Tuesday 15 November 2011

Business Travel- The false economy of long haul Economy.

The western world's financial woes have brought inevitable spending cuts in businesses large and small. Not only has it been necessary to satisfy the accountants by removing anything that looks like a self serving extravaggance but also to show colleagues an egalitarian and hair shirted "We all share the pain" approach. Many cuts have been across the board rather than targeted .Essential and non essential spend has been hit equally and in many service businesses the customers as much as the staff. This is all at a time when peak performance by everyone, especially when out and about looking for more business, negotiating deals and visibly looking after customers is more important than ever.

As part of their austerity packages many companies have downgraded employees class of travel and accomodation .Some gone right to the quick by insisting on buying "This flight only" inflexible tickets. None of these things is sensible. Moving down from First to a flat bed Business class is fair enough as the traveller still flies comfortably and arrives in reasonable shape. From long haul Business to Economy is a completely different story. To expect a person to "enjoy" an economy seat on a long overnight trip and then bounce into peak performance immediately on arrival or even the following morning is unrealistic. Absurd would be a better label. The effect can cost the company literally millions although it will never show up directly in the accounts. Why jeopardise very large sums of money for very little additional spend?

Putting a person who is tired, excessively and unnecessarily jetlagged into a serious business meeting is an enormous risk. Host companies are not stupid and will use any weaknesses/signs of fatigue and pressing deadlines to their advantage. A few seemingly friendly questions at the beginning of a series of meetings will usually give them all the information they need. "Did you have a good flight?" ,"When are you home next?". These two alone will expose the vistor's position. Oriental companies are particularly adept at getting and using this sort of information. They also have the advantage of the visitor often being jetlagged and accordingly can arrange programmes to devastating effect. Any company willingly putting its person into the arena in a worn out state reaps what they sow.

The problem isn't only on long haul travel. The short haul redeye and daytrip business market is huge and fuelled by a sort of misplaced macho culture. The first wave of 0600-0700 departures is usually like the great migration. This will have meant early risings of around 4am. For the cost of a night's hotel and a meal or two, the individuals concerned could have arrived the night before and go into their meetings as bright eyed as the home team and yet accounts departments frown and ordain the redeye in the back of the aircraft.

There are signs that some lessons have been learned as business travel in premium cabins has been enjoying a recent resurgence particularly on long haul. On short haul travelling Economy but getting a night in a hotel is a reasonable compromise so that does leave scope for the Low Cost airlines to follow Easyjet and seriously bid for business travellers. On long haul where Business Class ticket prices can look much more costly there is a lot of education and persuasion still to be done. BA's original Business Class ads showing an overnight traveller changing from being the lamb to the slaughter to the man who wins the contract because he travelled Club remains still probably the simplest and most effective message every delivered on the subject. There are tens of millions for airlines to gain by returning to the subject so it's no surprise that many are upgrading their front and middle end products and going for it.

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