AirPlus Global Reach Editorial Office talks with Anna-Maria Kirchner – Account Manager Finland – about trends, opportunities, challenges and developments in the Finnish travel management market.

AirPlus: What are the main trends and developments concerning Travel Management in Finland?

Anna-Maria Kirchner

AK: In 2009, the financial crisis has hit Finland as well as all the other Nordic and European countries. The Finnish companies are still hesitant though and are afraid that the crisis is not over yet. Many big corporations have switched from Business Class to Economy Class as we have also realized in other countries. Low cost carriers are going through a boom period and are becoming a big competitor again.

We have also observed that the trends are industry-specific. Most of the companies that have cut business travel costs tremendously are from the automotive as well as other manufacturing industries. However, companies in the pharmaceutical sector, for example, are maintaining the same volume or are even increasing.

In general, the main trend within the last two years has been towards environmental concerns and the focus on corporate social responsibility programs. In these, environment holds a given position especially in matters of business travel. The environmental trend is nothing that comes and goes. This is for sure one of the toughest challenges ever for mankind and will have an increasing influence on travel suppliers and corporate responsibility in company-sanctioned business travel and their travelers’ behavior.

AirPlus: How mature is Travel Management in Finland?

AK: On the one hand, the Finnish Travel Management is one of the most developed Travel Managements in the world in terms of processes and e-billing. There is even a big difference to the other Nordic countries. Finland is the precursor in processes and e-billing. All companies in Finland can only accept electronic invoices and are using different kinds of data consolidators in order to feed their accounting systems. This insures a 100% automated data flow and a major increase in cost savings.
On the other hand, Finland is a medium developed market. Only 20-30 % of all corporate customers are using lodged cards! International operating companies consider TM more and more as an efficient way of cost savings. But, as a majority of Finnish companies, many SMEs are not familiar with the concepts and advantages of TM, yet.

AirPlus: What do you consider to be the biggest chance and the biggest challenge for Travel Managers in your market?

AK: Finnish companies seek for a well-structured travel administration giving a perfect oversight at any given time. In Finland, almost 60% feel that electronic invoicing generates the best savings while about 40% would like to have an internal link between payment services and internal expense account management. A marked difference in the answers to that question is visible in the company size. Big companies are more likely to opt for electronic invoicing and an integration of expense account management. Smaller companies are not as likely to have a receipt apparatus for electronic invoices. Instead, they value a sorted summary invoice and that card and expense account transactions are listed in the same invoice.
Transparency is very important. Therefore, reporting about corporate social responsibility programs such as Co2Emission/ Green Reports will become more and more important.

AirPlus: Where do you see the biggest chances for your customers – where they can gain savings or profit from?

AK: I see the biggest chances in data consolidation. The majorities of all Finnish companies are still using agency invoicing.
Collective invoices enhance flexibility and liquidity, as the customers are not required to pay invoices beforehand. The collective invoices are more transparent for the customer.

AirPlus: Is there an AirPlus U.S.P. or an advantage in competition for AirPlus in Finland?

AK: AirPlus has a major advantage due to our global data consolidation. We consolidate sales data, including international sales data, from across all suppliers, in highest quality. We are offering our customers the markets’ best MIS tool which makes it easy for the TM to negotiate with their suppliers – national or worldwide. As a European company we are delivering the best data quality which is not provided to any 3rd parties such as governments etc.

One of our goals is to optimize the customer’s data flow and deliver additional savings through automation and lower accounting costs (e.g. electronic invoices). Our product is neutral and not tied to any particular travel management company or chain of travel agents. It can therefore be lodged at a travel agency you trust in hereby ensuring that it is always available for use. The main advantage is that the AirPlus Company Account can be used globally in all the world’s key business markets.