06:07 pm | 0 recommendations | Be the first to comment

Have Mobile Tech, Will Travel

While business travel has taken a hit from the recent uptick in
ticket prices, increase in air traffic congestion and a decrease in
passenger comfort, I see mobile technologies as one ray of sunlight on
the road warrior's horizon.

Traditionally the most popular mobile technology among road warriors
has been the cell phone. But business travelers today are staying
connected in a variety of ways — from smart phones to WiFi-enabled
laptops to, of course, the trusty BlackBerry.

But although most business travelers are wired in one way or another,
it's a challenge for their employers to figure out how to integrate and
maximize this mobility as part of their corporate travel program.

In fact, a white paper exploring this subject (titled "Upwardly Mobile:
The Next Step For Travel Management") will be presented by Frank
Palapies, head of Global Commercial Operations for travel technology
company, Amadeus, at the ACTE Global Education Conference in
Washington, D.C., May 18-20.

You can check out the white paper online starting May 19.

The study examines fast-developing mobile technologies and what part
they can and should play in a company's travel program. For example,
the study discusses how corporations might best respond to unexpected
events, like a natural disaster or geopolitical crisis in a country
where a business traveler might be stranded.

From my personal perspective, the biggest impact that changing mobile
technologies have had on my business travel work/life has been the
dominance and actual necessity of my BlackBerry. It lives with me in my
travels. And according to the white paper, my multimedia device and I
might be even more cosy in the future.

Today's cellphone is likely to be tomorrow's direction finder,
paperless boarding pass, hotel room key, traveler security enhancer,
and retail payment method.

So whether you love or loathe your BlackBerry (for me, it depends on
the day), the survey shows that the bottom line when it comes to mobile
technology is that it will have a major and increasing impact on how
travel is booked, managed, and paid for.

And while some business travelers may feel that technology is ruling
their work/life, I think that the informed road warrior — and the
companies they work for — really can leverage the newest mobile
devices to make their travels a whole lot easier.

How do you use wireless to help you on the road?

And what types of travel applications would you like to have on your wireless device?

Road Warrior • Miami • www.amadeus.com

07:28 am | 0 recommendations | 1 comment

"Why Are Business Traveler-Unfriendly Rules Back in Vogue at Some Carriers?"

Lower earnings among major U.S. airlines have led some carriers to
resurrect revenue-generating strategies — I call them "segmentation
tactics" — that essentially penalize business travelers more than other
travelers.

Among these strategies is, as Joe Sharkey at The New York Times
describes it, "the Saturday night stay," which requires an overnight on
Saturday evening in order to score a cheap airline fare.

These flights are the kind populated by business travelers, who hate
rules that, in effect, force them to spend the whole weekend on the
road.

These "minimum stay requirements" are meant, Sharkey explains, "to discourage business travelers from buying the cheaper fares."

How widespread is it?

Well, according an article at Bloomberg.com,
"United is requiring Saturday-night stays in about 65 percent of
markets it serves ... That means higher fares for business travelers
who don't spend weekends on the road."

In the bad old days, The Times' Sharkey notes, "back when major
airlines did not worry much about low-cost carriers, unrestricted
business fares could cost three times or four times an advance-purchase
leisure fare."

Not long ago this business traveler-unfriendly policy had come back
from the dead among the major U.S. carriers, at least on some
less-competitive, secondary routes.

Now it seems this secondary-route strategy is becoming more of a
mainstream strategy among the majors as the rising cost of fuel
squeezes airline profits. The Wall Street Journal reports that Delta Air Lines is taking buyback, layoff, and selloff steps to deal with its rise in operating costs.

In fact, segmentation tactics that apply Saturday stay and three-day
stay restrictions seem to be becoming common in certain network
carriers' fare structures. Needless to say, it's one element in a
revenue management effort by those airlines to segment markets,
flights, and customer types to a much greater extent than ever before.

One of these tactics embraces ticketing restrictions that increase the
penalty charges for travelers who make changes to airline tickets.
Naturally, business travelers are the ones whose travel plans fluctuate
the most.

Normally, a business traveler would weigh the tradeoff between
penalties that would be charged if they have to change their ticket vs.
buying a higher-priced, less-restrictive ticket right up front.

An example of the new ticketing restrictions: United Airlines
recently announced that it was increasing its penalties from $100 to
$150 for ticket changes. This would not only generate more revenue if a
business traveler has to make changes to his itinerary, but would also
make him re-think or consider buying the less-restrictive (but
higher-priced) ticket from the get-go.

Overall, airlines are unbundling their fares and fare choices and transitioning in a hurry to an à la carte business philosophy that restores choice to travelers.

The upside is that travelers won't have to pay for what they don't want.

The downside is that things which used to be "free" will be
pay-for-play, including many services popular with business travelers:
* Access to airport lounges
* On-board food and meals
* Premium seating locations, including seats with extra legroom, in the front of the plane, and with powerport access

US Airways Group Inc.
on April 16 said it will begin charging $5 or more to fliers who prefer
to ensure they get a window or aisle seat in the first several rows of
coach.

Add to these restrictions the fact that business travelers will have to
reckon with fewer flights as a result of rising fuel prices and
potential airline mergers.

Jet fuel prices have risen 80 percent in the last year, so I guess it's
no surprise that U.S. airlines have been adding fees, boosting fares,
and cutting capacity to cope.

Unfortunately, the road warrior is bearing the brunt of those coping tactics, like the Saturday night stay.

Are you worried about road warrior unfriendly-rules trickling back in?

What do you think it all means for the business traveler?

Road Warrior • Miami • www.amadeus.com