Face-to-Face: Tim Hannan and Yates Fei
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Tim Hannan, general manager of HRG Hong Kong, and Yates Fei, general manager, HRG China, talk to Travel Daily about the major trends and opportunities for the company…
Q1) What are the main corporate travel trends you are currently noticing in the Asia Pacific region?
TH: From a TMC perspective Online Booking Tools (OBTs) have been a discussion topic with clients for well over five years, however during the past 18 months momentum for their use and rollout has gained pace. More clients are exploring if an OBT will fit their culture and more importantly provide the ROI they expect. With the rollout of OBTs there is a strong demand within many clients to engage in the use of low cost airlines.
This is resulting in the need to re look at ‘Travel Policy’ and the implications to duty of care for travellers in regards to how they arrive at a destination ready to work. As clients look at their travel policy a number are coming to the realisation that their approval process is outdated and in need of improvement. Basically they are coming to the conclusion they need an automated process that dovetails into the online booking tool.
Q2) Which areas of the region are seeing the strongest growth in 2014?
TH: Annual business travel spending in the Asia Pacific region has grown steadily since 2000, more than doubling in size. China continues to grow significantly in line with the country’s overall growth in the travel sector as does India where HRG have partnered in recent times with one of the Middle East & West Asia’s leading travel companies Dnata, a company that is experienced in delivering quality customer services in line with the increased expectations clients are seeking in this market.
There are also signs of good growth from the emerging counties in the region – the likes of the Philippines, Indonesia and Malaysia. In the Philippines, for example, taxes and airport charges are low, fuel costs are also more favourable, visa requirements are more relaxed and the population is well educated – all combining to make travel and doing business there an attractive proposition. In general our other markets remain poised for more traditional growth rates.
Q3) You celebrate your 10th anniversary in China this year. What kind of growth have you experienced in this period, and what are your plans for the future?
YF: China has grown rapidly to become the second largest and fastest-growing business travel market in the world & will shortly become the largest. The strength of the country’s economy over recent years has led to a continuously strong growth in the corporate travel industry. HRG China is very widely covered with a national network in over 52 cities around China. This is a result of a very successful joint venture providing local emergency support and national consolidation services. HRG’s entrance therefore was perfectly timed & as result we have experienced a 10 fold increase in clients & 15 fold increase in staff since taking a presence in the market.
We continue to develop a solid presence and strong local service delivery capability across China to strengthen any consolidated travel program we have for our global and regional clients. We want to offer our corporate travel management philosophy, technologies and ‘knowhow’ to the China market, to help local and multinational companies in China better manage their travel expense and achieve higher compliance.
HRG is a people company & as a well established company in China we hope to foster new entrants into the TMC industry by attracting talented young personnel and to help grow them alongside the company.
Q4) You recently invested in your MICE team; is this an area in which you see strong growth and potential?
TH: Yes the MICE space is showing very positive signs & is an indicator that businesses are positive about the future after several years of a very cautious approach. We are now seeing companies procure MICE on a regional or global basis, something that hadn’t been done so often in the past. As a result of our strong and joined up MICE proposition we are winning multi country awards as clients see the benefit of using HRG across our worldwide network of experienced MICE professionals. In Hong Kong we chose to bring a team on in house in response to becoming a 100% HRG entity earlier this year. We see this growing through both our current client base as well as through the global & regional contract awards.
Q5) What can we expect to see from HRG in Asia over the remainder of the year?
TH: HRG continues to invest in our Proprietary technology & given the length of time we have been on that in-house development path we are again at a point where some of our products are being refreshed. HRG Online our booking tool is one of those currently undergoing a transformation, with the look, feel and functionality an impressive step on from where it has been. This ongoing product progress ensures HRG is at the forefront of developing market leading travel tools and provides clients with a point of difference in utilising our services. As clients in Asia continue to explore how they can integrate technology into this high touch region HRG has the tools and know how that allow them the greatest chance of success.
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