BTN: The industry as a whole continues to see a decline in corporate travel. How is RADIUS weathering the storm?

Hughes: The travel management business was one of the hardest hit by the events of the past few months with the precipitous drop-off in bookings for flights, car rentals and hotel rooms. It is important to note, however, TMCs generally, and RADIUS agencies specifically had begun to respond to their corporate clients’ T&E budgetary concerns because of the slowing economy.

While the airline industry in the US first cut and then eliminated commissions altogether to travel agencies last year, RADIUS agencies had been well down the road in converting their business to management/transaction-fee based models so they were able to withstand the immediate impact of the airlines’ actions. Having said that, RADIUS has continued to examine and implement value-added products and services that assures and enhances their relationships with their customers.

BTN: What is your main priority as president as well as RADIUS’ priorities in 2002?

Hughes: One of my main goals will be to continue the positioning of RADIUS as a truly international organisation and to weld together our shareholders into a cohesive unit. It is important we enhance our businesses to work together to handle major international customers.

In addition, we would be honing in on the regional differences. We will be looking to work very closely with our Asian shareholders and also recruit strong shareholders in this part of the world to enable us to create a force in what is an enormously competitive region.

Overall, we must assist our shareholders into the new world of fees that are replacing commissions at a rapid rate.

BTN: Are corporations still reducing travel, length of stay, trading down and exploring cost-saving alternatives?

Hughes: There is a consensus among corporate travel managers further cutbacks in business are not needed as much as the need to manage travel smarter and more efficiently. This does, of course, provide TMCs with the opportunity to demonstrate the tremendous value they bring to the relationship with their expertise and ability not only to serve the most basic travel needs but the mission-critical requirement to manage the T&E expenses of their corporate clients.

BTN: How is Asia shaping up in terms of travel management?

Hughes: We are seeing increasing interest in the latest travel management techniques from corporations in

Asia-Pacific, as witnessed by the development of associations such as ACTE in the region, and the growth of conferences such as Corporate Travel World Asia-Pacific.

However, in such a varied region, it is only natural the pace of integrating these techniques varies widely. Markets such as Singapore and Australia are now very comfortable with concepts such as fee-based pricing, while some countries are still dipping their toes in the water. In most places, the multinational corporations still lead the way in terms of adopting travel policies, appointing travel managers, and implementing new technology tools.

BTN: How important is China, now that it is a member of the World Trade Organization?

Hughes: We see China as a very important part of the region, and increasingly so as trading conditions ease. Most of the regional client bids we see include requests for service in China.

BTN: What role is travel management technology playing these days?

Hughes: Travel managers are providing their clients with the lowest available fares, and travel expenses are better controlled through better business practices and technology. Road warriors, frustrated with escalating business fares during the recent economic downturn are relying on their travel management providers to assist them with the range of new technologies, offering operating efficiencies, from on-line booking products that also provide for low-fare carriers; non-refundable tickets to travel alternatives such as videoconferencing.

BTN: What are the dominant travel management trends in the US and Europe?

Hughes: TMCs are endeavouring to establish fee-and transaction-based business models. There is also a strong interdependence on full service agencies especially in Europe. Also, low-cost carriers are making strides in garnering market share.

BTN: What more can TMCs in Asia-Pacific do to raise their standards?

Hughes: It is taking some time for some of the innovations playing a large role in North America to make their mark in Asia-Pacific. On-line booking has been slower to take off here because of the different market conditions in this part of the world. For example, the heavy use of local market fares, which means product functionality often has to be modified to suit the region. TMCs need to play a pivotal role in identifying opportunities for these new technology tools and pioneering their use for their clients’ benefit.

BTN: What can travel managers do to improve their roles?

Hughes: I think it is more a question of more companies needing to appoint travel managers in the first place. These travel managers need to ensure they have the backing from senior management as they cannot enforce a good travel policy without their complete support.

BTN: Are dedicated travel managers considered a necessity or luxury?

Hughes: They used to be nice to have but now, they are a necessity for any corporation wishing to control their travel spend and ensure they are leveraging the greatest value from the suppliers they use most.

BTN: What about airport/airline security and the enhanced security measures? Any other suggestions to improve security?

Hughes: Most major Asian carriers and airports have had good security for a long time now. I have noticed additional screening measures all across the region which can only be a good thing, and happily this has not led to significant additional processing time for passengers. There is no such thing as total security, however, and we all have to recognise that.

Tony Hughes assumed the role of RADIUS president in February 2002. He has been managing director of P&O Travel, UK, since 1988.