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However, Tams says other business airlines would previously have not
destinations such as Africa, the Middle allowed waitlisting on contract, or ‘net’ Agent
East and parts of the Far East and India fares once that booking class was full,
are holding up well. He points to the whereas they are now.
offers
launch of BA’s Hyderabad service in Secondly, buying contract fares with a
December. He’s also keen to confirm the credit card: previously these fares would
airline’s commitment to the launch of its have to be booked through the BSP.
twice-daily all-business service from
the City via Shannon to JFK in Meeting in adversity
September – despite the crisis.
WE ARE PRETTY
Graeme Milne, head of sales at FCm Travel
BMI is less exposed than its rivals,
SWITCHED
Solutions, says the increased focus on
positioned squarely in the oil and gas costs means corporates are keener to talk
sector with flights to destinations such
ON TO THIS:
to TMCs about policy and processes.
as Baku, Addis Ababa, Amman, Riyadh COMMISSION “It gives us a great opportunity to go in
BRITISH AIRWAYS: from
and Moscow – all holding up well.
CUTS, 9/11, 7/7.
and look at strategy and gives us a bit of
January 12 until March 29
Katherine Gershon, BMI sales and time with the customer,” he says. “As long
BA is running a prize draw
marketing director, says: “People are
AND IT’S NOT
as things are going well we don’t see them
for agents, with weekly
prizes of John Lewis
still travelling but we are noticing
LIKE WE’RE
but when they are looking at a different
vouchers, Gordon Ramsay
downtrading.” She says BMI still has SUFFERING strategy we get in front of them.”
vouchers and Ticketmaster
work to do to position itself as a
MORE THAN
Milne says FCm has seen a downturn
vouchers. The airline will
business carrier to travel management in business travel, but the situation
also run a monthly prize
companies, but the message is gradually
ANY OTHER
does give consultants a chance to be draw for three pairs of
getting through.
INDUSTRY
inventive by booking indirect flights World Traveller tickets
or spot-buying.
with Club World priority.
Looking for the silver lining... Jeremy King, head of marketing at ATP, agrees with
BA is also running a series
For TMCs caught up in this perfect storm it may not BA’s Tams over discretionary and non-discretionary
of consumer offers
be such bad news, however. Those who are able to travel. “We have a strong element of non-discretionary
including a one-way
negotiate good deals on behalf of their corporate business travel, for example oil workers and sports upgrade from Club World
clients could come out of this downturn quite well. tours, which is unaffected by this,” he says. to First and from Euro
For example, whereas once airlines would deal direct “However, we have found with discretionary travel,
Traveller to Club Europe,
with corporates at the expense of TMCs, the airlines for example, that when two people were due to fly,
plus double points on BA
are now looking at every distribution channel to fill now it’s one.”
miles and On Business
the premium cabins.
Points on all flights up
Nigel Turner, Carlson Wagonlit’s industry affairs Saturday night bargains
until March 31, 2009.
director, says: “We have obviously found the premium King says that on the flip-side there are some amazing
VIRGIN ATLANTIC: the
cabin suffering, particularly on long-haul routes and offers out there for the canny consultant, such as
airline launched a trade
the North Atlantic. We have a number of negotiated including a Saturday night stay. He gives two
website last March,
fares with airlines and we are working with them to examples: an £870 fare to JFK without Saturday night
where agents can access
increase the reach of those fares. compared to a £100 fare with; and a £1,332 fare to
information, competitions
and training: Virgin has
“It’s a changing market place. The airlines are trying LAX excluding a Saturday night and £108 with.
introduced three online
to protect their revenue and they do not want to dilute Oil destinations such as Nigeria are holding up well,
training modules – Upper,
it. But whereas previously an airline would deal says King, whereas financial hubs such as New York
Premium and Economy,
directly with a corporate who would offer that price are down. But he is pragmatic, saying that despite the and is about to launch a
for that cabin, we are now working with airlines to doom and gloom, the travel industry has been here Flying Club module,
negotiate a good fare for the business traveller.” before: “We are pretty switched on to this: commission
followed by destination
cuts, 9/11, 7/7 – and it’s not like we’re suffering more
modules. Each new
Airlines breaking taboos than any other industry.”
module is accompanied
Advantage’s business travel director, Norman Gage, The human cost however, is harder to factor. BA is
by a competition.
says: “Early indications are that January started OK, conducting a root-and-branch review of its entire The latest competition
not with a bang, but it’s tracking OK and December operation, while a number of TMCs are looking at opens today (February 6)
sales were on a par with 2007.” restructuring and the threat of redundancies.
and celebrates the
He adds: “What members are finding is that all the Advantage’s Gage says: “Our members are looking at
airline’s 25th anniversary.
taboos that used to exist are open for negotiation.” He every penny, but nobody wants to release good staff.
gives two examples that would have been unthinkable The budget focus is changing. Before it was once a
even a year ago. Firstly, waiting lists on contract fares: year and now it is once a month.” L52159
ttgbusiness.com ❖ february/march 2009
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