presentation held at EFEA-Europe+Asia Event Forum St. Petersburg/Russia January 2013

1. Europe + Asia Event Forum
St. Petersburg
January 23-25 2013
Latest developments in global
Business Travel and where
the Russian market is different
presented by
Winfried Barczaitis
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2. About ACTE
The Association of Corporate Travel Executives
(ACTE), founded in 1988, is a leading non‐profit
organization that serves and advances the global business
travel industry. For 25 years, ACTE has continued to fulfill
its vision of uniting travel executives around the world,
providing them with up‐to‐date news, knowledge, beneficial
research findings and networking opportunities.
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3. About ACTE
The education of ACTE members infiltrates to tens of
thousands of travel professionals in over 102 countries who
represent more than 12 million business travelers
worldwide. From corporate buyers to agencies and
suppliers, all sectors of the industry are granted equal
membership. ACTE has representatives in Africa, Asia,
Australia, Canada, Europe, Latin America, Mexico, Middle
East and the United States.
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4. Presentation Overview
• The Business Travel Market in numbers
• Promotable Business Travel
• Challenges of suppliers – sample airlines
• Professional Travel Management
• ACTE & ABT
• Payment solutions and more
• Maverick buying will become the norm
• And here are the solutions
• Q&A
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5. Business Travel Market in Numbers
The total market is in the magnitude of
1 trillion $ per annum! (2012/ 987.8 bn $ / 2% growth yoy*)
Main regions:
Asia/Pacific 290 bn $ + 9.5%
North America 281 bn $ + 3,3%
Europe 258 bn $ - 6.2%
EU 216 bn $ - 6.9%
* WTTC
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6. Business Travel Market in Numbers
Germany 45 bn $ - 8.1%
UK 42 bn $ +/- 0%
France 35 bn $ - 7,9%
Non EU Europe 42 bn $
Russia 13 bn $ + 2.7%
Turkey 10 bn $ + 1.9%
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7. Promotable Business Travel
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8. Promotable Business Travel
Breakdown of international MICE travel
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9. MICE is More than Just Travel
Source: meetings.com/April 2011
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10. Decision Making
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11. Outlook
Market growth 2008 – 2013 (estimated)
BRIC states and GCC countries
with highest growth potential
Outlook for developed markets is
cautious
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12. “Cost/effectiveness of distribution in focus – how
best to influence the decision maker?”
Have you seen Mr. Buffet investing in the airline business?
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13. “Cost/effectiveness of distribution in focus – how
best to influence the decision maker?”
• There is only one goal: How to get the traveler on the
individual airlines seat
• Airlines hate neutral distribution systems
• They increase efforts to influence the traveller direct
– Rates on airlines web-sites are the cheapest
– Loyalty systems
– Other benefits like launch access
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14. “Cost/effectiveness of distribution in focus – how
best to influence the decision maker?”
• In the western world airlines distribute through one or
two prefered GDS-Global Distribution System and
continuosly increase direct sales through their web-sites
• In Russia air content sit‘s in many systems:
– Three global GDS
– Local CRS Sirena
– Local CRS Gabriel
– Individual airline web-sites
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15. “Cost/effectiveness of distribution in focus – how
best to influence the decision maker?”
Conclusion
• In the western world airlines do all possible to bypass
middlemen which can be GDS and TMC-Travel
Management Companies and sell to the traveller direct
• In Russia the market is still too complex and on-line or
off-line travel agencies still control distribution together
with GDS + CRS
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16. Travel Management
“What to learn from global enterprises?”
Unmanaged versus Managed Corporate Travel
• The difference is approx. 20 – 30% cost optimization
without ‚Blood, Sweat and Tears‘!
• Straight to the bottom line
• In each company
• Business trips are investments
• If they are seen just as a cost factor – stop travelling, you
will save 100%
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17. Components of Professional Travel Management
Procure-
Data ment
Travel
Policy
Settlement
And how to find the 20-30% ?
Travel Management Travel
Request
Payment
The
The trip booking
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18. Your partners for professional travel management
&
• ABT’s mission: professional development of business
travel industry executives; maintaining corporate
buyers/suppliers communication platform; creating an
information sharing environment and inform about the
best practices and trends
• ACTE and ABT are partner in the Russian Federation
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19. “Is the Russian market waiting for
Corporate Card Systems?”
• Data is key for professional travel management
• In the western world 90+% of all business travel is paid
by corporate card systems
• In Russia this number is still close to zero
• Corporations rely on data generated by their TMC
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20. Travel Technology Provider
“Where will the revenue go?”
• In future business travellers want to communicate
through various channels
• This means data management reaches a different stage
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21. Yesterday and Today
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22. Today and Tomorrow
Maverick buying will become the rule
Controlling?
Data?
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23. The Solutions are
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24. The Solutions are
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25. Any remaining questions?
Thank you for your attention!
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