Thursday, December 20, 2012

Bequia Travel Report -Pics on Travelprotales

Where and what is Bequia and why have so few people heard of it? The simple answer is that it is one of the Grenadine islands in the Caribbean just south of St Vincent, a little north of Grenada and about 35 minutes flight west of Barbados. It is quite small but remarkably full of all the pleasures and amenities people look for on holiday. Why have so few people heard of it? It is probably because it has a small airport and nowhere for cruise ships to dock. It is literally an unspoilt gem of a place.
We first found it about 3 years ago. The attractions of Barbados, Antigua, Tobago and St Lucia were beginning to fade as their popularity grew so we set out to find places that still reflect the charm of the Caribbean. Somewhere that did not have mass tourism but was still civilised, welcoming and reasonably easy to get to. Previously we discovered Anguilla that fits the bill perfectly but now we wanted to see if there were any more out there.
Our ‘must have’ list was not huge but important to us and included the following:
A secure place with nice welcoming people. We did not want to be robbed, abused or snarled at on holiday.
A scenically pretty island with plenty of beaches and picturesque countryside.In other words a place that is welcoming to the eye.
We like to eat out on holidays so we searched for a place that had a diversity of restaurants from local bars to fine dining.
Accommodation to be comfortable in. We did not want crowds so we looked for something more boutique in size with air conditioning, a nice pool and alongside a beach. Somewhere you could really chill out in comfort.
Our first visit to Bequia those few years ago met all these criteria except for accommodation. The island is full of reasonably priced villas to rent and small hotels with basic amenities but we wanted to spoil ourselves. We moved into a hotel that was clearly perfect for us but unfortunately we did not listen to the owners when they said it was still being developed. We lasted only three days but vowed to return when it was finished and this is what we have just done.
So here is the story of our trip to what we hoped would be paradise. I think most will agree when I say there is a lot to know when you visit somewhere for the first time so I will pack my story with lots of detail which you can choose to absorb or ignore!
Obviously getting there is the first part. We flew from Gatwick to Barbados on Virgin in their Upper Class cabin. We chose them because they leave slightly earlier (1030) than British Airways and we had booked a connection separately on SVG airlines. I am glad we did because it gave us the necessary time buffer in Barbados and also BA have been cancelling and delaying their services to Bridgetown recently.
The flight was rather nice. Having got over the strange feeling of sitting 45 degrees to the direction of travel we enjoyed the service. The staff were good, the seats comfortable to sit in, there were plenty of drinks and they had been discreet in the way they had upgraded people into the cabin.
Every airline I know overbooks their economy cabin to holiday destinations as there is simply not enough business folk or higher fare payers to fill the front cabins. There is no way they can alter cabin size or seat types on big jets so they overbook and leave it to the day of departure to sort out. Who gets upgraded can be a bit of a lottery and often staff are assigned the task to walk around the gate area and choose likely folk. If you want an upgrade I suggest you dress smartly and make smiling eye contact with any staff that seem to be looking for someone! Other times the staff are likely to upgrade their friends and other airline staff. In my experience this happens a lot with BA at Gatwick.
The flight left bang on schedule and arrived early. In Bridgetown you walk off the aircraft and, as you are about to enter the building, you will be met by a representative of SVG (St Vincent and Grenadine Air Alliance) who will be holding a placard with names on it and taken to their transfer desk. There they will process your transfer and guide you to the departure lounge.
You will need to have completed a Barbados landing card even if you are in transit. They will also get your bag for you and put it on their aircraft. It will help enormously if you make your bags easily identifiable. I tied a yellow ribbon on bag handles (SVG colours are yellow) and took a picture of them to give to the transfer guy. It worked like a dream and they were the first found. If you are getting hot and thirsty by this time then either bring some EC$ (East Caribbean Dollars) or US$ as the stalls there accept both.
The connection flight will go on time. It has to because the smaller island airports do not have landing lights and shut around 1730. They usually operate De Haveland Twin Otter aircraft which are sturdy and safe but rather noisy. As we taxied out we saw the delayed BA flight landing which meant all their connecting passengers would waste a night of their holiday in Barbados.
The flight was scenic and uneventful and 35 minutes later we were approaching Bequia airport. A word of warning here. Not only do these island airports have no lights but they can be subject to crosswinds and Bequia is no exception. You land right next to some hills and often the wind hits the hill and bounces back. Do not worry! This is normal and the pilots are entirely ready for it even if you might not be!
So there we were. A seamless hassle free pair of flights and safely in Bequia. So what was it like? Well it is not huge. In fact it is probably about 6/8 square miles in total and less than 5000 people live there. They all seem to know or be related to each other in some way which helps keep community spirit high and crime low.
Anyway, I am starting to digress! Immigration and customs at the tiny airport are probably more thorough than Gatwick or Bridgetown. They take their job very seriously and do it thoroughly. Make sure you have filled in your arrival form; smile and you should get through without too much hassle. After all, if you had a job where you hung around all day for a very few small flights you would want to do it thoroughly to prevent terminal boredom.
The transport was waiting. It consisted of a man who was grinning from ear to ear and a canvas covered pick-up truck. We piled into the back and weaved down the road to our hotel. A hire car had been delivered to the hotel for us. If you send them a print of your license in advance they will queue up and get your local permit for EC$50. Do it as otherwise standing in line yourself is a pain. Did we really need a car? No. If we took taxis every time we needed them it would be cheaper than paying for your own vehicle to sit in the hotel parking lot. It is convenient though!
The Bequia Beach Hotel was everything we hoped it would be. What had been a building site is now a small but immaculate hotel resort with free form pool, spa, and beach restaurant. Everything seems new and clean including the pool and beach chairs and I admit we were very impressed…and not a little relieved. The food was good and so was the limited entertainment they provide. Everything is low key, relaxed and high quality, in fact very Swedish. The GM is a beautiful (in every sense of the word!) Swedish lady called Carina Peterssen and she was always around to take care of her guests. You want something? Just phone reception and a cheerful lady will get it for you.
They have a range of rooms there. We stayed in a beachfront suite which was exactly that. The room faced the sea which was no more than 30 feet away. We chose the first floor so that it was both quiet and perfect for sundown balcony drinks. Other rooms are all comfortable and they also have three villas you can hire as well. All plugs there are British three pin and the current is 220 volts so no adapters needed for the Brits. Those that do need them can borrow some from reception. Bottled water is best and you get free bottles to start you off when you arrive.
We were too lazy to try the spa and immersed ourselves in our Kindles instead. There are plenty of sun shades around the pool and trees next to the beach to shelter under if you wish. The bar is close by and they occasionally check to see that you do not dehydrate! The local beer is Hairoun which tastes better every time you try one.
WE had an unforgettable time there and made lots of new friends. OK there is no room service but, if you need it, pick up the phone and it will come. There are no real water sports but hey, do you really want to jet- ski and they will lend you flippers? There is no TV in most of the rooms but to me that was an asset! The best description of the place would be that you are a 5 star house guest of some very nice friends
The best part was the people. Apart from the lovely Carina there were the guys and girls in the bar and restaurants. So thanks Ozan, Colin Garvey ,Bridget, Daria and all of you for an unforgettable stay. By the end I even had the barmen buying me drinks. You don’t get better than that!
We ate in the hotel a lot, not just because we were staying in the hotel but because the food and service were so very good. They seem to have imported some very good chefs which combined with a very promising local lady turn out exceptional meals. We probably had 12 breakfasts, 8 lunches and 6 dinners here and not one was poor.
The lunch menu stays near the same with at least a couple of daily specials like pasta and fajitas. Otherwise they have burgers that make you drool and all sorts of club, bookmaker and fish ‘sandwiches’. Do not be fooled, they are not sandwiches in the traditional sense but tasty variations on a theme.
Evening meals were different each night and you can eat all kinds of fish, meat and salads. They were all good. And the desserts?! Wow, they were great. They have both a lobster and a barbeque night. Lobster was on Saturday and cost EC$116 (UK£26.50 each) for two courses. They are fresh because we saw the fishermen delivering them when we sat by the pool! The barbecue night was not that expensive and you have a choice of beautifully marinated steak, fish and chicken. Average lunch courses cost EC$55 (UK£12.59). Continental Breakfast EC$30 (UK£6.87) and cooked breakfast would increase this to about EC$50 (UK£11.45).
We also tried quite a few local restaurants which were very good considering the size of the island. Most were concentrated around the ‘capital’ Port Elizabeth. The ‘city’ has two main roads imaginatively called front street and back street with a few intersecting streets. The main supermarket for the island is called Knights and you can get most things there. Knight’s is on the corner of Back Street and the main intersecting lane. Further up is the Pharmacy, Hospital, Police Station and Doctor. We had to see the Doctor with ear infections and he prescribed antibiotics that would stop a charging Rhino in its tracks. It fixed us but boy the toilet visits were ‘interesting.
Many of the bars and restaurants are on the Belmont Walkway. This is a five foot wide strip of a path that creeps between the harbour itself and the mainland. It fell apart in a storm but has now been rebuilt and is better than ever. Here are some that we ate at:
Tommy’s Cantina – A nice reasonably priced place to eat
You can find Tommy’s right at the entrance to the Belmont Walkway. It is nothing pretentious and can get quite busy. We sat next to the rail overlooking the sea in wooden seats (no cushions) and watched the world go by. Do not expect gourmet food here but if you want something basic but tasty and not as pricey as some it is worth a try. The service was friendly and helpful and they will give you food to go. We had 4 beers, Goats Cheese Salad and Grilled Chicken for EC$98 or UK£22.44
Macs Pizza - Didn't want to go but glad I did
This is nuts. I don’t go to pizza restaurants, hell I don’t even like cheese! Nevertheless we went, mainly because of its good reviews and I am very glad we did. These pizzas are VERY well cooked and come in three sizes (9”,13” and 15”) and they will even do a delicious creation without cheese if you ask. There were a huge choice of fillings as well as wraps and sandwiches and, if you cannot finish (you won’t) then take it away in a box.
The place is nearly at the end of the Belmont walkway and is charming to look at and sit in. You can stop on the road high up behind it and go down some special steps to collect a takeaway. If eating there I recommend you sit at the upper level of the restaurant as it catches more of any breeze. It is also a good place to meet local people and we enjoyed a pleasant evening next to our hotel security guard and his wife and child. Cost for 3 rum punches and a 9” and 13” pizza was EC$160 or UK£36.64
Papas Bar – Best bar on the island
This place is sometimes billed as a ‘sports’ bar which I am sure will put as many people off as it attracts but it is much more than that. Yes they do show all sorts of sport from cricket to rugby to NFL to Baseball but mainly on request and only in one area. The rest of the place has panoramic views, good service and decent well priced food. It is perched overlooking the harbour on the left hand side of the road passing the ferry docking pier. You can sit and eat indoors or al fresco on its large balcony. We sat outside watching a children’s dinghy race, drinking rum punches and enjoying some burgers and salad. When we left they charged us $110 which I thought was pretty steep but, as I left, the waitress chased after me saying that I had paid far too many US$ as the price was in EC$. Nice and honest and well appreciated. A great place.
Jacks Place – Very pretty and relaxing
If you want an interesting picture postcard type of place you will not be disappointed. It is very well laid out and overlooks one of the best beaches on the island. They will let you use their beach sun loungers if you eat there which is a nice touch and it is owned by the group who operate Papas and Devils Table.
We had Barracuda and chips as well as pork loin. To be frank the pork loin was rather bland and dry but the fish was very tasty. For some reason many places in the island tend to overcook their meat. So the food was adequate, it was scenically stunning and the people were nice. You need to take a narrow steep track down the hill to it and parking is a little limited. Probably a taxi might be best.

Devils Table - A difficult one to critique
This is a hard one because I met one of the management while having a drink in Papas Bar (they run it too). He was telling me how unfair some of the criticism was about the Devils Table and how he suspected some of it was malicious and possibly local. I told him we would eat there and give an honest personal view and here it is.
This place is visually sumptuous and fun to the eye. It looks like something out of Pirates of the Caribbean which we enjoyed. The setting is perfect too as it seems built into the side of the rocks and has all sorts of nooks and crannies. It is a place to sit back and relax and, unless you take yourself very seriously, a place to chill and enjoy. So that is the best part.
The less special part was the food and I urge them to look harder at this aspect of their service. My wife had baby ribs and I had rib-eye steak. Both were not really up to standard compared with the rest of the island. My steak was dry and poor quality and the ribs were inedible. Sorry Mr Owner sir but they were. They were cooked to dryness and smothered in a dry burnt pepper crust which was not nice. As a contrast the chips and Christophine gratin was spot on. Yet there was a kind of macaroni pie that was truly horrid in a dehydrated sort of way.
The price for our evening which included the two mains and 5 rum punches (we became very thirsty) was EC$233 (UK£ 53.36) so it was not exactly cheap. So my verdict was that the place was great and has fabulous potential and I wish I was there sipping yet another rum punch. I would however recommend that you should monitor your meals more closely before they go out. I would also suggest you allow more space between tables.
Finally, how about putting a sign by the road showing where you are. I bet many like me did not realise you are up that side road between Coco’s and the beach and you have parking available.
p.s. your expat locals do seem to scorn island visitors but I expect there is not much you can do about that!
Whaleboner – Thar she blows!
Now this is an interesting place and something I have never seen before. It is about half way along the Belmont Walkway and entered through what looks like an arch made up from whale ribs. The bar itself has another ‘rib’ built into it and the bar stools are made from what appears are whale vertebrae. The rum punches are wicked and the place becomes hard to leave if you settle there! The drinks are very nice, bar staff charming and it is positioned next to a dinghy park which is wonderful for late evening ‘entertainment’ as yachties return to their crafts. It is both open air and sheltered and has a boutique and restaurant attached We did not eat as the menu was frankly pretty average.
A great place to chill and relax. Good luck getting home!
L’Auberge Des Grenadines – Not much changes
The last time we went to this restaurant was about 3/4 years ago and I was looking forward to see how it had developed since then. The answer was not at all. The menu was the same as was the décor. Even the owner appeared the same as he sat in his corner bar stool looking cool, French, and not very visitor friendly. There was a jazz trio with a good guitarist a most adequate lady saxophonist and a distinctly strange keyboard vocalist that looked just like Zoot in the Muppet Show. They actually were rather good except for some laden remarks from ‘Zoot’ if we did not applaud loud enough! It was not crowded so we had to do a lot of clapping to keep him happy.
The starters were excellent and we had the same as our first visit which was Calalou soup and Onion soup and they were first class. We began to relax so ordered wine and water and two lobster mains fresh from the tank. My wife had to hide her eyes as a struggling lobster was plucked from its pool. Sadly it might have died in vain as. Like a lot of things on the island it was a bit dry but I enjoyed mine at least.
By this time the owner’ regular drinkers turned up to join him at the bar. I am sure I recognised some from last time! We certainly started to feel like outsiders at a private party as the bar got louder and louder with much posturing and teasing going on. In fact we paid our bill and slunk off without a farewell from good old Jacques but EC$410 lighter (£93.89). For that price a mere acknowledgement of existence would have been appreciated!
All in all it was great to have so many different places to eat and we barely scratched the surface. There is a place called Fernando we never got to. This is like the front porch of a house where this guy Fernando goes fishing in the morning and cooks it for ‘house guests’ in the evenings. Absolutely brilliant apparently but we never made it. Coco’s is another fun relaxing place that we missed. Many are hard to find so just ask anyone and they will tell you. You will love it I promise.
I hope we have identified that you will not starve on this island. But what about activities? What is there to do and see? Perhaps unsurprisingly there is not a vast amount apart from greenery and beautiful beaches. By the way the best beaches are Lower Bay, Princess Margaret’s Bay, Friendship Bay (where our hotel was) and Industry Bay.
If you want something different visit The Old Heg Turtle Sanctuary. This is a place at the furthest tip of the island run by a guy called Brother King. He both rescues and breeds turtles to a point where they are ready to release back into the sea. This guy must talk about it thousands of times but you can still feel the passion and dedication in him. The island used to be a local centre for the whaling industry and that is what most of the fishermen used to do. He is trying to convert them in to more eco-friendly activities. Entry is free but please make a small donation.

As with all good things our holiday came to an end. We travelled in late November early December and stayed at the Bequia Beach Hotel. The weather was brilliant with only two rain showers which was quite a change from the alarmist forecast that said rain every day.
The flights back were tedious but relatively uneventful. You need to totally clear customs and immigration in Barbados so fill in all those forms! If you want to use a lounge in Bridgetown there is still only one and it is not very nice. All the BA, Virgin, American, Air Canada folk all pile in it. Flying overnight on Virgin was a bit disappointing. Their very new flat beds are not as comfortable as the old ones and their flat pillow means your head is lower than your feet! Turbulence was bad (a seasonal thing) but service was better than BA.
You may have already guessed that we love Bequia. And we will go back. It is how you expect the Caribbean used to be before the crowds moved in. The people are nice and you feel safe there. The scenery is stunning and the sea beguiling.
If you want to know more then send me an email!

Tuesday, November 20, 2012

The Mechanics of Business Travel - Part 2

OK, where was I? I had just explained the first major evolutionary development in the travel cycle which was the demise of airline commissions resulting in TMCs (Travel Agents) presenting bills to clients rather than incentive cheques. This resulted in sweeping changes in the major travel markets although some of the smaller airlines still paid commissions to remain competitive. In fact in some regions of the world this change is yet to happen. Some might think that companies would be 'up in arms' over the change but most welcomed it with open arms. You see, from a buyers perspective it is better to negotiate from a net price than a commodity that has built in add-ons already especially if you might consider some of them unnecessary. The key word here is commodity as it means the stripping of something to a base product that you can buy rather like drawing pins, washers or computers. Every buying decision is based on price,at least that was what they thought. At this time technology was moving on in leaps and bounds and many airlines recognised that here was an opportunity to sell direct to the traveler at prices and payments they could control. In the same way you could argue that airlines thought they could cut out (or at least not pay) the TMC middle man they could also identify a method of getting direct to the traveler. All change was viewed as progress and in most cases, it was. Except all progress releases a new set of challenges and this is particularly the case when talking travel development. Airlines had got what they wanted and so had travel buyers so what could go wrong? What went wrong was that little cost had gone away, it had just been deflected on to someone else. Who? Well in the main, the traveler was asked to pick up the tab as TMCs were able to prove themselves indispensable. Why indispensable? Why not book direct? It would be so easy for individual travelers to pick up the phone (or PC) and make their own arrangements. Quite so but many corporations had a different need altogether. That was the need for Travel Management. It may sound crazy but a travel booking is probably less than 10% of what a TMC does in the course of their activities. The rest is everything known a travel management. On the corporate list of travel essentials were such things as authorisation, booking changes, travel administration and billing/accounting. There is also a need to support preferred airlines that have offered discount prices based on minimum volume, The growing need for 24 hour traveler monitoring and support. What happens if there is a catastrophe somewhere? How and who gets your people out of there? These and more are essential requirements and none of them are free. So who pays? Not the airlines as they have moved to a commoditised net price. Not the TMC because they are actually providing the service. Not the corporation either. They have welcomed the shift in the payment cycle but are not internally constructed in a way to take on such a cost centrally. They have mainly moved to charging cost centres which means the traveler invariably picks it up. But hold on a minute. The traveler's primary interest is just 10% of all that. Why should they pay?. And here we have the key issue troubling the industry at this time. Travelers ar looking at their budgets and saying that all the want or can afford is to make a simple booking and travel. Companies are saying OK, but use this TMC and pay their service charge. The traveller either does it grudgingly or more likely, books through a cheaper means that does not carry these overheads. If nothing goes wrong the traveler wins, at the cost to the TMC and, more importantly their employer. Next time I will tell you about all those cheap (and not so cheap) fares out there.

Thursday, November 15, 2012

The Mechanics of Booking Business Travel - Part 1

Traveling on business is vital to UKPLC and hopefully a pleasant, or passable experience. It takes people out of their everyday lives and awakens many emotions from pride and planning to disappointment and incredulity. Sometimes all of them. A booking and its associated journey does not just happen and there are a chain of stakeholders involved in every decision. The traveller needs to go to his company and justify the journey. The company usually goes to a TMC (travel agent) to make the booking and the TMC goes to the supplier who provides the end product. Simple? No. Far from it. Each of these players has their own brief, their own methods and, importantly, their own objectives and it is these important elements that few people truly understand. For most travellers it is straightforward. They want to travel at a sensible time, at a very competitive price and they want their tight budget to stretch across the whole year. They also hold a rational view that says why pay for something I can do quickly and cheaply myself. The company wants everything the traveller wants plus a lot more. They want a proper authorisation process and detailed total travel management control of the full booking process plus on-going support for travellers on the move. The TMC wants to do all these things as they depend on the travellers and their employers to pay for their services. They are constantly producing new products and services which they offer, at a price, to their existing and prospective clients. The suppliers? This is the area that has changed the most and the source of greatest ‘misunderstandings’. In the old days they collectively decided to build into their fares a provision for payment to TMCs to cover their expenses. As competition ramped up and new no frills airlines arrived they understandably decided this was a burden they could not carry any more. They set out to change the status quo and now most of the mainstream airlines do not subsidise TMC with commissions. As a result airline fares excluded agency payments and went down and the TMCs looked to their clients to pick up the tab for their cost. This is where the misunderstanding started. Airline costs went down so they were more competitive and they took on their new foe, the no frill carriers. TMCs went to their clients and told them that instead of sharing their commission with them they would now start submitting bills. You see in those days that is what TMCs did. They won clients based on how much commission they were prepared to ‘share’ with corporations. Now they were saying that it would not be subsidising corporate cost by providing a ‘free/profitable’ service but levying fees instead. But never mind because the airlines would be charging less to cover these ‘costs’. Companies had a problem. Travel was relatively low profile as its TMC management was often seen as a profit centre rather than the cost it had become. Many asked their procurement division to make sure they got the best deal out there and meanwhile set about trying to build in this new expense within its budgets. The traveller got a shock. Not only was he being wooed by no frills airlines with big marketing budgets but also being expected to pay a ‘handling’ charge to TMCs who were perceived as being unfriendly to these newcomers. It was not very clear that mainline airline fares had lowered and the value of TMCs were questioned in a much more searching way. Remember what the thinking traveller wanted? I do not think that paying a TMC for services that might not be directly relevant or of value to that person came in to it! What happened next? In my blog next week.

Friday, October 5, 2012

BLOG COMMENT -Hotel branding. What’s it all about?

Quite a few people have been looking at some of my blogs on hotels. Whilst feeling pleased I also asked myself whether I had made myself as clear as possible. In case I haven’t here are some comments that may assist you: Q. What is the point of being part of a recognised hotel brand? A. Best description would be economy of scale and also a statement on standards. No major group is going to accept a substandard hotel into their family and most have a clearly defined ‘vision’ on how they wish to be perceived. This covers everything from furnishings to amenities and marketing to performance standards. Having been accepted in a group the primary benefit is that you become part of a much bigger sales and marketing opportunity. There are central promotional funds (mainly consolidated from members) and greater exposure globally. The TMC world are far more interested in this type of grouping as it reduces the number of people they have to negotiate with. There are different types of hotel groups. Some private owners are willing to have their hotel name changed to the brand and hand over the management of the property to them too. Others go only part way by becoming part of a consortium of like-minded properties. They retain their brand name but market as part of this group. They obviously have to maintain certain standards and contribute financially to the consortium management. There are different levels of consortium with differing standards and requirements. Those that decide to ‘go it alone’ have a very different set of challenges. They may fill a particular niche in their own local market but outside that they are unknown. It all depends how much you value being ‘independent’ and how essential (or otherwise) it is to have a broader reach. If you are unique in that there is a big enough local market where you are a major player now and into the future the good for you. Otherwise you may need to think again. Like most business issues it is all about reputation, supply and demand, and resource.

Monday, September 17, 2012

BLOG COMMENT - Car Hire. Pardon me?

Who truly understands car hire except those who are in the business of hiring out cars? On one side you have the 'premium' companies such as Avis and Hertz and then, well, everyone else! Unlike airlines the car hire companies offer the same directly comparable means of transport but at different prices. Why? How? After many years in the TMC business I still haven't a clue. Well not really! I expect the bigger companies are global and have a bigger inventory but should they cost so much? OK, so they can (or could) afford to pay middle men incentives to promote them. And they could always leverage their coverage and reputation but even so the price gap is simply too high. So what are they doing about it? I guess they are doing what everyone else is doing i.e. reducing their overheads and becoming more competitive. Or are they? Who knows? Car Hire has started to shift away from travel procurement anyway. Good job too if everyone else understands as little as me.

Thursday, September 13, 2012

BLOG COMMENT - Branson's Bile

Submitted by Mike Platt on Thu, 2012-09-13 16:59. It is regretable that Richard Branson seems to have thrown all his toys out of the cupboard over the West Coast rail service. I know he can be petulant but this is taking it to extremes. To my mind the process went that the government went to tender, people bid, bids were evaluated and the successful candidates notified. Quite stanard and quite reasonable. Now I know the government ties itself up in rules and regulations which are further exacerbated by European legislation and this is what I presume Mr Branson is trying to manipulate. I personally have been through all this during the MOD travel tender and, although they thought about it, none of the other contenders considered they would gain in the long or short term by formally objecting to the process. For once I am four square behind the government on this. The fact that the man is Richard Branson should not be enough to drive anyone into a U-turn on a decision based on price and service. If they fail? Well then a review might be necessary and MR B will have his chance again.

Monday, September 10, 2012

BLOG COMMENT- Off the rails

Selling rail tickets is a real pain....if you are a TMC. First there is the illusion that rail is cheap and second, the illusion that it is easy! I swear it would be easier to accurately predict the weather than consistantly find low prices in peak periods! Poor old TMCs have to provide this service if they wish to offer a full 'one stop shop' package of products. There is no point in saying you will provide lucrative air products and then suggest they do what they like with rail. It just does not fit and invites segmentation of all services. Meanwhile their online rail booking specialist 'partners' sit like vultures on the sidelines ready to zoom in after the kill. These operators such as Trainline and Evolvi in Europe have set up their services to support direct sell at a price. TMCs can only sell at that price plus some. Each tries to negotiate what that 'plus' will be and uses their current 'one stop' offering as a compelling bargaining chip. And the traveler? I can here him now."What,you expect me to pay these people a fee for a RAIL ticket? I can get what I need at the station". They have a point, they can get it at the station if they have the time/inclination to search for it. Rail commision used to pay for a lot of this but that too is diminishing. Oh what joy is net pricing. Then you have the American buyer with their fascination for transaction fees. In the USA most travel is by air but when they buy in Europe they seem to get amnesia over the subject. The travel type percentages are radically different here but they really do not recognise this as an issue. It is. Transaction fees work in the USA. In Europe they don't. The European market is crawling with these fees but they do not really work and TMCs find all sorts of ingenious ways to get round them. Everything from declaring rail bookings as 'free' but hiking air rates to compensate or perhaps outsourcing rail to an online self book service (at higher rates)and charge a small ticketing fee. Somebody really has to do the Maths here and either pay up centrally or give up on your TMC all inclusive service.

Sunday, September 2, 2012

BLOG COMMENT - TMCs (Agents)

The vast majority of TMCs (even the larger ones) still rely heavily on supplier income despite what they may say. Could you survive and thrive on what you pay them? I don't think so. There are ways and means now to get the definition of these 'incentives' changed so they are not included in any corporate deal. Agents have needed to do this in order to fund central and associated costs plus earn sufficient ROI.

Wednesday, August 29, 2012

BLOG COMMENT - Government Buying

I wonder why it is that Governments buy so very badly? Is it that they want to be so straightforward and politically correct? Or is it that they know no other way to buy? I played a major part in winning an enormous UK government contract and I still persuade myself that I do not want the answer. I am as near as you can get into being in denial as you can without being blatant about it and it makes me feel bad. The process is difficult. In fact, when you get the invitation, the first thing you feel urged to do is throw it in the bin. Why? Because it is so frighteningly 'open' that it discourages one from bidding in case you expose all your benefits to competitor scrutiny. So bad that you fear that following such a track will lead to ultimate demise! You see you have to bite the bullet and bid. Yes, they have processes and yes, they do have disclosure laws but YES, there are ways around this. Governments are complex and very political. they need to be seen to be following processes despite their fear of ridicule, which is why you need to feed them what they need rather than what they want. So bid with impunity. Just provide with integrity. Then you will be OK.

BLOG COMMENT - Buyers and airlines

The Bald airline facts about business travel. 1/ In the main companies will not mandate travel i.e. they will not say ‘you must use this airline’. They will ask you to but very rarely will they mandate it. It is not in global company nature to do so. 2/ It is practically unheard of for corporations to insist (and follow through) on their travellers using their loyalty miles for business purposes. This has a bearing on fact no 1. 3/ If a corporation is told by a national airline that they no longer have a deal then at least half of their travellers will still fly on that airline. 4/ Buyers may bluster and dictate to airlines but they seem unable to do so in their own business. Procurement is very low in the political pecking chain of any corporation. Internally people may endorse procurement tacitly but not authoratively. 5/ Whilst this situation remains it will be very difficult and perhaps foolhardy to direct connect with just one major airline. I wonder how long it will take before somebody calls the buyers bluff.

Wednesday, February 15, 2012

A Travel Policy’s Biggest Barrier

What is the biggest issue that stands between a policy and its successful delivery? Is it a lack of knowledge or ability in order to create one? Is it uncooperative or unable suppliers or intermediaries? Is it poor uptake or availability of appropriate technology systems? Or is it simply that end users either cannot or will not comply with edicts and have ways of getting around them?

Depending on your own experiences you could say one, some or all of the above but I think you might be missing something even more important. What is this something? It is what I call the three ‘P’s of internal Politics, Procedures and Processes and these have nothing to do with suppliers, intermediaries or individual travellers.

I have seen so many companies invest huge resources and money to create detailed and potentially rewarding travel programmes only to waste much benefit due to the three ‘P’s. Many of them choose not to identify this as the cause as it would not be considered ‘Politically’ correct to do so especially as the issues usually start at board level. A shame really as board level is where any rectifying needs to start.

So what am I actually saying? I believe that internal politics, inflexible procedures and lack of communication processes are the biggest road blocks when it comes to the delivery of a negotiated and delivered travel programme. I am also saying that non compliant travellers are not the biggest villains, it is more likely the messages they are receiving (or in some cases not) from much higher up the business chain of command.

Taking a closer look at any company’s board you can see why problems could occur. Rather like a herd of elephants you have the strong patriarch and around him a chain of command with different interests and abilities. Again, like any herd there is a fair amount of head butting and scheming going on. They all represent different interests from finance to sales, operations to procurement and some hold more sway than others.

Eventually these ‘band of brothers’ agree a policy. But do they really? You can be certain that there will be winners and losers but when it comes to something as emotive as travel they seem less inclined to feed their solidarity down the line. In some areas there can be a visible lack of zeal and that is all it takes to undermine a policy. Particularly when there are so many practical ways of getting around it.

Many companies end up with a policy that has been presented by procurement who are by no means top dog (or elephant!) at the board table, which is not satisfactory to all and then they have to communicate it to a sometimes incredulous work force. This is where we come to the second closely linked ‘P’ of procedures. Who is allowed to say what to whom and what are the ‘P’ for processes for doing it. How much can you or can’t you say about your decisions? How much should you justify them? How much should you mandate them?

Let us say those wise old elephants have at least given tacit support to the policy. Who is going to sponsor it and keep on the agenda as the process develops? Who is going to go to senior directors and ask them to pull their folk into line? How are those messages going to transmit through a company that, possibly, apart from payroll has no appropriate method for these types of communication?

My message to corporations is a simple one. Sort yourself out at the top. Put into place procedures and processes and only then consider the creation of a policy that is going to be committed to and enforced across the whole employee base. This will save you more than any supplier or intermediary will.

Friday, January 13, 2012

CONTENTS

(To locate entries scroll down this page or through appropriate month shown under 'Blog Archive' on right hand column)


COMMENT

FEB A Travel Policy’s Biggest Barrier
JAN Low Cost Airlines - honeymoon Over?
JAN Travel Supply Chain Intelligence
JAN ASK me a QUESTION
DEC A Christmas Message
NOV A London Airport Solution?
SEP So Will Airlines go Direct Connect or Not?
SEP A Distribution Prediction
AUG Do we need another Industry Association?
JUL What the Customer Really Wants? – Part 1
JUL Who is the customer around here anyway?
APR Can TMC Brain Power Still Save Money?
MAR Combined Airline Deals – Good or Bad?
MAR Travel Evolution is not just about Technology – Right?
FEB Travel Services – Buying is just the beginning.
FEB Anybody Understand the Corporate Hotel Market?
FEB Getting back to basics with business travellers
JAN What happens when TMCs become GDS
JAN Better to never have something than see it taken away?
JAN The Evolution of Air Distribution – The Story so Far
JAN What does a hotel brand really mean?
JAN Direct Connect – The first significant skirmish in a long campaign.
DEC Loyalty Cards – What value?
DEC Christmas Distribution Story - 2
DEC A Christmas Distribution Story
DEC You don’t get ‘owt for nowt’ in travel distribution.
NOV BA dispute – Pride and promises
NOV GDS/Airline issue. Coming to a head?
OCT A Take on AA Distribution Issues
SEP Data Provision - Sounds Easy?
SEP Just how much would you Disclose?
AUG Can TMCs Really Influence Business?-Switch selling...
AUG Travel Compliance – So very easy.
AUG Can TMCs Really Influence Business? – Deals
AUG Can TMCs really influence business?
JUL Why small is becoming big in Business Travel.
JUN A different approach to TMC negotiations
JUN Global Travel Programmes – Delivering?
MAY Airlines and Travel Management Companies (TMC)
APR Airline marriages? Call for Jerry Springer.
APR Travel and the Environment
MAR Do academics understand the real world
MAR Is Government Buying Wisely?
MAR Who should buy travel? (Part two)
FEB Who should buy travel? (Part one)

Low Cost Airlines - Honeymoon Over?

The other day I spoke to a friend who had always been a massive supporter of European low cost/no frills airlines. He looked pretty annoyed and moaned about the fact that many of the deals that used to be around no longer exist. He also could not understand why he now has to do a lot of the work for them such as online check-in etc yet pay for almost every extra you can think of. Why, he said should I do all the work yet more often than not have to pay an administration fee.

It seems to me that more people than just my friend are falling out of love with these airlines. One person put it quite emotionally by saying he felt ‘betrayed by these so called ‘people's champions’. Having been in the business for many years I was surprised that folk could believe that these airlines were working in anything else but self interest but I guess if one looks at some of their past marketing and newspaper publicity one might understand.

I have my own views on this sector of the market and, as he asked my opinion I gave it. This is what I said:

OK, this is how I think the low cost airline model works:
They start a route on the stack them high and sell them cheap basis. They cut their costs to the bone and undercut the prices of any competition from the big boys. This works for a year or two until they have got hold of as many passengers they can on that route. Then their problems start.

You see, like all business they need to generate increased year on year profits but where is that increase going to come from? After all, their costs have already been stripped to the basics. They struggle to increase passenger numbers because they have already cornered their share of the market. Also this share is being attacked by the major carriers who have adjusted their prices to compete on the same ‘net plus extras’ model.

So the only way to please their investors is to enter new markets (they are already established in the best ones) and get more money from existing passengers. How do you get more money from them? Well you check your stats, booking patterns, peak flights and increase fares on those services that are popular (good timings etc) up to the highest level they think they can get away with. Then they look elsewhere amongst ancillary costs such as credit card fees, airport service 'frills' and start charging for them. When the authorities catch up with those they feel unacceptable they move these charges to a grey area described as 'admin fees'. On top of this they try to sell their customers non airline services like car hire and hotels and then go to these suppliers and negotiate special commissions for giving them business.

So the issue is that they have to keep growing in order to keep their share price up. Great in the old days but hard now they are established. The only good thing about this is that, as a result prices are finally becoming much more transparent so you can choose what you are going to get i.e. you can pick poor timings on less popular routes and still pay a low fare. As mentioned earlier these companies sell through big time marketing campaigns which mean they will still offer the occasional mega headline grabbing deals here and there.
The thing to remember is these airlines work on the basis that they do not want you to pay less than the maximum you are prepared to spend and they are finding out what that sum is in all sorts of clever ways. One could argue they are more pirates than charities!

Thursday, January 5, 2012

Travel Supply Chain Intelligence

It has never ceased to surprise me how little time the chain studies its partners, clients and perceived competitors. They are all intertwined in activities right the way from the traveller to the front end supplier yet history demonstrates that they do not understand the people they depend on or those they want to replace.

A good example would be say an airline that wants to replace a TMC or GDS which is quite topical at the moment. Now the black and white capability is there in the shape of enabling technology but the real world is in colour and of different shades and complexity. Technology systems are the beginning of the road not the end of it, an enabler not the solution. But some folks just plough on anyway and seem genuinely shocked at the push back

I am convinced this happens because the players have not set the right priorities into understanding all of the things the other components do. Instead they blindly follow their ‘ideal scenario’ strategy and attempt to bludgeon it into the marketplace. Sometimes this just might work in parts but the risk of fall-out is great with the potential of lasting commercial or competitive damage. They should also realise by now that the other members in the chain are anticipating their moves and building detours and opportunities around them.

These thoughts are not here to try and dissuade the chain from evolving and diversifying, after all that is progress. What I am saying instead is that this industry needs to understand itself and its component parts a lot clearer. For example, has any airline ever taken the time (and at the right level) to examine what it’s ‘partners’ do in detail? To sit down and better evaluate the chain reaction of planned strategy and thereby have answers to the issues that will surely arise? They might even find ways that benefit, or at least soften the blow to the rest of the industry.

The way some current players go about change is simply not savvy. They know what they want and charge at it, usually with disappointing results. A bit more thought, understanding, broader knowledge and early dialogue just might form a better basis for progress. And for heavens sake remember that the world has multi markets, technologies languages and cultures. Head offices in their ‘ivory towers’ in the USA, UK, Germany and The Far East can pontificate and plan as much as they like but to little avail if their decisions simply are unworkable elsewhere. Instead they can do major damage.

So my plea is to stop, think, research a great deal, understand the players/competitors better and look way beyond the first hurdle and towards the end-game. I still maintain that the major industry bodies should be driving this understanding. Perhaps if they had less back slapping, money making, selling type conferences and more distribution, supply chain summits they would make a bigger contribution.

Tuesday, January 3, 2012

ASK me a QUESTION

If any or all of you have any questions that you think I might be able to answer then do not hesitate to ask either via the response facility below or direct to me on mike.platt@mpaassociates.co.uk

If I can I will give an educated and useful response. If not then I will tell you so.
Should you not want to share a discussion then simply email me and mark it as confidential.

No snags, no advertising no nothing. I just love travel and still want to contribute something if I can.