Enough big-name airlines have signed up to spend-based schemes to make them likely to be the future norm
a short-haul restricted ticket. In fact, I have seen a rise of 12 per cent with one low-cost carrier on domestic routes and short-haul trips to Frankfurt and Paris year-on-year. It isn’t a huge change in buying behaviour, but it is noticeable when comparing year- on-year data for the same routings.” However, a travel buyer at a major
European manufacturer asserts changes to FFPs don’t mean changes to buying policy because “our travel programme and our buying decisions were never based on mileage programmes”. He says that while travellers do try to optimise their own points, “in effect the airlines have reduced the value of their FFPs so much – more and more miles are needed for awards and fewer perks are available – that we see a lot less of such behaviour”. But Chambers Travel’s Lappage says that in long-haul “an increase is notice- able in favour of BA for companies who allow their travellers to sit at the front of the aircraft and use the higher tiered classes”. He believes this is in part due to the increase in Avios points as well as a sign of returning to a healthier economic climate. “Middle managers who now have the option to choose their preferred airline will favour the airline with which they can gain additional points,” he adds. At Wings Travel Management, chief
operating officer Paul East says the FFP changes have “not had a dramatic effect on client buying patterns” and adds: “Our clients are still focused on obtaining a range of options that will allow them to purchase the most suitable itinerary – be that based on price or schedule. “However, many clients still raise the issue that when travellers are flying on Avios tickets, their specific sectors are not recognised as eligible for retaining their current card status.” Business Travel Direct head of client
72 BBT SEPTEMBER/OCTOBER 2015
partnerships, Vanessa Bailey, also believes buying policy won’t change in the era of FFP austerity. “At the end of the day, price is still the key,” she says. “It’s a ‘nice to have’, rather than something they make decisions on.” What’s more, she adds, there may be extra bad news for the points collector if the policy of one of her clients catches on. “We have quite a large organ- isation with several hundred travellers that tells its staff to use their own points if they want to upgrade.” This sounds like a natural riposte to any frequent traveller complaining about the economy-only rule imposed by his or her company, but for some road warriors, it could be the
last straw. Bailey adds, however, that an obvious flaw to this idea is that monitoring an employee’s points collection presents difficulties in itself.
AUSTERITY vs ASPIRATION The postscript to the new FFP order is that no airline has yet introduced a real austerity package, and based redemption on the actual cash price. “The endgame would be one mile per £1 spent and one pence per mile redeemed,” says Burgess at Head For Points. “I don’t think anyone would dare do that because it kills the aspiration element – people want to think about collecting 80,000 points and getting a £3,000 business class flight to Dubai.” Enough big-name airlines have signed up to spend-based schemes to make them likely to be the future norm. We may have to find a new way to describe FFPs – from now on getting the perks looks increasingly like being a case of not of how far or often you travel, but how much you pay. For most flyers, the idea of staying loyal to a brand looks less appealing, and that phrase about you not forgetting you have a choice of airline is looking ever more apt.
LOYALTY AND BEHAVIOUR
Buyer be aware, says Chris Pouney, partner at business travel consultancy Nina & Pinta
BE PREPARED FOR SOME PUSHBACK against policy, and traveller ‘friction’. Travellers may book more last minute, in the hope that only higher fares or classes are available. Mitigate by ensuring that advanced purchase trends are monitored. Some travellers may seek to book ‘off programme’, so buyers should ensure that processes exist to capture any maverick spend in their back-end expense system.
This could be a good time to enhance lines of communication with
travellers, to educate on policy and reiterate the reasons for it. There may be some loss of productivity, with travellers unable to use lounges, or spending more time queuing. Travel buyers need to be mindful of the total cost of ownership – cheaper tickets that see travellers losing status may ultimately result in additional costs of seating and baggage charges. Do buyers know how many status cards exist in their company, and the costs of retaining or losing these?
The selection of airline suppliers will be subject to increased attention from travellers and business leaders. This might be an opportunity to move from a more adversarial relationship with airlines to a more collaborative one, to be able to better navigate the challenges and opportunities ahead. Travel buyers may consider looking at airport lounge access policy, as travellers start to lose status. The opening of the new Aspire lounge at LHR T5 looks like good timing!
BUYINGBUSINESSTRAVEL.COM
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74 |
Page 75 |
Page 76 |
Page 77 |
Page 78 |
Page 79 |
Page 80 |
Page 81 |
Page 82 |
Page 83 |
Page 84 |
Page 85 |
Page 86 |
Page 87 |
Page 88 |
Page 89 |
Page 90 |
Page 91 |
Page 92 |
Page 93 |
Page 94 |
Page 95 |
Page 96 |
Page 97 |
Page 98 |
Page 99 |
Page 100 |
Page 101 |
Page 102 |
Page 103 |
Page 104 |
Page 105 |
Page 106 |
Page 107 |
Page 108 |
Page 109 |
Page 110 |
Page 111 |
Page 112 |
Page 113 |
Page 114 |
Page 115 |
Page 116 |
Page 117 |
Page 118 |
Page 119 |
Page 120 |
Page 121 |
Page 122 |
Page 123 |
Page 124 |
Page 125 |
Page 126 |
Page 127 |
Page 128 |
Page 129 |
Page 130 |
Page 131 |
Page 132