  For more information about Transaero’s comfortable interiors and intercity route network, visit www.transaero.com

Transaero is exhibiting at the Business Travel Show - register now at www.businesstravelshow.com 

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mommysusieknits

GUEST BLOG: A GUIDE TO TRAVEL AND EXPENSE MANAGEMENT IN THE UK

What are the latest travel and expense management trends in the UK? Renowned analyst company, the Aberdeen Group, has just released a report about how best-in-class UK organisations are structuring their expense management programs.

Some figures to get you thinking

The Aberdeen Group are authorities on travel and expense management research around the world, so when they say that nearly half of UK-based businesses want to reduce the time employees spend on entering expenses (52%), the figure is plausible. What is disheartening, however, is that according to the same reportonly 28% of UK-based businesses have real-time visibility into travel and expense (T&E) spending against budget. Furthermore, only 32% of UK-based organisations are reporting regularly on policy compliance

The figures resonate with those revealed earlier this year by the UK Benchmark Report which showed that although UK companies have an interest in reducing expenses costs (subordinates made 16% fewer claims this year than last) there is still a way to go for compliance. According to the Benchmark Report, 10% of the claims approved by managers are out of policy, but only 2% of these are queried or rejected.

Lessons from the latest guide

Fortunately, the Aberdeen report, entitled “A Travel and Expense Management Guide for UK Businesses” goes further. It does more than claim that expense management capabilities in UK-based companies are ‘weak,’ it also provides an authoritative perspective on: the use of travel and expense management technology in the UK; the importance of utilising mobile technology; and the rise of analytics; as well as suggesting solutions for improvement.

According to the Aberdeen report, best-in-class organisations are driving true value by:

•           Using technology to enhance T&E management processes
•           Developing measures to improve corporate T&E policy compliance
•           Leveraging analytics to gain true actionable intelligence into T&E spending.

The lessons are clear for small to medium-sized businesses as well:

•          Standardise your expense management processes
•          Automate processes to reduce the gaps
•          Make analytics (and business intelligence) a priority.

 The full report is available to download. Enter your details for a free copy of the Aberdeen “Travel and Expense Management Guide for UK Businesses”