Travel Matters June 2017

We are living in changing times, not just politically but within the world of transport as business travellers, travel managers and suppliers try to navigate their way through the ongoing battle between direct and indirect sales channels. For some time now suppliers have championed the direct channel. Likewise, some business travellers have blindly followed suit in the misguided belief that they are getting the best deal by booking direct. But can this really ring true for the corporate market? I argue no. We recently commissioned a report in partnership with the Travel Intelligence Network to examine the role of indirect sales channels for the corporate travel market and the value that it offers. The ‘Impaired Vision’ report focused on the pitfalls that come with booking direct and highlights how damaging a fragmented buying approach can be. In short, for corporates trying to make short-cuts it can lead to a final destination of greater cost in the long run. Our advice to those corporates keen to make their own travel arrangements to ‘save money’ is to take a more considered view of the travel booking process. If you were to conduct a straw poll of business owners and ask them if they would rather their employees invested their time in business development and customer relations, or shopped around online for the best hotel rate or flight price, I’m pretty certain that there would be a unanimous preference for the former. Cost will always be king when it comes to business travel but security threats and political unrest on the world stage of late have brought duty of care and employee safety into the spotlight once more. This is one of the ways that travel management companies (TMCs) can demonstrate their priceless value. In turn, from the point of view of the business traveller, less is more when they are dealing with just one TMC rather than a cast of suppliers. TMCs are uniquely placed and qualified to deliver travel programmes that fit a corporate traveller’s brief beyond just price. Often corporates will have travel policies in place and it is up to the TMC to ensure that all travel programmes comply with these. Taking it a step further, it is the ability to coordinate changes to itineraries and personalise programmes and apply knowledge and expertise when travel plans do go wrong, coupled with organising payments, data management and reporting to identify how and where travel programmes can be made more efficient, that TMCs really hold their own against the direct channel. Why have suppliers put such an emphasis on the direct channel? The advance of the always-on digital generation has changed the travel market. Many airline and hotel suppliers in particular have been quick to try to take advantage with direct marketing campaigns that appear to offer the lowest price and the best ‘value’. Digital platforms enable suppliers to target travellers, including business travellers, directly. But the price of booking direct isn’t always the cheapest on the market. Especially when you factor in additional costs such as technology updates and online advertising, for example. These don’t come cheap and have to be paid for somewhere along the line. On the other side of the coin, if the direct channel were to calculate and add a value for the host of services offered by a TMC, inevitably this would be added to the customer invoice at the end of the transaction. The end result is that comparing direct and indirect is very far from comparing like with like. So where do we go from here? For the travel industry and suppliers to offer corporates the best solution and best value, price parity is the only viable resolution for suppliers, TMCs and ultimately the corporate traveller. CHANGING CHANNELS Paul Wait, chief executive, GTMC, talks channel parity and argues the value of the indirect sales channel for corporates www.travelctm.co.uk INDUSTRY NEWS | 05 CTMS GUIDE TO IN-FLIGHT WIFI It wasn’t so long ago that in-flight connectivity was rare, provided by only a small number of airlines. Today, passengers are demanding the service, which has forced the airline industry to invest in the technology or risk losing even their most loyal passengers. Airline Wifi availability Price If you’re one of the near 70% of passengers who choose their flights based on wifi connectivity, check out our table right showing airlines who currently offer in-flight wifi and those who are planning to introduce it this year. Confusingly, some airlines price wifi by time spent, others by MB, making direct price comparisons difficult, However, there is no doubting that of our ten airlines listed, one airline – Emirates – is offering the least expensive in-flight connectivity. On all aircraft ex -UK US$8.99 for 1 hour US$14.99 for 2 hours US$29.99for full flight Payment can be made with Miles Plus mileage points On A350-900 aircraft ex-LGW and from June ex-Manchester US$12.95 for up to 6 hours US$19.95 for over 6 hours US$9.95 for one hour of continuous usage on all flights On most long-haul aircraft US$12 for 2 hours; US$17 for 4 hours; US$19 for the entire flight Most aircraft Free for the first 10MB up to 2 hours and US$1 for 500MB In customer trials From £4.99 Simply Connect package (for internet browsing) £7.99 for Connect Plus package (for streaming) Most aircraft now; all aircraft by end 2017 £4.99 for a 40MB pass or £14.99 for a 150MB pass On selected aircraft, namely Boeing 787 Dreamliner and one B777- 300 aircraft ex-Amsterdam Euros5 for 20MB Euros10 for 50MB Euros30 for 200MB On B787 aircraft ex-Paris Euros5 for 20MB Euros10 for 50MB Euros30 for 200MB Most aircraft Mobile messaging from US$2.95 Global Day Pass US$28 All aircraft From US$5 for 30 mins US$21.95 for full flight access www.travelctm.co.uk 04 | TRAVEL NEWS NB. SIA declined to contribute their information because, ‘it is not a feature that fits with Singapore Airlines editorial calendar,” said a spokesperson. Air New Zealand plans to roll out in-flight wifi in late 2017, with international routes taking priority.