What 2005 holds in store
Many of the polls and surveys of the last three months have predicted a good year for business travel in 2005.
Findings have included a rise in spend, (as well as a rise in prices) and, more significantly, a better time for the hotel industry which has taken something of a bartering, certainly in the four- and five-star categories, over the past couple of years.
Others polls have predicted - somewhat safely - a rise in online bookings and the likely effects of any de-regulations of GDS regulations.
BTE asked several leading figures in the industry what they felt 2005 would hold for European business travel.
Here are their views.
Nadine Dewart, ACTE President-Elect:
“I believe that in 2005, business travel will continue to grow compared to 2004. Information from the industry predicts that travel levels will reach or even surpass pre-9/11 ones. However, concerns remain about high fuel costs and security fees which are important air fare components. Prices are expected to remain high in 2005 but I don't think it will negatively impact travel. Corporations are extremely creative in their ways to tame T&E.
“I see a constant interest in online booking, expense automation software, and online technology services, all solutions striving to control the growing cost of travel. The disaster in Asia is putting back travellers' tracking in the centre of corporation's concerns. I look forward for major developments in the way both TMCs and companies keep track of who goes where.”
Ron DiLeo, svp, head of business travel, American Express Europe:
“The travel industry will continue on its trajectory of massive transformation this year, with the IATA deregulation, the rapid growth of online bookings and the battle over distribution channels all contributing to the changes that will take place during 2005. Within the corporate travel arena, agents will be set apart by their ability to predict, and positively influence these changes on behalf of their customers and to deliver simplified processes and savings as a result.”
Hubert Joly, worldwide ceo, Carlson Wagonlit Travel:
“The next few years will continue to be characterized by corporations looking for continued savings in their travel budgets and quality services for their travellers, along with a great deal of uncertainty and complexity in the procurement of travel and further consolidation of the travel management industry.
“Our three priorities for corporations 2005 are to drive self bookings for increased efficiency, to attack the hotel opportunity which is the next savings frontier for optimizing business travel expenditure and to consolidate further the travel spend and travel programme at the national, regional and/or global level.”
David Radcliffe, ceo Hogg Robinson and BTI:
“For 2005, I predict that there will be further consolidation of the major TMCs with some moving even closer towards the ‘consultancy and knowledge based solutions' business model. For BTI, we will certainly see a greater shift towards the outsourced solutions arena which will not just include the traditional type of business normally associated with a TMC, but also back office expense payment and monitoring systems, and indeed inventory management.
“Technology will, as ever, be crucial to our ongoing success. However it must be appropriate and suitable to client needs. Even more importantly however, is the need for good people without whom no service based organisation will be successful.”