Success Stories for Regionalizing Business Travel in Latin America

1
Success Stories for Regionalizing Business Travel
in Latin America

• Gustavo Espina
• VP Sales Account Management, Latin America
• Carlson Wagonlit Travel

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Agenda

• Latin America, market overview
• Macro indicators
• Consolidation / Regionalization
• Regional program categories
• Challenges
• Advantages
• Key elements to deliver a successful regional
  program
• For a company
• For a travel management company
• Open discussion

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Latin America market size comparison
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Latin America regional profile

• Mexican Brazilian economies represent 63 of
  the Latin America GDP (Source World Bank)
• Approximately 70 of all air tickets issues in
  Latin America come from Brazil and Mexico.
  (Source IATA)
• Multinational regional headquarters for Latin
  America are usually located in Miami, Sao Paulo
  and Mexico City.
• Global companies travel spend that originates in
  Latin America generally represents less than 5
  of their total travel spend.

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• Latin America market overview
• Question Is business travel a mature industry in
  Latin America?

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Latin America market characteristics
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Consolidation / Regionalization

• Is there a trend towards consolidation in Latin
  America?
• What do consolidation and regionalization mean?

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Business travel program categories

• Regional call/fulfillment centers
• One companys program deployed through different
  travel agencies
• One TMC for the entire region

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Regional call/fulfillment centers Primary
challenges in managing multi-national regional
servicing centers

• Weaknesses
• Language and Cultural Issues
• GDS/CRS Issues
• Local needs and services
• Communication issues
• Financial issues
• Low volumes

• Threats
• Legal regulations
• Disaster Recovery
• Low Cost Country Evolution

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Regional program managed through several travel
agencies

• Weaknesses
• Several point of contacts
• Product standardization issues
• Communication issues
• Complexity

• Threats
• Financial stability
• Disaster Recovery
• Control

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One TMC for the entire region

• Weaknesses
• Market offer
• Local aggressive offer

• Threats
• Mergers and acquisitions
• Cultural fit

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Regional consolidation Whats the value?

• Economies of scale
• Less complexity
• Fewer relationships One point of contact
• Greater efficiency
• Increased leverage with suppliers
• One contract to manage
• Consistency in process program services
• Deliverable through integrated network

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Regional Consolidation Whats the value?

• Security
• Less risk of change
• Ethical guarantees
• Financial stability
• Traveler tracking security safety
• Data consolidation integrity
• Control of budget, savings

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Key elements in delivering a successful regional
program

• Company
• Travel management structure
• Company culture
• Local and global support
• Savings needs

• TMC
• Wholly-owned network
• A culturally attuned TMC
• A strong partner
• Product alignment
• Regional structure

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Questions Answers
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Thank you