MEET THE INTERRUPTERS: ReboundTAG

ReboundTAG is exhibiting in this year's Business Travel Show Launchpad and is an exciting start-up with an innovative product. Read more from CEO Max Rangeley and vote for your favourite Launchpad exhibitor - five of the 14 will make it to the final of this year's Disrupt Award.

The Airline Industry Finally Gets Smart with Luggage

Airlines misplace around 25 million bags every year, with many of them never seen by their owners again. After decades of stagnation in this sector airlines are finally starting to look at more sophisticated solutions. Most airlines process baggage in much the same way they did in the 1970s - can you imagine using the same computer or television that people used in the 1970s?

There are several ways in which luggage processing can be made more intelligent. The primary technology is radio frequency identification (RFID). This is a tracking technology where the microchips are powered by the actual microchip readers in the airports so they do not need batteries. RFID is an IATA recommended practice, but the interesting part comes with permanent smart luggage tags which is what we are involved in. For a permanent tag it becomes cost effective to build in multiple technologies – ReboundTAG uses RFID, NFC (a type of microchip that can be scanned with smartphones) and a QR code as well as having the unique tag ID printed on the tag itself so that it can be manually entered into a baggage system to alert the owner that the bag has been found. This means that whether you are flying through an advanced airport like Hong Kong (with a microchip system) or going on safari your bag is protected.

We have helped airlines like Lufthansa design the microchip systems used for luggage tracking. Over the coming years not only will you not have to worry about your bag being lost by an airline, but you will also have extra services built into the airline package, for instance some airlines using RFID now offer updates to your smartphone as the bag moves through the airport and when it is ready for collection.

Much of this will develop over the next few years, the great thing with ReboundTAG is that you can take control now – you can microchip your luggage so that it is protected worldwide when you travel. 

2016 WILL BE A CHALLENGING YEAR FOR BUSINESS TRAVEL BUYERS

For the seventh year now, we’ve carried out in-depth research into travel buyers about the issues and opportunities that they expect to face in the year ahead. This week we released the results of this survey for 2016 and the big news is that buyers are expecting the next 12 months to be challenging.

Why? Budgets are increasing at a slower rate. Half of buyers are worried about rising travel costs. Compliance, new distribution methods and traveller wellbeing are causing them concern.

The good news is that it’s not doom and gloom for everyone: 29 per cent of buyers will have more money to spend in 2016 but this compares to 32 per cent last year. At the same time, 25 per cent expect budgets to drop. Just 20 per cent had less money last year.

The pressure on buying more for less seems to have lessened for 2016, though, with 44 per cent of buyers arranging more trips this year, a drop of 6 per cent on 2015, and 19 per cent arranging fewer trips compared to 14 per cent last year.

AIRLINE SPEND

Three quarters of buyers will have the same or more to spend on airline travel in 2016. For one third, budgets will increase, the same as in 2015. One quarter (24 per cent) expect budgets to shrink. Last year, just one fifth had less to spend.

• The use of low cost carries remains unchanged at 86 per cent
• In 2015, 26% booked more low cost flights, this year it rises to 27 per cent.
• The number of buyers booking fewer business class flights increased again, from 38 per cent in 2015 to 42 per cent this year.
•  The number of buyers operating no time threshold for business flights dropped slightly from 33 per cent to 28 per cent.  

ACCOMMODATION SPEND
One third of buyers will have more to spend on accommodation in 2016, the same as last year. The use of budget hotels dropped slightly. They now account for fewer than 25 per cent of bookings for three quarters (78 per cent) of buyers; down from 70 per cent in 2015.   

TOP ISSUES FACING BUYERS

More than half of buyers (51 per cent) worry that travel costs will rise this year, which explains why cutting costs is their number one concern (moving up five spots since last year’s top 20). The following were given in response to an open question: What will be the biggest issue facing you as a buyer in 2016?

2015/2016	2014/2015	2013/2014
Cutting costs while maintaining quality	Airline pricing – increases, lack of transparency and negotiation concerns	NDC
Increasing compliance	Controlling costs and managing spend	Travel management 2.0
GDS content	Compliance and enforcing policy adherence	Data
Risk management vs costs savings	Increased hotel rates	Sustainability
Increasing hotel rates	Traveller safety	Meetings management
Airline pricing	Cost savings	Mobile apps
Supplier negotiations	Ancillary fees	Technological developments
Securing value for money	The role of the TMC	Free Wi-Fi in hotels and on airlines
Online adoption/booking	Online adoption	CSR
Mobile apps	Cost increases	Terrorism
Data and how to use it	Balancing traveller needs while staying within budget	Gamification
Russia	Online vs TMC pricing	Relaxation of policy
Changing traveller profiles	Sustainability	Airline bankruptcy
Global purchasing responsibility	GDS content	Integration of social and travel tools
Cost increases	Supplier consolidation	Ancillary fees
Supplier consolidation	Mobile technology & solutions	Airline consolidation
NDC	Airline consolidation	Risk management
Discovering new destinations	Availability and variety of low cost leisure tools	Virtual meetings
Last minute bookings	The move towards traveller management	Fuel increases
Stakeholder management	Stakeholder management	Less reliance on TMCs

       

Buyers were also asked how they plan to change the way they manage travel this year:

1	Increasing use of online booking	53%
2	Increasing compliance	31%
3	Changing relationship with TMC	22%
4	Improved focus on traveller wellbeing and communication	9%
5	Use of data	9%

182 travel buyers took part in the seventh Business Travel Show annual survey in November 2015. 72 per cent of respondents worked in the UK and the remaining 28 per cent in continental Europe.

This post was written by David Chapple, director, Business Travel Show, which takes place at Olympia Grand in London on 24-25 February 2016. It is Europe’s leading event for corporate travel buyers and registration is free at www.businesstravelshow.com.