Do you agree with the results of this recent Biz Trav survey

businesstraveler · 04-24-2002, 11:38 AM

AirWise news story: 4/23/02

"The battered US airline industry today received a warning from business travelers that it faces tough times ahead and is unlikely to win back premium fare passengers over the next 12 to 18 months.

A survey released today says that business travel is likely to decline further this year and some of the corporate cutbacks are permanent. It also calls for reform of business air fares.

The influential Business Travel Coalition says that a number of factors are chasing its members away from the mainstream airlines. These include a perception that fares are too high and that tighter security introduced at airports since September 11 is too inconvenient.

Executives are also coming to accept low cost carriers as a better way to fly or, for short journeys, are going back to their cars."

The complete text is located at:
http://news.airwise.com/stories/2002/04/1019591770.html

My question is do you agree with it?

Nugget · 04-24-2002, 12:32 PM

I certainly haven't seen it personally. If anything, my travel schedule has been more rigorous during the past six months than it was prior. Last month was record-breaking for travel-related expenses at my company.

That said, I don't know that I'd be too surprised to learn that my situation is the anomaly and that the overall trend was for reduced spending. It would be interesting to see the statistics stratified by business size. I suspect that large comapnies are feeling very different pressures and motivations as compared to mid-sized and small business.

Whatever the truth, it might not be a bad time to invest in some teleconferencing technology companies.

dbaker · 04-24-2002, 01:35 PM

I've traveled more in the last six months than I did in the six months before it. That said, I traveled less in those six months than I did in the same six months, one year ago. Travel for me is quite inconsistent, but I can't say that I'm really feeling an impact from all this.

I suspect that one major problem is that companies that are paying the full-fare business and first class ticket prices for significant world traveling are concerned about the situations overseas.

Full-fare business class travel is really the brass ring for airlines as far as profitable customers go. I've heard a lot about major companies that are requiring additional approval before someone is sent to the middle east, especially to countries with outstanding warnings from the US state department or to events that may cause world-wide attention.

As far as for short trips, I'm not seeing that, either. I routinely have to travel to Houston for business and (coincidentially!!

) the fare is exactly the same as the driving rate @$.34/mi. Airlines have to take a hit to offer this fare because they're lowering their fares to compensate for the ridiculous and absurd security fees. Either way, I prefer to fly because it's less stressful, more comfortable, safer, and faster. I can grab breakfast at either the Presidents Club in AUS or IAH, too, and still come out ahead. I'm much more valuable at 10am after flying in than after a 2-3h drive through traffic on both ends while cramped in my two seater with nothing to eat and the engine screaming behind me, inches from my ear.

04-24-2002, 11:38 AM	#1
businesstraveler Member Join Date: Apr 2002 Location: BOS Posts: 57	Do you agree with the results of this recent Biz Trav survey AirWise news story: 4/23/02 "The battered US airline industry today received a warning from business travelers that it faces tough times ahead and is unlikely to win back premium fare passengers over the next 12 to 18 months. A survey released today says that business travel is likely to decline further this year and some of the corporate cutbacks are permanent. It also calls for reform of business air fares. The influential Business Travel Coalition says that a number of factors are chasing its members away from the mainstream airlines. These include a perception that fares are too high and that tighter security introduced at airports since September 11 is too inconvenient. Executives are also coming to accept low cost carriers as a better way to fly or, for short journeys, are going back to their cars." The complete text is located at: http://news.airwise.com/stories/2002/04/1019591770.html My question is do you agree with it? __________________

04-24-2002, 12:32 PM	#2
Nugget Senior Member ITYT Navigator Join Date: Sep 2001 Posts: 610	I certainly haven't seen it personally. If anything, my travel schedule has been more rigorous during the past six months than it was prior. Last month was record-breaking for travel-related expenses at my company. That said, I don't know that I'd be too surprised to learn that my situation is the anomaly and that the overall trend was for reduced spending. It would be interesting to see the statistics stratified by business size. I suspect that large comapnies are feeling very different pressures and motivations as compared to mid-sized and small business. Whatever the truth, it might not be a bad time to invest in some teleconferencing technology companies. __________________

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04-24-2002, 01:35 PM	#3
dbaker Senior Member ITYT Captain Join Date: Sep 2001 Location: IAH/HOU Posts: 2,354	I've traveled more in the last six months than I did in the six months before it. That said, I traveled less in those six months than I did in the same six months, one year ago. Travel for me is quite inconsistent, but I can't say that I'm really feeling an impact from all this. I suspect that one major problem is that companies that are paying the full-fare business and first class ticket prices for significant world traveling are concerned about the situations overseas. Full-fare business class travel is really the brass ring for airlines as far as profitable customers go. I've heard a lot about major companies that are requiring additional approval before someone is sent to the middle east, especially to countries with outstanding warnings from the US state department or to events that may cause world-wide attention. As far as for short trips, I'm not seeing that, either. I routinely have to travel to Houston for business and (coincidentially!! ) the fare is exactly the same as the driving rate @$.34/mi. Airlines have to take a hit to offer this fare because they're lowering their fares to compensate for the ridiculous and absurd security fees. Either way, I prefer to fly because it's less stressful, more comfortable, safer, and faster. I can grab breakfast at either the Presidents Club in AUS or IAH, too, and still come out ahead. I'm much more valuable at 10am after flying in than after a 2-3h drive through traffic on both ends while cramped in my two seater with nothing to eat and the engine screaming behind me, inches from my ear.