p31 biz travel jan9 6/1/09 14:35 Page 31
ttglive.com
news
Comment
Future might not
be so bad for TMCs
Mergers, rail travel and Barack Obama are sources
for optimism, says ttgbusiness’s Martin Ferguson
E
conomist Will Hutton told success of the train to continue.
academics and business Ian Windsor, managing director of
employees at the London HRG, said: “Rail travel is better for the
School of Economics in environment and often more cost-
November that no financial expert effective. The number of train users
could have predicted just how far will increase further now the new
the economic crisis would unravel. high-speed rail service from London
The collapse of Lehman Brothers to Glasgow will reduce journey times.”
in the US, which triggered the Airline consolidation and alliance
domino effect of bank collapses, activity will continue and help cut the
twinned with all-time high oil prices, overcapacity that has blighted the
was “unimaginable”, he said. sector in recent times. The experts
Forecasting what may transpire say fares might rise, but not at the
this year, therefore, might seem a expense of customer service levels.
somewhat futile task. Consolidation in the travel man-
However, one agement industry
school of thought
“Firms would
did not quite
is that the industry
will capitulate as
be committing
reach the frenetic
pace set by the
retail, financial
corporate suicide
airlines last year,
and manufacturing
sectors spiral into
if they stopped
although several
significant deals
recession and
travelling”
were done.
corporates impose Adam White,
severe travel cutbacks. who as managing director of Bath
However, travel management Business Travel orchestrated the
companies regard the recession as acquisition of Baxter Hoare Travel
an opportunity to reaffirm the value Management in November, believes
they bring to corporate travel mergers and acquisitions will continue
programmes. apace as “not everybody has the
By working with ailing businesses capability in people or systems to
to establish more viable travel, the cope with these fast changes”.
TMCs will be playing a crucial role in White predicted positive trading
stimulating the economy. conditions in the second half of the
“Firms would be committing year, stating global economies will
corporate suicide if they stopped be buoyed by the “Obama effect”.
travelling now,” Advantage’s director Stateside, Kevin Maguire, president
of business travel, Norman Gage, said. and chief executive of US consortium
“It is during this difficult period National Business Travel Association,
that salesmen must be on the road is optimistic about the future of
selling their wares and the TMC is business travel with Obama in the
there to make sure they achieve that White House.
as cost-effectively as possible.” Although a slowdown in growth is
Rail travel in the UK increased by inevitable, he insisted “companies
6% last year, and in spite of January’s will continue to travel as long as they
fare rises, industry bosses expect the receive maximum value”.
09.01.2009 31
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