Business Travel News - December 14, 2009 - (Page 20)

BENCHMARKING EUROPE’S BIGGEST The average savings that survey participants achieved on published fares, including both frontend and back-end rebates, was 20 percent. However, the results suggest companies also achieved savings by switching to cheaper published fares, as the percentage of European air tickets booked with a negotiated discount fell from 56 percent to 48 percent. Presumably, travelers are instead booking more seats on low-cost carriers or restricted published tickets on traditional airlines. Another route to reducing average fares has been the tightening of travel policies. Exactly half of respondents said they have made their business class policies tougher this year. Last year, the figure was 38 percent. Changes have been introduced most often by adjusting the minimum number of flying hours for which business class is acceptable. Seventy percent of companies have a rule of this kind, up from 57 percent the previous year. Average journey time at which such companies allow business class is 6.5 hours. companies with a transaction fee element in their contract structure have risen from 71 percent to 77 percent, while those with a management fee element have fallen from 46 percent to 33 percent. Travel management companies have complained in recent months that clients are forcing them onto transaction fees that they are then negotiating downward. However, there is mixed evidence of a price drop based on the average booking fees quoted here for air and rail transactions. In 2008, TMC average telephone booking fees climbed from E26.65 to E28.70 and online fees without assistance rose from E12.90 to E14.20. However, online fees with assistance fell from E24.00 to E20.90. The difference in cost between fees for online booking with and without agent intervention was a clear area of concern at the Prague session. “The real savings are bookings which are touchless,” said one travel manager. Hitting that objective is an increasingly tough battle. The percentage of tickets booked online and fulfilled with no manual intervention fell from 54 percent to 48 percent in 2008. Participants swapped tips on how to improve the accuracy of traveler profiles, one key driver of touchless booking. “We told everyone in the company they must have a project number and date of birth in their profile,” said one travel manager. “We really drove that into them for a while.” Another said her company cleaned its profiles by asking travelers to check them every time they booked a ticket during a four-week period. The introduction of self-booking tools is almost complete among European Top-Market companies. Now, 81 percent have a tool in place, up from 77 percent last year, and a further 16 percent are in the process of buying or implementing a company-approved system. Some participants voiced concern about the costs of videoconferencing. “I see videoconferencing as a huge investment,” said one. “In two years time, the equipment may be old-fashioned and we would need to reinvest.” Another travel buyer, noting some videoconferencing rooms cost as much as $250,000 to install, said, “We are looking at using third-party providers of videoconferencing facilities. Even airlines are considering providing them at airports.” ■ TRAVEL MANAGEMENT COMPANY AND TECHNOLOGY Figures provided by benchmarking participants confirm anecdotal reports of a recent shift in travel management company remuneration models from management fees to transaction fees. Those How much do extended-stay travelers love us? This much, apparently. Staybridge Suites® was awarded “Highest in Guest Satisfaction Among Extended Stay Hotel Chains” in the 2009 North America Hotel Guest Satisfaction Index StudySM by J.D. Power and Associates. It’s a ranking we’re proud to have earned. But, more than that, it’s a reminder that our dedication to the comfort of every guest, every day, really is the most important part of what we do. Because what matters most to us is how we rank with you. www.Staybridge.com/JDPower Complimentary Breakfast Buffet • Evening Receptions • Free Wireless • Fully Equipped Kitchens • Free Guest Laundry • Fitness Center • Business Center ©2009 InterContinental Hotels Group. All rights reserved. Hotel may be independently owned and/or operated. For J.D. Power and Associates award information, visit jdpower.com. http://www.Staybridge.com/JDPower http://www.Staybridge.com/JDPower http://www.jdpower.com

Table of Contents for the Digital Edition of Business Travel News - December 14, 2009

Business Travel News - December 14, 2009
Contents
Payment Cos. Join Air-Fee Tracking Effort
IRS Cuts Mileage Reimbursement Rate
Inside Track
Lufthansa’s Bischof Pushes Joint Deals
Scanning for TMC Savings
Profiles In Travel Mgmt
6th Annual Expense Manager Survey
Expense Manager Survey
Forum: Signs of Optimism
European Top-Market View
Benchmarking Europe’s Biggest
European Buyers Navigate Volatile Waters
Managing Economic Crossroads
Choose Chicago For Your Next Meeting or Event

Business Travel News - December 14, 2009