SERVICED APARTMENT BOOKINGS ON THE RISE FOR ONE IN EIGHT CORPORATE TRAVEL BUYERS

Ahead of ASAP's annual conference on 4 December, the Business Travel Show has revealed figures from its annual buyer survey, which show that one in every eight (13 per cent) of corporate travel buyers booked more serviced apartment accommodation in 2014. 

• Thirteen per cent of the 179 European buyers booked more, or significantly more, serviced apartment rooms this year compared with 2013. Eighty per cent booked the same amount. Serviced apartments now account for more than 26 per cent of room nights for four per cent of buyers and between 11 and 25 per cent of bookings for a further 12 per cent of buyers. 84 per cent of buyers’ accommodation programmes include up to ten per cent of serviced apartments.

• Nearly half of all buyers insist travellers stay in serviced apartments when their stay exceeds a certain duration. For 11 per cent this is three nights or more, for 22 per cent it’s for stays of over one week, for eight per cent policy kicks in at a fortnight and for six per cent it’s one month or more.

• Thirty per cent of all respondents had more money to spend on accommodation this year and 39 per cent will book in excess of 5,000 room nights during 2015.  

Serviced apartments have been a familiar sight at the Business Travel Show since 2010, when we launched the ASAP Pavilion and the feature returns again in 2015 running alongside the newly launched International Serviced Apartment Pavilion, which has been introduced to help buyers book serviced apartment accommodation for overseas travellers.  

23 serviced apartment providers are already confirmed to exhibit at the show including B-Aparthotels Brussels, Berkshire Rooms, Bridge Street Accommodation, Brussels Business Flats, Cheval Group of Serviced Apartments, Citybase Apartments, Cotels Serviced Apartments, City Marque, Dolphin House, Dreamhouse Apartments, Executive Serviced Apartments, Frasers Hospitality UK, Go Native, Knightly Apartments, Marlin Apartments, Oakwood Worldwide, One Fine Stay, Premier Apartments, Refresh Accommodation, Shortlets UK, stayCity Apartments, The Apartment Service and The Serviced Apartment Company.

This post was written by Tom Briggs, Business Travel Show. Registration for the show, which takes place on 25-26 February in London is open now here. 

Contact Tom at tom.briggs@centaur.co.uk 

GUEST BLOG: Women In Travel launches European network at Business Travel Show

When Women In Travel (WINiT ) launched in America in January 2014, I jumped at the chance to get involved. I had heard about the not-for-profit organisation through an American colleague and discovered that its founder Mick Lee (Citigroup’s Head of General Services & Travel) had formed WINiT  to help further the careers of women in the travel industry.

Mick Lee

After sending a quick message to the WINiT group on LinkedIn, I signed up for free and became a member myself. Then things developed quickly.

Almost immediately, I found myself connected to an incredible network of talented and high-profile professionals from all areas of the travel industry. The range of men and women who were already involved – including executives from major hotel chains, banking institutions and airlines – was staggering and they had all joined for one reason: to try to change the fact that women are still underrepresented at senior levels.

Fast-forward to six months later and, in July 2014, I was in sunny Los Angeles helping to organise the global launch event for 400 WINiT members. There WINiT outlined its ambitions to:

• set up a global mentor scheme that will support women to go further
• connect professionals around the globe online and at conferences and events
• conduct research into the challenges faced by women in the industry
• work with travel recruiters and CEOs to promote career mobility

WINiT launch

The widespread support that WINiT has since received has been truly inspirational and now, at this year’s Business Travel Show, the organisation is coming to Europe.

So, on February 25^th-26^th 2015, you’ll be able to talk to members at the WINiT stand and become a member for free. You’ll also be able to come along to a one-hour introductory session, get more information about WINiT’s mentor scheme and find out about what we are aiming to achieve. If you’d like to become involved with WINiT, please drop by and say hello I’ll be on the WINiT stand B40 just by the entrance.

For more information in the meantime, please visit the WINiT website: http://www.womenintravel.org/

This post was written by Patricia Gardiner, Head of Global Marketing,

Tristar Worldwide Chauffeur Services. 

GUEST BLOG: WHAT ARE SERVICED APARTMENTS AND IS IT TIME TO INTEGRATE THEM INTO YOUR TRAVEL PROGRAMME?

For the majority of travel managers, serviced apartments account for less than 10 per cent of their overall accommodation bookings, yet (for longer stays, especially) they can work out to be a more flexible option for travellers and a more cost effective solution for organisations.

There are a number of reasons why the use of serviced apartment accommodation is low compared to hotels. The four most notable are poor supply, poor awareness, poor distribution and a lack of industry standard.

In Europe, London is the most mature serviced apartment market. However, with just 8,000 units in total, equating to 1.2 per thousand travellers (New York has 5.2) it is small in comparison globally. As demand grows, however, openings are becoming more frequent and, in 2012, thanks in part to the Olympic Games, there was a surge of building launches. Expansion continued throughout 2013 and 2014 and is forecast to grow by an additional four per cent by the end of 2015.

Compared to hotels, awareness of serviced apartments continues to be low among travel managers and travellers – both corporate and leisure. Many people don’t know they exist or understand what they are, what they offer and how they differ to hotels. It doesn’t help, either, that they operate under different names throughout the world, such as aparthotels, corporate housing, extended stay residences and suites.

When it comes to distribution, serviced apartments really lag behind that of hotels and are only just starting to appear on the likes of booking.com, however, SACO is notable for making inroads into the GDS, which is progress.

In the UK, ASAP – the Association of Serviced Apartment Providers – is credited with raising awareness of serviced apartments on behalf of its members. In September, it also unveiled plans to promote its QualityAssurance (QA) programme beyond members and direct to customers. The QA programme will finally provide the serviced apartment sector with an official set of standards – similar to the star rating used by hotels – which will help customers to book with confidence and provide a further boost for supplier awareness.

Despite all this, demand for serviced apartments is increasing, and with good reason. They generally offer more space than hotels. According to ASAP, serviced apartments are, on average, 30 per cent bigger than an equivalent standard of hotel room. They are cost-effective, too, as there are no hidden extras and longer stays often qualify for a discount. Featuring fully fitted kitchens and, often, separate lounge areas, they also offer guests increased flexibility to spend their time as they wish.

Serviced apartments may not always be the right solution for every accommodation requirement. But, next time you’re travel programme is up for a rethink, it’s definitely worth bearing them in mind as a valid – and increasingly high quality – alternative for some of your travellers.

This blog was written by Michelle Taft at Click Travel. Click Travel - the fastest growing TMC in the UK - is exhibiting at the Business Travel Show in February 2015  

WHEN IT COMES TO CUTTING COSTS: CHEAP ISN'T ALWAYS CHEERFUL

This morning, Iceland’s WOW air launched a one-way air ticket for transatlantic flights between London and Boston and Washington DC priced at just £99. No one doubts this is an amazing price. But, of course, there’s a snag. The flights all require a stopover in Reykjavík, adding between two and five hours to each leg.

Iceland's WOW air.

And just over a week ago, it was reported in the UK press that a major – although unnamed – ‘US legacy’ airline is considering introducing an ‘economy minus’ cabin that could feature even tighter gaps – just 30 inches – between passengers’ seats. If this goes ahead, it will also no doubt result in cheaper airfares. But is it also proof in point that cheap is not always cheerful?

In the business travel industry, there is undoubtedly still pressure on travel buyers to cut costs. Nearly a third of respondents in the annual Business Travel Show survey claimed their 2013 budgets were lower than in 2012 and 24pc said their airline spend would be reduced for 2014, which has led to strong demand for budget offerings.

This was reflected in the news in May when easyJet reported a 6.3pc increase in its first half-year revenue pointing to its success in the business travel market as the cause: 12 million business passengers had flown with easyJet in the 12 months to 31 March for the very first time.

In August, Ryanair also announced it was entering the business travel market with its ‘Business Plus’ ticket, which includes flexible ticketing, priority boarding and a ‘premium’ seat.

However, and this is where I think things get interesting, The Daily Telegraph polled its readers about this announcement asking, ‘Would you ever fly Ryanair for business?’ Of the 2,216 readers that responded, 28pc said yes, they would, because price is that important, but 73pc said no, comfort and service take priority.

Ryanair for business.

The reason I find this interesting is because it shows that, when it comes to the business travel industry – yes, there is pressure on travel managers to get more for their money, but they are also under pressure to keep travellers happy, and balancing both is a fine art, which means cost cannot always come first, and the likes of WOW air will always lack the wow factor in business travel.

This post was written by David Chapple, event director of the Business Travel Show. Find out more about the show at www.businesstravelshow.com. Contact David at david@businesstravelshow.com. 

RTM: IT’S TIME TO TAKE OUR HEADS OUT OF THE SAND

When it comes to facing up to elements of danger, most of us live our lives thinking (hoping) that bad things only happen to other people. Thinking and hoping, however, is not going to limit the possibility of threat or help in times of crisis. And this is particularly true when it comes to business travel. 

MH17 crash site

A quick revisit of the news over the last few months and you can see some of the potential risks associated with travelling on business overseas. Incidents are rare, thankfully, but the consequences can range from minor inconveniences, to expensive disruptions, unlawful imprisonment and very, very rarely, death.

Consider the renewed threat of the Icelandic ash cloud, the attack on Malaysia Airlines flight MH17, the kidnapping and subsequent beheadings of two US journalists and one British aid worker. These are just some of the incidences that show that now, more than ever, it’s critical for business travel managers to adopt a responsible travel management programme.

Travel managers need to be aware of the risks and responsibilities associated with doing business globally and not just for their travellers, but also for the environment. Travel programmes should take into account how to ensure the safety of travellers, the security of data, their legal obligations, how to manage in a crisis, duty of care, sustainability and even when it makes more sense to not travel and use travel alternatives instead.

All of these issues and more are addressed in next month’s Responsible Travel Management Conference in London, when expert speakers will share their knowledge and expertise with travel managers. They will explain how to create and implement a responsible travel management programme and also highlight how it can even be achieved profitably.

The conference is free for business travel managers and buyers to attend. There are just a handful of places left so be sure to book yours ASAP. http://www.businesstravel-iq.com/register I’m looking forward to seeing you there.

This blog post was written by David Chapple, event director of the Responsible Travel Management Conference and the Business Travel Show. You can contact David at david@businesstravelshow.com. 

VISITOR NUMBERS UP 5%!

 The 20^th Business Travel Show, which took place at Earls Court last week, achieved a five per cent increase in visitors despite being hit by a Tube strike and torrential rain.

6,475 corporate travel professionals attended the Business Travel Show (compared to 6,148 in 2013) for a busy two days of networking, learning and sourcing. Exhibitor numbers were up ten per cent on 2013 – from 205 to 226, floor space increased by 32 per cent, and 65 per cent of the floor plan was rebooked onsite. 

Exhibitors included Amadeus, Star Alliance, Bank of America Merrill Lynch, Egencia, Travelodge, Virgin Atlantic, Eurostar, Qatar Airways, Carlson Wagonlit Travel, Premier Inn, thetrainline, Concur, easyjet, BCD Travel and American Express Global Business Travel. 

The Business Travel Show conference, renowned for its high quality content and extensive programme, was opened by Dara Khosrowshahi – CEO and president of Expedia Inc – who predicted The Future of Travel and discussed the importance of understanding Millennials as well as the increasingly blurred lines between business and leisure travel.

Many hundreds of senior European buyers attended the show, including 953 hosted buyer level attendees – a 37 per cent increase on 2013. Over 300 of these buyers were fully hosted by the Business Travel Show. Now in its third year, the hosted buyer programme featured an exclusive half day pre-show conference and gala dinner on Monday 3 February.

  

I am truly delighted with the success of this year’s show – it was at its biggest and best for years. The floor was packed with many high profile exhibitors returning after time away and a long list of brand new companies sitting alongside our long-term supporters. 

Conference sessions were packed out and visitor numbers were at their highest for seven years. It doesn’t surprise me for one second that our visitors, who are, after all, seasoned and resourceful business travellers, refused to let the small matter of a Tube strike stand in their way of attending. All in all, it was a fantastic way to celebrate our 20^th anniversary event and we’re already looking forward to our 21^st in our new home at Olympia Exhibition Centre.

This blog post was written by event director David Chapple. The Business Travel Show, Europe’s leading corporate travel event, will take place 25-26 February 2015 at Olympia in London. For more information please visit www.businesstravelshow.com.

GUEST BLOG: Why flights and accommodation are not the real cost of business travel

When you calculate the cost of a business trip, what do you include?  Flight cost?  Accommodation?  Time out of the office?  All of these are reasonable considerations when looking at the return on investment of making a business trip.

One aspect that is rarely considered is the cost of staying in contact.  With so much business conducted on mobile devices and the speed if business growing faster all the time, what is the cost of someone not being in touch?  An alternative way to look at this is what is the cost of them staying in touch?

The cost of data roaming has been the dirty secret of the mobile industry for a decade.  Despite attempts by the European Union to make this issue more transparent, the cost is still high across Europe and obscene outside of the EU (it can be up to £8 per megabyte of data). With the average business traveller using around 250 Megabytes of data per day, the costs can be astronomical – and are rarely seen as part of a trip.

Whilst the mobile networks have tried to create bundles to mitigate this cost of business travel, this does not offer the flexibility that businesses need: when you need to be in contact you cannot rely on only using a small amount of data in a trip.  What if someone sends you a contract as a big attachment?  You have the choice of paying a huge cost for it or not receiving it at all.

For many businesses the cost of connectivity when away falls between the IT department, the telecoms department and the finance function.  Make sure your business understands the total cost of doing business abroad by ensuring there is one person responsible for monitoring and managing the cost of data connectivity on business trips.

This post was written by Tommi Uhari, CEO of Uros. Uros is exhibiting at the Business Travel Show next week - 4-5 February 2014. To register for a visitor pass please visit www.businesstravelshow.com