March 2010
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CWT keeps you informed
CWT Traveler Trendbarometer: Travel policy essential for optimizing costs more
CWT clients are satisfied – and cost-conscious more
Stefan Fallert keynote speaker at ACTE Executive Forum more
CWT Traveler Trendbarometer: Travel policy essential for optimizing costs
Even in the post-crisis year 2010, cutting travel costs is still an important goal for many businesses. One way to save is to draft an effective travel policy and monitor compliance with provisions such as which flight class travelers should book – the topic addressed in the last CWT Traveler Trendbarometer. We asked you: “Has your company changed the prescribed booking class for flights in order to save money?” and this is how you answered:
- Yes, we now have to book lower air travel classes: 33.3 %
- No, but compliance with travel policy is in general being more strictly monitored: 28.6 %
- No, nothing has changed: 38.1 %
The results show that one third of the respondents have been booking lower air travel classes lately in order to save money. Stronger monitoring of compliance with travel policy also seems to be a high priority – providing compelling evidence of how important it is to have an effective travel policy in the first place.
Meetings & Events is another area where costs could be optimized to great effect – so we would like to find out in this month’s CWT Traveler Trendbarometer whether businesses are taking advantage of this potential:
How have meetings and events at your company been affected by the current economic situation?
CWT clients are satisfied – and cost-conscious
The 2009 financial results clearly show that clients of CWT Germany traveled less while also saving money trip by trip. Sales volume fell by 28 percent to €736 million, dropping to the 2005 level. Total transactions by contrast declined by only 16 percent to around €2.3 million – meaning that the average transaction price was considerably lower than in 2008.
Last year, businesses tried to save primarily on air travel and hotel spend – the areas with the greatest discrepancy between bookings and sales figures. In the case of flight transactions, the trend toward Economy Class was felt strongly, with the share of Business Class bookings down by 13 percent compared to 2008 to make up only 38 percent of the total. August Gossewisch (Senior Executive Vice President Central & Eastern Europe) noted: “It’s only logical that in these difficult economic times travel is one of the areas where our clients are trying to cut costs. This trend can be seen across the entire market. Our core competence at CWT is to advise them on how to optimize their travel spend while assisting them in carrying out the appropriate measures.” The fact that CWT has succeeded in these goals is demonstrated by surveys that show a rise in client satisfaction in 2009 compared to previous years. August Gossewisch: “Evidently, our active support was especially appreciated in these hard times.”
August Gossewisch
CWT clients relied strongly on online bookings in the crisis year 2009: 61 businesses – more than ever before – introduced an online booking engine with CWT’s help. As a result, the share of online bookings climbed to 22 percent in 2009, for the first time surpassing the 20-percent mark.
Motivated employees and satisfied clients
Five percent of CWT Germany’s turnover in 2009 came from new business. And existing clients were demonstrably even more satisfied with CWT than in previous years – as were the employees. August Gossewisch sums it up with the words: “I can proudly say that we have been able to successfully master the many challenges we faced this past year and are now on sound financial footing. Our employees are highly motivated and loyal, as shown by our annual survey, which put CWT Germany in first place in Europe, and over the industry norm.”CWT global: Cautious optimism
Similar developments can be seen on a global scale in CWT’s annual performance indicators. Here as well, sales volume fell more steeply than transactions in 2009, albeit not as drastically as in Germany. For CWT as a whole, sales volume was down by 22.8 percent to US$21.4 billion, while the number of transactions dropped by 9.3 percent. At the same time, the company received outstanding grades from travel managers, demonstrating that CWT was able to optimally advise and support its clients in a period marked by dwindling travel budgets. CWT was thus able to retain 96 percent of its clients – and to add new sales in 2009 in the amount of US$1.86 billion.Douglas Anderson, CWT President and CEO, looks forward with “cautious optimism” to 2010: “Many of our clients tell us they will increase their travel this year to drive their business development. But they will remain cost-conscious and place great importance on ‘productive’ travel. CWT will do everything it takes to successfully accompany them in this value-driven effort.”
The recently published CWT study Travel Management Priorities for 2010: Decisive Opportunities for Success confirms this assessment, listing travel managers’ top priorities for 2010 as: optimizing hotel spend, improving traveler compliance, simplifying booking processes, and driving air and ground transportation savings.
Stefan Fallert keynote speaker at ACTE Executive Forum
Stefan Fallert, Director Solutions Group Policy & Compliance at CWT, will give a keynote address at this year’s ACTE Executive Forum in Stuttgart on the topic of “Current Pricing Policy in the Business Travel Industry.” ACTE, the Association of Corporate Travel Executives with headquarters in Alexandria, Virginia, represents all interest groups in the business travel industry and drives industry-specific professional development and knowledge transfer on a global level. This is also the purpose of the Executive Forum, which offers presentations and workshops on subjects such as “Unbundling Costs and Supplementary Costs,” “Calculating the Total Costs of a Business Trip,” and “Integrating MICE in Existing Travel Management and Purchasing Processes.”
Stefan Fallert
The Executive Forum will take place on 23 March in Stuttgart. Further information is available at: www.acte.org