p26-27 feature July10 6/7/09 17:45 Page 27
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business travel knowledge
“Finance officers are scrutinising every of carriers, including BMI and BA, to
expenditure and travel is always one of the adjust domestic schedules.
first areas under the microscope,” Train bookings through TMCs grew
he says. “But TMCs can save 14% year-on-year according to the
corporates cash, and GTMC, and passenger numbers on
you have to tell Virgin Trains increased 12.6% in the
them that. Whether last six months.
it is negotiated rates, professional consult- Mervyn Williamson, joint manag-
ants, traveller tracking, self-booking tools ing director at Statesman Travel,
or management information, the TMC believes the growth is partly
offers enormous value, and there is down to improved serv-
business out there to be won.” ices and ease of booking.
“Some travellers opt for rail instead
Airlines struggling of air travel because it is more
Members of the Guild of Travel Management sustainable and often cheaper. But
Companies look after more than 80% of booking tools have improved for
business travel spend in the UK. travellers and agents,” he says.
In the first quarter of this year the total Getting a handle on rail book-
number of transactions made by the ings and how to get the best
organisation fell 6% compared with the
same period in 2008.
“Travellers are
fares for your clients will be of
paramount importance through-
Air traffic was the sector worst affected,
cramming their
out the rest of the downturn.
down a painful 17%. The collapse of
high-profile financial institutions such
days with meetings
Graham Leech, Virgin Trains’
commercial director, claims train companies
as Lehmann Brothers and Bear Stearns
and trying to get
are “driving airlines from the skies” on
eliminated a sizeable chunk of premium
transatlantic traffic overnight.
more out of shorter
short- haul domestic routes.
While Eurostar admits the recession has
Those companies fighting to stay afloat
periods on the road”
affected its business travel traffic, it insists it
forced travellers to downgrade from first to is still making “modest growth”.
business-class or business to economy, while
others ditched air travel altogether. Hotel bookings The future
British Airways has been worst affected, as Compounding the fall in air traffic has been No leading business travel pundit of sane
its business model relied on filling aircraft a widespread drop in hotel bookings, down mind would put his or her neck on the line
with premium customers. Its chief executive 8% in the first quarter, says the GTMC. and predict when growth will return to the
Willie Walsh has now admitted the airline is One leading hotel boss, Hyatt Interna- industry.
“fighting for survival”. tional’s sales and marketing vice-president But many, including The Co-operative
Middle Eastern carriers backed by oil-rich for Europe, Andrew Ashmore, described the Travel Management boss Anthony Rissbrook,
sheikhs have proved somewhat immune to start of the year as “catastrophic”. believe the worst of the downturn is over,
the downturn, though none have avoided Kevin Kelly, general manager of the although he admits: “It could take up to 18
plummeting passenger numbers. Marriott Grosvenor Square in London, says months until we see any recovery.”
Other major airlines including Lufthansa, booking patterns are unrecognisable com- Wayne Pollard, Business Travel Direct’s
Air France-KLM, Singapore Airlines and pared with last year, with business travellers sales director, says TMCs should be adjusting
Delta have all reported record losses. making shorter and more intense trips. their models and preparing for the upturn,
On a macro-economic scale, analysts “People want to make the most of their but advises agencies and consultants to look
predict that airline mergers and failures stay,” he says. “They are cramming their for quick wins in the short term.
are inevitable. days with meetings and trying to get more “Air, hotel and rail are important to us all.
But what do these factors mean for the out of shorter periods on the road.” But start concentrating on areas we don’t
consultant and the TMC? Kelly adds that corporate rates are down tend to focus on. Car hire, ground transfer
“Front-line staff are having to work harder slightly on last year and residents from the and even coach. These are areas where we
on every call,” says Norman Gage, director banking sector have disappeared. “Thursday can deliver value to our customers and
of business travel for agency consortium to Sunday is now our busiest period of the generate extra revenue ourselves.”
Advantage. week. That would have been unheard of
“It’s a price-driven market nowadays. The when the economy was strong,” he says.
traveller is looking for the best fare on the
day and wants to be sure the consultant has Rail opportunity
BUSINESS NEWS
left no stone unturned. So the average Last month VLM was the latest airline to For the latest business travel news visit:
length of a call has increased – to the cost pull a Manchester-London service. The
■ ttgbusiness.com
of the TMC.” success of domestic rail has led a number
10.07.2009 27
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