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Contents
Welcome 3
Introduction 4 - 5
1) Customer insights 6-9
2) Getting the job done 10 - 13
3) Enriching the traveller experience 14 - 17
4) Shaping the future 18 - 21
Business Travel Insights: Hotels 360 2014 3
Welcome
Business Travel Insights: Hotels 360 is our latest
contribution to the conversation around business travel
and its place in a rapidly changing world. In this report,
commissioned with our strategic partner the Guild
of Travel Management Companies (GTMC), we seek
to identify key changes in the business hotels sector.
Changes around channel complexity, rate parity and
issues around systems integration and Duty of Care.
We want to help the industry understand the Success to each of these varied industry
effect that a new breed of corporate traveller is protagonists can mean different things but
having on the market: business travellers who we all agree on one point: adapting to meet the
increasingly seem to think and act like leisure needs of the business traveller is an absolute
travellers when it comes to researching and priority. The first step in this iterative process is to
booking travel. fully understand the needs and aspirations of all Diane Bouzebiba
stakeholders. So welcome to the discussion. Managing Director,
Our mission is to provide solutions that are Amadeus UK and Ireland
designed to make travel simpler and more
efficient for all. In doing so, we endeavour to
address the priorities of corporations, business
travellers and the companies that serve them,
namely Travel Management Companies and hotel
providers.
Introduction
What are the big trends shaping the future of
hotels and business travel and how can the
key stakeholders in the industry work together
to deliver value to both the business traveller
and the corporation?
Business Travel Insights: Hotels 360 2014 5
Hotels 360 builds on the Amadeus UK Business The rise of the always-on, connected business
Travel Insights series to focus on the hotel- traveller creates new opportunities to improve
related aspects of business travel. Fresh processes. As well as enabling better booking
independent research into the hotel needs of UK experiences, participants in the consultation
business travellers is complemented by insights leading to the publication of this report see
drawn from focus groups and discussions with mobile technology as a valuable tool in providing
knowledgeable industry stakeholders including Duty of Care. Throughout the report, stakeholders
Amadeus, The Guild of Travel Management also consider how wider trends, such as the
Companies (GTMC), the Institute of Travel and consumerisation of business services, will impact
Meetings (ITM) and representatives from leading business travel.
global hotel providers.
Business Travel Insights: Hotels 360 aims to
The picture that emerges is one of change provide fuel for an informed conversation
and complexity: business travellers, Travel about the future: a conversation that builds on
Management Companies (TMCs), corporate travel determination among all the stakeholders to work
buyers and hotel providers alike are waking up to together to deliver real value for the customer.
a world with more channels and more choice than
ever before.
We see new technology and commercial
Achieving value for money from every pound
remains a strong priority and online booking models entering the managed travel
tools, supported by automated and streamlined
processes, are seen as key to delivering this space which are influenced by the changes
value. Duty of Care emerges as another core
priority, with all the industry stakeholders that have occurred in recent years in
involved in this report considering how they can
fulfil their obligation to safeguard the traveller. leisure travel.
Peter Waters,
Director of Hotel Distribution,
Amadeus
1) Customer insights
Business travellers and corporate travel
buyers give their perspective
Business Travel Insights: Hotels 360 2014 7
50%
sought savings on T&E costs, business travellers
remain convinced of the benefits of meeting
face-to-face with customers, colleagues or other
business partners. Half (50%) of UK travellers say
travelling was essential. Only 8% believe travel
is not important in helping them do their jobs. believe the ability to get
face to face with customers,
This largely positive view corresponds with the colleagues or other business
research carried out for the Amadeus report, partners is essential
Business Travel Insights 20141. This found 96%
of travellers liked business travel, with over
half (55%) finding trips interesting, 36% finding
them enjoyable and 17% finding business travel
43%
motivating.
Face to Face
meetings are
important to
Generation Y with
64%
saying it is
essential
8 Business Travel Insights: Hotels 360 2014
Booking tools
The research goes on to ask business travellers
about their experience of finding and booking
hotels, with specific focus on online self-booking
tools. Corporate travel buyers confirm that the
majority of hotel bookings are made via these
tools, and they report a high level of compliance.
As a participant at the Amadeus and ITM
roundtable comments:
4%
Only
Business travellers are positive about the Half (51%) of business travellers
hotels offered on their corporate travel questioned for the report understand
portals: 85% see the hotels they want that the selection of hotels on their
most or all of the time. Almost a quarter organisations self-booking tool is
can research and book their preferred shaped by deals negotiated by their TMC
hotels on the system. or travel department. And they see the
ability to achieve preferential rates and
Business travellers are realists and negotiated deals as the number one
understand the need for travel policy way the TMC or travel department adds
and compliance in controlling cost: the value.
Business Travel Insights 2014 research
found 31% of travellers saying the policy
positively affects how they view their
employer.
37%
of business travellers would like
control of their hotel choice.
34%
Narrowly beating the
1
Business Travel Insights 2014, Business Travel Gets Personal, February 2014. Amadeus UK & Ireland
10 Business Travel Insights: Hotels 360 2014
(1) m
eeting Duty of Care
responsibilities
(2) p roviding access to the best
rates for business travel,
which are not necessarily the
same as the best rates for
leisure travel and
(3) e nsuring the business
traveller has a positive
experience at every stage
of the process.
12 Business Travel Insights: Hotels 360 2014
86%
Rate parity
Every party involved in the procurement,
provision and management of business travel
accommodation agrees that rate parity is one
of the biggest issues facing the industry. TMC said they are offered the hotels
participants as well as hotel industry insiders they want most of the time
see the explosion in choice of rates as the through their corporate
single most significant change to occur in hotel booking platform
distribution over the last decade.
ten years has been
said preferential and
negotiated rates on the shift from static
corporate travel was
the top way TMCs pricing towards
add value to the
booking process dynamic pricing
or floating rate.
As more and more routes to market have
opened including hotel aggregators, hotel chain
websites and other third parties complexity Kate Archer,
has grown and the number of rates on offer Senior Director, Trade Sales Europe,
has multiplied. The result can be confusion and Wyndham Hotel Group
uncertainty as booker and buyers wonder: how
can I be sure I am getting the best rate?
69%
Concern about getting the best rate is seeing
business travellers going online to compare hotel
prices: research commissioned by Amadeus finds
45% of business travellers spending ten minutes
or more researching prices outside their corporate
system.
more of an aspiration than a The consultations for Hotels 360 confirmed operational efficiency
as a critical issue for TMCs: they are constantly looking for new
reality. The rate alone doesnt ways to streamline, simplify and standardise.
give the whole picture. Does TMCs highlight bill backs as one process which could immediately
be improved by eliminating faxes and using email to send scanned
it include breakfast? Does it documents. Incorporating optional extras like room and daily
allowances in a single standardised email would support more
include WiFi? Has the corporation streamlined working.
negotiated airport transfers TMCs are concerned about rate parity and the quality of negotiated
corporate rate information that has been manually loaded into
in its rate? Is the rate flexible the booking systems. This is also an issue for corporate travel
buyers: a participant in the roundtable co-hosted by ITM and
enough to deal with changes to Amadeus warned that In my experience, up to thirty percent of
the negotiated hotel rates loaded may be incorrect. This is not
the itinerary? This information necessarily related to the price but what the rate includes.
cannot be communicated via Consistency on rates is part of the problem and price alone does
not tell the whole story: different room rates are not necessarily
the price alone. comparable and its not always clear to business travellers or
corporate travel buyers what they are getting for their money.
Simon Taylor, One area identified by corporate travel buyers is VAT: some hotels
Business Line Manager for Hotels, include the VAT in the uploaded rate and some dont, which can
Amadeus UK & Ireland confuse price-ranked displays.
10:00+ 45%
spend 10 or more minutes researching
prices outside their corporate booking
tool with 12% spending more than
20 minutes
14 Business Travel Insights: Hotels 360 2014
TMCs are also strong supporters of easier WiFi access: But, according to this research, managed travel bookings
asked to rank their top three initiatives for improving via smartphone are currently available for just over a
customer satisfaction, participants at the GTMCs Hotel quarter (28%) of business travellers. 5% of the survey
Strategy Group workshop for the Hotels 360 report said believes their employer plans to let them make corporate
top priority should be given to extending free WiFi on all hotel bookings on their mobile in the next year.
devices and in all areas of a hotel including bedrooms.
2
TripAdvisors TripBarometer Mobile and Social survey
16 Business Travel Insights: Hotels 360 2014
of business travellers
63%
go online to research
and book their leisure
hotel themselves
and this leisure experience
is creating heightened
expectations for time
spent using B2B tools
and services
Business Travel Insights: Hotels 360 2014 17
TMCs could see a value in reviews, not least However, for reviews to be valuable they have
as a way for hotel providers to gain customer to be relevant: literally millions of reviews
feedback and improve. Hotels also see the are available online (as of the start of 2014,
value in reviews: good reviews are a great TripAdvisor alone had over 125 million4). By
advertisement and, according to a senior vetting reviews prior to integrating them in online
representative from a global hotel provider, they booking tools, TMCs and corporations could save
allow the traveller to make a more informed time for their bookers.
booking decision and, in turn, feel better about
their purchases without having to leave the
booking site.
Consumer reviews with tips on
rooms and hotels from other
business travellers available via the
Reviews will become corporate booking platform would be
welcomed by the majority
an interesting part
of online corporate
booking tools.
Theyre part of the
consumerisation of B2B
technology. But reviews
are more of an ongoing How much time do business
improvement and they travellers have to wade through
dozens of rants from consumers
are not a game changer about the concierges failure
in themselves. to recommend the best shopping
options? This is somewhere
Peter Waters,
Director Business and Corporate Solutions,
the TMC or travel department can
Amadeus add value by selecting reviews that
are relevant for their travellers.
Rob Golledge,
Head of Marketing,
Amadeus UK & Ireland
3
Tnooz, 12 February 2014. http://www.Tnooz.com/article/tripadvisor-online-review-insights-phocuswright-study/
4
TripAdvisor 2013 Annual Report. 11 February 2014. http://ir.tripadvisor.com/secfiling.cfm?filingID=1193125-14-45532
18 Business Travel Insights: Hotels 360 2014
best available rate guarantees. Achieving parity may be more of a pipedream than
reality - but improving the quality and quantity of hotel
This is the best way to instil information could help. For one, providers and TMCs
could make sure business travellers and corporate
confidence about rates among travellers understand what they are getting from the
TMC consultants and business negotiated rate.
Simone Buckley, Chief Executive of the ITM, describes
travellers. the scenario faced by some of her members: corporate
buyers get an email from one of their travellers, saying
Simon Taylor, they found a hotel 50 cheaper on Booking.com, for
Business Line Manager for Hotels, example. But when they investigate they find its because
Amadeus UK & Ireland the companys negotiated hotel rate includes free parking
and free WiFi.
Hotel providers and TMCs also need to make sure bookers
can easily find added-value information about a hotel or
destination: knowing how many miles the hotel is located
from the airport may not be enough to satisfy travellers
appetite for information.
18%
commenting that they would consider
shared accommodation to bring down
the cost of travel
54%
Which raises to
for Generation Y
While less than one fifth (18%) of all travellers would consider shared accommodation,
just over half (54%) of the digital native generation of travellers are open to the idea.
Many stakeholders are sceptical about the role shared accommodation can play in the
corporate arena: TMCs and corporate travel buyers have concerns about quality control
and fulfilling Duty of Care. In research for the previously published Business Travel
Insights 2014 report, convenience was highlighted as the number one priority for 62%
of modern business travellers in the UK & Ireland. Yet how convenient is it to have to
schedule to meet an apartment owner at their place of work to pick up the keys to your
accommodation?
However, it seems that the rising generation of business travellers is ready to challenge
the status quo and some of these are destined to become the business leaders of
tomorrow. Whether the view of younger business travellers will evolve as they become
seasoned road warriors remains to be seen.
22 Business Travel Insights: Hotels 360 2014
Acknowledgements
This report was only made possible thanks to the generous co-operation and insight
of many experts from the world of corporate travel and hotel distribution in the
United Kingdom and beyond.
We would gratefully like to recognise the following participants for their assistance.
Amadeus Marketing (UK) Ltd First Point T : +44 (0) 843 509 0000
Buckingham Gate F : +44 (0) 843 509 0009
Gatwick Airport, RH6 0NT
Business Travel Insights: Hotel 360 2014 23
Business Travel
Insights 2014
Business Travel
Gets Personal
The Amateur-Expert
Traveller
Amadeus Travel Insights:
The 21st Century Traveller
November 2013
In Partnership with
amadeus.com
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