March 2010
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CWT keeps you informed
CWT Traveler Trendbarometer: Travel policy essential for optimizing costs more
CWT clients are satisfied – and cost-conscious more
Key Priorities for 2010 more
Protecting valuables from theft during flight: what travellers should know more
Airlines continue to add and increase various fees more
CWT Traveler Trendbarometer: Travel policy essential for optimizing costs
Even in the post-crisis year 2010, cutting travel costs is still an important goal for many businesses. One way to save is to draft an effective travel policy and monitor compliance with provisions such as which flight class travelers should book – the topic addressed in the last CWT Traveler Trendbarometer. We asked you: “Has your company changed the prescribed booking class for flights in order to save money?” and this is how you answered:
- Yes, we now have to book lower air travel classes: 33.3 %
- No, but compliance with travel policy is in general being more strictly monitored: 28.6 %
- No, nothing has changed: 38.1 %
The results show that one third of the respondents have been booking lower air travel classes lately in order to save money. Stronger monitoring of compliance with travel policy also seems to be a high priority – providing compelling evidence of how important it is to have an effective travel policy in the first place.
Meetings & Events is another area where costs could be optimized to great effect – so we would like to find out in this month’s CWT Traveler Trendbarometer whether businesses are taking advantage of this potential:
How have meetings and events at your company been affected by the current economic situation?
CWT clients are satisfied – and cost-conscious
Key performance indicators for Carlson Wagonlit Travel testify to the unusual challenges the travel industry and most other businesses confronted during the global recession of 2009.
Total CWT transactions for 2009 were down 9.3 percent compared to 2008. Sales volume, which totaled US$21.4 billion, fell 22.8 percent year over year. The higher drop in volume versus transactions demonstrates the aggressive cost-cutting measures companies took to reduce their travel spend and was seen in all regions. Volume in Asia Pacific and EMEA (Europe, Middle East, Africa) was impacted most, declining by 27.6 percent and 27.1 percent respectively. In Latin America, volume declined 21.2 percent year over year, while North America saw a 17.4-percent decrease over the same period.
CWT reported annualized new sales, excluding renewals, of US$1.86 billion for 2009, a year that saw an unusually high number of companies ascertain competitive market conditions by putting their managed travel programs out for bid. CWT also enjoyed a 96-percent client retention rate. Furthermore, the proportion of “satisfied” and “very satisfied” travel managers increased to 94 percent in 2009 from 90 percent one year earlier.
Describing the economic environment in 2009 as “extraordinary,” Douglas Anderson, CWT president & CEO, said: “Carlson Wagonlit Travel, like every other company in the travel industry, confronted unique challenges in 2009. We successfully managed unprecedented change and worked our way through a global recession the likes of which none of us has ever seen. Our commitment to excellence and the highest levels of customer service never wavered. We also enhanced our offering to respond to clients’ evolving needs. These efforts will serve us well in the year ahead and enable CWT to reinforce its global leadership in what will continue to be a challenging business environment.”
CWT continued to focus on initiatives that would enable clients to derive greater value from their managed travel program. Among the highlights for 2009:
- CWT Itinerary & E-Ticket was launched in Europe to enable travelers and travel arrangers to manage reservations more easily and efficiently before and during a business trip. The itinerary and electronic ticket are combined into a concise, easy-to-read document that clearly identifies the status of the traveler's booking and any actions to be taken.
- Enhancements were made to CWT Policy Builder and CWT Policy Messenger, two proprietary solutions companies use to create or optimize travel policies and drive compliance. Available in seven languages, CWT Policy Builder now features predictive modeling that uncovers potential savings from travel policy changes and increased compliance. CWT Policy Messenger automatically delivers targeted, customizable emails to travelers, travel arrangers and/or supervisors. Increased compliance and a better understanding of travel-related health and safety issues are among the key benefits. In 2009, a multilingual user interface was added for greater ease of use worldwide.
- CWT reinforced its demand management offering by teaming up with Tata Communications to provide CWT Telepresence, which enables CWT clients to conduct virtual meetings through the Tata Communications network of Cisco TelePresence suites around the world.
- The CWT Travel Management Institute conducted in-depth research demonstrating how companies can reduce hotel spend by up to 21 percent. Room for Savings: Optimizing Hotel Spend identifies seven steps that help companies drive savings in an area that represents on average nearly 40 percent of their total travel budget.
- CWT declared its support for the new global health initiative MASSIVEGOOD. The project was created by the Millennium Foundation for Innovative Finance for Health and will allow travelers to make a voluntary “micro-contribution” when they book travel services. Contributions will go toward fighting HIV/AIDS, malaria and tuberculosis in developing countries.
Key Priorities for 2010
Having seen the company’s business stabilize at the end of 2009, Mr. Anderson remains “cautiously optimistic” about the next 12 months. He points to lingering economic uncertainty in some countries and potentially “soft” GDP growth overall. He adds: “Many of our clients tell us they will increase their travel this year to drive their business development. But they will remain cost-conscious and place great importance on ‘productive’ travel. CWT will do everything it takes to successfully accompany them in this value-driven effort.”
In keeping with Mr. Anderson’s assessment, a recent CWT survey of travel managers from client companies worldwide shows that optimizing hotel spend, improving traveler compliance, optimizing simple bookings, and driving air and ground transportation savings are their top four areas of higher priority for 2010.
CWT will continue to focus on increasing efficiency at the point of sale and reinforce its strategy for driving online adoption. Helping clients optimize their hotel spend by implementing a well-designed, well-sourced hotel program that drives compliance also remains high on the company’s agenda. Delivering innovative products and services that enable business travelers to be well informed and more productive from booking through return is another top priority for CWT. As companies strive to bridge their transient travel programs and their meetings and events for greater control and savings, CWT will continue to deploy its multi-tier, end-to-end Meetings & Events solutions worldwide. Furthermore, the CWT Travel Management Institute is currently conducting in-depth research that will enable companies to optimize the management of their meetings and events program. Expanding CWT’s already robust Energy Services offering is a key priority as well.
“CWT is well positioned to meet its objectives,” Mr. Anderson concluded. “Our people have the know-how and the spirit that spell customer satisfaction and success.”
Protecting valuables from theft during flight: what travellers should know
Although occurrences are rare, air travelers are at risk of losing valuable carry-on items to theft. To safeguard possessions during a flight, consider the following tips:
- Board the flight as soon as possible to claim overhead space near assigned seat.
- To keep bag in better view, store it in the compartment across the aisle, rather than the one directly above the seat.
- Position the bag’s zippers and openings toward the back of the compartment, so it's more difficult to open the bag.
- Do not leave valuables unattended.
- Keep important items in a buttoned or zippered pouch, rather than loose in jacket or pants pockets.
- If storing a bag beneath the seat in front, turn the bag upside down to cover up the zipper.
- Consider investing in luggage with anti-theft features, such as locks or cables that attach to fixed points.
- Before leaving the plane, check for all belongings. If anything is missing, contact the head flight attendant and ask for assistance from airport police.
- Report any stolen items to both the airline and the police, and fill out a police report.
Airlines continue to add and increase various fees
Beginning May 1, American Airlines will join JetBlue and US Airways in charging passengers for in-flight blankets and pillows.
American Airlines will charge USD $8 for a blanket and pillow in coach class for domestic and some international trips longer than two hours—international flights include to and from Canada, Mexico, Central America and the Caribbean. Blankets will remain complimentary in premium class cabins and for other international flights. American’s blue fleece blankets and inflatable neck pillow will be packed in a clear zippered pouch that will also include a $10 Bed, Bath and Beyond coupon good toward a purchase of at least $30.
Airlines continue to add and increase service fees for products and services that had previously been free—creating new sources of revenue via methods other than raising the base fare. The practice goes by several names including “ a la carte pricing” and “ancillary revenue stream.”
This practice primarily applies to coach-class travelers, as business- and first-class passengers and elite frequent fliers are often exempt from a variety of the fees. In the interest of planning and budgeting for travel, some service and product fees travelers may wish to clarify with their carrier prior to booking follow.
- Baggage fees—which may vary by airline and can apply to checked bags, oversized bags, overweight bags and more.
- Seat selection in advance of flight: Some airlines offer this capability for a fee.
- Exit row seats with extra legroom (Continental recently announced it will offer customers the option to purchase economy-class seats featuring extra legroom beginning March 17. Several other airlines already charge extra for these types of seats.)
- Blanket/pillow/eyeshades/earplugs combinations.
- And many more fees may apply: early boarding, priority check-in and seat assignments, headphones, beverages, redemption of frequent flyer miles… and the list will likely grow.