February 2007 From the Editor: Flying the friendlier skies
What a difference five years makes. After 9/11, the travel industry nearly hit rock bottom – and took down some of our shows with it. But current demand and occupancy levels for both hotel and air have surpassed 2000 levels. In 2007, continuing demand for corporate travel without commensurate increases in lift will push costs higher across the board, according to the American Express Global Business Travel Forecast. Compared with 2006, the average domestic North American trip – including airfare, car rental and hotel – will increase 4.5 percent in 2007, and the average international trip will increase 4.6 percent.
While none of this comes as good news for an industry that relies so heavily on airlines and hotels, I think our exhibitors and attendees take greater issue with the hassles associated with travel more so than its cost.
In December, I flew to San Diego for the IAEM (now IAEE) Annual Meeting. I was scheduled to return just as a winter storm began hitting the Midwest, bringing an expected 12 to18 inches of snow. Schools closed, our offices closed early, and reports of major flight delays and cancellations grabbed national news attention.
As a seasoned traveler with my share of horror stories from past experience, I pictured myself spending the night in an airport with thousands of other stranded travelers who couldn’t get a hotel room. Rather than risking it, I decided to stay in sunny San Diego and enjoy a couple days off. I called the airline to see if I could change my flight, but because it hadn’t been cancelled yet, I’d have to pay nearly $500 to change my ticket. The customer service manager told me my best option would be to go the airport, and if either leg of my flight was cancelled, I could stay either in San Diego or my connecting city at no charge. That would have been fine if it was the San Diego leg that was cancelled (though I would have already lost my hotel room), but what if I got stuck in some other city without a hotel room? And how many hours would I have to wait at either airport before they cancelled the flight? And, really, what option did I have?
That, to many travelers, is often the crux of the matter. Once you’ve bought a ticket, you’re really at the mercy of the airlines. But I think four years of people not buying tickets may have made an impact. The airline industry appears poised for change. In fact, that same day, United Airlines announced a revision of its ticketing policies for customers with travel plans to and from Midwest cities affected by the winter weather. The airline allowed its customers to make one change to their trip, and rules and restrictions regarding standard change fees, advance purchases, blackouts and minimum or maximum stay requirements were waived.
Unfortunately, I wasn’t flying United that day, but I think the announcement bodes well for our industry. In recent months, other major airlines have announced customer service enhancements and added new amenities. Some carriers have added flight and baggage check-in at hotels and convention centers. Others are offering more options for inflight food (to purchase, of course). One airline announced it’s adding in-seat plug-ins for iPods and MP3 players, and expanding its business and first-class cabins.
Increased demand means increased competition – and maybe an increased focus on customer service – which can only be good for our industry.
As for me, I did make it home that night – late, but luckily with no horror stories to add to my collection.
