Corporate Travel Technology


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Corporate Travel Technology

  1. 1. Technology & Cost Management in Corporate Travel Our Partners :
  2. 2. Good Afternoon I’m Desmond DesmondChong @ Twitter Doraimon1 @ Facebook Kauai, Hawaii Avid traveler Love surfing Starbucks Addict Weekend Job!
  3. 3. <ul><li>Our partners include Sabre Holdings, a leading provider of technology, distribution and marketing services for the travel industry as well as 11 of the world’s leading airlines in Asia. </li></ul>Our Partners
  4. 4. Asia’s Leading Corporate Travel Solutions Provider Lead In Service Quality And Value Global Reach With Local Knowledge Drive Growth And Profitability
  5. 5. Asia’s Leading Corporate Travel Solutions Provider Lead In Service Quality And Value Drive Growth And Profitability Global Reach With Local Knowledge
  6. 6. Asia’s Leading Corporate Travel Solutions Provider Drive Growth And Profitability Lead In Service Quality and Value Global Reach With Local Knowledge
  7. 7. GLOCAL : Global + Local
  8. 8. Abacus in Asia Pacific <ul><li>More than1,200 employees in region </li></ul><ul><li>More than 20,000 agencies in 24 markets with more than 120 sales and marketing offices with local support. </li></ul><ul><li>Leader in Corporate Travel (>64% segment share across key mkts) </li></ul><ul><li>Customers include: </li></ul><ul><ul><li>HK: Farrington AMEX, Jebsen BCD, Westminster HRG, Swire Travel, HK Four Seas </li></ul></ul><ul><ul><li>ID: Smailing AMEX, Panorama CWT, Bayu Buana BCD, Vaya Anta HRG, Dwidaya </li></ul></ul><ul><ul><li>MY: Holiday Tours CWT, Mayflower AMEX, PST BCD, TravelBiz HRG </li></ul></ul><ul><ul><li>SG: AMEX, BCD, Global Travel, Safe2Travel, Diners, Prime Travel </li></ul></ul>
  9. 9. Sabre Worldwide <ul><li>>9,000 employees in 59 countries, speaking >70 languages </li></ul><ul><li>58,000 agencies in 113 markets </li></ul><ul><li>39% market share globally </li></ul><ul><ul><li>All Global TMC’s process more than 60% of their bookings through the Sabre GDS </li></ul></ul><ul><li>Over 50 % Share of Global Corporate TMCs </li></ul><ul><li>Winning significant new business in </li></ul><ul><ul><li>Europe, Middle East and Africa </li></ul></ul><ul><ul><li>Over 60 % of Fortune 200 and nearly 70% of BTN 100 </li></ul></ul>
  10. 10. <ul><li>Additional productivity savings from loading and managing </li></ul><ul><ul><li>Negotiated air fares </li></ul></ul><ul><ul><li>Hotel rates </li></ul></ul><ul><ul><li>Traveler Profiles </li></ul></ul><ul><li>Improved servicing of international travelers </li></ul><ul><ul><li>Pre / In-Trip / Post </li></ul></ul><ul><li>Security, easier tracking of travelers </li></ul><ul><li>End to end reporting capabilities </li></ul><ul><li>Optimal platform for booking tool integration </li></ul>Global companies prefer our network
  11. 11. 2010 Corporate Travel Landscape Our Partners :
  12. 12. Economic Outlook by Region
  13. 13. Sustained Regional GDP Growth Outlook
  14. 14. The Asian Economy: Good News <ul><li>First to emerge from crisis, recovering better than expected, business travel reviving </li></ul><ul><li>Recovery in Asia & major economies driven by massive fiscal & monetary stimulus </li></ul><ul><li>Businesses no longer cutting inventory, cargo traffic up </li></ul><ul><li>Balance sheets still vulnerable, liabilities merely shifted from private to public </li></ul><ul><li>Fundamental weakness will resurface as stimulus fades </li></ul><ul><li>Short-term growth outlook in Asia looks promising @ more sustainable rate and less heady </li></ul><ul><li>China’s Q1 GDP, 11.9% </li></ul><ul><li>Singapore’s Q1 GDP, 32.1% </li></ul>4.9% 7.1% 6.3% 2009 2010 2011 Source: EIU
  15. 15. 14.2M Increase (16.2% YoY) in Passengers Transported, Feb <ul><li>Passenger growth (RPK) continues for Asian Carriers for 7 straight months </li></ul>
  16. 16. Load factor Up, Capacity Up <ul><li>7 straight months of improvement in load factor for Asian carriers, averaging 79.2% </li></ul><ul><li>First capacity growth (2.4%, YoY) for first time in 12 mths </li></ul>
  17. 17. Bookings & Load Factor Up across Asian Carriers Int’l Pax: 1.4M, +9.5% Int’l Load: 80.8% (+11.4%) Singapore Airlines Int’l: 456k, +26% DOM: 3.7M (+1.7%) Load: 81.3% (+12%) Load: 70% (+3.7%) All Nippon Air Int’l: 6.3M, +21.2% Load: 80.3% (+4.8%) CN Southern Source: CAPA
  18. 18. Year Ago, 25% Drop in Premium Traffic
  19. 19. Asia Leads Recovery in Business Travel <ul><li>Improving regional economy lifting demand for premium travel </li></ul><ul><li>Fares & Yields improving due to capacity cuts & high load factor </li></ul>Source: IATA
  20. 20. Corporate Hotel Bookings, 2010 Source: Pegasus Solutions <ul><li>2.9M availability requests in Feb10 </li></ul><ul><li>GDS ADR continues to trend higher from Dec09 </li></ul><ul><li>Booking volumes continue to outpace 2007, 2008 </li></ul><ul><li>Avg LOS continues to trend higher, apart from NA </li></ul><ul><li>ADR over last 14 mths trended 15 – 21% higher than North America. </li></ul><ul><li>Growing confidence in leisure & corporate bookings thru June2010, with lead times rising </li></ul>
  21. 21. Corporate Travel to Continue Growth <ul><li>Total gross booking in 2008 – US$24.5 billion </li></ul><ul><li>In financially tighter times, increased role for Corporate Travel agent’s as ‘value champions’ - helping corporations manage travel efficiently </li></ul>
  22. 22. Total leisure/unmanaged business travel is expected to reach US$203billion by 2011 for APAC The total leisure /unmanaged online market is expected to grow at 22% from 2009 to 2010 and 26% from 2010 to 2011. Source: PhoCusWright Inc.
  23. 23. Some Risks in 2010/11 <ul><li>Potential slowdown in US & EU major economies; impact to trading partners in 2011 </li></ul><ul><li>Credit expansion & asset bubbles in China, India, Vietnam pose risks to stability & sustainability </li></ul><ul><li>Investors overly enthusiastic about recovery forgetting drivers of recovery are short-term and imbalances exist </li></ul><ul><li>Anti-inflation measures could cause drops in business investment & asset prices too quickly </li></ul><ul><li>Withdrawal of policy support will also expose substantial volatility </li></ul><ul><li>Cause for OPTIMISM but CONSERVE CASH </li></ul>
  24. 24. Our Partners : Using Technology to Meet Corporate Travel Goals
  25. 25. Key Corporate Travel Goals Value ROI Service Quality BALANCE Unit Cost  Total Cost Cost  Value Focus Global goals, Local Needs
  26. 26. Achieving Them, Requires… Data Technology Content Travel Mgmt Program Enabler Can’t Manage & Negotiate without data Direct Impact on Experience, Perception, Value
  27. 27. Online Corporate Travel Mgmt Solution <ul><li>Greater compliance collaboration across organization & regions </li></ul><ul><li>Lower Total Cost of Travel through process, spend, and admin savings </li></ul><ul><li>Higher chance of meeting corporate objectives </li></ul><ul><li>Optimizing strategic supplier relationship </li></ul><ul><li>Track, measure, and change behavior through data </li></ul><ul><li>Continuous Improvement </li></ul>
  28. 28. GetThere: Average Client Savings <ul><li>Average Customer Spend Profile </li></ul><ul><ul><li>Average annual travel spend - $30M </li></ul></ul><ul><ul><li>2006-2009 Adoption – 47%, 56%, 77%, 82% </li></ul></ul><ul><li>Average Customer Results </li></ul><ul><ul><li>4 year net savings - $13.9M </li></ul></ul><ul><ul><li>4 year incremental savings - $4.4M </li></ul></ul><ul><ul><li>GetThere 4 year ROI – 2245% </li></ul></ul><ul><ul><li>GetThere 4 year NPV - $8.6M </li></ul></ul>Annual GetThere Savings ($) Average Customer and GetThere Results Four Year Annual Savings Note - 2009 results are six month actuals/six month forecast based on current spend and trending adoption rates
  29. 29. Fare Content Directly Impacts Business Value & Service Perception <ul><li>Access to unique fare content: Strong value differentiator </li></ul><ul><li>Asia Fares complex yet crucial to get right. APAC fares environment is complex (by design) </li></ul><ul><li>Complexity differs dramatically by market & customer segment </li></ul><ul><li>All challenges can be overcome - and differentiating value of content makes it worthwhile to go deep. </li></ul><ul><li>TC1 and TC2 based corporations with branches in TC3 markets do find local fare content critical </li></ul>
  30. 30. Fare Mgmt: Continues to Be Key Differentiator <ul><li>7% fare increase Q1, 2010 </li></ul><ul><li>Fares system complex & expensive to build </li></ul><ul><li>ADM’s </li></ul><ul><li>59 new airlines/agency Y2009 </li></ul>19 Markets 64 Airlines/ 275 Agency Suppliers 840 Fare Sources 99 Cities
  31. 31. Carriers Continues to Back Abacus FareX ~40% of corporate fares in HK ticketed through FareX
  32. 32. More Instability = More Business Risk Earthquakes Hurricane Terrorists Earthquakes Yr 2008 39 earthquakes Yr 2007 55 earthquakes Yr 2006 33 earthquakes More than 300,000 people kill since yr 2000 Bush fires Earthquakes Earthquakes Earthquakes Earthquakes Terrorists Terrorists Terrorists Terrorism incidents In year 2000 – 2006 Total terrorism incident 14, 943 Total fatal during terrorism 24, 675 Source: National Earthquake Information Center, Nationmaster Terrorism incidents In year 2000 – 2006 Total terrorism incident 14, 943 Total fatal during terrorism 24, 675
  33. 33. Security Tools Saves Lives + Cost + Risk Manage costs <ul><li>Locate travellers at a glance </li></ul><ul><li>Anytime, anywhere </li></ul><ul><li>access </li></ul><ul><li>Easy to use, </li></ul><ul><li>minimum training </li></ul><ul><li>required </li></ul><ul><li>Peace of mind </li></ul>Manage risks Mitigate loss
  34. 34. Agency Productivity, QC, Data Consolidation Increasingly Important <ul><li>~50% higher productivity </li></ul><ul><li>Prevention better, cheaper than curing QC issues </li></ul><ul><li>Process savings from automation & consolidation </li></ul>TA Operations PowerSuite Mid Office Auto booking cards creation Centralized Invoices/XOs Daily sales reports PowerSuite Front Office <ul><li>Customer profiles </li></ul><ul><li>Availability & Fare Quote </li></ul><ul><li>Ticket Issuance </li></ul>PowerSuite Back Office JE, GL transactions Financial reports Mid Office Back Office Front Office
  35. 35. Business Intelligence <ul><li>Value of data is the Business Insight </li></ul><ul><li>Corporate customers’ need for data will grow in sophistication </li></ul><ul><ul><li>Robust FMBO is central to being able to capture & share such insights with customers (e.g. Lost Savings, Top 10 City Pairs, Agent Productivity…) </li></ul></ul>
  36. 36. Travel is Mobile
  37. 37. High Value as Traveler Service Channel
  38. 38. Connect friends & family with your trip experience
  39. 39. Smart Devices Get Smarter, Powerful, Context Relevant Blackberry iPhone Android Windows Phone
  40. 40. Things that will matter? <ul><li>Greater tie-in of travel policies to company strategy (ROI) </li></ul><ul><li>Measuring results: Purpose, Total Cost, Results </li></ul><ul><ul><li>Data, Business Insights, Standardization </li></ul></ul><ul><li>Leverage technology to drive compliance & lower costs: Not all organizations need a GetThere in region. Sometimes all they need is a simple online booking tool with some policies & profile management to get the job done. </li></ul><ul><li>Fares Mgmt: Less in 2009 but more in 2010 as fares as expected to rise 8% (but in reality 7% in Q1 already) </li></ul><ul><li>Supplier Commitment: Tracking commitments to supplier and being able to have informed negotiations with suppliers based on travel patterns </li></ul><ul><li>Total end-to-end optimization (process & integration) </li></ul><ul><ul><li>Centralized Expense Reconciliation, Ancillary Fees Mgmt, </li></ul></ul><ul><li>Hotels: Big opportunity to optimize. Tier policies for employees and simpler pricing models to consolidate hotel spend </li></ul><ul><li>Emphasis on policy compliance in Off/Online channel </li></ul><ul><li>Emphasis on Pre-trip education & authorization to maximize savings </li></ul><ul><ul><li>Reason for travel to be provided upfront at time of booking for approval versus at reimbursement point </li></ul></ul><ul><li>Increasing policy enforcement through online tools, preferred TMC, and centralized billing (corp cards) </li></ul><ul><li>Traveler security will continue to be important and less booking off the GDS </li></ul><ul><li>Service & Agency Productivity: PowerSuite </li></ul><ul><li>Sound Financial Mgmt: PowerSuite </li></ul><ul><li>Consolidation of MICE & Biz Travel under same policies & mgmt: more oversight in MICE spend </li></ul><ul><li>Mobile: High value as a traveler service tool /channel rather than booking tool </li></ul>
  41. 41. Thank You