OAG Travel News

As someone who travels once a month on business, David Solomons, chief executive of Culture Smart Consulting, has a particular predilection for bonus airline miles. These days, though, he can choose from any number of incentives for travel. "There are so many inducements coming in the post now from travel suppliers," he says.

The economic downturn is prompting travel providers to offer a growing range of frills for business travellers. The UK hotel group Malmaison and Hotel du Vin has already begun price-led promotions. "We have flexible room rates and we're nimble on our feet," says Robert Cook, chief executive. Such incentives are important: corporate travel provides the bulk of profits for airlines, hotels and car hire companies.

British Airways is one airline offering promotions to cement loyalty. "In a typical year we do all sorts of things, but with travel managers having to make budgets go further we've created promotions that save cost to the company," says Richard Tams, general manager, UK and global corporate sales. "It's a different accent this year; we're trying to upweight the cost element to the corporate and give them more bang for their buck."

In the UK, BA is offering a free Heathrow and Gatwick Express return train ticket when companies buy a full-fare domestic flight, and to the traveller it is offering route-specific double miles promotions. It is a worldwide scheme: in the US, for example, it is offering London-bound travellers two free hotel nights in three- and four-star properties linked to discounted fares until October 25.

One airline, the RussianTransaero, opted for fare cuts of up to 5 per cent in mid-September to reflect the fall in the price of oil.

Such concessions are spurring many businesses to bargain with travel companies. "We're asking all our supplier base for more discounts," says Jan Tucker-Jones, business travel manager of BT.

One hotel group, InterContinental Hotels, has offered BT discounts on food and beverages at its properties worldwide. "We will push more business their way. It shows commitment to us," Ms Tucker-Jones says.

"Premium economy" is an increasingly popular option. Many cost- conscious employers are trading down to such flights during the day and restricting employees' use of business class to overnight flights between the US and UK, for example.

On Virgin Atlantic, which pioneered the premium economy cabin, passengers enjoy some of the same frills they would be used to in business, such as dedicated check-in, cabin crew and menu and laptop power at every seat. Legroom is not as generous as in business class but is still up to 6in more than the squash in economy class.

Qantas is the latest airline to join the fray, introducing premium economy across its 747 fleet this spring. And when the new addition to its fleet, the double-decker Airbus A380, takes to the air on October 20 it will raise the bar still more. Premium economy passengers will then enjoy extras such as a self-service bar, 2in more seat pitch and USB ports at each seat.

But much of the stress of travelling is on the ground and even here there are bargains. The Dot2Dot shuttle between central London or Canary Wharf and Heathrow, for example, offers a ride in a shared nine-seater Mercedes shuttle from £20 one way.

In the UK, employers cannot afford to cut costs by scrimping on their employees' wellbeing. The Corporate Manslaughter & Homicide Bill means companies have a duty of care to keep their travellers safe. The new act does not have to prove individual failure, so a company can be charged.

Employers must, for example, ensure their travellers are well informed about their destination, that the hotel they stay in is in a safe part of the city and convenient for business meetings, and that it looks after their down time. Hoteliers already commonly offer multiple restaurants, gyms, spas and bars.

The oil and gas operator BG Group has set gold standards in this regard, with a wide range of provision, such as a car to get home safely after flights of more than seven hours' duration or after overtime, flight safety awareness training, twice-yearly checks on any private car used for business and mandating that travellers attend half-day defensive driving courses.

"The corporate world has gradually softened its approach to travellers," says Tom Stone, director of Sirius Management, a business travel consultancy. "But it's all to do with balance: the company can't go out of business."

Source: By Gillian Upton www.ft.com