September 18, 2009

Businesses Underspending on Travel Digs into Profits

 Two different studies released this week show the measure of profit that a company realizes for every travel dollar spent.

What's the Return on Investment for business travel? A groundbreaking NBTA study shows an average 15-to-1 ROI, and shows a bump in sales volume resulting from business travel. The research shows that $193 billion in profits are at stake for U.S. companies -- companies within most industry segments are not operating at optimal travel expenditure levels and collectively could realize $193 billion in additional profits by optimizing their business travel investments. For more information, click here.

And For Conference, Trade Shows, Meetings, and Incentive Trips? USTA Study Claims High Return On Business Travel "In order to grow, businesses have to invest. This study shows that face-to-face meetings and incentive awards to top performers are among the smartest investments companies can make." Click here for more information.

What is Travel-On doing to help you realize a maximum ROI on Your Travel Dollars?

The combination of our people and technology are engaged at each touch point throughout the life cycle of the trip. Alert to opportunities to influence buying decisions, increase policy compliance, optimize traveler convenience and security, and provide you with the business intelligence necessary to make quick decisions about your travel program, everyone from our front line agents and account managers, through our programming and product administrators and MIS personnel are diligently focused on getting the best value for your travel dollar. If you would like to take an even closer look at the value you are getting from your travel spend, please contact your account manager.

News Highlights

Aiming For A Budget: Continuous Cutbacks, Fees, Transformations Test 2010 Forecasting Corporate executives during the past year continually have sliced and diced their businesses and budgets to better position themselves against the relentless economic conditions and their suppliers' own survival tactics, upending the traditional use of historical expenditure data for travel budgeting. Without knowing how much market share they can commit, travel purchasers are finding it extremely difficult to forecast next year's travel budgets and are facing a murky negotiating environment as a result.

IATA Sees Signs of Premium-Class Air Travel Revival (Update1) Global airlines are reporting initial signs of a recovery in first- and business-class travel after monthly figures showed an improvement, the International Air Transport Association said.

Fly More and Save More With United United Airlines announces the launch of a promotional offer that enables customers to earn an electronic certificate for up to 50 percent off a domestic flight booked for next year.

American Airlines to start collecting full name, gender and date of birth info from passengers Starting Tuesday, Sept. 15, AA needs you to provide your full name as it appears on your driver’s license or other government ID, plus your gender and date of birth, to buy a ticket.

Southwest Airlines offers double credits for frequent fliers Southwest Airlines will give an extra credit on every trip to its Rapid Rewards members between Thursday and Oct. 31.

US Airways to offer lie-flat seats for Atlantic flights US Airways Group Inc. is redesigning planes for trans-Atlantic flights so business class seats can be reclined flat.

Bumped Passengers Learn a Cruel Flying Lesson Air travel has gotten a lot bumpier this year -- on the ground. Passengers are getting bumped from flights at the highest rate in at least 14 years, even though the U.S. Department of Transportation last year doubled the penalties airlines have to pay passengers who have tickets but are denied seats. Among the reasons: Passengers are more reluctant to voluntarily give up seats when flights are oversold for fear of being stranded for a day or two. And some airlines have made their vouchers less generous to save money.

Some Buyers Desire Extensions To Their Current Hotel Contracts: Suppliers Solicitous About Lengthening Agreements After an unprecedented year in which the fluidity of market conditions resulted in many travel buyers renegotiating their 2009 hotel contracts midterm, some buyers this request for proposals season are trying to extend their existing hotel contracts rather than start the process anew. Suppliers say they are receptive, but how much they will yield to their clients remains to be seen.

Supplier relationships provide an edge in negotiations with airlines After falling for much of 2009, airfares are expected to start climbing again in the third quarter. Still, travel buyers entering into negotiations for 2010 with the carriers can emerge from the talks with good deals if they have the data that shows their ability to deliver volume and move market share. Scheduling regular meetings with the suppliers to discuss performance related to the agreements can also help.

CUSTOMER FEEDBACK

For Jamie Witt of Travel-On International Travel Team.
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M.A.D AGENT OF THE WEEK

Contratulations to Nanie Camara of our International Travel Team. Nanie receives 44% vote as a M.A.D Travel-On agent who Made A Difference to our clients.


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