p12 advantage 1/10/08 21:10 Page 12
news conference report
ttglive.com
Advantage Conference 2008 • Business travel
BUSINESS AGENTS.
BA’s Richard Tams speaking during The
Small firms ‘are
Great Debate
wasting £175m’
SMALL businesses are wasting £175 million a
year by not booking their business travel through
an agent, Advantage claimed.
The consortium estimated its TMC members
could typically reduce a company’s travel spend
by 25%, with flights alone often around 40%
cheaper, according to its research.
Business travel director Norman Gage said: “It
is absolutely crazy for companies to not manage
their travel budget effectively.
FLAG-CARRIER.
“The level of wastage revealed in our
calculations is simply astonishing.”
BA stresses TMCs’ value
GUEST SPEAKER.
Martin Ferguson.
others still viewed the airline’s intentions with
US expert advises
BRITISH AIRWAYS reiterated its support for the scepticism. One delegate, who did not want to be
travel management sector, saying third party named, said: “We have to work with BA because
agents to diversify
distribution was more important to it because of it is the biggest airline. But it only has its own
the economic downturn. interests at heart. It gives with one hand and
Richard Tams, the airline’s head of corporate takes away with the other.”
TRAVEL management companies must diversify sales in the UK, told Advantage delegates that BA has had a hostile relationship with the
if they are to remain profitable during the the TMC distribution channel was the most trade since axing agent commission in 2003.
economic downturn, a leading US travel agent important part of its corporate sales business. Tams said that while the aviation sector was
told delegates in Spain. He admitted that BA.com was an integral in the midst of an unprecedented financial crisis
Priscilla Alexander, president of New York-based part of the airline’s overall distribution strategy, airlines had to work with the trade to make sure
ProTravel, said many agents needed to make a but stressed the airline was committed to corporate clients were getting value.
“major change” in their approach to business. supporting agents in the long term. “Some corporate have taken the crude step of
“You need to be prepared to step out of “We are not a TMC, we don’t want to be a banning travel,” he added.
your comfort zone,” she said. “Diversifying TMC and we never will be a TMC. You guys are “But we work with more prudent companies
means that when one area is struggling it will be the experts,” he said. to look at their travel and identify how we can
counterbalanced by another doing well.” Some delegates welcomed his words but better shape their habits.”
Alexander told delegates not to be afraid of
turning their hands to new types of business
CORPORATE CLIENTS.
even if they have limited knowledge, but said it
was also important to look after existing clients.
“I tell my staff to wrap their arms tight round
Buyers urged to consult
our customers. Treat them better than ever
because if you don’t there will be someone else CORPORATE travel buyers are wasting company “A better price doesn’t equate to a better
who may take them off your hands,” she said. money by not communicating with their travel service,” he said. “I have worked with a number
Alexander, who founded ProTravel in 1984, management companies, according to Advan- of companies who have purchased a package
insisted there was still tage business travel members. from a TMC without properly
money to be made Delegates agreed that corporate assessing what their needs were.”
despite the prospect clients often failed to meet the Norman Gage, Advantage’s
of a recession. needs of their staff because they director of business travel, said
“During previous did not properly consult with their TMCs should find more time to build
downturns we saw TMC before buying travel. relationships with clients.
an almost immediate Industry expert Tony Pilcher, a “Relationship management is key
knock-on but this former travel buyer with financial to the future of the industry,” he
time round people giant HSBC, said corporates were said. “It is naive of a procurement
still seem to want sometimes guilty of settling for the manager to think they can buy a
to travel,” she added. Alexander: “Counterbalance” cheapest deal they could find. Gage: “Manage relationships” travel programme based on price.”
12 03.10.2008
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