Author: Ben Debski

Virgin Airlines to allow mobiles on selected flights

Posted on by Ben Debski

Immediately, some consumer advocate groups began complaining that the practice would lead to passenger discomfort on long-haul flights, as some would be subjected to extended phone conversations by their nearest neighbours. However, Virgin has enacted several measures that may dissuade customers from abusing the service.

Conditions for wireless device use
Virgin are not literally opening the airwaves for passengers to use mobile devices as much as they might like. Instead, they will have to pay typical roaming charges to use them; for example, a mobile phone call will cost £1 per minute and SMS text messages will cost £0.20 each. The thought of paying by the minute for a mobile phone call may be enough to keep some passengers from even attempting to use the service.

Another built-in safeguard is that Virgin will only allow up to six passengers at a time to use their devices. As a final condition, the mobile device option is only available to customers whose service provider is either O2 or Vodafone. Those who use other mobile carriers, such as AT&T or Verizon Wireless, will be unable to qualify for the service, for the moment at least.

Speaking about this capability, Virgin made it clear that it has no intention of creating a mobile free-for-all environment on its flights. A company statement said, “The service is intended for use in exceptional situations, when passengers need to send an SMS, making a quick call or access an email on a Blackberry.” Despite the limitations on its use, Virgin is adamant that this option is something their customers will appreciate. According to a Virgin spokesperson, “We have listened to what customers want and connectivity in the air is always on the wish list.”

How Virgin provides wireless service
Previously, airlines have expressed concern that using wireless devices in the air could cause the phone’s signals to disrupt the plane’s controls. Virgin gets around such potential safety issues by installing mini-masts on the plane, which can send and receive signals separately. Since the company has to retrofit each aircraft in order to provide the service, the mobile device privilege is only available on its A330 Airbuses, with plans to add them on Boeing 747s later. By the end of this year, Virgin estimates that about 20 of its aircraft will have the service.

British Airways is expected to unveil a similar plan for its passengers shortly. Other airlines, such as Lufthansa, considered a similar plan, but scrapped it amid complaints from other passengers. A Qantas spokesperson said the company does not intend to follow suit, adding, “Our customer research shows passengers are… not so keen to be sitting next to someone nattering on their phone on a long-haul flight.”

GSTC ensures sustainable tourism

Posted on by Ben Debski

The GSTC was established as a council member of the United Nations Foundation in a bid to achieve global sustainable tourism. Obviously, corporate travel and entertaining uses many of the venues that are also on the tourist map and increasing awareness on behalf of the corporate world means that the GSTC is a useful body for reference when trying to design an international meeting or event. The primary purpose of the GSTC is to ensure that all destinations recommended by them fulfil certain key criteria, which include, “the necessity to protect and sustain the world’s natural and cultural resources while ensuring that tourism meets its potential as a tool for conservation and poverty alleviation”.

US corporate travel is rising once more, following the 2009 dip, but the sector has undergone significant changes, with an increasing use of digital communications and technological innovation. In their latest report, travel management consultants, Advito, indicate that, “demand for corporate travel will continue to climb in 2012. A Morgan Stanley survey released in November 2011 points out that 63 percent of respondents expect travel budgets to increase in 2012 and 64 percent expect bookings to grow”. These figures highlight the importance of business travel and the GSTC could become a key player in helping corporate travel managers decide where they should organise their next event.

In January the GSTC published its Recognised Standards Guide. Among the companies to sign up were Royal Caribbean Cruises Ltd, Sabre Holdings, TUI Travel and Amadeus.

Countries that have signed up and are approved by the guide include, Australia (Ecotourism Australia), Ireland (Ecotourism Ireland) and Fair Trade in Tourism for South Africa.

In April the Association Meetings International (AMI) group published an article on sustainability and its importance to the business travel market. Guy Bigwood, from the MCI Group management firm, has produced a report called, The Event Organisers Sector Supplement (EOSS), the purpose of which is to, “help event organisers report their sustainability performance and help them provide qualitative and quantitative information on sustainability issues.” This complex report highlights many reasons why corporate travel organisers should think about sustainable travel when planning a function and appears to be echoing the thoughts and direction taken by the GSTC.

In shops and offices throughout the UK, the slogans and information about sustainability are manifest and the importance of maintaining cultural and environmental integrity is now viewed as mainstream rather than a fringe activity. Over the last decade an increasing number of shareholders and consumers have indicated their wish for the corporate world to consider the broader implications of their actions. As a result, a company that follows the GSTC guidelines when organising its corporate events may well find it advantageous for both the planet and its balance sheet.

SPATEC Europe 2012 paints healthy picture

Posted on by Ben Debski

This networking forum for representatives of the spa industry, held in the upmarket Spanish resort of Marbella in April, was attended by 63 industry suppliers and 49 spa operators. The representatives from fields as diverse as aromatherapy to towel providers gathered for the two day event, which saw over 800 meetings being held by delegates from across the spa orientated health and beauty world. The bulk of the delegates came from the UK, but visitors from Australia and Hong Kong also attended.

Talking about the success of SPATEC Europe, event organiser Stephen Pace-Bonello said, “Spa operators are seeking new revenue-generating and cost saving products and services while striving to maintain their standards. Meanwhile, suppliers are coming up with new ways to promote their products and services.” In January 2012, Director Magazine, published figures from an SRI report revealing that the global spa industry is worth £39bn and that in the UK, more than 35 million spend around £5.2bn on services and products. The report valued the worldwide wellness industry at £1.2trn.

One of the major conclusions to come from the forum was the importance of the youth market. Both young men and women have spent a lifetime growing up with marketing messages targeted at the ‘body beautiful’ and there is huge potential among this group for the development and sales of anti-ageing products. Another area that should focus on positive growth is the value of using older spa therapists and beauticians; the forum agreed that with the changing global demographic and the increased spending power of the mature consumer, more spas should invest in experience as well as youth.

Investment in employees was a continuing theme throughout the forum’s discussions. Sandra Sadowski from US based, Ritz Carlton Spa, New York, said, “we’re looking at what’s the most invasive treatment that spas can do that’s safe.” One way to move these procedures into the spa and therapy arena is to promote staff training and excellence. The forum felt that an important aspect of these types of therapies is that clients can see the effects of their treatments immediately.

Another area for growth is the rise in more specialised treatments. Speaking to ‘The Director Magazine,’ Vim Patel of London’s Hydrohealing Spa said that his spa is concentrating on providing a ‘therapeutic service.’ SPATEC 2012 confirmed that the industry is poised to take advantage of these changes in perception and many leading spas now deliver a more focused approach. Rockliffe Hall director, Liz Holmes agrees, commenting, “we’ve begun to separate areas of specialisation for therapists to allow their confidence and expertise to develop (this allowed one therapist) to create a protocol for guests affected by cancer and life limiting conditions.”

SPATEC 2012 ended on a high note, with Stephen Pace-Bonello announcing, “there is a general feeling of optimism in the industry”, though he went on to caution that this must be accompanied by greater creativity and innovation.

Hotel Hershey celebrates birthday

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The Forbes rated ‘Four Star’ Hotel Hershey is situated in Hersheypark and is part of the Hershey Resorts complex that has been nominated as America’s leading family holiday venue by FamilyFun Magazine and Smart Money.

Opened by Milton Hershey in 1933, the Hershey Hotel is a testament to one man’s vision. In 1905, Hershey had opened his chocolate factory in Pennsylvania, but the onset of the Great Depression in the 1930s meant that an increasing number of Americans were about to join the dole queue and were potentially facing ruin. Hershey took a gamble that if he could manage to keep the construction workers in his hometown in employment, then he would be able to take advantage of the competitive construction materials costs and help unemployed workers.

Humble beginnings
Hershey himself was an undereducated farm boy from Derry Township, Pennsylvania. Following the growth of his eponymous chocolate factory and earlier successes in the confectionary world, in 1909 he invested sizeable sums in the foundation of a local school, the Hershey Industrial School, now called the Milton Hershey School. It was this spirit of philanthropy that led Hershey to start his hotel construction. Milton Hershey’s life revolved around chocolate and the well being of the citizens of his local town; it is estimated that he employed 800 steelworkers, carpenters masons and other workers in the construction of the Hershey Hotel.

Based on the design of a Mediterranean hotel where both Mr and Mrs Hershey had once stayed, this palatial building dominates the skyline. The hotel cost $2m to build and its construction used materials intended to compliment its European architecture, which in some ways resembles an Italian palazzo.

Renovations
In 2008, the 286-bedroom hotel underwent a total refurbishment. The architects, Craig J Smith and Christina Romann of C2 Limited Design Associates, were appointed to revive the faded glories of the hotel at a cost of $67m. The first areas to undergo transformation were the palatial central reception; a specially designed stained glass ceiling was added to the area, as were many other modifications. Sticking closely to Milton Hershey’s concept of only employing local craftsmen on his building projects, C2 Limited used Pennsylvania based Amish carpenters for the woodwork.

This year, outstanding work on the Vice-presidential and the Presidential Suites will be completed, giving the hotel a contemporary feel for the 21st century. Commenting on both the project and Milton Hershey, Craig J Smith said, “He left a great hotel, but his vision and brand must move into the 21st century.”

Upon his death in 1947, Hershey left his wealth to the Milton Hershey School. This sum included profits from the Hershey entertainment complex, including Hotel Hershey.

IP maps world of conferencing

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Gone are the days when the only way in which global businesses could communicate with each other was by telephone or in the meeting room. Thanks to the growth of IP markets a person in Hong Kong, for example, can very easily have an online meeting with their colleagues in London. The range of products on the market is large and their popularity is evident by recent results posted by the US telecommunications giant AT&T. An article in the FT analysed these results and revealed that most US companies are using IP products to “streamline their operations, expand into new markets and geographies and deliver next generation services to their own customers.” Such is the strength of this growth that the AT&T figures indicated that IP products now account for $6.2bn of turnover. John Stephens, the AT&T Finance Officer is bullish about this sector, saying, “‘we will continue to see large businesses willing to invest in strategic services and the efficiencies they bring”.

Conferencing over the internet can be either audio or visual or both. In the early days of video conferencing the reception was so poor that many companies became disillusioned, but the new generation of IP products means that they can now communicate clearly and efficiently through desktop and laptop PCs and IP connected telephones. One of the newest providers in this market is Masergy, which distributes IP facilities to its corporate clients. Obviously, one of the bonuses that US global network provider Masergy has observed is that companies that are looking to cut travel and meeting costs will embrace IP conferencing with open arms.

In the UK, telecommunications giant BT is leading the way with its provision of these systems. Interestingly, one of their major clients is the Department for Work and Pensions (DWP), who awarded BT their IP contract in 2010 at a cost of £237m. With a number of offices in a variety of locations, ranging from Belfast to Brighton, this contract makes good economic sense.

One of the new buzzwords around in this market is Voice over Internet Protocol (VoIP). The reduction in telephony costs through the use of VoIP is impressive and new research figures show that an increasing number of companies are investing in this technology. Managers feel that by holding conferences online, productivity can be increased and costs, in terms of time and travel, can be reduced. Another advantage of VoIP is that conversations can be connected all over the world. Recently, the global telecomms firm, Avaya, announced plans to buy Israeli videoconferencing firm, Radvision, for £146 million. Talking about the buyout, Avaya’s CEO, Kevin Kennedy, commented, “with this acquisition we will seek to extend videoconferencing to any device, anytime, anywhere, making it as easy as a phone call.”

The rise of the super commuter

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In Europe, high-speed trains and budget commuter flights make travel between countries fast and efficient. For example, one executive commutes between London, where his company is headquartered, and Prague, where his family lives. He does this primarily on the weekends, but his job also requires frequent travel and he is sometimes in Prague on business, making his commute, at such times, much easier. The Eurostar has made travel between London and Paris quite comfortable and the Monday morning and Friday afternoon trains have many familiar faces.

The US, with its vast land area, is seeing a rise in super commuting by people who work in a large metropolitan area, but who want to live farther out, in rural towns away from the city. A recent report found that the Houston, Texas area has the highest number of super commuters in the nation, with many making the 200 mile (321 km) drive each way from Dallas to Houston. The State of Texas did not even have a rail division until 2009, but one has since been created and officials are now “studying the potential” of a high-speed rail link between several large metropolitan areas. With super commuters making up nearly 14 percent of the workforce in the area, the attractiveness of a high-speed line is luring investor interest from as far away as Japan.

Chicago, Illinois, in the northern portion of the country, has super commuters who live as far away as St. Louis, Missouri, a distance of some 300 miles (470 km). The data on super commuters in this area indicates that they tend to be younger than the typical commuter and also wealthier. More than half of Chicago-area super commuters earn more than $3,000 per month, versus slightly less than half of typical commuters at that salary level.

The state of Illinois was granted $150m to be used toward the cost of upgrading a long section of the rail line between Chicago and Detroit so that it will be capable of handling high-speed trains. Improvements in just that one section of track will shave around 30 minutes off the journey time. As more and more segments of track are upgraded Americans should see improvements in passenger rail service, which have traditionally been focused on leisurely, scenic rides.

Some companies subsidise these long-distance commuters, as is the case with John Barbour, CEO of LeapFrog Enterprises. The company is headquartered in California, but Barbour lives 3,000 miles across the country in the state of New York. LeapFrog subsidises his travel expenses to the tune of approximately $150,000 per year. As the search for the new talent continues, around the world, more and more employees who wish to avoid uprooting their families may well join the ranks of super commuters.

Blackout dates on the rise

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Most of the hotels that are increasing blackout dates are located in major international cities, such as New York, Chicago and London. As a rule, these destinations host multiple conferences and events during the year, which makes it possible for them to refuse to negotiate room prices, since they know they will have plenty of business. The increase in demand for accommodation naturally causes hoteliers to become less likely to cooperate on rate prices, since they can make more money by raising rates with the confidence that rooms will sell out. Along with more frequent blackout dates, some properties are extending their existing blackout periods to 30 days or longer.

Interestingly, the increased demand is not limited to large international destinations. Even moderately sized cities are becoming travel hotspots, due to sporting events. For example, the city of Austin, Texas, which holds professional racing events and collegiate sports games, has seen a sharp increase in hotel room rates. According to the athletic travel director at the University of Texas, some events attract so much business, hotels are willing to drop long-held agreements with corporate partners in favour of raising individual room rates. “A week before and a week after Formula One events, rates go up on average 450 percent”, said the university director.

Possible effects for corporate travel
A number of hotels are opening up negotiations to corporate travel departments after overestimating the amount of business they would attract during the year. This could continue as more and more hotels are built to accommodate the influx of visitors. As the number of facilities increases, hotels with remaining empty rooms may be willing to negotiate rates to fill up their rooms and suites. While a corporate travel director may be unable to find an affordable rate early in the year, he or she might be able to find a reasonable offer later on.

This makes it important for travel directors to communicate with area hotels and find out about seasonal periods when they would be open to negotiating rates. This is especially true, since some properties may have “hidden” blackout dates – times when they are not really open to negotiation, but that are not freely advertised as unavailable dates for reduced room prices. As meeting planners expect that hotel functions will increase in 2012, flexibility in scheduling business conferences may be the key to finding open rooms for a negotiable price.

Airlines get scientific over carbon footprint

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While not all the reactions to the European Commission’s moves have been favourable, with criticism coming from China, India, and the US in particular, many airlines have themselves made commitments with the eventual aim of significantly cutting the volume of carbon emissions that they produce. Such cuts are intended to reduce the impact of the industry on the global climate.

The aviation industry is estimated to be among the most polluting industries in respect of carbon emissions, and many of the issues are inherent to the nature of the industry, such as the need to fly at high levels to avoid turbulence due to the weather conditions that are common at lower altitudes.  However, there are steps that airlines can take to decrease the carbon footprint from operations both in the air and on the ground, and some major airlines have taken particular actions that may become more common across the industry over time.

In the case of Finnair, the national carrier of Finland which is one of the Nordic countries that is considered by many to be among the most environmentally aware nations, one of the keys to cutting emissions is simply the routes that are chosen when travelling between destinations. Finnair claims, for example, to operate shorter flights between Europe and major Asian cities, due to the geographical location of Finland in the north of Europe, which puts it in a position to make use of the curvature of the Earth when planning shorter routes.

Another method of reducing carbon emissions is by changing the nature of the fuel that aircraft use to make journeys.  In the case of Etihad Airways of the United Arab Emirates, the use of biofuels is a significant part of the drive to make operations cleaner and less damaging to the environment.  The airline claims to be the first in which aircraft operate on biofuels direct from the factory and to be committed to the use of sustainable biofuels, such as those produced by recycling vegetable cooking oil.

Meanwhile, the Indian authorities, although opposed to the European Commission charges in public, are also initiating actions, beginning with the measurement of carbon emissions.  Such measurements will be binding for scheduled domestic airlines in India, and will help to assess where to target reductions in carbon emissions.

Other programmes designed to offset carbon emissions are also used by a number of airlines.  Kenya Airways, for example, has started use of a carbon offsetting tool for passengers, who may now take part in compensating for the effects of air travel.  British Airways is another company to take part in similar social and community carbon offsetting programmes.

Change of management at Setai South Beach

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Representatives of the owners, Lehman Brothers Holdings, stormed the hotel at 2.30am and informed the managers, Singapore based General Hotel Management (GHM) that their services were no longer required. Hans Jenni, the GHM President said: “Representatives from Lehman Brothers arrived at the hotel with armed guards and off duty sheriff officers in uniform in the early morning hours on March 31st.  They informed us they were taking over the property and that GHM was no longer welcome on the property.”

The new management installed at the luxury hotel complex by Setai Owners LLC, a company associated with Lehman Brothers Holdings Inc, is the Trevi Luxury Hospitality Group from Dallas and the company plans to ensure that all existing workers at the resort will retain their jobs.

The main debate centres on the profitability of the Setai South Beach Resort and speaking about the change of management, Anthony Barsanti from Lehman Brothers Holdings Inc, said: “Our goal is to improve profitability, management and overall Seti experience for hotel guests and condominium owners, we believe that under the right management this property has limitless potential.”

GHM disagree and believes that the profits from the Setai South Beach were strong. Non Executive Chair and Director of GHM, Adrian Zecha added: “Under GHM management, The Setai South Beach has provided a strong resident experience that has been key to maintaining and increasing the value of the individual properties, creating record breaking prices for the property sales.”

Setai Owners LLC is to start legal action against GHM on the grounds that the company has violated terms of a contract written on March 20, 2000. Lawyers for Setai Owners LLC, Bickel and Brewer, based in both Dallas and New York announced: “The owner believes that it was in the best interest of the project to exercise its rights, install new management at the resort and initiate the arbitration,” said William A Brewer III. The arbitration suit concerns many millions of dollars in compensation.

Setai Owners LLC clams that the hotel hasn’t achieved maximum occupancy and compares poorly to other properties in Miami-Dade County. GHM disagrees and President Jenni has recently been quoted as saying: “At this time we are not in a position to comment on the specifics of their allegations. We are in conversation with our lawyers and will take the necessary steps to ensure that Lehman Brothers complies with the requirements of the management contract in place.”

The Setai South Beach is a luxury hotel and resort made up of beautifully appointed suites.  The hotel comprises two buildings overlooking the ocean and promises an upmarket experience for its guests. In December 2011 a penthouse suite at Setai South Beach sold for a staggering $ 21.5m.

Spa treatments return to growth

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Following the 2008-09 international economic downturn the international spa industry is now starting to grow again. New figures published in a recent report by Reuters show that the bookings for spa holidays by German tourists have increased by seven percent.

The history of the spa dates back to the Bronze Age. Early remains have been discovered in both the Czech Republic and France in close proximity to local hot springs that indicate their use as spas. The town of Karlovy Vary in the Czech Republic still offers spa treatments today and is visited by travellers from all over the developed world.

Initially individuals visited spas in a bid to regain their health and strength, believing that the waters had great curative properties. The Cretan ruins at Knossos also reveal that ancient societies were starting to use the spas for a cleansing ritual as well as for medicinal purposes. Homer first wrote about the idea that a spa could also be seen as a place of relaxation as early as 500BC. The idea of the spa as a place of luxury started with the Romans. Their beautifully decorated bathhouses with sports and social areas helped foster the idea that a spa was more than a venue for purely medicinal purposes. The Romans spread this idea throughout their empire and the modern spa of Baden Baden in Germany was created as a direct result of Roman influence.

The global spa business is hugely valuable and The Director Magazine has recently reported that the value of this industry is £39bn with over £5.2bn being spent on spa services in the UK alone. In February this year, there were 800 spas in the UK with many of them offering health as well as beauty treatments. Mainstream outlets, including Centre Parcs and Bannatyne Leisure have opened up the market to a wider audience and this has helped to promote the industry.

Others prefer to travel overseas for their spa treatments, and increasingly tourists are visiting Turkey and other countries in the Middle East for holidays that are promoted as a ‘luxury break’ The Turkish ‘Hamm am’ is now seen as an important part of any trip to that country.  The tradition of luxury spas in Turkey was established with the building of Roxelana in 1556, where clients could enjoy a massage, relaxation and steam rooms.

Japan is another popular spa destination. These spas provided luxury and a place for relaxation and were established in Japan as early as 737 AD when the first hot spring opened. The spas themselves started to cater for a wider public with the building of the first ‘Ryoken’ (inns).

The spa industry both in the UK and globally is a hugely lucrative market, Butlins recently invested £20m in a spa at its Bognor Regis Ocean Hotel and the trend of offering luxury for all is growing.

Conferencing boosts Middle Eastern economy

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Conference hosting is an increasingly important part of the economy for many Middle Eastern countries.

The recent three-day Gulf Incentive, Business Travel and Meetings Exhibition in Abu Dhabi demonstrated how effective the country’s Tourism and Culture Authority already is at attracting and retaining this important business sector. The country has created and updated several venues and is actively pursuing a number of large conferences. Noting that business-event delegates have a tendency to outspend leisure visitors by as much as seven times, it is easy to see why this segment is of such a high interest.

The Gulf Incentive event alone has 250 meetings scheduled for this year, 100 more than the 150 it hosted in the whole of 2011. Abu Dhabi is striving to compete on both price and convenience, advertising hotels that appeal to a wide range of visitors, from the price conscious to sky’s the limit spenders. A look at scheduled conferences includes names like the Affordable Housing Development Summit, the Talent Management Conference and the Entrepreneurial Women Working from Home via Internet Conference, demonstrating the wide appeal of the Middle East.

While businesses based in the region have been traditional customers for these conferences, Abu Dhabi and other hosting locales are reaching further afield. Conference planners from several worldwide corporations have planned at least one event in Middle Eastern countries; Datacenter Dynamics and Incisive Media from the UK, Aero Expo from Spain, the PGA European Tour and Magenta Global, of Singapore are all examples of conference planners looking to the Middle East for upcoming events.

Some of these conferences could end up having a global impact. For example, the 10th Middle East Geosciences Conference and Exhibition aims to facilitate the exchange of science and technology in regards to oil and gas exploration and discovery worldwide. Nutricia ME is due to host a large conference focusing on infant nutrition and the National Ready Mixed Concrete Association moved its conference to Doha, Qatar, in late 2011, after holding it in the United States for the previous five years.

Dubai has some of the largest conference venues in the Middle East, including the famous Dubai World Trade Centre. From the fabulous Dubai International Boat Show to the Inspire Home Fashion and Lifestyle Showcase, the one million square feet of space in Dubai has been a favourite for large-venue events. However, smaller venues, such as the Park Rotana in Abu Dhabi, the Ritz-Carlton Hotel at the Dubai International Financial Centre and the Atlantis Hotel on Dubai’s Palm Jumirah, all offer state of the art facilities.

Some companies that host conferences in the Middle East subsequently end up doing business there, another economic boost to the region. As more and more events of this type are scheduled, it is possible that the economic payoff from conferencing activities might have a much longer lasting impact that either an individual conference or its delegates.

Corporate expenses tightened

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Some of the controllable expense items on the average income and expenditure account are corporate expenses, such as travelling costs, entertainment costs, company cars, stationery etc.

Gone are the days when money could simply be spent because it was there to spend. Many businesses have, during the past few years, tightened controls over which employees are allowed to travel, whether they are allowed to fly in business class or economy class and how far and for how long they are able to travel.

Many employees are nowadays forced to travel on budget airlines and their expense accounts for onboard meals and drinks have also been severely limited.

Once they arrive at their destinations, only top executives are now allowed to stay in five-star hotels; the rest have to accept three star and four-star lodgings. They also no longer have carte blanche when it comes to wining and dining business associates.

Many companies have curtailed the size of corporate delegations. No longer is it acceptable to take everyone from the managing director to the tea-lady if you want to travel to China to negotiate expanding into that country.

When it comes to local travel expenses, such as car allowances, the corporate axe has also been very busy over the last few years. Many executives and sales people are now, once again, forced to buy a vehicle that can bring them from the office to a business meeting in a reliable fashion rather than a status symbol to show off to friends and family members.

Unlimited fuel accounts have also become something of the past in many companies. The good old log book has once again started to make a comeback. Junior staff, in particular, are once again forced to keep track of every trip they make on the company’s behalf.
Beleaguered financial house, City Group, is just one of a long list of companies that have been forced to curtail corporate expense accounts over the past few years. In 2008 Vikram Pandit, the company’s chief executive officer, embarked on a drive to cut the group’s costs by at least 20 percent. Large reductions were made to corporate expenses.

Another side-effect of the corporate austerity drive has been an increase in the use of management information systems (MIS). Today, corporate bosses want detailed information on how the company’s expense account is made up, who is spending what and why.

These developments have also had serious repercussions for companies involved in the corporate expenses industry; one of them being Diners Club. For one, the company has had to launch improved Management Information Systems, because their corporate clients wanted more detailed information to enable them to clearly see where cost cuts could be made.