29 September 2008

TravelMole eWire Q&A: Egencia

Christophe Peymirat is UK vice president at Egencia, formerly Expedia Corporate Travel

Q: What do you perceive as the benefits of using what is effectively an online TMC over a bricks and mortar one?

A: Using online TMCs with services such as automated pre-trip approval, and the ability to track and monitor travellers at the click of a button allows for much tighter control of travel policies. For example, EgenciaÃ¢â¬â¢s integrated global reporting tool offers in-depth, real-time reports giving companies insight into their organisations financial performance, travel activity and are available in a variety of languages and currencies.

Cost savings are also a big advantage. At Egencia, our clients achieve average online adoption rates of on average over 70% across our entire customers base. This results in average travel cost savings of 20-25%, as well as 30% improvement in internal cost savings.

Q: How is business travel moving forward/whatÃ¢â¬â¢s next for those in business travel?

A: Again I think cost savings will be a vital factor when booking and managing business travel, especially in todayÃ¢â¬â¢s turbulent economic times. Now is the time to manage travel spend in a smarter way. With the right technology companies can optimize core functions such as enforcing travel policy, optimizing your supply contracts and incorporating deeper data analysis to further drive down costs.

Mobility is also something that is going to come to the fore of the business travel industry over the next 12 months. As the market evolves, customers want access to their booking details and travel itinerary whilst on the move, wherever and whenever they need it.

Q: How can TMCs keep up with the needs of business travellers? How can you judge what their needs are going to be?

A: Meet the demand Ã¢â¬' for both innovative products and increasing transparency with regards to the information we provide to our customers. Ongoing market research is also both an important and necessary tool to keep up with the changing needs of our customer base. Our recent survey found that over two out of three business travellers surveyed enjoy business trips and 85% state that travelling is a key reason why they like their current job - UK business travellers were found to dislike travelling for work more than others.

Providing more in depth information on destinations will also allow business travellers to better research where they are travelling to.Ã¢â¬~

Q: Can huge one stop shop TMCs offer as high quality service as best-in-breed smaller companies such as hotel booking agencies?

A: Absolutely. Large TMCs can still offer a bespoke personalised service. At Egencia , we have just launched our Egencia Promise initiative across Europe, pledging to deliver outstanding customer service and savings. We guarantee that if a customer can find a cheaper price for the same flight, we will change the booking to the cheaper flight for no extra charge.

Q: How is the current aviation industry crisis/soaring fuel costs/higher fares affecting business travel?

A: We are realising that our clients are under ever-increasing economic pressure. Business travel is important for doing business Ã¢â¬' video conferencing can not entirely replace the feeling of a face-to-face meeting. So for customers who are looking to save as much money as possible, a TMC can really help.

In some cases, we are seeing a migration of travellers booking with low cost carriers when travelling through Europe, or customers are switching to rail travel when travelling within the UK. Another way is to find new opportunities to manage your travel in a smarter way, either by enforcing new travel policies or closer monitoring of the travel budget.Ã¢â¬~

Q: WhatÃ¢â¬â¢s the number one concern for corporations choosing a TMC these days? Is it fantastic MI? The best customer service? The widest choice of inventory and products?

A: For larger organisations, the main concern is maintaining global consistency. Our global consolidated reporting allows managers to create and run customised travel reports that aggregate travel data across multiple countries and subsidiaries, in multiple languages and currencies.

Concerns about security are also high on the list; traveller tracking is becoming an increasingly important and necessary element of service.

For SMEs innovative technology, as well as a personalised service, are important factors.

Q: Driving online adoption is always key for corporations. Why is it so hard to get employees to go online to book?

A: Where I would say the challenge lies is in having the right tool and implementing organisational change in order to adapt to using an online environment. The whole organisation, from top to bottom, needs to be on board to ensure 100% compliance.

Q: What about the MICE market? Is Egencia involved in that or thinking about going into this area?

A: ItÃ¢â¬â¢s definitely an emerging market and one we are looking at with increasing interest.

by Dinah Hatch