BP's "flotels" may be an extreme example, but they illustrate the unique challenges energy companies can face when they need to move large crews of engineers and others into offshore or remote locations in no time. It is this sort of demand that helped justify the creation by Carlson Wagonlit Travel of an industry-specific business line for energy customers--an approach some of CWT's main competitors do not employ.
CWT senior vice president for global energy services Gary Pearce wanted nothing to do with commenting on travel accommodations for BP's attempted cleanup in an interview last week with The Transnational, but he was enthusiastic about the newly formalized, 600-person-strong division dedicated to energy customers.
Pearce oversees a team including U.S.-based resources and senior directors in Europe, the Middle East and Africa; Latin America; and Asia Pacific. The group's travel counselors "are specially trained to seamlessly support complex, tightly scheduled, multinational crew rotations," CWT said. "Furthermore, they assist with the visa and immigration services that are commonly required." Pearce called them "the best group of internationally trained agents you can find." Some are in call centers while others serve clients on site.
CWT Energy Services also has its own after-hours call centers in Houston and Singapore, which offer travel services but also "traveler tracking and alerts in emergency, evacuation and repatriation [situations], and other crisis and risk-management assistance."
Mixed Views
CWT claimed more than 100 clients in the energy business, but not all of its energy clients are serviced by the dedicated group, said Pearce. The group has drilling contractors, service companies and some exploration and production firms, but the largest exploration and production companies--like BP and ExxonMobil--fall under CWT's global group.
American Express Business Travel also has a global client group, and senior vice president and general manager Hervé Sedky was skeptical of the industry-specific grouping.
"Although we do see commonalities within the verticals and are well equipped to manage, the way we design programs for our clients and determine appropriate servicing configurations pulls best practices across all client groups," according to a prepared statement attributed to Sedky. "Ultimately, it's more beneficial to our clients for us to be structured in a more integrated way with our sales leaders and client managers managing a mixed portfolio so that we can leverage travel programs from all verticals to build our strategies."
A spokeswoman for Hogg Robinson Group stated that the company has no such groupings: "All our clients receive the same service, etc., regardless of their sector. Every client is treated the same, we focus on them and their needs."
According to BCD Travel executive vice president of global client management Kathy Jackson, "Creating dedicated service teams can yield certain benefits for clients operating in specific industry sectors that may require specialized agents and account managers with expertise in those industries. BCD Travel uses this approach for marine services, which includes clients whose travel programs may involve crew rotations, complex scheduling and related logistics. We use a similar approach to servicing clients in the entertainment industry, which also includes highly complex logistical and service elements. That said, many of our clients prefer taking advantage of the expertise and enhanced problem-solving skills we gain by working not within silos but with clients in multiple industries."
According to Sedky, "The managed travel needs of these companies are equally as diverse, even within the same industry vertical."
CWT's Pearce said clients in his firm's energy services division do not lose out on cross-industry benchmarking. "We believe that in the energy area, where we stand out is in service responsiveness and creative solutions, and that's why we're doing this," he said. "Every client's needs are diverse, but when you really look at everything, they're all looking for the best value, safety and security, and, at the same time, they all kind of go to the same places. If you really look at a map of the world, there are certain energy pockets where most oil is produced. You have the Middle East, the North Sea, the Gulf of Mexico and off the coast of Africa."
CWT estimated that the "highly fragmented global energy services market" exceeds $4.3 billion in annual air volume.
One industry-specific benefit that clients can take advantage of is negotiated rates through CWT's wholly owned consolidator company Marine & Oilfield Travel Logistics International. Such rates typically are used to bring lots of people in to one place from many places. "They're very restricted because the traveler has to be qualified for the fares," said Pearce. "You have to be going to work on something, a rig, platform, refinery--so the carriers build in some flexibility. They're flexible in that the carriers understand that plans change. The big difference between transient and what you may have especially in energy is that more than 50 percent is international. It's going to places that are not London and Paris and Tokyo. They're connecting in those places."