Keeping up with market dynamics.

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Time for change

The shift in market conditions has become a catalyst for change for many companies, particularly following the Global Financial Crisis (GFC) and fallout from Iceland's ash cloud disaster. Corporate travellers now want a travel management company (TMC) that offers more than just sound procurement skills and knowledge of a company's staff and policy.

To be competitive in the highly specialised field of corporate travel management, TMCs must deliver a service that's truly global, offers 24/7 emergency support, embraces emerging technologies and is capable of maximising savings in all economic climates.

While there are many corporate travel providers in the market, very few, like FCm offer the full suite of business travel solutions and strength of a worldwide network.

Are you getting the best service?

The combined impact of the GFC, the ash cloud disruptions and continuing threat of global terrorism, have ensured that reducing costs, gaining policy compliance and increasing traveller safety remain the three biggest drivers for corporate travel management. In this economic and security conscious climate if your TMC is failing to deliver on any of these aspects, now is the time to be surveying the marketplace to ensure all of your business travel needs are being serviced efficiently and comprehensively.

Today's corporate TMC is vastly different from traditional travel agencies. While they still provide the fundamentals such as travel bookings, visas, insurance and leisure travel services, the world's leading TMCs are capable of managing the endto- end needs and complex processes of corporate travel. From policy development, to compliance monitoring, rate negotiation, traveller security, management information reporting and event management, TMCs are the way forward for companies that want to smarten their business travel and provide the ultimate support network for their people.

Best practice TMCs, such as FCm, offer valueadding services such as industry intelligence, state-of-the-art technologies, strategic sourcing of travel products and consolidation across different business units and regions.

The bottom line is measurable value, achieved through enhanced travel culture, visibility into expenditure, cost control, leaner transaction processing and more effective negotiation with industry suppliers.

Partner with a corporate travel management specialist like FCm and your business will benefit from a full suite of services that you won't get from a traditional booking agency. These include:

1. more competitive rates and fares, achieved through our global negotiating strength with suppliers and our access to multiple sources for the world's leading prices
2. no call centres – you gain the unique combination of a personalised, local and boutique service delivered by a dedicated team of consultants backed by the strength of an established global network
3. detailed reporting and data to demonstrate, track and benchmark your company's travel spend. This gives you complete transparency across your travel activity and helps you engage your departments to better manage their travellers and travel budgets
4. informed decision-making based on the intelligence sourced from your company's own travel data
5. best practice duty of care with 24/7 emergency traveller support and assistance including up-to-the-minute information and alerts on industry events and emergencies
6. the latest technology and online booking tools that can be tailored to suit your individual needs
7. ongoing strategic advice on how to manage and/or modify your program for the best outcomes, year-on-year.
8. best rate negotiations with suppliers.

Is your travel program adapting to market dynamics?

Changes to industry supply and consumer demand in the market, as we are currently witnessing, have a direct impact on prices and rates. As such, your travel program and policies need to evolve in line with market changes so that ongoing savings and efficiencies can be achieved.

A review of your existing travel policy should consider the following market dynamics that currently prevail in the industry:

Air

Airlines are closely controlling their operating costs and tightly managing yield. This has caused a more equal balance in supply and demand, which means cheaper tickets aren't as plentiful. There are still low-cost tickets around but it's a matter of implementing smart policy to secure the best deals. In addition the emergence of low-cost carriers in the market is changing the way many companies are flying.

Hotels

The key indicators of growth in the hotel industry including occupancy, average daily rates and revenue per available room are increasing across many global markets. As a result of increased demand and minimal new supply, hotel rates are expected to rebound with Asia leading the way.

Car hire and ground transport

There has been positive growth in the car rental industry with a single-digit increase in car rental days expected during 2010.

Corporate buyers with the ability to direct significant volume can still expect a strong hand in car rental negotiations, however smaller accounts might find vendors less interested in cutting rate-based deals than last year during the GFC.

Has your travel program recently been revised?

The rebound in the global travel industry means that now is the time that companies should be reviewing their travel policy and assessing whether more cost effective strategies are needed to combat the change in market conditions.

If your travel program has not been revised for at least 12 months, FCm suggests working with your travel manager to review your policies for air, hotel, car rental, forward strategies for cost containment and any supplier agreements you have in place.

Travel policy

While there are many ways to refine your travel policy, it's recommended you work closely with your travel or account manager to develop a tailored strategy to suit your needs. Companies can look at strategies such as mandating advance airfare bookings, using Best-Logical-Fare-of-Day, using the competitive rates of preferred suppliers or including guidelines around the use of airtrains, instead of taxis, for staff travel to and from the airport during work hours.

Cost containment

Cost containment is best achieved by having complete visibility of your travel program. Consolidate your travel bookings with the one travel management company to prevent leakage, use travel management information reporting to track spending and drive compliance with the help of exception codes.

Supplier negotiations

Companies with preferred supplier relationships can ask their TMC to review and, if needed, renegotiate the terms of air, hotel and car contracts.

Crisis management

The volcanic eruptions in Iceland opened the eyes of many to the unequivocal value and support of a TMC in an emergency.

Companies that found the Iceland crisis the most challenging and indeed frightening, were those that had made their bookings either with an online agency or direct with an airline. While FCm clients felt safe in the knowledge they had a TMC doing everything to assist them, other travellers were left with the nearimpossible task of reaching and negotiating with suppliers themselves.

Crisis management forms a major part of a TMC's role. As an FCm client your company has access to around-the clock assistance, the latest in up-to-date information, rebooking, ticketing support and repatriation if required.

Are you partnered with a truly global TMC?

One of FCm's strengths is the cohesion of our global network. Our business spans 75 countries across the Asia Pacific, Americas, Europe, Middle East and African regions. Despite the size of our organisation, our people across the globe have close working relationships so that you can rely on us for local support in every global region.

As part of our global capabilities, clients also have the advantage of globallycompetitive airfares through FCm's Global Fare Finder and best rates and availability through our Global Hotel Program.

In this day and age it's essential your TMC has the capabilities to go beyond mere travel so that your people have 24/7 local and global support no matter where they are or what challenges are being faced by the wider travel community.