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Optimizing Business Travel To
Asia
Best Options for Business Travel From Either the US or
Europe to Asia for a trip of 7 days considering cost,
recovery, morale, productivity, and health.

Bill Kohnen

January 2014
Executive Summary

For extended trips to Asia the optimum travel plan is
Travel via coach
Stay in a 5 Star Hotel (Shangri La, JW Marriott or
Peninsula)
Start work as soon as possible upon arrival
Travel home a day after concluding your business.
Bill Kohnen

January 2014
Methodology of Review
Assume US or European Business Traveler
Occasional to Frequent Business Traveler
Total trip length 7 or more days
Key Elements Considered:
Actual Cost
Productivity
Morale
Health
Recovery from trip

Travel Elements Considered
Class of Air travel
Hotel Class
Schedule
Data and rating based on proprietary content, interviews, data collection and market intelligence
Bill Kohnen

January 2014
Findings
Business travel can be 2.5x coach travel
Higher end hotels in Asia typical are 1.5 – 2.0 times the
cost of the lowest cost safe business hotel.
Hotels in Asia in general are lower cost relative to US
and Europe

Bill Kohnen

January 2014
Findings
1. For an extended trip traveler experience generally is
influenced more heavily by hotel choice
2. Secondly it seems that starting work early upon arrival
but adding recovery time at end of trip is beneficial
Companies can accommodate both items to improve
total travel experience and save direct cost of 30%
Indirect costs related to productivity, health and morale
are debatable but estimates range from 1 to 3 times the
actual cost of the trip
Bill Kohnen

January 2014
Details of Study
Trip Configuration
Air
Hotel

Coach
5 Star

Business
5 Star

Business
5 Star

Business
3 Star

Coach
5Star

Coach
5Star

Business
5 Star

Business
3 Star

Coach
3 Star

Business
3 Star

Coach
3 Star

Coach
3 Star

Day Starting Business

Arrival

Arrival

Next Day

Arrival

Next Day

Arrival

Arrival

Arrival

Next Day

Next Day

Arrival

Arrival

Next Day

Next Day

Next Day

Next day

Next Day

Last Day
Business

Last Day
Business

Last Day
Business

Next Day

Next Day

Next Day

Last Day
Business

11
11
10
11
8
51

12
12
12
12
2
50

10
10
11
9
1
41

8
7
7
10
5
37

9
5
5
8
3
30

7
4
4
6
6
27

6
3
3
5
10
27

2
6
6
4
4
22

3
2
2
2
11
20

1
1
1
1
12
16

Departure

Rating Factors
Productivity
Health
Employee Morale
Recovery
Cost
Total Rank

Comment

Bill Kohnen

Best for
Company

January 2014

Best for
Traveler
But
Marginal
Return for
cost

Only where
there are
Most
very good 3
Expensive Star Hotels
and
or
maximum experienced
time
traveler
knows the
area

5
8
9
7
7
36

4
9
8
3
9
33

Extension of
Recovery or
time could
Higher cost
Definitely a
Best Case
moral of
help some Second Best
Air wasted
waste of
Pennywise and Pound
for traveler
extended
with
Option for
with high
Business Foolish may take months
with no
time only if
recovery
company
impact on
Class Air for Employee to recover
extra time
in a nice
and morale
traveler
Benefit
place
others not
Conclusion
Business travel to Asia from Europe or the US is expensive and hard on
travelers.
The best managed corporate travel programs recognize that meeting total
needs of travelers will result in lower actual and indirect costs.
The return on spend with higher end hotels in Asia is better than spend on
business class travel
Managing schedules is also important with astute travelers typically starting
work as soon as practical but at the end of a trip not rushing to catch the
next flight out as they might do with domestic travel.

Action: Negotiate Corporate Rates with High End Hotel Chains in Asia.
They all have direct Sales Representatives in the US and Europe.
Bill Kohnen

January 2014

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Optimizing Business Travel to Asia - Thoughts For Corporate Travel Managers

  • 1. Optimizing Business Travel To Asia Best Options for Business Travel From Either the US or Europe to Asia for a trip of 7 days considering cost, recovery, morale, productivity, and health. Bill Kohnen January 2014
  • 2. Executive Summary For extended trips to Asia the optimum travel plan is Travel via coach Stay in a 5 Star Hotel (Shangri La, JW Marriott or Peninsula) Start work as soon as possible upon arrival Travel home a day after concluding your business. Bill Kohnen January 2014
  • 3. Methodology of Review Assume US or European Business Traveler Occasional to Frequent Business Traveler Total trip length 7 or more days Key Elements Considered: Actual Cost Productivity Morale Health Recovery from trip Travel Elements Considered Class of Air travel Hotel Class Schedule Data and rating based on proprietary content, interviews, data collection and market intelligence Bill Kohnen January 2014
  • 4. Findings Business travel can be 2.5x coach travel Higher end hotels in Asia typical are 1.5 – 2.0 times the cost of the lowest cost safe business hotel. Hotels in Asia in general are lower cost relative to US and Europe Bill Kohnen January 2014
  • 5. Findings 1. For an extended trip traveler experience generally is influenced more heavily by hotel choice 2. Secondly it seems that starting work early upon arrival but adding recovery time at end of trip is beneficial Companies can accommodate both items to improve total travel experience and save direct cost of 30% Indirect costs related to productivity, health and morale are debatable but estimates range from 1 to 3 times the actual cost of the trip Bill Kohnen January 2014
  • 6. Details of Study Trip Configuration Air Hotel Coach 5 Star Business 5 Star Business 5 Star Business 3 Star Coach 5Star Coach 5Star Business 5 Star Business 3 Star Coach 3 Star Business 3 Star Coach 3 Star Coach 3 Star Day Starting Business Arrival Arrival Next Day Arrival Next Day Arrival Arrival Arrival Next Day Next Day Arrival Arrival Next Day Next Day Next Day Next day Next Day Last Day Business Last Day Business Last Day Business Next Day Next Day Next Day Last Day Business 11 11 10 11 8 51 12 12 12 12 2 50 10 10 11 9 1 41 8 7 7 10 5 37 9 5 5 8 3 30 7 4 4 6 6 27 6 3 3 5 10 27 2 6 6 4 4 22 3 2 2 2 11 20 1 1 1 1 12 16 Departure Rating Factors Productivity Health Employee Morale Recovery Cost Total Rank Comment Bill Kohnen Best for Company January 2014 Best for Traveler But Marginal Return for cost Only where there are Most very good 3 Expensive Star Hotels and or maximum experienced time traveler knows the area 5 8 9 7 7 36 4 9 8 3 9 33 Extension of Recovery or time could Higher cost Definitely a Best Case moral of help some Second Best Air wasted waste of Pennywise and Pound for traveler extended with Option for with high Business Foolish may take months with no time only if recovery company impact on Class Air for Employee to recover extra time in a nice and morale traveler Benefit place others not
  • 7. Conclusion Business travel to Asia from Europe or the US is expensive and hard on travelers. The best managed corporate travel programs recognize that meeting total needs of travelers will result in lower actual and indirect costs. The return on spend with higher end hotels in Asia is better than spend on business class travel Managing schedules is also important with astute travelers typically starting work as soon as practical but at the end of a trip not rushing to catch the next flight out as they might do with domestic travel. Action: Negotiate Corporate Rates with High End Hotel Chains in Asia. They all have direct Sales Representatives in the US and Europe. Bill Kohnen January 2014