1. More businesses turn to TMCs and online tools
Increased adoption by businesses of 24-hour online travel booking tools and greater usage and understanding of TMC services and value by businesses of all shapes and sizes in a more complex and global operational environment, according to American Express Business Travel (Amex BT) vice-president Business Travel Operations, Mr Andy Aitkenhead. Amex BT's relaunch following the integration of Rosenbluth International (BTN Asia-Pacific, September 2004) was the best thing that happened to the company in 2004, he said, as it reshaped its business travel offering to deliver competitive and holistic travel services. In Indonesia, BTI Indonesia Vayatour sales and business development manager, Mr Andhie Saad, said: "More corporates in Indonesia were willing to consider using travel management companies." Six competing TMCs in Indonesia also joined hands to increase the awareness on corporate travel management through the Corporate Travel Indonesia Executive Forum - way to go!

2. Airport terminals go high-tech
Airport lounges and terminals, business clubs, cafes and hotels moved to become more wireless outfitted and service providers expanded to provide global wireless roaming through wireless hotspots. Conrad Centennial Singapore general manager, Mr Heinrich Grafe, said: "In 2004, we received and had to find a way to deal with higher demands of complimentary amenities, such as complimentary broadband access in the room."

3. Rise of low-cost carriers
In Australia, for instance, Virgin Blue and the entrance of Jetstar brought about fiercer competition on the domestic travel is front. W Hotel Sydney general manager, Mr Paul Walters, said: "This is good for the corporate traveller as new and more frequent routes rejuvenate business travel, especially when air fares drop from A$300 (US$224) to almost half for popular routes." BTI Australia sales and marketing director, Mr Greg McCarthy, said: "I believe Virgin Blue has assisted Qantas to look at its operating model, both functionally and financially, and made it a leaner, more efficient airline. This has in turn benefited the business traveller with the availability of lower fares and more schedules."

4. Air fares stay competitive
Despite rising fuel prices, market fares in particular remained as competitive as ever, spurred in part by the need for network carriers to maintain market share against the plethora of new entrants in the local markets and the gaining momentum of the low-cost carriers in the region. Swiss International Air Lines general manager Thailand, Myanmar, Laos, Cambodia, Vietnam, Mr Brian Sinclair-Thompson, said: "Full service airlines such as us will continue to distinguish ourselves with products and services including seat selection at the time of reservation, dedicated check-in facilities by class, lie flat business-class seats, improved onboard dining and entertainment options, vastly improved lounge and airport facilities (Zurich) and of course the provision of frequent flyer miles and award-tier status for loyal customers. This can only be good news for business travel, where comfort, convenience and value for money are key drivers in the decision making process."

5. Corporate travel is back
Corporate travel bounced back after the problems of 2003 such as the SARS scare and the Iraq war. Fears about terrorism also dissipated. "While people avoided certain destinations, they somehow got used to the war on terror since it is a global phenomenon," Universal Holidays vice president, Ms Annette Feliciano, said.

6. Regional governments' increased awareness and increased ability to handle serious health issues
Sukhothai Hotel Bangkok general manager, Mr George Benney, said: "There seems to have been an improved level of health facilities in some cities, where previously hospitals and emergency treatment facilities were below international standard. There has also been an increased awareness by international hotels of the need to provide competent health support to customers who may be in need."

7. Malaysia ditches the market development programme
In Malaysia, the abolishment in November of the market development programme (MDP), a self-regulating cartel which has been around for 20 years, is good news for corporate travel, according to Austrian Airlines country manager Malaysia and Singapore, Mr Wilson Tay. "We can learn from Singapore and Australia which had its regulated price environment lifted earlier." Mr Tay said: "With MDP, the fares are higher but in the open market, fares have dropped to rock-bottom level. Players must therefore know how to watch their bottomline. Offline carriers are very much affected as they are not accorded the feeder sector travel from Kuala Lumpur to Singapore and Bangkok." Austrian became a full-fledge airline for a full fiscal year in 2004 and had seen corporate business doubled compared with 2003.

8. New players in the skies
The emergence of new international carriers such as Emirates and Virgin Atlantic. BTI Australia sales and marketing director, Mr Greg McCarthy, said: "They offer exceptional international fares and product. They have broken the model with their service offerings. With the brand new aircraft airlines such as Emirates are using into Australia, the market has to keep up or will be left behind. Take the US domestic scene for example, no money to spend means older aircraft flying the skies."

9. Ultra-long range travel
The introduction of Singapore Airlines ultra long-range aircraft, the A340-500. Customers to Los Angeles and New York now save up to four hours in travel time.

10. Choice and availability of hotel and airline products continue to be wide
As business demand returned, owners and operators were more inclined to invest in not only improving and upgrading the physical products but investing in ensuring service standards improve. Qantas head of sales and distribution, Mr Rob Gurney, said: "Business travel has never been better value for money. Business travellers benefit from our continued investment in product - not only in the air but at airports, such as our Qantas Club lounges, while air fares have remained tremendous value for money. We are also focusing on adding value for the corporate market by concentrating more and more on delivering customised travel solutions."

11. Indonesia's domestic corporate market takes off
In Indonesia, the increase in the domestic market as a result of the better accessibility between Jakarta and other destinations in Indonesia. Hotel Borobudur Jakarta director of sales and marketing, Mr Werner Senft, said: "Company meetings, training, product launches have increased significantly in 2004. Total MICE (meetings, incentives, conventions and exhibitions) business for us year-to-date (to September) was up by 30 per cent, while corporate business increased by 20 per cent over (the same period last year. These are partly because of the support of the domestic market."

12. More online solutions at cheaper rates
More online solutions are available in the marketplace without costing an arm and a leg. RCI Travel Group head, Mr Ngiam Foon, said: "This development will allow the smaller corporate agencies to compete with the global travel management companies, especially in the mid-sized market."

13. TMCs get more even playing field Down Under
In Australia, the reduction of commissions from airlines created the transparency required, assuring an even-playing field for all TMCs. BTI Australia sales and marketing director, Mr Greg McCarthy, said: "For too long there has been a perceived and real advantage to certain TMCs that have relied upon their volumes to offer increased savings for travellers. "We are not through this yet as in some cases volume deals still exist, however, we are on the path to a situation where business is won based upon how you service and manage customers, not on purely relying on offering customers a better financial deal."

1. Increased volatility
Market volatility due to continuing industry globalisation (for example, jet fuel prices and commission reductions), leading to customer confusion and uncertainty.

2. The high price of security
More and more security checks at airports, especially in the US, causing not only delays but in some cases second-class treatment by government officials. The Sukhothai Bangkok general manager, Mr George Benney, said: "Time is of the essence and this hurdle, while appreciated by many travellers, is not appreciated by the frequent flyer who makes the same trip perhaps twice a week or month. Someone needs to find a solution to recognition of global frequent flyers at airport security."

3. Skills shortage
Increasing pressure on staffing due to increased growth, with the region currently experiencing skill shortages and requiring new strategies to attract and retain skilled employees.

4. Asian cities in a jam
Traffic jams in some busy Asian cities, caused by growing economies and cheaper vehicles, mixed in some cases with bad city planning and traffic management. Location of hotel becomes even more important and the hotels that can offer private niches for corporate clients to hold meetings within the hotel - preferably not in some lounge with a band banging away, can win out over those who do not.

5. Rising oil prices
In 2004 alone, oil prices had risen almost 60 per cent. Singapore Airlines' senior manager public affairs, Mr Stephen Forshaw, said: "It is likely to be one of our major concerns into the future."

6. No easy room upgrades
As hotel occupancy in many key gateway cities grew, getting access to upgrades at hotels became less easy as hotels running strong occupancies once again had to turn to yield management in order to ensure customer recognition of really frequent and loyal clients.

7. Fragile geopolitical environment
The bombing in Jakarta re-emphasised how the fragile geopolitical environment could impact business travel.

8. Narrow vision
A tendency in some corporations to focus purely on the price of the air fare, according to Qantas head of sales and distribution, Mr Rob Gurney. "While the air fare itself is clearly important, ignoring the costs attached to other parts of the end-to-end travel process can end up costing companies more, for example, in terms of the resources it takes to achieve several quotes, or the time inefficiency associated with selecting a less than optimum schedule in favour of a slightly cheaper fare," he said.

9. Currency devaluations
n the Philippines, some corporate accounts pulled out of the country because of allegedly unfair business practices and business was also affected by the devaluation of the Philippine peso against the euro, making travel to Europe very expensive, according to Air France general manager Philippines, Mr Louis Vergeon. The war in Iraq also exacerbated the problem by causing fuel prices to soar.

10. Airport jams
Regulation and slot congestion in major points such as London, Sydney, San Francisco and Hong Kong remained a challenge.

11. TMCs undervalued
For TMCs, the push by suppliers to sell their product direct to the traveller, ie, airline and hotel online booking engines. But TMCs are holding their ground. BTI Australia sales and marketing director, Mr Greg McCarthy, said: "The reality is that now more than ever, customers need a TMC to analyse their travel procurement programmes and assist with recommendations that can save them substantial amounts of money. "If travellers are just booking direct and assuming it's the best deal, they will eventually find out that its not. They need to employ a TMC to expertly assess EVERYTHING they do, from purchasing right through to general ledger reconciliation, looking for a more efficient way. I can honestly say, in every case that BTI Australia has been involved in this benchmarking, we have saved our customers considerable money."

12. Big events
Whenever a destination hosts a big event such as the Rugby World Cup last year in Sydney, it attracts big groups of travellers. W Hotel Sydney general manager, Mr Paul Walters, said: "Although big events are great for filling rooms, it disrupts the pattern of corporate travel and makes the job harder for corporate travel planners."