WHAT'S ON THE RADAR FOR 2012?
Despite its share of upheavals, travel in 2011 hasn't fared too badly. Events like natural disasters and industrial action have failed to put travel into reverse as a whole. But they will certainly impact the way travel is managed in 2012. So what trends will dominate the new year and how can you keep up?
2011 - The Upshot
2011 has been a year of continued but cautious recovery in the travel sector. Three years on from the depths of the Global Financial Crisis, we've seen an ongoing bounceback in both travel demand and supplier pricing. Those in entertainment and sport have realised that to stay competitive and keep your industry in top gear, travel is often non-negotiable.
Yet the GFC has changed the shape of entertainment and sports travel permanently. Gone are the days of frivolous spending. The lessons learned during the GFC will stay embedded in the way you manage travel for a long time, as you continue to keep a close watch on expenses and value.
Also changing the way you manage travel is 'the unexpected'. Emergencies like flight cancellations, airport closures, natural disasters and strikes - which only seem to be increasing in frequency - are being factored into travel management more than ever.
These and other elements are set to create some defining trends in the year ahead.
2012 - The Outlook
So how does Stage and Screen see the new year shaping up? Business travel as a whole is set to experience slight growth and conservative price increases as corporates continue to invest in travel for their growth, but remain cautious about the global economy.
The Asia-Pacific region is likely to experience the most moderate increases in demand and supplier pricing globally, as its economic indicators remain in relatively good shape.
In the air
We expect Australian airfares to rise marginally, however still slightly higher than the increase for Asia-Pacific overall. Stronger demand throughout the region is expected to push airfares upwards.
We expect Virgin Australia to continue its push into the corporate market with new aircraft and a growing focus on service and schedules. It has also partnered with Singapore Airlines, in an alliance which should help re-ignite a level of international competition not seen since the days of Ansett Australia.
While Qantas will endeavour to claw back marketshare, we should see further expansion of Jestar once it takes delivery of the new Boeing 787 Dreamliners.
Internationally, Emirates and Etihad will continue to offer extremely competitive alternatives, while we also expect to see more low cost carriers expanding into and out of Asia, including Air Australia Airways (formerly Strategic Airlines). The trans-Pacific route will continue to be dominated by Virgin Australia and Qantas.
On the ground
The hotel industry in Australia has enjoyed quite a boom this year, with growth rates among the highest in the world and prices almost back to pre-GFC levels! This has particularly been the case in cities such as Perth and Brisbane where demand is outstripping supply and increases over the next 12 months could be as high as 20%. Sydney rates are expected to climb at a similar rate, while Melbourne increases could be in the more modest range of 3-6%.
This upward trend is being underpinned by an overall increase in activity. This includes the mining boom in Perth, as well as inbound travel and international conventions. Regionally, the key business centres across Asia Pacific are recording the highest occupancy rates worldwide.
In the car rental industry, even though growth is occurring we expect car rental rates to remain relatively stable or increase only slightly.
While price increases are anticipated across hotel and car rentals, Stage and Screen continuously negotiates with suppliers to secure exclusive entertainment rates.
Emerging Trends in Travel Management
In the year ahead, Stage and Screen expects to see a number of specific trends dominate the way sports and entertainment travel is managed. These trends are summarised below, along with our tips on how to use them to your best advantage.
1. 24/7 crisis support
In the wake of the Qantas grounding, 24/7 emergency assistance will be top of mind in your industry in the new year! This unprecedented event again showed the huge value of working with a TMC that provides after-hours support.
In situations like these, Stage and Screen works around the clock to run location reports on affected travellers, maintains close contact to discuss alternative travel plans, and manages the re-bookings. You can save substantial time, cost and frustration by letting us take complete care of the situation for you, knowing we will source the best available options and rates.
Stage tip: We have all your traveller profiles locked into our system so we can contact affected travellers even faster in an emergency. And if you don't need to travel urgently during a crisis, let the 'storm' settle rather than trying to re-book straight away. Airlines can often resume normal operations quite quickly!
2. Better travel procurement
Travel procurement in the entertainment and sports industries is becoming sharper, with greater focus on measurable outcomes, TMC activities and benchmarking. There has been a steady shift away from the use of regular travel agencies to specialist TMCs who know these industries. Many businesses that have tried using traditional agencies in search of lower costs have found that the grass is by no means greener. In fact the end costs are often far higher as a result of those agencies' limited experience in entertainment and sports travel management.
Stage tip: Think carefully about your travel needs and ensure your travel partner can fulfil every eventuality from group travel to VIP executive service to specific entertainment rates and fares.
3. Tougher compliance and mandating
With travel prices expected to rise and everyone watching their expenses in an uncertain global economy, travel policies will take more of a front seat and compliance measures will be out in force. Consolidation and mandating are likely to be used more to set the boundaries around travel, tighten compliance and cut unnecessary costs. These tools will give you the added certainty that you're travelling cost-effectively and preventing leakage in your spend.
Stage tip: If your organisation doesn't yet have a travel policy or hasn't reviewed it for at least 12 months, it's time to discuss it with your Stage and Screen Account Manager. We can create or improve your policy so it best suits the type and volume of travel you're anticipating in the year ahead.
4. Online booking tools
Personalised travel service is still paramount and most of your travel bookings are made by calling or emailing your Stage Travel Manager. Providing boutique service is our priority, but it's also exciting to see more of you adopting savvy technologies and using our online booking tool! This tool gives you free reign to save costs by making your own bookings while staying true to your travel policy. By using our OBT you can also source the best available rates and specially negotiated entertainment rates that Stage and Screen exclusively offers your industry.
Stage tip: If you've been thinking about using our OBT but technology scares you, 2012 is the year to make it happen! Stage and Screen's OBT is extremely user friendly and we'll give you all the training and backup support you and your bookers need to master it quickly.
5. Expense management and reporting - a continued focus
With the growing focus on policy compliance, mandating and technology tools, 2012 will see more of you tuning into streamlined reporting and expense management. Stage and Screen's technology takes the information from every booking you make and bundles it into a central resource. From there, we can produce reports on any aspect of your travel activity or cost you need. You can have a single view of your total travel costs by traveller or supplier, by timeframe, by city or region, or for your whole organisation. Using this technology lets you track and contain your costs quickly and easily.
Stage tip: If you aren't already using an expense management tool, it's time to talk to your Stage and Screen Account Manager about the savings and other benefits it could bring to your organisation. For example, if you charge all work related expenses to your corporate card, it will automatically feed into your expense management tool when you return from your trip - saving you a bundle of time!
6. Smartphone revolution continues
With online adoption growing every day, more of you will turn to your smartphones in the new year to help organise your travel-related plans. Whether you're searching for local maps or weather forecasts, booking restaurants, or buying tickets for big events, your smartphone will increasingly be your pocket assistant.
With travel-related applications continuously being released, your smartphone will make your life on the road even easier with more tools to assist you than ever. Some of you are already using them to access your itineraries and check-in at the airport.
Stage tip: While it seems all too easy to book your own flights, hotels and car hire using your smartphone, remember to always book these through Stage and Screen so you stay within your policy and access the best entertainment rates in the industry. This is the best way to keep travel costs down and maximise the savings for your organisation.
Get on board to stay ahead of costs
With travel pricing on the way up in 2012, you need to stay on top of the latest travel management practices so you can minimise the cost impacts. Mandating, 24/7 support, technology and expense management are all geared as cost-savers in your travel. If you don't already have tools like these in place, now is the time to speak with your Stage and Screen team so you can hit the ground running in the new year.
