ON THE SOAPBOX for February features David Chapple the event director for Centaur Exhibition”s Business Travel Show, the leading event for people who buy, book or manage company travel, trips and meetings, which takes place at Earls Court 2 from 13-15 February. More visitors and exhibitors are expected than ever before, with 70 companies exhibiting for the very first time. This is David”s second year at the helm.
”The dreaded day when Air Passenger Duty (APD) doubled to ”80 per long haul flight and ”40 for short haul trips came last Thursday (1 February). It”s fair to say that the increased charges have not received the warmest of welcomes by anyone: passengers, airlines and the media included. Gordon Brown”s decision was bound to be the subject of negative press when it was revealed the charges would apply to all pre-booked flights and that it was down to the airlines to collect the unpaid taxes. Unsurprisingly, many airlines announced their unhappiness with this news, and one budget airline voiced its anger by offering free flights to anyone who wrote to the Chancellor to complain.
Things got even worse when it was announced that the extra tax would not, as was implied and expected by the travel industry, be ploughed back into environmental programmes to reduce carbon emissions. Instead, the money ” expected to reach up to ”1bn ” will go straight into the Chancellor”s purse.
But what does all this mean for the business travel industry? I have no doubt the higher tax will have little impact in discouraging business travellers from flying, as face to face meetings with clients are imperative. The new duty will, however, make a significant dent in many companies” travel budgets, particularly SMEs. Larger companies may consider alternatives to combat the extra costs and invest in technology such as video conferencing. For SMEs with smaller budgets this quick-fix option may not be so feasible.
With environment groups putting ever more pressure on the government to encourage the travel industry to offset carbon emissions, the new tax may just be the first of many introductions that will incentivise companies to make their travel budgets work harder. Companies will need to be savvier when planning their business trips to ensure they are receiving the best offers and their budgets are being used wisely. When it comes to balancing these costs, there are a number of simple implementations that companies can apply to ensure their travel budgets work harder and smarter:
Create a structured plan for booking company travel
Ensure that there is one person or team responsible for arranging and booking the company travel and meetings. This means it is easier to control, that preferred suppliers are always used and travellers stick to company policy.
Take advantage of a regular supplier
Many hotels, meeting venues, airlines and chauffeur companies are part of a loyalty scheme, so the more you use the same supplier, the better deals you can secure. You will also be the first to hear about special deals and offers.
Don”t assume the best-known internet companies are the cheapest
Many companies make the mistake of assuming that the best-known internet providers offer the best deals. But there are many ways to get to your desired destination, and it”s always worth picking up the phone and speaking to a travel agent who will have access to all options rather than rely on the pre-negotiated deals your usual website offers.
Educate yourself
Spend time researching your needs, learn from experts and evaluate what”s best for your company. The Business Travel Show offers a comprehensive Educational Programme where you can learn about, and from, a wide range of case studies. Sessions include: ”Your complete guide to booking, selecting and measuring meetings” and ”managing spend and cost effective travel booking” and ”buying for small and mid-sized companies”.
My advice for companies for 2007 is to take steps to plan for these tax increases as soon as possible. Perhaps the Business Travel Show could be one port of call for companies who want to explore their options, meet with new suppliers and learn from the best ” it”s the simple changes that can lead to the biggest rewards.”
www.businesstravelshow.com