Asia can lead corporate travel innovation – ACTE chief

Countries in the Asia Pacific region could lead global innovation in the corporate travel industry, a senior industry figure has told Travel Daily.

Speaking in a telephone interview from Chicago, Greeley Koch, executive director of the Association of Corporate Travel Executives (ACTE), said that countries like China and India are well-placed to lead technological development in the corporate travel sector, as they can develop solutions from scratch, rather than having to transition from older systems.

“Many Asian countries are not burdened with legacy systems,” Koch told Travel Daily. “So [in terms of innovation] countries like China and India are likely to have a sharper curve than other regions – they will go from having no systems in place to developing for smartphones and tablets.

“In the past, innovation was driven from Europe and the US; in future Asia could pass on its technology to the West,” he stated.

And this development of new technology was identified by Koch as one of the main trends currently affecting the corporate travel industry. The availability of Wi-Fi especially, is becoming the major factor. Koch noted that having a good wireless internet connection is now the most important factor for corporate travellers when choosing hotels.

“Travellers are now demanding Wi-Fi. Before it was a wired connection, but the prevalence of tablets and other mobile devices means that travellers now need wireless. Not just to work, but also to keep in touch with family via Skype or FaceTime,” he said.

Koch added however, that in-flight Wi-Fi is still “a mixed bag”, with many airlines’ connections still unstable. He also suggested that airlines are “unlikely” to follow hotels in offering free Wi-Fi, due to the ancillary fees that can be generated from the service. “Perhaps we’ll see it (free Wi-Fi) in premium cabins in future, but the way everything is unbundled now it’s unlikely [to be free across all cabins].”

The ACTE head also noted that corporate travel suppliers are largely following their own paths, with regards to the services they provide, rather than following a broader trend. “Some airlines are taking out business class seats and putting in a few rows of premium economy, while others are adding for business class – there’s no fixed approach. In hotels we’re seeing some budget hotel amenities, like free Wi-Fi, moving up-tier. The economy and corporate travel policies will dictate how suppliers develop their products.”

And in terms of corporate travel policies, Koch said there is no longer a “one-size fits all” programme for companies.

“Companies have to take a look at what they’re doing – they have to work out what is going to work for them. More low-cost solutions are available now, but companies have to weigh this off against things like flight times and connections. The key is to work out how to boost productivity.”

And in the Asia Pacific region, the range of corporate travel policies and programmes is very diverse, according to Koch. “There are well-established programmes [in some countries] with tools and technology in place. Then in other countries, companies don’t even have a managed travel programme.”

But Koch said ACTE is expanding rapidly into Asia Pacific, to help its members and to help educate the corporate travel marketplace in countries like China and India. With its help, and with the development of new technology, Asia Pacific could well lead the global corporate travel industry in the years ahead.