Open a glossy magazine these days and you are likely to find an advertisement
for Virgin Atlantic - not for its award-winning Upper Class but for the more
modest premium economy service. These double-page spreads are aimed at
passengers who are forced to trade down. The airline wants them to choose
its better-than-economy option with promises of a wide seat, extra legroom
and meals served on china crockery.
They are a sign of the times, as are corporate sales at the Cheltenham
Festival, which were down 15 per cent - and the sight of Jón Asgeir
Jóhannesson, head of the Baugur retail group, flying in an economy seat
instead of his black private jet.
The number of corporate jets for sale has tripled in recent months, with 50
out of the 300 registered in the UK on the market. Business travel and
entertaining are on the decline but they are not yet dead.
“We are seeing a downturn in travel, with companies looking very hard at
reducing expenditure, but staff are still travelling - just travelling
differently,” says David Radcliffe, chief executive of HRG, a leading travel
management company.
“The biggest change in the UK is an upturn in rail travel to Europe, while
some of those who have to fly are switching to low-cost carriers,” he says.
“Staff are also being told to get up earlier to catch a flight that will let
them do business in a day and thus save on the cost of an overnight stay.”
Some airlines have adjusted their schedule to meet this trend. Transavia, for
example, has launched twice daily flights from Luton to Rotterdam, leaving
the UK at 7.55am and 8.50pm and the Dutch city at 7.20am and 8.15pm.
Long-haul travellers increasingly choose to fly via European hubs such as
Amsterdam and Frankfurt, as they can get cheaper deals than on direct
flights, says Simone Buckley, Capita Business Travel’s managing director.
Her company has also seen a reduction in clients’ use of external venues for
meetings. To help those lacking the technology it provides its own
facilities for virtual meetings.
She adds: “We have also put direct links in our booking system to the Premier
Inn and Travelodge budget hotel chains, in addition to the usual three, four
and five-star properties.
“Many business travellers are accepting these changes and there is less
bile and bad behaviour when they are forced out of a business class airline
seat into economy.”
Companies’ travel policies are there to be obeyed and staff have little choice
but to use the airlines and hotels with which corporate deals have been
done. “Mandatory policies - and loyalty - are the order of the day,” says
Radcliffe. “We are encouraging hotels to say to clients: ‘Here is a good
deal now but please stay with us if prices pick up out of the recession’.
“At the same time, we have a duty to help clients build in flexibility so that
when they reach their annual targets with carriers and hotels they have the
option to explore other deals.
“One thing is certain in these difficult times: across the world people do
business best in face-to-face conversation with each other.”
