CanadianSME Small Business Magazine recently spoke with Kate Norris, Global Director of SME Strategy – IHG Business Edge at IHG Hotels & Resorts, to discuss the importance of small and midsized enterprises (SMEs) to the Canadian economy and their distinct travel needs.
She discussed the significant contributions of SMEs and their impact on driving innovation and fueling the economy in Canada and globally. She also described the heightened importance of travel for SMEs and the inherent challenges smaller firms face in managing and budgeting for business travel.
With a career spanning more than three decades, Kate has extensive expertise in sales and strategy in the hospitality industry. She has had the privilege of contributing to the success of multinational companies while establishing and leading her own hospitality sales business in the past.
Today, Kate’s passion for the industry continues to drive her to explore new opportunities and push boundaries. She is committed to advancing a culture of excellence, continuous improvement, and innovation within the hospitality landscape, specifically driving better solutions for SMEs.
Like SMEs, Kate guides the IHG Business Edge team to evolve continuously, listening to its customers to develop new program elements to meet the changing needs of SMEs in business travel.
Q1: How important is travel to small and midsize businesses? With rising prices and inflation, this is one area companies may consider cutting back on.
One might argue that travel is even more critical to small and midsize companies than larger ones.
In Canada, small and midsized businesses are a critical force in the economy, representing 99.8% of all businesses and employing 88.2% of the private sector workforce. Independent businesses generate patents at a rate 16 times higher per employee than larger companies, further emphasizing their economic impact.
Scientific research shows in-person meetings are 34 times more effective than emails and more effective than virtual or hybrid meetings. By meeting directly with potential clients and partners, SMEs build stronger relationships and better understand customer needs. This enables them to adapt products or services accordingly and provide personalized customer service—a critical factor in a competitive market.
While travel can represent a large portion of SMEs’ business budgets—a higher proportion than for large companies—it can be necessary for building and maintaining business. In this environment, it becomes critical to forge relationships with trusted travel partners that can lower the cost of travel.
Q2: That leads us to a question on costs and how to minimize travel expenses. What do you suggest?
SMEs may have travel needs similar to those of larger organizations but lack the negotiating power to secure the best rates. Due to company size, operating within a stricter budget means that every expense must be justified.
Travel plans may be unpredictable and last-minute, inconveniencing travelers and business owners with a rushed search, especially without established travel partnerships.
Meeting the specific travel needs of SMEs requires a thorough understanding of their distinct challenges. Hotel companies that understand SMEs can become crucial allies and assist them in balancing limited budgets, navigating tight schedules, and managing travel planning details.
Q3: Managing travel can be time-consuming for business travelers and business owners. How can SMEs save time when planning travel?
Planning and managing travel can be a labor-intensive and demanding process. Small businesses, on average, spend 88 minutes organizing and booking a business trip, and midsized companies spend 12 minutes more—up to 100 minutes for a single trip!
Working with the right travel partner can help small businesses maximize their time by allowing them to focus less on searching for the best rates and freeing up time for other decisions that will elevate their business.
For example, IHG Business Edge was developed specifically for SME business owners and their travelers. It streamlines the rate negotiation process, rewards loyalty, and consolidates data, content, and booking into one easily accessible place to help them save time.
Q4: Establishing relationships with suppliers is seen as especially important for small businesses, but with more limited funds than large companies, how can they secure favorable travel agreements?
Partnering with suppliers who understand your business needs is critical. Consider hotel companies with locations you frequent that offer a range of options with transparent pricing, have programs that don’t require a minimum spend, offer guaranteed discounts and value-added perks. A program whose guaranteed discount applies to both personal and business travel enhances the benefits for employees as well.
For example, IHG Business Edge was created to meet the needs of SMEs. The program is free to join with no minimum spend. Members can book travel on the user-friendly platform with guaranteed discounts at over 6,000 hotels worldwide. It includes an activity dashboard with year-to-date room nights and spending data, helping managers save time and manage costs. Reservations can be made via the portal, IHG.com, phone, or the IHG app with the guaranteed discount applying to both personal and business travel.
SMEs and their employees can earn points at participating hotels, including meetings or events. These points can be redeemed for business events or personal getaways, adding value for both the company and its employees. Members receive accelerated IHG One Rewards loyalty status, exclusive content, and special promotions.
Q5: Tell us about the new partnership program IHG Business Edge offers. How do these features benefit small and midsize businesses in Canada?
Relationships with partner companies are especially critical to small and midsize companies, who must work within a set budget and vie for attention against possibly larger accounts.
With this in mind, we’ve introduced an exclusive Partnership Program that connects IHG Business Edge members with trusted companies offering a range of benefits, including discounts on technology, car rentals, professional services, and more.
Based on feedback from IHG Business Edge members, we continue to evolve the program to best meet the needs of small and midsize businesses. In 2023, Global Traveler magazine readers voted it as the best small to midsize business program for five consecutive years.