Egencia's attention is clearly focused on air travel this November...
Rob Greyber - We have just announced the integration of Routehappy content, a very interesting partner. We've been investing for a long time in this kind of data, which enhances the traveller's experience. In fact, we were the first TMC to integrate information from SeatGuru, which allows you to choose your seat on a given flight. By integrating Routehappy, we can help travellers make their choice based on the investment made by airlines in services such as WiFi, the type of aircraft, electrical sockets and overall rating. This is the kind of information that business travellers expect in 2015. The other new feature is possibility of booking flights worldwide via TripNavigator, in a native application - the first of its kind.
So technology remains a priority for Egencia, and for a TMC in general?
R. G. - We are a company that tries, that experiments. People think that new technologies are a mystery. This is not the case. All the big companies act in the same way. It's like a peloton: the group is faster than any individual rider. The speed at which you tackle a mountain pass depends on the partners you choose to race with. And we've chosen to follow the lead of players like Google, Booking.com, Facebook and Expedia: players who rely on a culture of test & learn. We don't know what will happen next, but we're constantly learning.
What next?
R. G. - We're going to continue to invest in mobile, in the user experience. Not just because it's mobile, but also and above all because of the personal dimension. The starting point is not the purchase and booking, it's the story of the journey. It's about integrating the itinerary and the service experience. This is the logic behind the Click to Call option, or the possibility of asking to be called back in 5 or 45 minutes. So we're thinking about the mobile because it's personal, we're thinking about the hotel because it continues to be a very important dynamic in business travel. And we are also investing in the basic infrastructure that makes all this possible, in the fundamentals.
Most of Egencia's new products focus on the traveller. Are you planning any dedicated launches for Travel Managers?
R. G. - I'm not sure that our news only concerns business travellers. There is a balance. We're investing in developing a modern, pleasant user experience, because that's what travellers expect. But we do it in a way that helps Travel Managers design their travel programme. By opting for our solutions, customers go from an adoption rate of 20 or 30% to 80%. This is positive both for the user experience and for the efficiency and sustainability of a travel programme. We are continually investing in our reporting tools and their ability to aggregate data. We're also increasing our international presence, and we'll be rolling out in Singapore and Hong Kong over the next six months, to meet the demands of our customers.
You are preparing to launch a recruitment plan in France. Does this mean that the French market is growing?
R. G. - Yes, but that's not just for the French market, as our European headquarters are in Paris. We're not just hiring to absorb growth in France, but also across Europe and the rest of the world. Paris and France are very important markets for us, but they are also a crucial source of talent. We need to develop innovation on a global scale.
Lufthansa is currently at the centre of debate. What do you think of the distribution model advocated by the German group?
R. G. - I think there are simple rules that we should all understand, even if some of them add complexity. When we look at the Lufthansa case, it's important to think about the context and their motivations. Technology must not make us dumber than we are. Sharing personal data should not make the user experience less enjoyable. Unproductive costs" are unnecessary costs. What Lufthansa has done is just invent an unproductive cost. When you talk to buyers, it's not just about €16, it's about the countless invoices that will be generated in their processes because they have to integrate these kinds of taxes. I understand that airlines have to sell their different fares. But to do so in this way is at best unconstructive, at worst irresponsible. Because it doesn't solve the problem, it won't help Lufthansa to encourage people to choose their flights. I think change is necessary, but this kind of action won't bring it about. So in many ways this action is indefensible given the market context.
So you're not banking on direct distribution becoming widespread?
R. G. - I don't know what the future will hold. Other airlines are interested in this kind of approach, that's for sure. But the most successful airlines are focused on service quality, efficiency and punctuality. Not this kind of approach.
Are you confident about the role of the TMCs?
R. G. - Yes, and we do our utmost to be the company most focused on the expectations of the business traveller worldwide. Travel managers are counting on us to help them develop and implement their travel policies, and achieve results and savings. TMCs are going to have to invest to meet market demands, by focusing on the user. Six years ago, Expedia was investing 100 million dollars a year in R&D. A few months ago, this figure had risen to 100 million dollars. A few months ago, that figure had risen to $500 million. Today, we spend $650 million a year on innovation. That's a lot of money being invested to keep up with the pack, to pedal with the best in terms of innovation.
