IATA Business Travel Summit · North America - Asia Europe - Asia Australasia - Asia Middle East -...

IATA Business Travel Summit 2017World Financial Symposium 2014

IATA Business Travel Summit

30 – 31 May 2017 IATA Geneva Conference Center– Geneva, Switzerland

IATA Business Travel Summit 2017

Principal Sponsor - Networking Dinner Sponsor

Principal Sponsors

Gold Sponsor

Silver Sponsor

Bronze Sponsor

Thank you to our sponsors!

Opening

Yanik Hoyles, Director NDC Program, IATA

Keith Wallis, Chairman of Passenger Distribution

Management Group (PDMG)

Paul Wait, Chairman of PDMG Advisory Forum (PDMG AF)

Market Developments

& Outlook

Andrew Matters Head of Industry Analysis

www.iata.org/economics

Air passenger volumes have grown strongly…

Source: IATA

…although the regional performance is mixed

Source: IATA

Domestic markets a key source of incremental growth

Source: IATA

Developments in premium pax volumes & fares vary

Source: IATA

Overall yields and fares have been falling…

Source: IATA, , DIIO, Datastream

With LCC price stimulation important in some markets

Within Asia

Within Southeast Asia

North America - Asia

Europe - Asia

Australasia - Asia

Middle East - Asia

Global

North America - Europe

Within Europe

2005 2015

LCC share of seats flown (% of total)

Source: IATA

Business confidence has lifted…

Source: Markit

…and oil prices have risen – but remain moderate

Source: EIA

Demand for air travel to double over the next 20 years

Source: IATA/Tourism Economics

Asia Pacific expected to drive industry growth

The Top 10 air passenger markets 2016-36

Markets with the biggest incremental change in #pax

The markets of tomorrow

Risks, challenges & opportunities?

Demand stimulus to pax from lower oil prices to fade…

…can other factors (eg economic activity) fill the gap?

Policy risks to the fore?

Rising protectionism & populism?

Debt overhang?

Geopolitical tensions & security concerns

Disruption – across the industry value chain

Pop Quiz…

Question 1

How many passenger trips (segments) were flown in 2016?

1.8 billion

2.8 billion

3.8 billion

Question 2

What was the level of the average return airfare in 2016?

Question 3

Compared with 1995, how have average airfares changed?

Up 52%

Up 12%

Down 62%

Question 4

How many unique city-pair connections were there in 2016?

18,500

42,500

79,500

Question 5

What is the fuel efficiency gain (litres/100ATK) over the past 20yrs?

Question 6

What was the premium cabin share of total revenue in 2016?

Questions and Comments

Travel Manager Advisory Group (TMAG)

reflections

Marc Zuber, Global Travel Category Lead,

Nestlé

‘’Outside-in’’- CEO Interview by a

Corporate Buyer

Dean ForbesFormer CEO KDS

Mark Cuschieri, Group Corporate Services Global Travel Management,

Travel Manager Advisory Group (TMAG)

reflections

Jens Liltorp, Global Category Manager, Travel and M&E

LEO Pharma

Questions?

Networking Breaksponsored by

Taking The ReinsThe Corporate (re)Vision

Darragh Ormsby

Travel Manager

Google

Paul Tilstone

Managing Partner

FESTIVE ROAD

Why a Propathon?

• Act as a sounding board for IATA to present updates and new initiative insights

which may affect the corporate market. This will include NDC and related initiatives

• To maintain a dialogue with IATA through TMAG on issues affecting corporate

travel programmes (“managed travel pain-points”)

• To act as a communication channel between IATA and other bodies on which

participants are members of (e.g. associations, benchmark groups and

committees)

• To provide voluntary and non-binding ideas, suggestions and create a vision to

assist the industry in adopting and benefitting from NDC-enabled technologies and

solutions.

What exactly is a Propathon?

Propathon /’ prəʊpəθ(ə)n/

an event, typically lasting 24 hours, in which a group of people meet to engage in the

collaborative design of new product and service ideas.

a proposition marathon

"a series of 24-hour propathons to build new customer-focused services“

See also: Hackathon

What exactly is a Propathon?

• Ideation & Clustering

• Dot Prioritisation

• Headwinds & Tailwinds

• Validation

The Propathon Process

We are here…

Business Traveler & Corporation

Focused

Phase 1 -Ideation

“Products & Services”

Phase 1 -Validation

Airline Sense Check

Phase 2 -Validation

Geographic Validation

Phase 2 -Ideation

“Strategic Relationship

Components”

Phase 3 -Socialisation

Industry Response

Publication & Distribution

Feb – May 2017

The Propathon Output

Phase 1 - The 5 Principles Of The Process

1. The travel buyers’ aim is to source end to end

2. Travel buyers need to reinforce the importance of a B2B2C relationship

3. Any services created through the “Propathon” may be charged for or negotiated as

added value as part of traveller or corporate recognition

4. The ideas are all intentionally Corporate Traveller & Corporation focused

5. Payment for services may be by the corporate or the traveller’s personal payment and

access would be subject to policy controls

Phase 1 – Validation by Airlines

Phase 2 – Validation by Airlines

Continued…

The New Strategic

RelationshipGenerated In New York & Geneva

• More value chain collaboration

• Remove useless complexities

• Understanding demographics of corporate travel program

• Dynamic pricing guarantees / transparency for last seat availability

• Relationship attributes beyond finance. [Airlines take "inside the mind of the buyer" approach] [Holistic negotatiations (transient

& group)] [Considering relationship beyond travel]

• Financial transformation

• Not bypassing corporate control

• Fewer, deeper, more transparent & customized relationship [Transparent channel strategy] [Flexible mindset on technology,

• Pure pick & mix pricing

• More tailored contracts

• Traveler experience / measurement of [Easily consumable deals tailored to buyer needs]

• Price confidence / integrity

• Joint objectives

• Identifying previously untapped savings opportunities

• Flexible alliance/JV contracting

• Innovation

• Absolute policy control / rules engine

Phase 2 – Ideation on Strategy… Raw Output

Great People at The Right LevelMaking sure the best people at the needed levels are engaged on both sidesCommunication CapabilityA buyer with the understanding of their business and the ability and tools to sell in products and a supply chain which can support

Traveler Experience FocusedIn addition to other corporate objectives, there needs to be a focus on heightening the traveler experience

Enhanced Buyer Cost /Supplier Revenue Management

A priority focus to simultaneously reduce travel management costs, airline costs or increase

airline revenues

Supporting Changing Business NeedsTransparent and honest insights into changing

business practices and development. A true understanding of business needs that go beyond

finance across channel, payment etc.

Developmental RelationshipA willingness and structure to develop together and be able to implement and report out on beta pilot testing

A focus on the right data to drive the decisions which need to be taken

People Engagement

Transparent Relationship

Digitally Focused

Decision Driving Data

A Drive To SimplifyRe-consider every process and service and

focus on what adds real value. Ensure pricing integrity through chosen channels

Know Me, Be Where I amA joint drive to deliver what the traveler & corporation wants to where they will be when they need it

Phase 2 – Ideation on

Strategy

Phase 3 – Industry Engagement

• Input Into Hackathon Challenges 17th May 2017

• GBTA & VDR Aviation Committees 23rd May 2017

• IATA BTS 30th May 2017

• Paper Draft 30th June 2017

• Paper Release 17th July 2017

• GBTA Convention Education session 17th July 2017

• Paper release to Buyer Associations 9th Sept 2017

• IATA WPS Education session 25th Oct 2017

• GBTA Frankfurt Education session 27th Nov 2017

• To be continued

The evolution of the corporate

distribution landscape

Matthew Lane, VP Strategy & Planning, Sabre

Moderator : Caroline StrachanManaging Partner, FESTIVE ROAD

Ask your questions: slido.com code: #IBTS17

Sub groups discussions

Great People at The Right LevelMaking sure the best people at the needed levels are engaged on both sidesCommunication CapabilityA buyer with the understanding of their business and the ability and tools to sell in products and a supply chain which can support

Traveler Experience FocusedIn addition to other corporate objectives, there needs to be a focus on heightening the traveler experience

Enhanced Buyer Cost /Supplier Revenue Management

A priority focus to simultaneously reduce travel management costs, airline costs or increase

airline revenues

Supporting Changing Business NeedsTransparent and honest insights into changing

business practices and development. A true understanding of business needs that go beyond

finance across channel, payment etc.

Developmental RelationshipA willingness and structure to develop together and be able to implement and report out on beta pilot testing

A focus on the right data to drive the decisions which need to be taken

People Engagement

Transparent Relationship

Digitally Focused

Decision Driving Data

A Drive To SimplifyRe-consider every process and service and

focus on what adds real value. Ensure pricing integrity through chosen channels

Know Me, Be Where I amA joint drive to deliver what the traveler & corporation wants to where they will be when they need it

Phase 2 – Ideation on

Strategy

Reflections

Riko van Santen,VP Digital Strategy & Distribution

Kempinski Hotels SA

From Disruption to Adoption

Jon Liebtag, Regional Lead, Business Travel - EMEA

Airbnb

Airbnb for BusinessFrom Disruption to Adoption

The Airbnb “Business Travel Program”

AirBed & Breakfast, a Web-based company that hooks up locals with

visitors looking for a place to crash…

SUNDAY, M AY 17, 2 0 0 9

Airbnb, a popular Web rental service for apartments or single rooms…

THURSDAY, JULY 5 , 2 0 12

Airbnb, a travel phenomenon made possible by the Web…

FRIDAY, M AY 10 , 2 0 13

Have you heard of Airbnb? Of course you have.

M ONDAY, JANUARY 2 , 2 0 15

Have you heard of Airbnb? Of course you have.

M ONDAY, JANUARY 2 , 2 0 15

Airbnb, a world-conquering start-up…

W EDNESDAY, FEBRUARY 18 , 2 0 15

0 M 0 M 1 M 3 M 6 M

2009 2010 2011 2012 2013 2014 2015 2016

Annual Growth in Airbnb Guest Arrivals

Global Millennial Generation 2025

1 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75

Gen Z Millennials Gen X Baby Boomers(1981 - 1997)

Ages 20 - 60

Source: Census Bureau

Today the generation age 18 to 35 is much bigger than older generations

Corporate Model Platform Model

Education

Duty of care

Guest value prop

BT Ecosystem

How do we build a programfrom scratch?

Internal alignment

Having the comforts of home when you are on an extended trip (3+ nights)

More value for the money

Makes traveling with your team more meaningful.

Ability to blend business and leisure travel.

More enjoyable to work from your Airbnb, than in the bed at the hotel.

Identifying topclient needs

The Voice of the Traveler

Today, over 250,000 companies have booked

Questions?

Evening Cocktail Dinner

IATA Business Travel Summit · North America - Asia Europe - Asia Australasia - Asia Middle East -...

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