What can the business travel world provide for today's graduates, asks Mark Frary - and what can those just embarking on their careers offer us?
Two-and-a-half million people on the dole. 150,000 young people unable to find a place at university this year. Downsizing in the corporate travel sector and thousands of jobs in the travel industry gone as a result of the recession.
Despite the doom and gloom, things are looking up. Kristina Wallen of recruitment company HArP Wallen says that, post-downturn, there are jobs out there across the entire corporate travel sector.
"There has definitely been an uplift in the number of opportunities in the corporate travel sector, although it is too patchy to say there has been a complete bounceback," she says.
As the recovery takes hold, albeit a fragile one, what are corporate travel employers looking for?
Heather Cotterill, who managed the Institute of Travel & meetings' (ITM) recruitment arm for several years until she set up her own recruitment business, Cotterill Walker Resourcing Solutions, last year, says that without a doubt the most in-demand skill at the moment is commercial nous - and not just on the supplier side.
"Buyer roles are becoming very commercial," she says. "very few companies mandate their policy and the role is increasingly about bringing employees on board with regard to travel policy, and also about how a company's travel policy reflects the way it does business."
Kristina Wallen agrees. "Employers are looking for anything that focuses on the commercial - revenue planning, analytical work, anything that manages cost of sale, increases margin or adds value," she says. "Everybody is looking to make sure they are lean, but offering the best value and achieving the best margin possible in a market where everyone is being drilled down on cost left, right and centre."
Everyone seems agreed on one thing - that the economic crisis of the last couple of years has seen some good people leave the industry. many corporate travel departments have shrunk or disappeared while many travel management companies (TMCs) have slimmed down considerably, in line with the lower volume of business travel.
"Most companies haven't recruited seriously for a couple of years and are expecting to find some key talent now that the economy is recovering," says Cotterill. "Unfortunately, we have lost a huge amount of talent. During the recession, a lot of people decided they'd had enough of travel and wanted to work in an industry with more stability."
The sign of green shoots also concerns David Kast, head of human resources at HRG. "The industry as a whole has tended to collapse in numbers but, as demand grows, this becomes an issue for all companies; they need to get people into accounts quickly."
FREEDOM OF MOVEMENT
The merry-go-round, which sees travel agents become travel buyers and airline execs move to TMCs, continues apace, according to Heather Cotterill.
"Movement around the industry is something I encourage," she says. "bringing someone into a buyer role who has a view of accommodation, or meetings, or a full understanding of the airline process allows the buying organisation to get more out of their suppliers."
That said, 'crossing to the dark side' is not as simple as some might imagine. Cotterill says: "People say to me 'Don't worry I'll cope', and then six months later they admit that the transition was really tough."
HRG's David Kast sees value in looking across the industry, too. "People tend to come from either leisure or other areas of the industry with compatible types of skill. We find people with hotel and airline backgrounds have skills that can translate into ones needed in the industry we work in. We spend time with them to learn our systems."
However, Kristina Wallen says that such movement between sectors is less evident in the corporate sector than in leisure travel.
"TMCs still largely require candidates to have mainly had TMC experience for most of their middle to senior management roles, which means you end up recycling an awful lot of the same people," she says. "The corporate sector could learn a lot from the leisure market in terms of looking for ability rather than having done that same job somewhere else."
It probably goes without saying, but moving jobs in the current climate is a challenge. Employers are taking their time to find the right candidates for any role that does come up and can be picky when it comes to the background and skills of the person they want to employ.
Gail Kenny of Gail Kenny executive Search, which manages recruitment for the ITM, says. "companies' expectations are much higher than they used to be, so therefore only the people with a demonstrable track record of delivery will survive in this industry."
Despite that, good people are always in demand, says Kristina Wallen. "even in these difficult times, skilled and competent individuals have more than one opportunity in the mix. There isn't any room for employers to be cavalier about the process," she says.
RETAINING GOOD PEOPLE
With the ability of travel companies to hire new people restricted by the recession, they are keener than ever to make sure they don't lose good people. Training is one of many ways to ensure you retain the best staff.
"Those businesses that are good at training tend to keep people longer in the organisation and develop them internally," says Kristina Wallen. "Training should be seen as an important part of your retention strategy.
"Individuals who want to develop themselves should make sure they have a good idea of what skills are required and, particularly when it comes to technology, develop skills in those areas."
Gail Kenny strongly believes in the importance in having good talent throughout an organisation. "If you have talent at all levels then your business will be able to perform at the same pace, and have a common understanding of the business strategy and drivers, all the way through the organisation," she says.
STARTING THE JOURNEY
For those just leaving university, should they consider travel as a career option?
In the past, the appeal of travel to undergraduates was in little doubt - even if the salaries were not world-beating, the perks almost certainly were. However, as companies have become more commercially focused, travel perks have been cut back (or dispensed with altogether) and travel now has to compete alongside other sectors for the cream of the graduate crop.
Traditionally, corporate travel has been considered as dry and unsexy when held up against the glitzy world of leisure travel - but things may be changing as graduates consider every option open to them. HRG's David Kast sees corporate travel as a good career option because of the range of opportunities. "We can offer roles not just in the operational business travel and consultancy sides but also account management, sales and IT," he says. "It is perfect for someone who wants to get into an industry where they will not necessarily do the same job all their life."
Kast, who has himself been with the company for 38 years, says that people tend to stay with HRG. "Many senior managers would have come in, as I did, as a travel agent before going on to be a branch manager or entering a specialist stream like HR," he says.
HRG is still looking for those who can foster good relationships. "We are looking for individuals who have very good people skills," says Kast. "The value of the transaction is in the consultancy we provide to our clients."
HRG is part of the Global Travel and Tourism Partnership (GTTP) along with some other travel or travel-orientated companies, such as Hertz, American Express, Lufthansa and Starwood. This organisation aims to bring young people into travel and tourism in general, and more than 500,000 students are currently studying GTTP's curriculum programme, Passport to the World, for which companies, such as HRG, provide financial and other support.
Kast says: "It helps students think about travel and tourism as a career path. They might come into our industry as a potential employee and will have an important awareness of travel and tourism as a result."
Over at American Express, spokesperson Suzanne Withers says that recruitment of MBAs and graduates has nearly doubled since the deepest part of the recession, with openings in many areas of the business, including marketing, client/account management, strategy and operations.
Technology graduates have another route into the industry. American Express, which regularly ranks highly in The Times' best-places-to-work lists, runs a scheme with the University of Sussex - which, along with Amex, is based in Brighton - which allows IT graduates to study part-time for a Masters degree in one of four subjects, while at the same time working part-time in Amex's Technologies Division. Amex pays the tuition fees and a competitive salary based on a 30-hour working week. Many go on to get a fulltime job at the company.
Kaveh Atrak, current Amex boss for Business Travel in the UK, the Nordic countries and central Europe, shows just how far you can go - he joined the company as a graduate trainee. "In the 25 years I have been here, we have always had graduate programmes," he says. "Travel is an amazing business - I would never change. For a graduate there is so much to get your teeth into - strategy and technology, as well as operations."
So why does Amex regularly appears in the surveys of best companies to work for in the UK and other countries? "Ever since I can remember, the company has been employee focused," Atrak says. "We care about what people say and carry out an annual employee survey, and act on what they say."
The ITM works closely with the University of Brighton. The partnership was established in 2009 as part of its ITM Academy programme, which will see a complete education and training programme established over the next few years for those in both higher education and those already working within the industry. Gail Kenny says: "The programme's development is being overseen by the ITM's education working party, and they have seen and continue to see some real talent coming through into the industry."
Meanwhile, the Association of Corporate Travel Executives (ACTE) launched a new hands-on programme aimed at full-time travel executives at its Berlin conference at the beginning of October. The Around the World in 80 Hours scheme, operated in conjunction with several leading universities and business schools, includes 80 hours of work in the lecture theatre as well as two or three days in a travel destination. It will operate twice-yearly and begins in Singapore late 2011.
"It is true immersion learning," says ACTE executive director Ron DiLeo. "Students learn about the market while being out there, in it."
So what can people working in corporate travel expect to earn? As you might expect, the range of salaries is very wide. "There would be a huge difference between that paid for a UK travel manager role and a global lead for travel, for example," says Heather Cotterill.
"There are some roles that pay into six figures but a UK travel manager would probably be looking at £40- 45K. For travel account managers, some companies pay a good bonus, and so salaries are a bit light."
Light or not, corporate travel still enjoys some good fringe benefits - travel is not completely out of the question, after all - so perhaps it is time for graduates to give the sector some serious consideration.