Annual and bi-annual association meetings for doctors, insurance experts, dentists, scientists and other professions are increasingly important because such events take place regardless of global economic conditions. Before, during and after these events, association members spend large amounts of money on shopping, travel, dining and entertainment.

“Such discretionary spend is keenly sought-after by convention and visitor bureaus and national tourism offices,” said Nancy Tan, Managing Director of Ace:Daytons Direct, one of the initiators of the Association Day, which is hosted by Messe Berlin (Singapore). ASAE, The Center for Association Leadership and Suntec Singapore are key collaborators. Association Day is supported by ICCA and the Singapore Exhibition and Convention Bureau.

Association Day, a first-ever event of its kind in Asia, is free to all invited association executives. They can attend sessions such as , “Challenges and Opportunities for Associations in a Changing Business Environment,” “Using Your Meetings to Promote the Growth of Your Association,” “What Global Meeting Planners Look for When Bringing their Meetings to Asia,” “How to Improve the Financial Outcomes of Your Meetings,” “How the Pharmaceutical Code Affects You and Your Meetings,” and “Future Trends: Asia & The Global Meetings Industry.”

“We promise that association industry leaders will tell it like it is,” said Nino Gruettke, Executive Director of ITB Asia. “Association Day is all about passing on insightful, practical information that attendees can use in their own quest to attract or service association events.”

Speakers and moderators interacting with the audience with that objective in mind include Robin Lokerman, CEO, Institutional Division, MCI; Nancy Green, CAE, Executive Director, National Association for Gifted Children; Greta Kotler, CAE, Chief Knowledge Officer, ASAE; Dr. Alfred Loh, CEO, The World Organization of Family Doctors; Helga Severyns, Senior Director, (UITP) The International Association of Public Transport; Mike Williams, Senior Consultant, Gary Grimmer & Company; Oliver Chong, Director, Conventions & Meetings, STB; Pieter Idenburg, CEO, Suntec Singapore International Convention & Exhibition Centre; Noor Ahmad Hamid, Regional Director Asia Pacific, ICCA; Quirine Laman Trip, Group Director of Business Development, Kenes Group; and Marcel Vissers, Editor in Chief, Headquarters and MIM Magazine, to name just a few.
Apart from 1.5 days of practical insights, and full access to ITB Asia, registration for Association Day includes a networking evening at Resorts World Sentosa on 21 October. Trade delegates wishing to attend can find out more and register at http://bit.ly/bmSHzS.

Association Day also has a hosted association buyer programme for organisers of association events who wish to find out more about destinations, hotels and services in Asia. Email: assocday@itbasia-delegates.com.

Trade professionals who are not eligible for hosted buyer status for Association Day or ITB Asia, can benefit from the ITB Asia Early bird for trade visitors until 13 October. Visit: www.itb-asia.com/tickets.

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The aim of this study was to provide a better understanding of the operational cost structure of Online Travel Agencies (OTAs) and to identify opportunities to optimise their performance. The main conclusion was that although the European online players have improved and are closing the gap with their US counterparts, there is still room for improvement in terms of efficiency and yield of product mix.

The study was conducted with the sample of five online mid-sized travel agencies from Scandinavia, France, Germany and the Netherlands. The report also identifies 4 key drivers to improve the efficiency of the studied European online players and to increase profitability:

Revenue Diversification: cross selling non-air
The sampled European online agents need to focus more on marketing non-air products, which provides a higher margin (12.8% vs. 6.6% of the margin on air bookings). While non-air products represent 76% of traditional leisure travel agents – and nearly 50% of US OTAs’ revenues according to PhoCusWright, non-air only accounts for 14% of the European OTAs' gross sales.

Improved shopping experience
The travellers’ overall shopping experience could be enhanced by more relevant content, so that the travellers´ visit to an OTA website can provide all the elements of the trip. As conversion rates for the studied OTAs are very low, they will need to stand out by offering savvy travellers an experience that will make them want to book more and increase loyalty. Technology needs to be adapted to respond quickly to customer demands and trends.

Automation
This is an area where the European online travel agencies have seen a lot of improvement in past few years; nonetheless it continues to be a key area where costs could be lowered. Call centres, fulfilment, and marketing in particular are key areas where increasing efficiency and automation can show immediate benefits.

Marketing costs
Accounting for an average of 54% of all OTAs expenses and 1.22% conversion rate through online channels, marketing expenditure proves to be a large and inefficient expense. This together with the lack of loyalty programs and CRM solutions, points to the fact that acquiring new & retaining existing customers is a key area for improvement.

“European online agents have shown resilience in the last couple of years, increasing their revenues year-on-year despite the tough economic downturn. They now need to move a step forward to transform this positive trend into revenue opportunities,” explains Stéphane Durand, Director, Online and Leisure, Amadeus. “Our unique blend of content and best-in-class technology has resulted in some of the most innovative solutions that have helped online travel agents worldwide to improve their efficiency and increase their profitability.“

“As one of the key technology providers for the travel industry, Amadeus understands that an improved and deeper understanding of its customers is needed in order to anticipate and help them to reach their business goals. This latest research, that is meant to serve online travel agents to improve the way they do business, showcases Amadeus commitment to the European online travel sector” commented Herman Goyanes, Hermes Management Consulting partner.

About the study
This report shows the results of an independent research study of five mid-sized Online Travel Agencies (OTAs) conducted in Europe by Hermes Management Consulting (Hermes). The research has been carried out using an Activity-based costing (ABC) approach. Activity-based costing is used to identify, describe and assign costs to business activities, and to report on the operations of OTAs. Since ABC analysis determines the ‘true’ cost of a product or service, it is more effective at identifying opportunities to improve business processes than traditional accounting. During the project the financial data of the participating OTAs was reviewed and their business processes were closely examined, thus allowing the main cost drivers to be identified.

The sample is composed of five mid-ranged OTAs from France, Germany, Sweden, Norway and The Netherlands. The OTAs represent a mix of local, regional and pan-European players each of which, on average, generates 308,000 tickets. A ticket is composed of around 2.2 air segments.

The participating agencies represent a fair picture of the European OTA landscape. Most of the participating OTAs operate in one or two markets, targeting essentially leisure customers. Similar reports can be found at www.amadeus.com/showmethevalue

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Closer cooperation between Lufthansa and Germanwings and a comprehensive package of measures will provide additional travel benefits for the customers of both airlines. 

Starting on 1 September 2010, Miles & More members will be able not only to exchange miles on all Germanwings flights but also to collect award miles. From then on, the same fixed mileage amounts for individual booking classes that currently apply to Miles & More members on all Lufthansa flights will also apply on Germanwings flights. For a domestic flight, for example, Miles & More members will receive up to 1,000 miles and for a flight to a Germanwings destination in Europe up to 1,250 miles, depending on the booking class. Since December 2009, Miles & More members have been able to redeem their miles for flights across the entire Germanwings route network. For 30,000 miles they can take off to a destination within Europe, and for 25,000 miles they can book a domestic flight with the air-line. In addition, frequent flyers with a Miles & More HON Circle or Senator status who are travelling on a Germanwings ticket can now use Lufthansa’s Business and Senator lounges in Germany. 

The Germanwings frequent flyer programme, the Boomerang Club, will continue to exist independently of the Miles & More partnership. Before each flight, passengers who have both a Miles & More and a Boomerang Club card will be able to select the frequent flyer pro-gramme in which they wish to collect miles. Further information can be downloaded from www.miles-and-more.com or www.germanwings.com.

“Thanks to the closer collaboration with Germanwings, our Miles & More members will have even more opportunities to collect and redeem award miles,” says Thierry Antinori, member of the Lufthansa German Airlines Board with responsibility for Marketing and Sales. “We will continue to pursue our strategic approach so that both airlines can develop their product and their flight schedules independently. At the same time, however, we will be able to offer our joint customers significant added value.”

In the next phase of the cooperation, starting from the beginning of 2011, interline (i.e. com-binable) fares will be available for Lufthansa and Germanwings flights. This means that travel agencies and Lufthansa sales points (call centres and ticket counters at the airports) will be able to book and sell an outbound or return flight with both airlines in a single transaction and from a single source. Customers of both airlines will profit from greater flexibility with regard to travel and booking options and will save time and effort when making their travel arrangements. 

Lufthansa and Germanwings are planning to cooperate in the corporate travel segment from the beginning of 2011 so that they can extend the benefits of their partnership to their corporate customers.

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SpeedRFP enables meeting planners to enter their organization's information and details about their prospective meeting just once using a standardized format at www.dolce-speedrfp.com and then submit that information to the Dolce property of their choice, according to Barry Goldstein, Dolce chief revenue officer. "Meeting planners traditionally have considered the RFP process to be time-consuming and repetitive," he said. "With SpeedRFP, they establish an online account and keystroke the specifications for each meeting just once. SpeedRFP enables planners to send RFPs to multiple vendors without re-entering data. Planners also use SpeedRFP to manage their RFPs."

Kelly Foy, chief executive officer of Elite Meetings International Inc., the company that developed and markets SpeedRFP, said "meeting planners have been asking for a RFP management system like SpeedRFP for years." The product is being offered to hotel chains, individual properties and convention and visitors bureaus, among others. "Our objective is to make SpeedRFP the industry standard for meeting professionals," he said. "We anticipate many recognizable hotel brands in the near future will join Dolce in incorporating SpeedRFP."

SpeedRFP soon will be integrated with MeetingBroker, a lead management software developed by Newmarket International that forwards RFPs to the sales force automation systems of hotels, resorts and other meeting venues. "With the MeetingBroker integration, we expect to see mass adoption of SpeedRFP by large hotel chains," Foy said. In addition to streamlining the work of meeting planners, SpeedRFP benefits hotel brands like Dolce because it is integrated seamlessly into the brand's central reservations system, does not require costly software upgrades, and exposes the hotel brands to more prospective meetings clients, he said.

SpeedRFP will save Dolce time and money by incorporating RFPs in hotel property management systems and avoiding commissions and transaction fees, according to Goldstein. Dolce expects to expand its use of SpeedRFP to weddings and other social events.

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More than 100 executives (one third of Association Day attendees) responded to the survey, three-quarters of whom organised or were about to hold meetings for more than 500 delegates in 2010, and over 15% of whom organised events of over 5,000 delegates. An impressive 31% reported higher actual or planned attendance for their 2010 events than in previous years and 46% indicated no change, with only 14% reporting slight reductions and fewer than one in ten reporting a "significant" fall in numbers. However, the financial pressures are clearly continuing: only 20% reported higher income from sponsors and exhibitions, 40% showed no change, but the remaining 40% suffered falls in financial support from this side of their budgets.

When asked about their projections for 2011, these executives painted an even more positive picture: almost one-third of associations will be running more meetings in 2011 than in 2010, with only 8% planning to organise fewer; and a massive 53% are projecting higher attendances than in 2010, compared to a tiny 6% who expect their delegate numbers to fall. This is the most positive forward forecast that these regular surveys have ever produced.

Martin Sirk, ICCA CEO responded to the results: "These results provide further powerful evidence that the international association meetings sector is holding firm through these economically rocky times. Like everyone they're faced with more conservative budgeting by their corporate sponsors, but their key constituents, the association members who attend their major meetings, are proving once again that they are loyal and willing to invest their time and money. Combined with ICCA's own statistical research showing the continued creation and growth of new association meetings, these results should reassure every destination and company targeting this sector that they have made the right strategic decision."

Carina Bauer, IMEX Group CEO added: "International associations will continue to be a key hosted buyer sector for IMEX and for our new IMEX America show in 2011. We understand just how strategically important their meetings are to our exhibitors, especially during recessionary or turbulent times, and we are committed to invest in their customised programmes at both shows to make sure their numbers continue to grow strongly. IMEX Association Day 2010 attracted the largest ever gathering of international association executives to take place in Europe, and we intend to keep breaking this record, year after year."

More than 100 executives (one third of Association Day attendees) responded to the survey, three-quarters of whom organised or were about to hold meetings for more than 500 delegates in 2010, and over 15% of whom organised events of over 5,000 delegates. An impressive 31% reported higher actual or planned attendance for their 2010 events than in previous years and 46% indicated no change, with only 14% reporting slight reductions and fewer than one in ten reporting a "significant" fall in numbers. However, the financial pressures are clearly continuing: only 20% reported higher income from sponsors and exhibitions, 40% showed no change, but the remaining 40% suffered falls in financial support from this side of their budgets.

When asked about their projections for 2011, these executives painted an even more positive picture: almost one-third of associations will be running more meetings in 2011 than in 2010, with only 8% planning to organise fewer; and a massive 53% are projecting higher attendances than in 2010, compared to a tiny 6% who expect their delegate numbers to fall. This is the most positive forward forecast that these regular surveys have ever produced.

Martin Sirk, ICCA CEO responded to the results: "These results provide further powerful evidence that the international association meetings sector is holding firm through these economically rocky times. Like everyone they're faced with more conservative budgeting by their corporate sponsors, but their key constituents, the association members who attend their major meetings, are proving once again that they are loyal and willing to invest their time and money. Combined with ICCA's own statistical research showing the continued creation and growth of new association meetings, these results should reassure every destination and company targeting this sector that they have made the right strategic decision."

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Founder of legendary hotels including Sun City and the Atlantis resorts in the Bahamas and on the Palm Jumeirah in Dubai, as well as luxury hotel company One&Only Resorts, Sol Kerzner will be interviewed by Graham Boynton, Group Travel Editor of the UK’s Telegraph Group Media.  During their discussion on the stage, Graham will seek to uncover Mr Kerzner’s views on what has changed in the world of luxury travel during his fifty-years in the industry – as well as what he believes the future holds.  This conversation will serve as the finale of the ILTM Ultratravel Forum on Monday 6 December.

ILTM features the world’s definitive collection of luxury experiences and prestigious luxury travel products.  Following the great success of the inaugural event at last year’s ILTM, the Ultratravel Forum brings together a heavyweight panel of the industry’s movers and shakers – including many Presidents and CEOs of top international luxury travel suppliers and buyers – to discuss the key issues facing the industry today.

The moderators of the two discussion panels at the Forum prior to the interview with Mr Kerzner will be Graham Boynton, who is also Editor of Ultratravel magazine and Klara Glowczewska, Editor-in-Chief of Conde Nast Traveler in the US.

“We are absolutely delighted that Sol Kerzner, a major figurehead of the international hotel industry, is to be guest of honour at this year’s ILTM. 

“It is also particularly pleasing that ILTM attracts such a prestigious list of panellists representing a cross section of the international luxury travel market.  It is rare to bring together in one place, on one stage, such a distinguished group of industry leaders,” said Debbie Joslin, Group Exhibition Director ILTM.

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At a time when China has taken the world’s second largest economy slot, the bespoke report predicts significant growth potential, with increased numbers of events using a wider range of destinations.

Key results from the research:

Buyers research

• 396 respondents, 67% based in China, 60% corporate, 7% associations/’not for profit’ and 33% third parties
• Increase in volume of events organised in China to mean of 5.6 events per buyer from 3.7 last year, events overall up to 4.8 per buyer from 4.0
• Numbers of attendees for events in China are up to 200 from 135 last year
• Mean duration for events in China up to 5.5 days, compared to 4.4 days last year
• Lead times have shortened to 5.2 months, compared to 6.8 months last year
• Growth in volume of events predicted to continue with 64.3% of buyers expecting to organise more events in China in next twelve months
• Mean annual budgets for organisers based in China is RMB 2,318,900 (up 34%); for international organisers is US$1,802,601 (down from US$2,425,000). Average 42.5% spent on events in China
• International air routes and the visa process have become more important issues for buyers while security and safety are now far less of a concern
• Satisfaction levels with most recently used destinations are high with a mean of 3.8 (out of 5), for the majority this relates to Beijing
• The economic climate and pressure to reduce costs remain a key concern for the next twelve months, despite the increase in budgets anticipated
• Buyers remain optimistic with 74% predicting an increase in the volume of events they organise and 51% predicting an increase in budgets for individual events
• 75% of buyers think World Expo will have an impact increasing business tourism in China.
  

Suppliers research

• 223 respondents, 78% based in China
• 87% of respondents said key clients were based in China
• For 64% over 50% of their business is taking place in China, with clients predominantly corporate (57%) and from a wide range of industry sectors, in particular pharmaceutical/medical
• Corporates remain the sector suppliers are trying to attract business from in future although there is more focus on ‘not for profit organisations’ this year
• Suppliers view capacity and quality of meeting facilities as important (more so than the buyers) and the overall appeal of destinations. Only 5% of supplier respondents were from airlines, which may explain their low ranking of international air routes as an important factor, a very different view to the buyers
• 75% of suppliers agreed with buyers that the volume of events will increase in future and 58% are increasing their promotional budgets
• 65% believe that China and Asia offer most growth opportunities for the future, with 51% focusing on the Yangtze River Delta.
  

Sally Greenhill, Managing Director of The Right Solution Limited, who compiled and independently analysed the report commented: “We have had a very positive response to the survey with 396 buyer respondents contributing this year, the largest number since the survey began four years ago.

“There is no doubt that this is a particularly exciting time for all those involved in the meetings industry in China.

“China, in light of their growing economy, is now becoming a compelling destination for meetings and incentives, offering a broad and wide range of experiences; not surprising bearing in mind the country has one of the oldest cultures. All indicators point to continued growth from both within China and outbound.”

Jeffrey Xu, CIBTM’s Exhibition Manger concluded: “Our bespoke research continues to play a vital role in gathering data which does not exist elsewhere, helping those within the meetings industry in China to develop and grow their businesses.”

The 4th CIBTM China and Asia Meetings Industry Research Report 2010 can be found at www.cibtm.com.

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As well as providing its expertise and support in groups and meetings, this collection of independent hotels will also includes one free room upgrade per 10 rooms booked, complimentary internet access for all guests and a welcome cocktail.

Conference organisers are spoilt for choice with the hotels on offer – everything from large business hotels in Las Vegas, to intimate historic Portuguese palaces, world-leading golf resorts in Spain and modern, hi-tech facilities in China.

Participating hotels include Parco dei Principi Grand Hotel & SPA in Rome, The Royal Horseguards in London and Hotel Schweizhof Luzern in Switzerland and bookings should be taken before the end of February 2011.

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NBTA President & CEO Craig Banikowski, CCTE, C.P.M., CMM, said, “The general consensus at this year’s Convention was clear – business travel is coming back! Many attendees reported increasing levels of travel, and they came to the NBTA Convention to learn about the latest industry trends in a new economy and network with the largest gathering of corporate travel professionals in the world. Corporate travel drives economic success, and when travel professionals are making connections and making deals, it’s a sure sign we’re on the way to recovery.”

Over four days attendees took advantage of more than 65 education sessions in which industry experts and specialists from all sectors of the corporate travel community discussed business travel growth in a new corporate culture of strategic cost containment. New resources, such as white papers on hotel program metrics and risk management/traveler tracking systems, were offered to Convention delegates, along with reports on the global business travel market, U.S. traveler taxes and corporate travel policies.

At the first-ever Travel’s Value Chain CEO Panel, attendees heard from Carlson Wagonlit CEO Douglas Anderson, Southwest Airline CEO Gary Kelly, Starwood Hotels & Resorts Worldwide CEO Frits van Paasschen, and Travelport CEO Gordon Wilson. The four industry leaders discussed and took questions from the audience on the prospects for business travel in the coming years and evolving business models. The popular Airline CEO session also returned, with insights into the current state of global aviation and hot topics such as ancillary fees and tarmac delays from Etihad Airways CEO James Hogan and Continental Airlines CEO Jeffery Smisek, who discussed the pending merger with United Airlines.

Former U.S. Secretary of State Condoleezza Rich enlightened attendees with insights into current global affairs during the Monday General Session, and Sir Richard Branson, founder of the Virgin Group, spoke in Tuesday’s session about the value of travel, customer care, and the important role of passion in business success. Champion cyclist Lance Armstrong addressed delegates yesterday, sharing his inspiring story of perseverance and achievement despite challenges, as well as improving the world through active citizenship. He also told the audience he believes travel is all about personal interaction.

NBTA’s Banikowski commented, “The world is changing, and travel is changing with it. In discussions this week with industry icons, travel professionals, and leaders in politics, business, sport and social activism, it’s clear that corporate travel is necessary now more than ever. Travel is a ‘must’ to keep business moving forward around the world, and this week the corporate travel community came together to ensure it is accomplished as effectively and efficiently as possible.”

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India Convention Promotion Bureau (ICPB) vice-chairman Rajeev Kohli said the country's share of the meetings market is just 1.1 per cent, which means there is much room for growth. He noted that 87 per cent of events attract from 500 to 1,000 people, a size that India, even with its lack of big convention centres, could easily accommodate. Moreover, 63 per cent of meetings are held during India's lean season from April to September and this could provide the country with off-season business.
 
ICPB chairman and Ministry of Tourism additional director general Devesh Chaturvedi encouraged entrepreneurs and developers to avail themselves of financial assistance schemes for building convention halls. For example, under the Market Development Assistance scheme, incentives are offered to Professional Conference Organisers bidding for international congresses.
 
Chaturvedi said the ministry had identified five to six potential markets where India Tourism offices could step up promotions for MICE.
 
“Incredible India has done very well. Now, we have to market products. Keeping that mother brand, we will go into niches. Here, MICE can come into play.”

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