007-10_TTGB NEWSv2 5/11/08 18:16 Page 10
10 frontline
Gulf region soars as it waits
Editor’s comment
to feel effects of the crunch
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Full steam ahead for business
Being in Dubai is like being in a bubble. I
was over there for three days last month for
the Business Travel Show. The organisers
commissioned a YouGov report, which to me
neatly summarises the state of business travel
in the Gulf region – see the box, below.
Contrast these remarkable results with two
recent polls, one from the Business Travel
Coalition, which surveyed 192 travel managers
from 14 different countries (72% from the US),
a quarter of whom have instigated emergency
travel cutbacks in the past fortnight – and
35% of these were planning on introducing
a complete travel freeze.
An Acte survey found that just a third of 131
members surveyed expect to increase travel
budgets, with the rest evenly split, saying they
will either spend the same or less next year.
And you can bet that of those expecting to
spend more, they’ll probably be spending it
on travel to the Middle East.
Qatar Airways’ Jo Lloyd said the airline’s
growth plans are “full steam ahead – corporate
travel is still strong and continues to remain so.”
At the show, I listened to two excellent panel
debates which included airlines, hoteliers, travel
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The global credit crunch has not yet hit GDSs Travelport and Sabre are significantly buyers and TMCs. All agreed unanimously that
the Middle East region – but it will have an increasing their presence in the region. the credit crunch was not affecting the region.
effect on bookings, according to a panel of Travelport will open two new offices in Dubai, But some did register a note of caution,
airlines, hoteliers and corporates at the one in Abu Dhabi with more than 100 people, saying it was almost inevitable Dubai would
Business Travel Show Dubai. three in Saudi and one in Egypt, over the next feel something. But as CWT’s regional
Growth rates are likely to slow in the region as six months. The move was sparked by Travelport managing director, Derin Cameron, put it:
Western companies cut back on or downgrade taking ownership of its distribution network “Dubai’s growth rate last year was 18%, so if
travel. However, construction, oil and gas from a consortium of Middle East airlines. we see a drop to 15% that’s still a very good
companies are continuing to fuel demand, Travelport’s managing director EMEA, level.” Meanwhile, Hilton Hotels’ regional
even as the banking sector begins to slow. Bryan Conway, said the region accounted for director of sales and marketing, Guy Epsom,
Jo Lloyd, European corporate sales manager an eighth of Travelport’s worldwide bookings, described the region as “insulated, but not
at Qatar Airways, said: “We have not seen any or about 60 million segments. isolated” from world economic turmoil.
slowdown in premium bookings on our Middle “This is a very important region for Travelport The bubble might contract a bit, but I don’t
East routes. We would expect to see a dip in and we intend to grow it,” he said. “We have believe it’s going to be burst.
terms of bookings from banks, but business is seen more travel management companies
still very strong in oil and gas and construction, moving into the area, we are expecting to see Highlights of the YouGov report for the
and we would expect it to remain that way.” consolidation and creation of partnerships. And Business Travel Show Dubai:
At the same time, both airlines and global it’s hard right now to see much growth coming a44 More than 80% of respondents expect
distribution systems are launching new routes from western Europe.” their company’s travel frequency to increase
and offices in the region – as business begins Sabre’s chief executive for the region, – almost half expect a ‘big’ increase
to fall off elsewhere. Daniel Naoumovitch, said there was no doubt a44 Company travel budgets have increased
British Airways’ Middle East commercial the region would feel the crunch “by default” in the last year for more than three
manager, Paul Starrs, stated that he would like as corporates cut back on business trips. “But quarters of respondents
to see a dedicated all-business service from as it’s been growing much faster than the rest a44 75% expect this trend to continue in
London to Dubai, following Lufthansa’s lead. He of the world, even as it experiences a slight the next 12 months
would also like to see the relaunching of flights slowdown, it will still see growth,” he added. a44 Almost a third of bookers are expecting
to Saudi capital Riyadh – which were suspended Sabre has 16 offices in the region, including to see more business-class travel in the
over safety fears for crew. in Qatar, the UAE and Saudi Arabia. next 12 months
...ttgbusiness Awards 2008: the shortlist, the celebrations, the host revealed p12...
ttgbusiness.com a79 november 2008
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