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!
IATA Business Travel Summit 2017World Financial Symposium 2014
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)
IATA Business Travel Summit 2017World Financial Symposium 2014
Market Developments
& Outlook
Andrew Matters Head of Industry Analysis
IATA
www.iata.org/economics
IATA Business Travel Summit 2017World Financial Symposium 2014
Air passenger volumes have grown strongly…
Source: IATA
IATA Business Travel Summit 2017World Financial Symposium 2014
…although the regional performance is mixed
Source: IATA
IATA Business Travel Summit 2017World Financial Symposium 2014
Domestic markets a key source of incremental growth
Source: IATA
IATA Business Travel Summit 2017World Financial Symposium 2014
Developments in premium pax volumes & fares vary
Source: IATA
IATA Business Travel Summit 2017World Financial Symposium 2014
Overall yields and fares have been falling…
Source: IATA, , DIIO, Datastream
IATA Business Travel Summit 2017World Financial Symposium 2014
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
0%
10%
20%
30%
40%
50%
60%
2005 2015
LCC share of seats flown (% of total)
Source: IATA
2016
IATA Business Travel Summit 2017World Financial Symposium 2014
Business confidence has lifted…
Source: Markit
IATA Business Travel Summit 2017World Financial Symposium 2014
…and oil prices have risen – but remain moderate
Source: EIA
IATA Business Travel Summit 2017World Financial Symposium 2014
Demand for air travel to double over the next 20 years
Source: IATA/Tourism Economics
IATA Business Travel Summit 2017World Financial Symposium 2014
Asia Pacific expected to drive industry growth
Source: IATA/Tourism Economics
IATA Business Travel Summit 2017World Financial Symposium 2014
The Top 10 air passenger markets 2016-36
Source: IATA/Tourism Economics
IATA Business Travel Summit 2017World Financial Symposium 2014
Markets with the biggest incremental change in #pax
Source: IATA/Tourism Economics
IATA Business Travel Summit 2017World Financial Symposium 2014
The markets of tomorrow
Source: IATA/Tourism Economics
IATA Business Travel Summit 2017World Financial Symposium 2014
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
IATA Business Travel Summit 2017
Pop Quiz…
IATA Business Travel Summit 2017World Financial Symposium 2014
Question 1
How many passenger trips (segments) were flown in 2016?
1.8 billion
2.8 billion
3.8 billion
IATA Business Travel Summit 2017World Financial Symposium 2014
Question 2
What was the level of the average return airfare in 2016?
$163
$363
$563
IATA Business Travel Summit 2017World Financial Symposium 2014
Question 3
Compared with 1995, how have average airfares changed?
Up 52%
Up 12%
Down 62%
IATA Business Travel Summit 2017World Financial Symposium 2014
Question 4
How many unique city-pair connections were there in 2016?
18,500
42,500
79,500
IATA Business Travel Summit 2017World Financial Symposium 2014
Question 5
What is the fuel efficiency gain (litres/100ATK) over the past 20yrs?
32%
42%
52%
IATA Business Travel Summit 2017World Financial Symposium 2014
Question 6
What was the premium cabin share of total revenue in 2016?
~16%
~26%
~36%
IATA Business Travel Summit 2017
Questions and Comments
IATA Business Travel Summit 2017World Financial Symposium 2014
IATA Business Travel Summit 2017World Financial Symposium 2014
Travel Manager Advisory Group (TMAG)
reflections
Marc Zuber, Global Travel Category Lead,
Nestlé
IATA Business Travel Summit 2017World Financial Symposium 2014
‘’Outside-in’’- CEO Interview by a
Corporate Buyer
Dean ForbesFormer CEO KDS
Mark Cuschieri, Group Corporate Services Global Travel Management,
UBS
IATA Business Travel Summit 2017World Financial Symposium 2014
Travel Manager Advisory Group (TMAG)
reflections
Jens Liltorp, Global Category Manager, Travel and M&E
LEO Pharma
IATA Business Travel Summit 2017World Financial Symposium 2014
Questions?
IATA Business Travel Summit 2017World Financial Symposium 2014
Networking Breaksponsored by
IATA Business Travel Summit 2017World Financial Symposium 2014
Taking The ReinsThe Corporate (re)Vision
Darragh Ormsby
Travel Manager
Paul Tilstone
Managing Partner
FESTIVE ROAD
IATA Business Travel Summit 2017World Financial Symposium 2014
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.
IATA Business Travel Summit 2017World Financial Symposium 2014
What exactly is a Propathon?
Propathon /’ prəʊpəθ(ə)n/
noun
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
IATA Business Travel Summit 2017World Financial Symposium 2014
What exactly is a Propathon?
• Ideation & Clustering
• Dot Prioritisation
• Headwinds & Tailwinds
• Validation
IATA Business Travel Summit 2017World Financial Symposium 2014
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
GeNY
Feb – May 2017
IATA Business Travel Summit 2017World Financial Symposium 2014
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
IATA Business Travel Summit 2017World Financial Symposium 2014
The Propathon Output
Phase 1 – Validation by Airlines
IATA Business Travel Summit 2017World Financial Symposium 2014
The Propathon Output
Phase 2 – Validation by Airlines
Continued…
IATA Business Travel Summit 2017World Financial Symposium 2014
The New Strategic
RelationshipGenerated In New York & Geneva
2017
IATA Business Travel Summit 2017World Financial Symposium 2014
• 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,
etc]
• 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
The Propathon Output
Phase 2 – Ideation on Strategy… Raw Output
IATA Business Travel Summit 2017World Financial Symposium 2014
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
TO
WA
RD
A
M
OR
E S
TR
AT
EG
IC
R
EL
AT
IO
NS
HIP
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
The Propathon Output
Phase 2 – Ideation on
Strategy
IATA Business Travel Summit 2017World Financial Symposium 2014
The Propathon Output
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
IATA Business Travel Summit 2017World Financial Symposium 2014
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
IATA Business Travel Summit 2017World Financial Symposium 2014
Sub groups discussions
IATA Business Travel Summit 2017World Financial Symposium 2014
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
TO
WA
RD
A
M
OR
E S
TR
AT
EG
IC
R
EL
AT
IO
NS
HIP
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
The Propathon Output
Phase 2 – Ideation on
Strategy
IATA Business Travel Summit 2017World Financial Symposium 2014
Reflections
Riko van Santen,VP Digital Strategy & Distribution
Kempinski Hotels SA
IATA Business Travel Summit 2017World Financial Symposium 2014
From Disruption to Adoption
Jon Liebtag, Regional Lead, Business Travel - EMEA
Airbnb
Airbnb for BusinessFrom Disruption to Adoption
The Airbnb “Business Travel Program”
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
The Airbnb “Business Travel Program”
Airbnb, a popular Web rental service for apartments or single rooms…
THURSDAY, JULY 5 , 2 0 12
The Airbnb “Business Travel Program”
Airbnb, a travel phenomenon made possible by the Web…
FRIDAY, M AY 10 , 2 0 13
The Airbnb “Business Travel Program”
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
The Airbnb “Business Travel Program”
Airbnb, a world-conquering start-up…
W EDNESDAY, FEBRUARY 18 , 2 0 15
0 M 0 M 1 M 3 M 6 M
16 M
40 M
80 M
0M
20M
40M
60M
80M
100M
2009 2010 2011 2012 2013 2014 2015 2016
Annual Growth in Airbnb Guest Arrivals
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Global Millennial Generation 2025
0M
27M
54M
81M
108M
135M
Age
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
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Corporate Model Platform Model
The Airbnb “Business Travel Program”
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
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Today, over 250,000 companies have booked
IATA Business Travel Summit 2017World Financial Symposium 2014
Questions?
IATA Business Travel Summit 2017World Financial Symposium 2014
Evening Cocktail Dinner
Sponsored by
IATA Business Travel Summit 2017
Sponsored by
• Dinner will take place at the Delegates Restaurant in the UN followed
by a visit to the Assembly Hall.
• Buses will depart from 18:15 to 18:30 sharp from the IATA Geneva
Conference Center. Please have your badge at all the time and be on
time for this service since there will be no further transportation
provided after 18:30.
• Buses will return to the IATA Geneva Conference Center at 22:00.
IATA Business Travel Summit 2017World Financial Symposium 2014
Thank you