Put the emphasis back on selling value, say delegates at GlobalStar’s corporate travel forum

Reducing costs in transactions, achieving efficiencies, and customisation were among the gamut of issues discussed by delegates at a global forum on the future of corporate travel.

In an industry rife with choices for airlines, hotels and booking platforms, travel managers in corporations must clearly see the value that travel management companies and travel agents can offer them, said Martin P. Metzler, President and Managing Director of GlobalStar Travel Management in his assessment of the forum discussions held at the end of May.

“The Internet, the emergence of low cost carriers, and deregulated global distribution systems (GDS) have actually created opportunities for travel management companies,” he said. “If you ask corporate customers where they see us adding best value to managing their steadily increasing travel expenses, they will highlight specific areas: data consolidation, cost-savings, and delivering customised products and services in the most effective and convenient way.”

Peter Morris, Head of AirClaims International Transport & Tourism Consultancy, a keynote speaker at the forum, agreed. Citing an Internet survey his company conducted with business travellers from the three major travel regions (North America, Europe, Asia Pacific), he said most respondents (nearly 50%) said that using a travel agency was the most effective method to achieve business travel cost-savings.

“For business travellers, the assurance that their travel agents will get them the best possible deal outweighs the cost of their service,” said Mr Morris.

Quoting from another survey that AirClaims undertook in association with BTN Asia Pacific, Mr Morris said corporate travel managers in this region rated ‘personal advice’ (50%), handling of complex itineraries (42%), and providing the most cost-effective deals (37%) as the key attractions for using a travel agent.  

In relation to using the Internet in corporate travel planning and purchasing, most travel managers rated its importance as a tool for travel information (nearly 40%) and finding the best deals (35%), compared to its use as a booking tool such as for hotel accommodation and air travel (both under 30%), and car hire (just over 10%).

“In addition to a smart utilization of technologies, business travellers in Asia still put a high premium on personal relationships and customised services,” said Mr Metzler. “These services range from specific dining reservations to personal training sessions in the morning to particular seats on the airplane. Knowing your client’s preferences and requirements intimately is key to superior service.” 

From the travel agents’ perspective, the survey showed that they saw major opportunities in the application of new technologies including the Internet (50%) – contrary to the traditional perception that the Internet was a threat to travel agents’ business; new product innovation (47%); and growth in potential demand (28%). 

“These findings support our belief that travel agents see the vast opportunities that technology can bring to their business,” said Mr Metzler. “As travel agents continue to play an integral role for the foreseeable future, the technology tools to help them integrate a variety of data sources cost-effectively and time-efficiently and deliver value to their customers become all the more important. This is why GlobalStar puts a lot of emphasis on technological innovation to support its service offering, as our recent technology launches have documented.”

GlobalStar, a joint-venture of more than 50 independent travel management companies around the world, focuses on providing its partners with new technology platforms that bring unprecedented benefits to their customers.

At the forum, which attracted more than 120 delegates – including corporate clients, airlines, GDS, technology and other suppliers – GlobalStar took the opportunity to launch FareStar, the latest salvo in its line-up of proprietary technology solutions.

FareStar brings a new dimension to overcoming pricing discrepancies and creating transparency for travel products across the world.

“FareStar is tailor-made for our GlobalStar partners who operate in different parts of the world. Using this technology, they can access the best pricing structures for travel products worldwide by automatically searching airfares from multiple sources including a central private fare database and all major GDS,” said Peter Klebanow, GlobalStar’s Chairman. 

“So if one of our partners in say, the UK, has negotiated an attractive airline fare for a particular sector, our partners in Singapore or India can also have access to this fare, in turn bringing real cost-savings to their respective customers.”

Another keynote speaker, Don Birch, CEO of Abacus International, quoted findings from various travel surveys on growth trends in Asia Pacific. “Despite terrorism, disease and natural calamities, travel in Asia continues to be resilient,” he said. “Rising income levels, a high propensity to travel, especially in China and India, a relatively strong airline industry and the development of the low-cost carrier industry are fuelling travel in Asia, 80% of which is intra-Asia.”

He pointed out that the Asia Pacific region already accounts for 21% of global travel spend, only slightly behind North America, the largest market in the world presently at 24%. “And despite adverse situations, experience has shown us that the travel community in Asia can co-operate quickly and effectively for recovery. In 2005 we can expect 11% growth,” he said. 

Forum delegates also heard from other industry experts including Thomas Bruno Meier, General Manager, Raffles The Plaza; Steve Limbrick, Regional General Manager, Southeast Asia, Qantas; K Ravishankar, Chairman & Managing Director, Orchid Voyages; Pankaj Kumar, Regional Manager (Southeast Asia), Indian Airlines; Sandra McLeod, Vice President, Multi-National Accounts, International Markets, Cendant Travel Distribution Services; Kenneth Low, Vice President, South Asia Region, Abacus International Pte Ltd; and James van Thiel, Commercial Director, Multi National Accounts, International Markets, Cendant Travel Distribution Services.

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