Managing business travellers' needs is a special part of travel business.

1. Business Travel
„A Catalyst for Economic
Performance”1

2. T&T Direct Global Contribution to the
GDP in 2018 (WTTC) !!!

3. The business and leisure traveller have different
wants, needs and travel patterns.
„Business travellers are more demanding than leisure
travellers as they need services to be 100 per cent
reliable, because executive trips are stressful.
Therefore, the standards required by corporate clients
on service quality, data security and storage, as well as
GDPR compliance are very high”*
*John McCallion, founder of Booking.com

4. Forms of business travel
• MICE
• Corporate travel (regular, individual, frequent)

5. • Business travel is travel undertaken for work or
business purposes (MICE + Corporate)
•Corporate travel is when employees travel on behalf of
a company.
•MICE travel refers to a specialized niche of group
tourism dedicated to planning, booking, and facilitating
meetings, incentives, conferences, events (exhibitions).

6. • The major differences:
• MICE travellers purchase a pre-arranged combination of
different services on one incluseive price (package price):
- Meetings
- Incentives
- Conferences
- Exhibitions
• These products are a mixture of business an leisure elements
• While regular business travellers purchase solo items
(usually) on ad hoc basis

7. Corporate travel

8. Corporate (regular, individual or frequent
business)travel
• The motivation of travel is business related
• No discretional decision on time of travel, on
destination
• It is not financed from the discretional income
• Relatively no peaks
• Two-thirds of business travellers extend their business
trips for pleasure when they can

9. Corporate (regular, individual or frequent
business) travel
• The trips are ordered and paid by the
corporations who’s employee is travelling.
• The services are ordered on ad hoc basis and one
by one as solo items

10. Types of corporate travel
• Managed corporate travel
•is a business travel program that is handled by an
external travel management company (TMC)
•TMCs manage the booking, budgeting, analysis and
insight into travel policy performance.
•TMCs leverage their existing relationships with
suppliers to negotiate supplier rates, and assist
corporations in ensuring compliance.

11. Types of corporate travel
• Unmanaged corporate travel
• ”open booking” or „self-booking” program
•gives employees more freedom in selecting their
preferred suppliers and booking channels (selection set
by the corporation)

12. Why business people travel frequently?
• To generate new sales:
•Travel and sales are strongly linked
•29% of the company’s new sales depend on business travel
(based on WTTC’s executives’ reports)
• To keep customers:
•Cutting back on business travel poses significant business
risks.
•Business travellers estimate that 38% of their customers
would switch to a competitor without in-person meetings.

13. Why business people travel frequently? –
cont’
• To maintain partnerships
•Co-operative relationships are integral to company
performance.
•External conferences and conventions have a
significant” or “high” impact on developing
partnerships.

14. Why business people travel frequently? –
cont’
• To get more innovation and to improve human
capital
• It is confirmed, that there is a strong relationship
between travel and innovation and productivity

15. Corporate and leisure travel comparisons
• Business person has no/little discretion in
the choice of destination or the timing of
their trip;
• Business trips frequently have to be
arranged on short notice and for specific
and brief periods of time;

16. • Business travelers need the convenience of
frequent/regular transport, efficient service
and good facilities;
• Business traveler - the individual - is less
concerned about the costs of traveling
• Relatively price inelastic type of travel

17. • Travel purchasing is a controllable operating
cost* of enterprises - the travel agency can play
an important role in achieving the target.
• The more professional the agency, the higher the
compatibility with its corporate clients.
*Controllable costs are those costs that can be altered in the short term.
A cost is considered to be controllable if the decision resides with one person. The reverse of
a controllable cost is a fixed cost, which can only be altered over a long period of time.

18. • Controllable Expenses
• are ones that can be adjusted or "influenced" by someone. These are
expenses that can be increased or decreased based on a retailer's business
decision. For example, turning the lights off at night can control the costs
of electricity. If the closing store manager forgets, then the cost goes up. If
he remembers, then the cost stays down. So, an action by this person can
"control" this cost.
• Uncontrollable Expenses
• are ones that cannot be influenced by someone during the normal rhythm
of business. Rent is a great example of this one. You negotiate your rent
expense at the beginning of the lease, but it is certain years before you
can change it. True, you can always go back and renegotiate your lease to
get a more favorable rate, but this requires the action and approval of a
lot of people and not just the store manager. So, it's not a simple business
decision like controllable is.

19. •Pan-European and global travel agency operations
respond to the consolidation of international travel
accounts by multinational corporation.
•Business travel requires more flexibility in agency
management.
•Professional marketing is needed.

20. Business travel market
• Very high and complex competition
• International market with international competion
• Mulinational TMCs are preferred by multinational
corporation
• TMCs, DMCs, PCOs and tech companies
• GDSs come into competion with direct offers to
cosporations
• Suppliers come into cometition with direct offers

21. Who is who in business travel?
• Customers (corporate clients):
• National or international enterprises
• Any companies whose employees must travel in order to
conduct business on behalf of the company.
• Consumers:
• Individuals, employees of the customer

22. Special needs of corporate clients
• Travel coordination and administration:
• making time efficient and cost effective itineraries
• professional filing, data processing
• Cost control:
• agency should provide appropriate details
• joint negotiation for better corporate rates

23. Special needs of corporate clients
• Lowest fare:
• sophisticated automation
• access to the supplier
• Consolidated billing:
• standardised report formats
• conformity in reports
• Back Office systems

24. Special needs of corporate clients
• Expense reports
• Travel knowledge
• Flexibility, professionalism

25. Sales methods in corporate travel are
different
• Dealing with business travel is typical retail travel
agency activity (TMC)
• TMCs order/purchase the services from the suppliers
directly and sell to the customers (usually do not deal
with the consumers directly)
• There is usually no direct contact between the
consumer and the TMC

26. • The customers’s corporate travel management
decides on the class of service that employees are
allowed to fly, negotiate corporate fares/rates with
airlines and hotels as well as set forth the use of the
corporate credit card. (T&E Policy)
• The TMC makes the actual reservation within the
parameters given by the corporation.

27. Types of business travel agencies:
• Pure business TA - are called TMC (travel
management company)
•Full service
•Specialised on business services
• Mixed TA

28. • "Extended" business travel agencies:
• Implant Operation:
• These are individuals placed by their agencies within a
corporation and dedicated to accommodating employees' corporate
travel needs
• Can be an office established by a travel agy in a corporation’s
premises to serve the clients on their own location. The corporation
provides the infrastucture, and covers the cost of it, the travel
agency provides the specialists and pays them.
• In-house travel department:
• corporation hires accredited agents, the technical infrastructure

29. Other types of enterprises dealing with
business travel

30. • DMC (Destination Management Company)
•Provides ground services based knowledge and
familiarity of the destination possessing expertise and
resources, specializing in the design and
implementation of events, activities, tours,
transportation and program logistics.

31. • EMC – Event Management Company
•Provides services in a variety of areas including
corporate events, marketing programs and special
hospitality events like concerts, award ceremonies, film
premieres, launch/release parties, fashion shows,
commercial events, private (personal) events such as
weddings etc.

32. • AMC – Association Management Company
•Provides management and specialized administrative
services to trade associations and professional societies
running them like businesses.
•If it has the knowledge and resources, AMC may also
act a PCO or may engage a PCO to organize a meeting.

33. • PCO – Professional Congress Organizer
•Provides full service to meeting planners.
•Sometimes a PCO may engage a DMC for services in a
destination like excursions, dinners etc. or an EMC for
themed events.
•Very often, a PCO organizes all those happenings itself
providing it has got the in-depth knowledge of the
destination.

34. MICE travel

35. (Meetings, Incentives, Concentions/Conferences, Exhibitions)
• Special segment within business travel.
• This types of travel often incorporate elements of leisure
travel.
• Special professional organisations deal with this sector.

36. •Meetings:
• Events designed to bring people together for the purpose
of exchanging information. Can be held on-premises at
one of the companies/organisations or off-premises at
other sites. The meetings differ in size, subject matter,
agenda
• Can be :
- forum (larger, led by a pane)
- seminar (smaller and more focused on subject matter)
- symposium (subject is more academic or technical)
- workshop (skill building or training)

37. •Incentive travel: (Incentive or reward for achievement)
• During hese trips the organisition who is going to
incentives or reward the employees or retailers provides
high level, luxury services to the invited people, who
should participate on special business sessions as well.
• Can be:
- company-paid vacation
- reward for top-performing salespersons
- promotion for a future performance
- loyalty building
•

38. •Conventions, conferences:
events combining both meeting and expositions. There
are many side events provided to the participants.
• This type of tourism generates high expenditures on per
visitor basis and create substantial economic impacts for
the host economy.
•Expositions/Exhibitions:
• Large events at which vendors can display and market
their products or services to a contingent of potential
clients and buyers