A screenshot of Elise Weber speaking at the webinar
Negotiating with airlines is becoming even more challenging for buyers as they face price volatility and regional differences, with fares falling in Europe, flattening in North America and ballooning in Asia.
Elise Weber, co-founder/chief sales and marketing officer, Skytra, an Airbus subsidiary, said the key to working with airlines was to split the world into different markets and to conduct regional negotiations. She was a speaker at the recent June CAPA Live.
A screenshot of Elise Weber speaking at the webinar
Weber added regional indices offered more predictable prices, with only a two per cent deviation.
A Singapore-based regional travel manager in the pharmaceutical industry told TTGmice its global air RFP bid was in, but “there was no mention on specific airfares”.
“As I see it, the airfares will not be cheap”, she continued, adding that US airlines like United and Delta were also not talking about ramping up schedules, but focused on duty of care and sustainability.
She commented: “ We cannot push the airlines even if tickets are 10 to 20 per cent more expensive. We just have to make do and work with what we have as there is no budget increase.”
Ericsson uses CWT and FCM trackers to monitor the situation and prices are being driven up by scarcity, according to Florence Robert, regional travel manager, Asia Pacific.
“There is not much we can do at this stage, but just to monitor and make decisions based on what we see,” she added.
Jane Sim, commodity manager ASEAN at Siemens, noted: “Buyers have very limited (buying) power, especially during this period to reduce airfares. But we managed to withhold fare increases for all our existing contracts even though there has been a drastic drop in air travel.”
Meanwhile, Benson Tang, executive director, Corporate Travel Community, in presenting the outlook of business travel by 2024, noted internal meetings could face a potential loss of 50 per cent followed by employee training and development by 40 per cent, supplier meetings by 30 per cent, service and support trips to customers by 25 per cent and events by 15 per cent. Other reasons take up the remaining 20 per cent.
A corporate traveller's travel behaviours and patterns have changed a lot
The pandemic has brought huge changes in travel patterns and business travel stakeholders are revamping measures so that corporate staff will be able to travel with peace of mind.
Speaking at the CTW round table discussion entitled Getting Back in the Air last week, Hamish Wang, associate director, Travel Meetings Card Operation and Fleet, MSD China said that internally, the company needs to review its policies to meet the new normal.
Corporate travellers travel behaviours and patterns have changed a fair bit due to the pandemic
“We can see that travel behaviour and patterns have changed a lot. Travel booking periods have also become shorter because staff can only confirm their trip after a clear low-risk indication.
“Meeting sizes have shrunk, and lengths of stay have also been reduced, as employees themselves want to reduce their travel time. All these need adjustments on travel arrangements and policies,” Wang pointed out.
He also pointed out that companies need to regain travellers confidence by providing detailed information during the journey and at the destination, as travellers need to know what kind of changes they are expected to face at the airport, and how they can better prepare themselves.
It also involves the “drilling and simulations across departments in the company” to ensure staff are prepared for all situations. For instance, how the company is able to support and help local staff should a policy at the destination suddenly change while staff are already onboard the plane, or happen to test positive at the destination.
In the meantime, Echo Li, head of medical advisors, Greater China Assistance Service, International SOS, shared that advice her company has given to clients is to be prepared for all possibilities, such as being held up in their destination.
She also added that companies need to also pay attention to the psychological health of the staff.
“(Since the pandemic hit last year), we have noticed that a lot of corporate employees’ mental health and emotional states were greatly affected, which in turn has affected their normal work output. Their mental and emotional instability may also affect the moods of the employees around them,” she elaborated.
In the meantime, Haibin Wang, customer relations department manager, China Southern Airlines, related how the airline managed to achieve zero Covid-19 cases despite lending a helping hand during the pandemic.
In 2020, the airline carried 25,000 medical professionals, flew 19,000 flights, and 29,000 tonnes of medical supplies domestically, and retrieved 24,000 Chinese nationals who were stranded overseas.
Complementing the airline, MSD China’s Wang, said: “The airline sent out epidemic alerts and informed passengers what the local policies were, and what they needed to prepare for upon arrival at the airport. Staff were also on hand to provide guidance and help with making advance arrangements.”
Meeting and event planners in Singapore will now have an additional virtual studio at Conrad Centennial Singapore to call upon for their large-scale event needs.
The virtual studio features a 9m wide x 3.7m tall extended reality stage, fully equipped with LED Backdrop, audio, broadcast cameras and studio lighting. The green screen will be able to incorporate virtual whiteboards, polls, or live Q&A sessions.
The virtual studio in action
The hotel’s ballroom is connected to the virtual studio, and event planners will be able to stream their live feed straight onto the three in-built LED walls within the ballroom using the hotel’s dedicated bandwidth.
Organisers are also able to add catering, as well as accommodation, to the event, to provide an end-to-end experience.
Meetings & Events Australia (MEA) has appointed Peter McDonald as CEO.
McDonald comes to the business with extensive experience in member industry peak bodies, events, and professional and tertiary education.
In addition to working with MEA’s members and collaborating with partners to underwrite the resurgence and collective success of the Australian events sector, McDonald added he aims to deliver “events-natured vocational learning and professional development programmes that students and industry practitioners can practically apply in the workplace”.
Melbourne Convention and Exhibition Centre (MCEC)has appointed Melissa Sweetland to the role of chief commercial officer.
The role will bring together all the commercial aspects of MCEC’s business under one hat, including IT, sales and marketing.
Sweetland joins MCEC from her own strategic advisory firm. Prior to that, she was deputy vice chancellor, engagement & vice president at RMIT University.
She has had extensive senior leadership experience and has worked across a variety of sectors including education and banking.
While face-to-face business events have gradually returned, wide-sweeping changes caused by the pandemic will challenge event organisers and planners to rise up and meet evolving customer needs across different event formats.
As life returns to the business events industry, Kai Hattendorf, managing director of UFI, said stakeholders must find a balance between physical and virtual events moving forward – especially as the digital components of events are here to stay.
Panellists at the SMF X IBTM Wired session: (second from left) UFI’s Kai Hattendorf, STB’s Andrew Phua, GEVME’s Veemal Gungadin, and PCMA’s Karen Bolinger (beamed in)
Hattendorf had shared his views at this morning’s SMF (Singapore MICE Forum) X IBTM Wired session, Reimagining Business Events – Through Covid-19 and Beyond Navigate.
“It will also have to be rebalanced according to the needs of the customers in different parts of the world,” he added.
“It’s significant to note that most of our events going forward in this region will have a hybrid component, but how long that appetite will last for is a different question, due to the diversity of our region,” said fellow speaker Karen Bolinger, managing director Asia Pacific, PCMA.
Veemal Gungadin, CEO of GEVME, who was also on the panel, agreed that the digital components are here to stay, as attendees are seeing value, sponsors and exhibitors are starting to extract value, while event organisers are learning how to achieve the best ROIs.
He shared: “A company named Explori studied the NPS (net promotor score) of events throughout 2020, (and found that) satisfaction scores were the same for both physical and virtual events.”
On a broader scale, Singapore Tourism Board (STB) is trying to strike a balance in how digital enablers will work for B2B events, and decide if a new hybrid or sustainable business model is needed in the long run, shared executive director Andrew Phua.
Panellists also pointed out that deeper community engagement is crucial moving forward, regardless of the event format – physical, digital, or hybrid.
Citing an example, Hattendorf said tradeshow attendees in China are “totally focused on the physical experience while they are there” but supplement the experience with their smartphones as they navigate the showfloor.
“We need to discuss how to evolve that opportunity (of connecting buyers and sellers) beyond the showfloor, not just pre- and post-show, but all year round,” noted Hattendorf.
Bolinger underlined the fact that the business events industry will not return to the past, and face-to-face interactions must be reimagined.
“(What online meetings have shown is that) we all can listen, but what we really want to do is exchange those ideas and thoughts, so new formats will probably have to have a format that would allow more of these meaningful (conversations) and knowledge exchanges,” Bolinger stressed. She added that if customers could obtain value by sitting behind a screen, there would be no reason for them to turn up at a face-to-face event.
Hattendorf said: “If we’re able to convey the (joy of meeting face-to-face) to our customers, it’s an additional incentive to get them travelling again as soon as possible.”
Phua relayed that he experienced zoom fatigue from the many virtual meetings last year, but one memorable virtual event stood out with its multisensory experience – it had South American music playing during the event and local food delivered to attendees’ home.
The industry also needs better data management and standards for planners and organisers to align to, panellists urged.
“We need currencies to show the value of digital interaction, so that we can monetise that show and then charge for the value. (But we need to) find an answer for this as an industry,” stated Hattendorf.
Bolinger concurred: “(Without data), I think that’s why sometimes it’s a challenge for us as an industry, as we don’t get taken as seriously as some of the other sectors. Data is so, so important for us going forward as it will start to influence the shape of our business going forward.”
Gungadin pointed out that everyone “has their own definitions of what engagement is and how it can be measured”, but for sponsors, that does not change how much business or leads are generated. He added that it would help if UFI and PCMA could develop a definition of success and ROI for hybrid events.
“With real-time statistics and information, we can bring events to the next level. (For example), we can also look at bespoke experiences and look into doing something more interesting or engaging after event hours, such as a virtual fishing tour,” Phua proferred.
The panel also discussed talent acquisition, ideas and capabilities, as the whole digital transformation process during this pandemic has revealed an urgent need for individuals with technology skills such as broadcasting, strategic narrative building, content production, data management and cybersecurity.
Hattendorf opined: “We really need to sell the upside of our industry to make it attractive. Whether it’s a G20 summit, a local tradeshow, or Formula One, we (the events industry) make it happen.”
While Phua added that it’s “good to look at ideas outside of the MICE industry”, Gungadin and Bolinger stressed the need to hire versatile individuals who possess critical thinking skills and an ability to handle crisis management.
Gungadin added: “Reimagining talent has to come from the mindset and willingness to change, which has to come from the organisation.”
Frontliners in Sarawak who have taken their vaccine shots
Sarawak’s business events and tourism industry became the first industry in Malaysia to initiate the Industrial Covid-10 Vaccination Centre programme.
Over 2,000 industry frontliners have voluntarily registered for the Industrial Vaccination Programme through their respective employers, and are expected to be vaccinated during this four-day programme which began on June 24 at the Association of Churches Sarawak.
Frontliners in Sarawak who have taken their vaccine shots
This initiative is being led by the Ministry of Tourism, Arts and Culture Sarawak in collaboration with the Ministry of Tourism, Arts and Culture Malaysia, Sarawak Tourism Federation, Ministry of Health Malaysia and Timberland Medical Centre in Kuching.
Sarawak’s minister of tourism, arts and culture, Abdul Karim Rahman Hamzah said in a press statement: “The Sarawak Government recognises that the business events and tourism industry is one of the state’s core economic sectors. The vaccination programme is an imperative step to successfully protect over 2,000 industry frontliners; an assuring sign that Sarawak will be ready to open for business activities once more.
“Vaccinating the industry is in tandem with the Sarawak Government’s target to vaccinate at least 80 per cent of the local population by the end of August.”
More than one million people in Sarawak have been vaccinated so far, and the industry is hopeful that Sarawak will be able to relax travel restrictions so that regional business events can be hosted at the end of this year.
Sarawak’s business events industry is already laying the groundwork to prepare for the reopening of business travel.
Amelia Roziman, acting CEO of Business Events Sarawak, shared: “When events return to our shores, we will have the SOPs ready for implementation, and business events planners can take advantage of our incentivised packages. Even our industry partners are gearing up by getting involved in extensive education programmes to strengthen their professionalism.”
Amelia also added that discussions are being held between Business Events Sarawak and the Malaysia Convention and Exhibition Bureau to forge a possible interstate collaboration.
The Thailand Convention and Exhibition Bureau (TCEB) holds high hopes for China’s outbound business events market, and has predicted that incentives will be the first sector to bounce back when the country reopens next month.
According to TCEB’s president Chiruit Isarangkun na Ayuthaya, Bangkok and Pattaya are expected to remain of interest to Chinese incentive groups, alongside Phuket – barring the success of the Phuket Sandbox initiative to welcome vaccinated visitors, allowing them to bypass quarantine requirements.
Bangkok (pictured), Pattaya and Phuket will continue to appeal to Chinese incentive groups
To continue engaging the Chinese market, TCEB appointed a Guangzhou marketing representative in May 2021, joining its Beijing headcount. The new representation will make inroads in certain markets in southern China, such as Shenzhen. It is in the midst of conducting market activities with key partners, and meeting with decision-makers looking to organise overseas events.
TCEB has also set up a virtual marketplace – TIME 2021 Business Exchange Chinese Speaking Edition – on June 22 and 23 to connect 42 Thai entrepreneurs with 22 Chinese buyers.
In addition, the bureau is working with the private sector to develop a support package for incentive groups, to be rolled out by end-2021. Although details have yet to be firmed up, TCEB is looking at sponsoring two nights of accommodation for Chinese groups with a minimum of 30 travellers.
Additional assurances are required in such times to get corporate travellers moving again
Resuming international business travel safely will depend on when destinations can unite to provide an assurance of epidemic prevention, and whether insurance companies can develop a new product to provide ample coverage in the event of Covid-19.
Speaking at IT&CM China’s International Safe Travel Insurance Cooperation knowledge session last week, Alicia Yao Hong, vice president, China Business Event Industry Committee, underscored the need for a unified standard of procedures especially on food, accommodation, transport, shopping and entertainment to provide business travellers with a peace of mind.
Additional assurances are required in such times to get corporate travellers moving again
She also cited the importance of having an insurance product designed for corporates, as well as one for leisure travellers, that can provide ample information and 24/7 support considering that the World Health Organization has stated that the pandemic may be around for decades.
Maria Rosa Azolina, managing director of Italy-based Private Incentive Milano, relayed an example of how the European Union (EU) has developed an EU Digital Covid Certificate that will soon be made available to all its member states. This digital proof will state if an individual had been vaccinated against Covid-19, received a negative test result, or had recovered from a Covid-19 infection.
Azolina added that in Europe, travellers are also able to purchase travel insurance policies from tour operators for as little as nine euros (US$10.70). Most hotels provide insurance coverage for guests who fall sick in their hotel or have their bookings cancelled at the last minute due to Covid-19.
Christine Yang, head of marketing and communication, Greater China, International SOS, added that in order to build a traveller’s confidence, a reliable and adaptable app for health and medical services as well as security risk management is also necessary.
She urged destinations to adopt solutions such as the ICC AOKpass, an app that allows passengers to carry a secure record of their Covid-19 test results obtained from a partner laboratory, in order to quicken the reopening of borders.
Hokkaido has long attracted Chinese business groups thanks to its natural environment, delicious cuisine and snow sports. Now, with new experiences, facilities and expertise, the island is gearing up to offer an even more appealing experience.
Close to New Chitose International Airport, the slopes and city experiences, Sapporo was often the choice for corporate meetings, incentives and teambuilding pre-pandemic, and the city hopes for that to continue. The Adventure Travel World Summit in September 2021, which is being hosted virtually by Hokkaido, is expected to provide an extra image boost.
Sapporo has long appealed to Chinese business groups, and will continue to appeal post-pandemic
“We have been flexing our muscles in sports and adventure tourism especially, by making best use of the extraordinary nature in Hokkaido,” said Ayako Kurosawa, a member of the incentive and corporate events team at Sapporo Convention Bureau.
“We’re sure that the high quality of powder snow will captivate the Chinese market more than ever; as the Beijing 2022 Winter Olympics gets closer, winter sports will gain more popularity.”
Kurosawa’s team is banking on growing interest among the Chinese corporate events market for “diverse natural surroundings and unforgettable outdoor adventures in both green and white seasons”, to grow Sapporo’s appeal.
Glamping site Takibi, a two-hour drive from Sapporo, near Niskeo, has been revamped, and now sports a website in Chinese. With views of Mount Yotei, the camping ground offers numerous cottages, bell tents, an event space and walking paths.
The area has also expanded its team-building and incentive programmes, adding an “ice carousel” in Onuma Quasi-National Park, on which guests can lie down and look up at the sky. Meanwhile, Rutsusu Resort Amusement Park has launched charter bookings from summer 2022 starting from ¥1 million (US$9,190).
According to Kurosawa, Sapporo remains strong in offering other “wow experiences” too, such as snowball fights and photo scavenger hunts, which were popular with Chinese business groups pre-pandemic.
Sapporo’s Odori Park and Niseko’s Mount Yotei
Hirofumi Watanabe, hotel general manager of Kiroro Resort, a 75-minute drive from Sapporo, is working with partners in China to develop cross-promotions, including discounted ski passes for Chinese guests once international travel resumes.
Kiroro Resort is also using fresh produce from the local Akaigawa area, another attractive offering as Chinese groups are big fans of fresh Hokkaido produce, shared Kurosawa, adding that seafood, Sapporo beer, lamb barbecue, local vegetables and dairy items such as ice cream are among the products frequently requested.
“Aside from skiing, the Chinese business market is particularly keen on Hokkaido crab,” added freelance travel consultant Cameron Stadin.
Sapporo Convention Bureau continues to train its staff to be ready to offer “flexible, interactive and tailor-made support,” noted Kurokawa, adding that it is now equipped with the expertise to make business events more sustainable.
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