TRAVELER MANAGEMENT PRIORITIES FOR 2015

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1 PROGRAM REPORTING MANAGEMENT TRAVEL POLICY RESEARCH TRAVEL INFORMATION PROGRAM CONTENT POLICY COMPLIANCE EXPENSE CONTENT RESEARCH PROGRAM TRAVEL MANAGEMENT BOOKING TRAVELER EXPENSE INFORMATION TRAVEL SOURCING MANAGEMENT CARE BOOKING TRAVEL POLICY TRAVELER INFORMATION REPORTING TRAVEL CONTENT BOOKING POLICY CARE PROGRAM INFORMATION COMPLIANCE TRAVEL MANAGEMENT PRIORITIES TRAVELER CONTENT INFORMATION CARE FOR 2015 SOURCING RESEARCH MANAGEMENT CONTENT COMPLIANCE POLICY EXPENSE CARE INFORMATION COMPLIANCE CARE PROGRAM BOOKING MANAGEMENT INFORMATION POLICY TRAVELER PROGRAM MANAGEMENT CONTENT REPORTING EXPENSE CONTENT INFORMATION TRAVEL CARE REPORTING COMPLIANCE REPORTING TRAVEL INFORMATION

2 Executive summary 2015 survey: data and technology are top 6 of mind What does 2015 hold for travel management? As the latest survey* from Carlson Wagonlit Travel (CWT) shows, travel 2and Global meetings economy and events professionals 79% have their fingers on the pulse of industry trends and intend to prioritize 3 Mobile action technology in every area of the 75% managed travel process. This report presents the top trends and priorities revealed 4 Corporate in the survey, social responsibility organized around 69% five steps of the travel continuum. Travel managers expect data security, the global economy and mobile technology to Political be the context three trends most impacting travel 60% management as the year unfolds. These trends influence their top priorities, which include leveraging travel data to build predictive analyses and benchmarks, deploying a fare tracking and rebooking solution, and promoting mobile apps to increase traveler Sharing efficiency economy on the go. 48% These results come from CWT s annual survey of travel managers plans for the Millennials year ahead. travel They behavior were asked to rate the importance of 12 47% priorities for their programs, and this year, they were also asked to rate the predicted impact of 11 market trends (both well established and emerging), making this report CWT s most comprehensive yet. These trends and priorities impact five stages of managed travel, as shown in color IATA's New Distribution Capability in the tables below % Trends and priorities for 2015 Ranking* Trends Respondents Data security 83% Big Data 65% Low-cost carriers 61% Social media 42% How would you rate the impact of the following trends on your program? How would you rate the following priorities for your program? Ranking* Engaging and rewarding travelers for policy compliance through game techniques 29% How would you rate the following priorities for your program? *CWT asked travel managers to rate the impact of 11 trends on their programs (very high/high/medium/low/no opinion), as well as 12 priorities (very high/high/ medium/low/already implemented). The rankings shown in the tables are based on the percentage of respondents who answered very high or high. Regional results Ranking* include country/regional travel managers. PrioritiesIn this publication, travel manager Respondents denotes any professional responsible for the management or procurement of travel, meetings and/or events. Source: Leveraging travel data to build predictive 1 CWT, based on an online survey of 1,113 travel and meetings and analyses and benchmarks 63% events professionals from 515 organizations in 56 countries worldwide in October November Respondents represent a range of industries, including energy, resources and marine, and the U.S. military and government. Each color represents a step of the travel continuum: 2 Deploying a fare tracking and rebooking solution 62% 3 4 Trends Respondents Data security 83% Global economy 79% Mobile technology 75% Corporate social responsibility 69% Big Data 65% Low-cost carriers 61% Political context 60% Sharing economy 48% Millennials travel behavior 47% IATA's New Distribution Capability 46% Social media 42% Program content Travel policy & Travel research & Promoting mobile apps to increase traveler & sourcing compliance efficiency on the go 60% booking Leveraging Big Data to adapt the travel policy 55% Ranking* Priorities Respondents Leveraging travel data to build predictive analyses and benchmarks 63% Deploying a fare tracking and rebooking solution 62% Promoting mobile apps to increase traveler efficiency on the go 60% Leveraging Big Data to adapt the travel policy 55% Streamlining expense management processes 51% Considering dynamic pricing opportunities for hotel sourcing 50% Implementing a door-to-door online booking tool 42% Providing recommendations to improve traveler well-being 39% Managing the hidden costs of travel-related stress 37% Further promoting the travel policy through social media 35% Implementing a virtual payment solution 32% Travel information & traveler care Expense management & reporting

3 This report presents survey highlights for five areas of the travel continuum (including some commentary by region), as well as market moves worth watching and the latest information on related CWT products and services. 1. Program content & sourcing Sourcing of the two main travel categories, air transportation and hotel accommodation, is constantly impacted by evolving conditions. In 2015, low-cost carriers (LCCs) will aggressively increase capacity, particularly in Asia Pacific and Latin America, where surveyed managers expect the impact to be highest. Key market moves to watch include: new medium/longhaul LCC services, the possibility of more transparent ancillary fees in the U.S., a potential drop in airline fuel surcharges, slightly less packed planes, and growing interest in dynamic hotel pricing. Overall, travel spend should increase by 8.6 percent on average, * as highlighted in a joint CWT/ GBTA Foundation report. ** For products and services, look out for: CWT Hotel 360, the most comprehensive hotel offering yet, and across-the-board consulting support from CWT Solutions Group. * GBTA BTI TM Outlook (August 2014) ** 2015 Global Travel Price Outlook (August 2014) 3. Travel research & booking As the offering is expanding for mobile managed travel, so is the expected impact: all regions (especially North America) expect mobile technology to make a big difference in The sharing economy, which has truly taken off in the leisure sector, is considered less important. Likewise, IATA s New Distribution Capability (NDC) is not expected to make waves at the pilot phase, with full-scale deployment most likely in High priorities include implementing fare tracking/rebooking and door-to-door booking solutions. CWT products and services to watch include: CWT To Go TM (one of the most feature-rich managed travel apps available, soon to offer hotel booking), an enhanced CWT Online, powered by KDS, CWT Fare Tracking, and Carla by CWT (a virtual agent currently in beta). 5. Expense management & reporting Overall, the number one priority for surveyed managers is to leverage travel data for predictive analyses and benchmarks. Key market moves include: better addressing data security, using Big Data to improve travel programs (eg, by analyzing traveler behavior) and implementing new virtual card payment solutions. Look out for CWT products and services such as CWT AnalytIQs (data reporting provided as insights), a new CWT global payment solution powered by Conferma, and a fully integrated travel and expense platform (currently being tested). 2. Travel policy & compliance Travel managers, especially those with global responsibilities, are showing more interest in leveraging Big Data to adapt the travel policy. In contrast, social media and gamification remain untapped opportunities, although this may change as companies acknowledge the benefits of communicating about the travel program and motivating travelers to book within it. Other key moves: mandating policy items (especially online booking, advance booking, preferred hotels and lowest logical airfares) and harmonizing policies globally. More attention will be paid to the return on investment from travel, aiming for trips that are long enough to plan multiple meetings. For related products and services, check out: CWT traveler segmentation studies, Travel Gamification by CWT Solutions Group and a revamped CWT Hotel Intel social review tool. 4. Travel information & traveler care Surveyed managers expect a high impact from the political context and corporate social responsibility in Unsurprisingly, the majority intend to promote mobile apps with information alerts and other features that make life easier, safer and more productive for employees on the go. But few managers are planning to promote well-being through proactive advice, although this appears to be an emerging trend in the industry. A number of regulatory changes are worth noting, concerning visa processes (eg, new electronic applications in some countries) and mobile phones on flights. CWT products and services to watch: enhanced safety and security services through ijet and International SOS, the CWT Travel Stress Index, and a new visa alert service with CIBTvisas. CWT 2015

4 1 Program content & sourcing The most effective sourcing strategies are continually adapted to changing market conditions to make the best of the available opportunities. What s coming up in 2015? Read on! Survey highlights* TRENDS Low-cost carriers in Asia Pacific in Europe, Middle East & Africa A higher impact expected in Asia Pacific Ranked #5 #6 #6 in North America #7 in Latin America PRIORITIES Considering dynamic pricing opportunities for hotel sourcing A high priority for 1 in 2 travel managers and already considered by 10% of global travel managers *CWT asked travel managers to rate the impact of 11 trends on their programs (very high/high/medium/low/no opinion), as well as 12 priorities (very high/high/medium/ low/already implemented). The rankings shown in the tables are based on the percentage of respondents who answered very high or high. Regional results include country/regional travel managers. Travel manager denotes any professional responsible for the management or procurement of travel, meetings and/or events. What to watch in 2015 LOW-COST CARRIERS: NEW MEDIUM- TO LONG-HAUL SERVICES Short-haul low-cost carriers (LCCs) are already well established in major travel markets worldwide. Notable exceptions include China, where they represent only 5 percent of the air transportation market. Elsewhere in Asia Pacific, strong growth is continuing, with the creation of 12 new LCCs in this region. The big news for 2015 is the planned launch of new mediumand long-haul flights. For example: NokScoot, a joint venture between Thailand s NokAir and Singapore s Scoot, should debut flights from Bangkok s Don Mueang Airport in the first quarter of A new Lufthansa brand, Wings, resulting from the merger of Germanwings and Eurowings, will fly in partnership with SunExpress from Cologne Bonn Airport by the end of the year to destinations in Florida, South Africa and the Indian Ocean. Iceland s WOW air has announced flights between Europe and two U.S. destinations (Boston, Washington). MORE TRANSPARENT ANCILLARY FEES? For years, corporate buyers and consumer advocates have been calling for more transparency in ancillary fees to enable a fair comparison of total airfares and improve control over spending. In 2015 (most likely in May or June after considering stakeholders input), the U.S. Department of Transportation (DOT) is expected to issue new rules requiring airlines to disclose basic ancillary fees at the point of sale, including first and second checked bags, carry-on items and advance seat selection. Urging the DOT to act quickly to demystify this growing segment of travel spending, the Global Business Travel Association (GBTA) noted in September 2014 that only 21 percent of surveyed travel managers tracked ancillary fees, which accounted for more than 8 percent of total travel spend.

5 DYNAMIC PRICING: A RENEWED PUSH FROM HOTELS BUT CAUTION FROM BUYERS Buyers can expect to hear more about dynamic pricing in 2015 as hotels continue to push this option (a percentage discount off their fluctuating best available rate or BAR). So far, companies have been reluctant to make the switch from fixed negotiated rates, given the lack of visibility on their budgets and potential savings. After Business Travel News* reported that 61 percent of surveyed buyers expected dynamic pricing to become more relevant, CWT Solutions Group conducted an in-depth study in May 2014 to review the situation.** A LITTLE MORE WIGGLE ROOM FOR FLIGHT BOOKINGS? Passenger load factors are expected to fall slightly in 2015 as capacity growth accelerates worldwide. They should still remain high, according to IATA* The conclusion? While, in theory, dynamic rates could provide opportunities in high-occupancy (seller s) markets (especially in Asia Pacific and Latin America), in practice, hotels that are reluctant to offer deeply discounted flat rates are also unlikely to offer significant discounts on their BAR. For best results, buyers should continue to favor negotiated flat rates overall, considering the options city by city and between individual properties, in addition to chain agreements. * Vision 2020: Projecting the Future of Business Travel (November 2013) ** Dynamic pricing interest grows, but CWT Solutions Group research shows negotiated rates prevail (white paper) * Economic Performance of the Airline Industry (December 2014) LOWER FUEL SURCHARGES ON SOME AIRLINES IATA has forecast a drop in jet fuel prices, based on an average crude oil price of US$85 per barrel in This will be the first time prices have fallen below US$100 since 2010.* Some airlines have already announced lower fuel surcharges, but buyers should not expect this to be a widespread trend. As CWT noted in 2012,** many airlines have abandoned a clear mechanism linking fuel surcharges to actual costs, using this fee to generate profits instead. On the upside, there are signs airlines are reinvesting part of their profits in the traveler experience as the economy resumes growth. Refurbished planes and modernized lounges are among the improvements. * Economic Performance of the Airline Industry (December 2014) ** Mastering the Maze: A Practical Guide to Air and Ground Savings NEW HIGH-SPEED RAIL LINES Numerous new rail lines were unveiled in 2014, especially in China. In 2015, the global high-speed rail network is due to expand further, with openings announced in Saudi Arabia, Turkey and China. At the same time, construction delays have pushed back launches in Morocco and the U.S. MODERATELY HIGHER PRICES AND AN 8.6% AVERAGE INCREASE IN SPEND Travel spend is set to outpace price increases in 2015 as travel volumes grow, reflecting cautious economic recovery worldwide. Global growth of 8.6 percent is expected in travel spend* and 4 percent in GDP,** compared with limited changes in prices overall (+2.2 percent for air, +2.6 percent for hotel and 0 percent for car rental).*** A joint CWT/GBTA Foundation price forecast, available online, provides an analysis of regional variations and factors that could sway the reality. * GBTA BTI TM Outlook (August 2014) ** OECD, IHS Insight and Rockport Analytics (2014) *** 2015 Global Travel Price Outlook, CWT/GBTA Foundation (August 2014) Expected price increases in 2015 AIR HOTEL CAR RENTAL ASIA PACIFIC 0.5% 2.7% 1.0% WESTERN EUROPE 1.0% 1.0% 0% EASTERN EUROPE 0.8% 1.0% 1.0% MIDDLE EAST & AFRICA 1.9% 2.2% 0% LATIN AMERICA 3.5% 6.3% 2.0% NORTH AMERICA 2.5% 3.5% 0% WORLD 2.2% 2.6% 0% Source: 2015 Global Travel Price Outlook, CWT/GBTA Foundation (August 2014)

6 How CWT can help CWT Hotel 360: the most comprehensive offering yet Looking to build a more cost-effective hotel program that boosts the choices available to travelers and improves the booking experience? Look no further! Recent developments to CWT Hotel 360 include: A best rate guarantee. In addition to corporate hotel program rates, companies can access CWT s exclusive offers at nearly 50,000 hotels (including 9,000 hotels with breakfast included). 360 CHOICE A program that meets your business needs PRE-TRAVEL More properties. CWT now provides seamless access to more than 200,000 properties not listed on GDSs. A new global hotel selling platform. This powers all points of sale and provides enhanced, standardized support from travel counselors at every location. A new, improved user experience on CWT Hotel Intel. This innovative online hotel review site will soon offer new enhanced features and a more attractive interface. 360 SAVINGS Tools and services that support hotel cost management POST-TRAVEL DURING TRAVEL 360 BOOKING Multiple booking options CWT Solutions Group: full consulting support A constantly evolving market requires innovation, drawing on ingenuity as well as expertise. CWT Solutions Group combines proven solutions with a willingness to explore new opportunities for travel management. Fuel surcharge negotiations and mid-year hotel renegotiations are just some of the services offered by the group s specialists, who provide full consulting support for air and ground transportation, hotels and emerging practice areas.

7 2 Travel policy & compliance The days of one-size-fits-all policies are coming to a close as organizations gain a better understanding of their traveler segments. Increasingly sophisticated data and insights are driving policy adaptations to better serve travelers and improve program compliance. Survey highlights* TRENDS Millennials travel behavior PRIORITIES Leveraging Big Data to adapt the travel policy Generating BUZZ #2 priority for global travel managers but not expected to shake up travel programs More than 1 in 2 travel managers expect a low/medium impact Using social media and gamification to further promote the travel policy and compliance Untapped opportunities for more than 95% of travel managers *CWT asked travel managers to rate the impact of 11 trends on their programs (very high/high/medium/low/no opinion), as well as 12 priorities (very high/high/medium/ low/already implemented). The rankings shown in the tables are based on the percentage of respondents who answered very high or high. Regional results include country/regional travel managers. Travel manager denotes any professional responsible for the management or procurement of travel, meetings and/or events. What to watch in 2015 INSIGHTS INTO THE APPROVAL PROCESS Main reasons why trips are queried by approvers Pre-trip approval provides an early indication of the expected return on investment from travel, a fundamental question for companies wishing to make the best use of their financial and human resources. A recent survey by CWT Solutions Group has shone light on this aspect of the travel process.* For example, 70 percent of travelers need approval for every trip they make. This mostly occurs online (60 percent by or a dedicated tool) and is considered quick and easy by approvers. While 68 percent of approvers only challenge non-compliant or overly expensive requests, 11 percent of approvers challenge travel every time (although they still approve 84 percent of requests, compared to the 90 percent approved on average). * Trip approval in global companies (2014), based on a survey of approximately 10,000 travelers Too many participants 7% Trip not aligned with the company's strategic objectives Non-compliance with the travel policy Travel dates or trip duration Price Usefulness of the trip Source: CWT Solutions Group 9% 16% 18% 21% Respondents 29%

8 THREE KEY TRAVEL POLICY TRENDS: SEGMENTATION, MANDATES AND GLOBALIZATION CWT expects greater demand for traveler segmentation studies as companies seek to better understand their travel community. The aim? To improve their policies (eg, by introducing changes to limit stress), customize communications (eg, with automated messages) and orient traveler behavior (eg, through gamified booking processes). Companies with the most mature travel programs will also be bolder in mandating policy items such as online booking, advance booking, preferred hotels and the use of lowest logical air fares. More companies will also harmonize their policies at a global level. RETURN ON INVESTMENT FROM THE TRAVELER S PERSPECTIVE Business travel generally brings a good return on investment, according to travelers surveyed by CWT Solutions Group,* 88 percent of whom rated their last trip useful. CWT linked the results to factors such as the number of meetings and cumulative meeting time, the length and type of travel, the amount of time booked in advance (implying planning) and travelers seniority. In conclusion, well-planned trips with enough time for at least two meetings are most likely to be worthwhile, and asking travelers to plan accordingly could produce greater satisfaction and higher return on investment. Percentage of unsuccessful trips depending on various factors Time of booking More than 2 weeks in advance 11% 1-2 weeks in advance 14% 3-7 days in advance 15% Less than 3 days in advance 21% Number of meetings Time spent in meetings 6 or more % 9% 10% 12% 15% More than 2 days 2 days 4-8 hours 2-4 hours 8% 11% 13% 16% 1 19% 1 hour or less 28% * Source: The value of business travel: the traveler s perspective, CWT Solutions Group (2014), based on a survey of approximately 10,000 travelers

9 How CWT can help Traveler segmentation studies DEMAND TYPE DEMOGRAPHIC More and more companies are working with CWT to better understand different traveler segments and their particular needs. CWT uses demand-driven variables (eg, trip frequency) to identify traveler segments and then maps their profiles using demographic and behavioral variables (eg, online booking tool use). In one sample, 10 percent of travelers (mostly senior managers and sales executives) accounted for 50 percent of spending due to a combination of frequent travel, last-minute booking and the use of business class. At the other end of the scale, the least frequent travelers (mainly marketing managers) accounted for nearly a third of the population but only 5 percent of spending. The results have been illuminating, indicating opportunities for companies to tailor communications to different types of travelers and to fine-tune their policies. For example, some organizations are introducing special conditions for their most frequent travelers or adding an item on mixed business leisure travel. DEMOGRAPHIC DEMAND TYPE DEMAND-DRIVEN DEMAND-DRIVEN DEMOGRAPHIC VARIABLES VARIABLES BEHAVIORAL BEHAVIORAL DEMOGRAPHIC Travel Gamification by CWT Solutions Group: reaching for super compliance An innovative way to boost policy compliance and create more value through the travel program is to introduce game-like elements that engage travelers and motivate them to make the best possible decisions when booking travel, especially in a low-mandate policy environment. The simple fact of introducing virtual rewards (eg, badges and points) can fire travelers competitive spirit and achieve the desired goals, while acknowledging exceptional performance. Recently, CWT Solutions Group worked with a client to identify annual savings of up to a potential US$264 per traveler after piloting CWT s gamified consulting and technology solution. The global company in question added fun elements to its booking process to encourage online booking, advance booking and the use of preferred airlines and hotels. In true gamified style, the results look encouraging! No, we don t believe in social media for this purpose. su per com pli ance the term used to describe a traveler making the most desirable choice for the organization when faced with two or more decisions that are all considered to be in compliance with the travel program. A revamped CWT Hotel Intel No, we don t believe in social media for this purpose. A new user interface will soon be launched for CWT Hotel Intel. This innovative online tool enables a company s travelers to share reviews of preferred hotels, while encouraging them to book within policy and providing information that can be helpful in negotiations with suppliers. The new technology offers a better user experience, with new features including advanced search, historical information and a more attractive layout. Companies will be able to subscribe to a sentiment analysis dashboard, based on satisfaction ratings and qualitative reviews with automated text analytics, paying particular attention to the best and worst feedback. This data can be used by travel managers to monitor satisfaction with different aspects (eg, room quality, staff, cleanliness and food) and ensure that travelers needs are being met. A breakdown can also be made by geographic area or business unit. Finally, the data will be compiled by CWT for more powerful insights, based on more than 50,000 reviews and counting!

10 3 Travel research & booking It has never been easier for travelers to shop and book, thanks to enhanced booking features (including mobile) and new technology solutions. And there s more to come in 2015! Survey highlights* TRENDS PRIORITIES Mobile technology Deploying a fare tracking and rebooking solution In terms of expected impact, ranked: #2 #3 #3 in North America in Asia Pacific in Latin America #4 in Europe, Middle East & Africa $ #2 priority for travel managers Sharing economy Implementing a door-to-door online booking tool Only 1 in 3 global travel managers expect a high impact A high priority for 42% of travel managers 1 Result: Ranked least important trend for global travel managers IATA s New Distribution Capability and 37% of travel managers have no opinion on the topic already implemented by more than 10% of travel managers *CWT asked travel managers to rate the impact of 11 trends on their programs (very high/high/medium/low/no opinion), as well as 12 priorities (very high/high/medium/ low/already implemented). The rankings shown in the tables are based on the percentage of respondents who answered very high or high. Regional results include country/regional travel managers. Travel manager denotes any professional responsible for the management or procurement of travel, meetings and/or events.

11 What to watch in 2015 IATA S NEW DISTRIBUTION CAPABILITY: WATCH THIS SPACE! In 2015, IATA will be ramping up its New Distribution Capability (NDC) to provide a new standard for airfare sales. Resolution 787, as it is also known, has raised questions on the impact for corporate buyers, which remains unclear. Following approval by the U.S. Department of Transportation in August, the Global Business Travel Association (GBTA) announced plans to introduce the Berlin Charter to further the relationships between airlines and buyers in the light of evolving pricing and distribution strategies. In particular, it reiterated managed travel must-haves, including transparency, choice, competitive pricing, full content, a better experience for the travel buyer, appropriate safeguards to prevent unauthorized buyer profiling resulting in price increases for business customers, and consistent delivery across distribution channels. GBTA will be asking all airline CEOs to endorse the charter, which will complement an updated Airline Request for Proposal toolkit. Currently, NDC is in pilot phase with a number of airlines and global distribution systems. Full-scale deployment is expected by 2016, pending regulatory approval by the E.U. and other major markets. GBTA, CWT and other stakeholders will be monitoring the situation closely. SHARING ECONOMY: RISKS TO WEIGH WITH THE BENEFITS Airbnb and Uber have been joined by a multitude of brands enabling people to rent travel services (eg, accommodation, cars and meals) from locals. The prices are often competitive and many users also enjoy the home from home experience for work: Airbnb claims that 10 percent of its customers are business travelers. Although more travel managers are considering how to integrate these services into their programs, the uptake among business travelers will remain limited while a number of challenges remain: Safety, security and comfort. Host brands conduct limited checks on their providers, often relying on user feedback. The potluck element that is an integral part of the experience may be less appropriate for busy corporate travelers and for the companies responsible for their well-being. Data integration. Only a very limited number of suppliers have an agreement with a global distribution system (eg, FlightCar and Worldspan) enabling companies to capture the relevant travel spend data. Regulatory opposition in many cities and countries. For example, Airbnb apartment owners cannot rent for stays under 29 days in New York and UberPop is banned in Germany. MORE MOBILE FEATURES FOR MANAGED TRAVEL Business travelers are ready technologically to make the most of mobile travel services, and the market is quickly catching up with demand for on-the-road features. 97% of recently surveyed air passengers carried a phone, laptop or tablet, while 18% carried all three* 43% say smartphones have had an impact on their travel experience* * Passenger IT Trends Survey, SITA (2014) ** 2014 Consumer Trends survey, Travel Weekly 38% of U.S. travelers purchased travel on a mobile device in 2014 (vs. 23% in 2012)** Users of CWT To Go TM have doubled year-on-year, now reaching more than 350,000 Around 50% of all hotel reservations may be made via mobile devices by 2017*** Only 28% of business travelers say they can use their smartphones to book hotels within their managed travel program**** *** HRS projections, reported in TravelDailyNews International (June 2014) **** Business Travel Insights: Hotels 360, Amadeus (2014)

12 How CWT can help CWT To Go soon to offer mobile hotel booking CWT To Go helps business travelers stay organized, informed and productive while on the move. This unique managed travel app provides users with continuous support with services including flight alerts, itineraries, mobile check-in and more. Building on exceptional user satisfaction scores to date, the app will introduce hotel booking in 2015, a feature that will allow travelers to access their company s preferred hotel program rates as well as CWT negotiated rates. Search results will also display most popular properties among colleagues as well as previous stay. Other new features, including air and ground transportation bookings, are also under development to enable more door-to-door traveler support. CWT To Go is available free to clients on iphone, Android and BlackBerry 10 smartphones. New features for CWT Online, powered by KDS CWT Online, powered by KDS provides a convenient one-stop shop for business travelers to manage their entire trip, from booking and filing expenses to posting hotel reviews. Synched with CWT s mobile app, this online booking tool enables users to book their perfect trip at any time with support from offline travel counselors if necessary while complying with policy requirements. New CWT Online features in 2015 include unused ticket management (CWT Document Bank) for North American clients, and access to this service for travelers and travel managers from CWT Portal. A personal travel assistant for every business traveler Carla by CWT is in pilot phase. This virtual agent, an eagerly awaited automated service with a smile, will assist in finding flight options, choosing the best connections and locating the nearest hotels. She ll answer questions about travel policy and give relevant information when and where it is needed so that travel is the last thing travelers need worry about. CWT Fare Tracking In 2015, more companies plan to implement an airfare tracking solution to save on ticket prices that may be discounted after booking. Automated technology tracks fare prices and sends alerts to counselors, who rebook identical tickets behind the scenes if they can be bought at a better price before the date of travel. Companies can therefore reinforce their advance booking policies, safe in the knowledge they will not be penalized by last-minute price fluctuations. Currently this service is available exclusively to CWT clients in the U.S. for flights. CWT is also considering new features, such as hotel rate tracking. $ $ $ Booking Fare tracking Rebooking to capture lowest fare Savings Detailed reporting

13 4 Travel information & traveler care Survey highlights* The right information at the right time is critical to smooth travel. Aware of their responsibilities in this area, organizations are implementing tailored solutions both before and during trips to help keep travelers safe, productive and stress-free. TRENDS Corporate social responsibility PRIORITIES Promoting mobile apps to increase traveler efficiency on the go A high impact expected by 75% of travel managers in Europe, Middle East & Africa #1 priority in Europe, Middle East & Africa (vs. #3 in all other regions) Political context Providing recommendations to improve well-being while traveling A high impact on the travel program for 60% of travel managers Measure already taken by less than 2% of travel managers Be an early adopter in 2015! *CWT asked travel managers to rate the impact of 11 trends on their programs (very high/high/medium/low/no opinion), as well as 12 priorities (very high/high/medium/ low/already implemented). The rankings shown in the tables are based on the percentage of respondents who answered very high or high. Regional results include country/regional travel managers. Travel manager denotes any professional responsible for the management or procurement of travel, meetings and/or events. What to watch in 2015 MORE FOCUS ON REDUCING TRAVELER STRESS AND PROMOTING WELL-BEING The stress of traveling is well documented. According to the CWT Travel Stress Index, there are 33 triggers, which can be broken down into three categories: lost time, nasty surprises (eg, delayed baggage) and routine breakers (eg, not going to the gym). In 2015, more companies will help travelers to limit stress through a policy and/or educational approach. In particular, they can urge travelers to maintain healthy eating, sleeping and exercising habits three keys to well-being. They can also provide more specific recommendations on the most suitable travel options for specific traveler profiles (eg, frequent travelers) and the type of travel (by destination, length of stay, etc.).

14 AN END TO E.U. ROAMING CHARGES New roam like at home rules, aimed at enabling E.U. citizens to use their phones free of extra charges when in another E.U. country, are expected to take effect on 15 December The move follows a steady lowering of the authorized price caps in recent years. Until then, travelers can keep roaming costs down by using Wi-Fi networks whenever possible, using a data usage tracker, and disabling push notifications and auto-synching, except for critical travel apps such as CWT To Go TM. MOBILE PHONES PERMITTED WITHOUT FLIGHT-SAFE MODE IN THE E.U. AND SOON THE U.S.? The European Aviation Safety Agency (EASA) has ruled that mobile phones can now be left on during flights, rather than in flight-safe mode. Airlines must still conduct their own safety assessments if they wish to implement this policy change. In the U.S., the Federal Communications Commission (FCC) is considering similar rules. Meanwhile, Australia has recently followed the U.S. and E.U. in allowing all electronic devices to be used during takeoff and landing in flight-safe mode. NO CHARGE, NO FLY RULES STILL IN FORCE MORE ONBOARD WI-FI IN 2015 AND WEARABLE DEVICES? Travelers traveling to or from certain destinations must ensure that devices carried onboard can be switched on to pass security checks on request before boarding (including connecting flights). This heightened security measure was introduced in 2014 for travel to the U.S. and has since been extended by some U.K. airlines to selected destinations in the Middle East, Africa and Asia. Travelers are advised to take a charger to ensure their devices stay with them even if their batteries run down. While only a few airlines have introduced technology enabling mid-air voice calls, many have announced plans to roll out onboard Wi-Fi for texts and s, responding to demand from travelers. Although in-flight connectivity is often priced at a premium, a few carriers such as Air China and Emirates are offering it for free on selected aircraft. Airlines are also starting to develop services on wearable computing devices (eg, one-tap check-in and boarding passes on smart watches). Mobile payment and augmented reality will be further trends to watch. VISA NEWS The super priority 24-hour visa service for the U.K. will be extended by April 2015 to cover a total of nine countries (Philippines, South Africa, Thailand, Turkey, United Arab Emirates and processing centers in Paris and New York, as well as the first countries, China and India). Frequent travelers between the U.S. and China can now apply for a multi-entry visa, valid for up to 10 years, through an arrangement that started in November The U.S. Visa Waiver Program is now open to citizens of Chile, the 38th country to join. The associated Electronic System for Travel Authorization (ESTA) has also been slightly modified, requiring travelers to enter new details (eg, city of birth and alternative citizenships). Canada is expected to launch an electronic travel authorization (ETA) program for visa-exempt nationals in April India has extended its ETA process to cover a total of 43 countries. U.S. citizens can now travel to Cuba under a general license to attend business meetings, thanks to updated rules issued by the U.S. Department of Commerce.

15 How CWT can help More peace of mind with CWT To Go Traveler stress is reduced when all the information they need is literally at their fingertips through managed travel mobile apps such as CWT To Go. In addition to providing detailed itineraries, travel alerts (eg, flight status updates and gate changes) and local information (eg, weather, maps and currency converter), the app will soon enable travelers to book hotels in compliance with their corporate travel policies. Bookings made this way will be captured by companies, facilitating data reporting, as well as all-important tracking and assistance in emergencies. The result: more convenience and peace of mind all around! Boosted alerts and traveler tracking through ijet As part of its more care, less risk approach to safety and security, CWT has boosted its alert and tracking tool powered by ijet, a leading intelligence-driven provider of operational risk management solutions. To keep travel managers informed, alerts are provided with a summary of the threats by category and the threat level (information, warning or critical). To track travelers, the latest features include near real-time data on travelers in all countries, a color-coded map locating at-risk travelers, and booking data on all categories of travel. More care Less risk Enhanced medical and security assistance through International SOS In July 2014, CWT signed a global agreement with International SOS, the world s leading medical and travel security services company, to help clients better protect their business travelers through enhanced medical and security assistance. This will include pre-travel advice, support while traveling, and web-based tools to manage travel risks, by promoting advance preparation, policy compliance, communication and tracking. Initially due for launch in Australia, Canada, France, Germany, the U.K. and the U.S., this service complements other safety and security services provided by the CWT 24-Hour Service Center, the ijet alert and tracking tool (see below), CWT Program Messenger (an awardwinning tool for tailored automated messages) and ongoing Program Management support. Minimizing traveler stress through the CWT Travel Stress Index CWT is crunching Big Data to provide clients with insights on the sources of travel stress among their employees, and how to reduce the related human and financial costs. The CWT Travel Stress Index can be run for various populations or even individual travelers, identifying opportunities for policy updates that could save travelers stressful lost time, while boosting their productivity and general well-being. New visa service in association with CIBTvisas Thanks to a new agreement between CWT and CIBTvisas, a global visa service specialist, travelers can receive automatic reminders of visa requirements and reduce costs by applying for their visas further in advance. With this service, an alert is sent 24 hours after booking a destination requiring a visa. An accompanying form also facilitates the formalities for travelers and allows their companies to benefit from discounted visa service fees. Due to launch in 2015, the service will be available in 11 countries: Australia, Belgium, Brazil, Canada, Germany, the Netherlands, Singapore, Spain, Switzerland, the U.K. and the U.S.

16 5 Expense management & reporting Big Data can mean big risks or big opportunities. A whole range of new solutions will ensure organizations come out tops in terms of secure payment processes, enhanced travel data reporting and more powerful expense management. Survey highlights* TRENDS Data security PRIORITIES Leveraging travel data for predictive analyses and benchmarks Big Data Highest expected impact on travel programs worldwide In terms of expected impact, ranked: #4 in Asia Pacific #4 #6 #7 in North America in Latin America A lower impact expected in Europe, Middle East & Africa in Europe, Middle East & Africa Top priority overall but only #5 in Latin America Streamlining expense management processes A high priority for more than 1 in 2 travel managers #2 priority in Latin America (vs. #5 overall) Implementing virtual payment solution A high priority for 32% of travel managers *CWT asked travel managers to rate the impact of 11 trends on their programs (very high/high/medium/low/no opinion), as well as 12 priorities (very high/high/medium/ low/already implemented). The rankings shown in the tables are based on the percentage of respondents who answered very high or high. Regional results include country/regional travel managers. Travel manager denotes any professional responsible for the management or procurement of travel, meetings and/or events. What to watch in 2015 DATA SECURITY TOP OF MIND Recent cases of hacking and credit card leaks have highlighted the risks associated with data and the need to keep security measures up to date. Beyond exceptional events, more mundane perils need to be considered. For example, popular bring your own device (BYOD) policies and travelers carrying more devices with them mean that security needs to be reinforced at both the network and device level. How can companies limit the risks of devices being lost or stolen, and what should travelers do if they are? How can an organization ensure that key data is backed up and protected? Which payment options are the safest? Aside from IT measures, companies are increasingly addressing the role of employee behavior in keeping corporate data safe, and they are developing the appropriate policies.

17 VIRTUAL CARD SOLUTIONS TO TAKE OFF IN MANAGED TRAVEL Up until now, large companies have been using a combination of personal corporate cards, lodge cards (central payment accounts with airlines) and personal credit cards to pay for travel. In the future, more and more will be using virtual card payment solutions as a secure way to settle travel centrally, without travelers footing bills upfront and complicated reconciliation processes. These solutions can also be used with a wider range of suppliers, including hotels and low-cost carriers. The technology generates card numbers on demand for payments charged to the traveler s company. The numbers are for single use within a limited timeframe and budget. In a recent GBTA survey of U.S. travel buyers and suppliers,* the majority expressed an interest in virtual card solutions, if they were not already using them. *GBTA news release (23 July 2014) BIG DATA OPPORTUNITIES KNOCKING Big Data has become a buzzword, but it s not all talk and no action. With tailored analytic solutions available (eg, CWT s traveler segmentation offering or its new integrated travel and expense platform), companies are starting to exploit the increasing amount and depth of travel data to improve their programs. Travel managers are already enlarging the data on basic travel categories (air, hotel and ground) to take into account the impact of ancillary fees on the total cost of spend. Other expenses can also be considered (taxis, roaming fees, entertainment, food and beverages, parking, and so on), drawing on a wide range of data sources (eg, post-ticket spend, payment and expense reports, and customer service data). In addition, organizations are starting to make more sophisticated analyses of traveler behavior data to better understand different segments and adapt their policies. In the future, this kind of data will come not only from booking and expense management processes, but other sources such as social media and wearable devices. The speed of uptake will depend on how the market for data analyses evolves, as strong partners are needed to help companies crunch the data and ensure it is easy to interpret. How CWT can help New virtual payment solution CWT is offering a new global payment solution powered by Conferma technology, using virtual card numbers. As part of its booking flow, CWT connects to the client s chosen bank or card provider s virtual card product and creates a unique 16-digit number, along with a CVC (security) code. This solution enables secure, centralized payments to be made for content that cannot always be charged to other central billing accounts (eg, lodge card accounts). It is also useful for travelers who are not issued with corporate credit cards. This solution overcomes numerous problems, such as: Removing the need to issue cards to temporary employees, contractors and infrequent travelers Making it easier to enforce compliant buying behavior and control employee spend Helping to cut down on fraud, loss and theft Making post-trip reconciliation more efficient Companies can be charged directly for more large-ticket items, including hotels and low-cost carriers. They can also ensure that bookings are made through their preferred channels, while benefiting from an enhanced reconciliation process with a unique number generated for each booking. Travelers can make bookings without using personal payment cards and simplify post-trip expense processes. For additional safeguards against fraud and other misuse, each virtual card s credit limit and validity date are created for individual bookings and can restrict merchant category codes to specific uses (eg, hotels). CWT s virtual payment solution is currently available offline (a call to a travel counselor) and online connectivity will be possible in early 2015.

18 Integrated, user-friendly travel and expense management CWT is piloting a fully integrated travel and expense platform for online booking, expense prediction and expense reports. By linking these processes, the solution will enable travelers to pre-populate their expense reports with booking data to reduce errors and save time. Incomplete or out-of-policy items will also be highlighted. Other features being tested include a smart interface with expenses appearing in calendar view. Further enhancements may be introduced depending on the results of the pilot. 1. Traveler plans trip using CWT Online, powered by KDS Every cost item is totaled as the traveler chooses various options Estimated total costs include expenses based on previous trips Expense fields can be customized 2. Approver reviews total cost of trip before giving authorization 3. Returning traveler files expenses using the CWT Online expense tool All expense fields are pre-populated based on booking data and can be updated as necessary by the traveler $ CWT AnalytIQs: a new approach to data reporting Everyday program reporting is about to get more powerful when CWT AnalytIQs launches in The aim is to translate data into insights on the entire travel process, providing realtime results in a user-friendly format. Performance benchmarks, forecasts, recommendations and easy sharing will be built in, along with other new features. The tool can also be customized to an organization s specific needs, including new reporting fields such as traveler profiles and unused documents, as well as monthly globally consolidated reports. With better visibility, travel managers can more easily steer their programs and keep them on course day to day.

19 CWT 2015