The images of violence in the Middle East are in sharp contrast to blossoming travel sales and investments in aircraft, hotels and other tourism infrastructure, Singapore-based consultant Bicky Carlra told the Association of Corporate Travel Executives' Asia-Pacific Regional Education Conference in Singapore last month.
In an overview of emerging markets, Carlra said air passenger traffic in the Middle East region rose 29 percent in 2005, according to the International Air Transport Association. World Trade Organization statistics supported this with year-to-August 2005 growth in visitor arrivals of 30 percent in Lebanon, 18 percent in Jordan, 19 percent in Bahrain and 9 percent in Dubai, all over the same period a year earlier.
Travel in the Middle East is expected to grow at 5.5 percent annually, faster than the world average, over the next 20 years as both the economy and airline industry modernize, Carlra added. Boeing last month said the region's airlines will need 900 new airplanes to meet the growth. Airbus sold 30 to 40 aircraft to carriers in the region in 2004, and expects to sell 100 more by 2009.
Low-cost carriers have also emerged in the Middle East, Carlra said, with OAG Data noting a 148 percent increase in the number of budget services to and from the region in 2006 over 2005. "Low-cost operations within the region have virtually tripled," Carlra added.
The number of domestic flights within the region is up 10 percent, while capacity (due to use of larger aircraft) is up 14 percent. Hotels are enjoying double-digit increases in revenue per available room in 27 markets tracked across the region, according to Carlra.
Some of the demand is generated by dozens of multinationals--ranging from banks to consultancies and manufacturers to high-tech firms--as well as locally based corporations, Carlra said. Their challenges mirror those faced by U.S. colleagues over the past 15 years: commissions are disappearing, self-booking tools are just emerging and air and hotel yields are rising.
The demographics of ACTE's Asia-Pacific conference pointed to the diversity of travel management in the region. The 325 travel management, procurement and travel suppliers arrived from 23 countries, including first-time representation from Bahrain, Indonesia, Japan, the United Arab Emirates and Vietnam. Attendees also arrived from the United States and Europe. While still a regional conference, ACTE officials noted that the diversity of attendees may prompt refinement of educational programming of future meetings.
In a presentation on successful multinational travel management programs, speakers noted dramatic changes to the scope, resources and approach. The scope of travel management has expanded to many countries, instead of just a couple; resources are spreading across different time zones; and project teams are as diverse as the countries served. Technologies and their adoption also vary, said Carlson Wagonlit Travel's David Greenland and Hewlett Packard's Wendy Reynolds in sessions on successful global programs.
Benefits of consolidation are compelling, said Greenland, CWT's vice president global accounts for Asia-Pacific. He listed greater control, more consistency, traveler safety, ease of contract management, bigger savings, improved visibility, better policy management, economies of scale, supplier leverage and greater efficiency.
In a recent survey of travel managers, Greenland said, savings were cited as the greatest benefit of consolidation, but security was a close second.
Barriers to global programs fall into three categories: vision, people and management, Greenland said. Typically only 5 percent of people in a given organization understand the strategy or vision for a global travel management program, "hence employees from the organization can be less than enthusiastic about the project." Only 25 percent of the managers have incentives linked to the strategy. And 85 percent of executive teams spend less than one hour per month discussing strategy, according to Greenland.
Describing Hewlett Packard's evolving travel management program, global travel agency and technology manager Wendy Reynolds said the strategy has changed from yesterday's low tech-high cost-high service configuration where local, on-site travel service, face-to-face travel planning, paper-based processes, "unleveraged" sourcing and regional policies were all the norm in a disbursed procurement and services environment. Today's HP program entails global commodity management, enabled by strong support technology, global supplier networks, fully leveraged spend, minimal local procurement, standard service level agreements, global travel policies, virtual call centers and self-booking technology (driving a 70 percent adoption rate in the U.S. and 60 percent in EMEA). Looking ahead, HP envisions a common global platform in which content is optimized and components include multiple booking channels, non-traditional agencies, low-cost fulfillment, concierge services, a global self-booking tool, integrated solutions, optimized return on investment, standard business processes and electronic procure-to-pay processes.
Called "Balancing Act: Global vs. Local," the ACTE conference also addressed issues of traveler security, contagion and corporate social responsibility.
ACTE president Greeley Koch told attendees, "Our profession's greatest challenge is going to lie in devising ways to enhance security without making travel any more stressful than circumstances require. We understand, based on ACTE surveys, that many corporations have wonderful plans in place but that many of their employees are not aware of the details of the plans. Accordingly, ACTE is working with various safety preparedness organizations to provide our members with continuous information on how they as individuals and their organizations need to improve communication of their emergency plans."