Online travel agencies still making money in today’s travel market

There’s still money in the travel business; you just have to look in the right places. In the United States, the online leisure and unmanaged business travel sector is where you’ll find the cash — this sector is outperforming every other travel sales channel, according to a recent study by research firm PhoCusWright. In a report that the company will release soon, U.S. Online Travel Overview Ninth Edition, PhoCusWright will reveal the details behind the online leisure/unmanaged business travel’s 7% decline relative to a nationwide general fall of 16%.

“For the first time since PhoCusWright began tracking the remarkable trajectory of the internet in travel distribution, online travel will decline in 2009,” says Doublas Quinby, senior director, research at PhoCusWright. “But,” he continues, “the 7% drop in online travel vs. far steeper double-digit declines for the total travel market and offline channels indicates that travelers are increasingly turning to the Web to shop and purchase travel amid the recession.”

The contraction of the travel market in 2009 has brought the travel industry back to pre-2005 levels. The effects haven’t been as brutal in the online space, though, which has outperformed all the other channel’s this year. When the year is over, PhoCusWright expects online travel agencies to own 39% of the total travel market in the Untied States, up from 35% last year.

[Photo by borman818 via Flickr]

“By honing in squarely on consumer concerns in 2009, heavily promoting deals and last-minute special offers and eliminating many booking and customer service fees, online travel agencies have deftly outflanked recessionary pressures and are outperforming every other distribution channel,” Quinby reports. He adds, “OTAs are taking back some share from travel supplier Web sites this year.”

Six ways for road warriors to stay in shape

Business travel can be brutal on your body. One night, you’re out with clients, sipping that extra cocktail and scarfing down dessert – you don’t want your client doing these things alone. The next day, you stuff fistfuls of French fries into your mouth between meetings and devour a fast food “snack” as midnight is closing in. The project needs to stay on track, so you eat what you can while you work, and sleep is out of the question. This happens over and over … making it close to impossible to take care of yourself while you’re on the road. Before you know it, you’ve gained (or lost) too much weight, dark circles are forming under your eyes and your complexion has gone to hell.

There has to be a better way …

All is not lost. There’s plenty you can do to take care of yourself while living the road warrior life. None takes too much time (important, since you don’t have any), and your bag won’t have to get much fuller. If you decide you want to recapture some vigor while traveling frequently, check out the six tips below.

1. Decide you need to make a change … and mean it
When I was a management consultant, I came across plenty of lists like this one. Occasionally, I’d give something a try, but the path of least resistance always won. None of those writers seemed to have any idea how hard it is to motivate yourself in the land of the 16-hour day, endless meetings and crushing workloads. For the first few weeks, you have to make the clear and difficult decision to knowingly turn your life for the worse. After that, it starts to get better.

2. Workout “lite” is your only option
Short workouts will probably be your only option. So, don’t plan to hit the weights for an hour or more. Instead, stick to cardio. If you run, use the treadmill in the hotel gym instead of turning to the streets. Cardio machines (e.g., treadmills and exercise bikes) have the added advantage of multi-tasking: you can read reports (or the newspaper), check your Blackberry or take notes on what you need to do that day.

3. Make time to walk
Short walks during the day give you a chance to clear your head. Step outside a few times and walk around the parking lot. Each jaunt shouldn’t last much longer than a leisurely trip to the bathroom. To recapture some productivity, bring something to read, or catch up on calls or e-mails. You’ll be moving your body, at least, and the change of pace will do you good.

4. Back to basic (training)
My drill sergeants always found a way to cram exercise into my life. While you probably don’t want to bust out a few sets of pushups during a conference call, their method for squeezing workouts into short periods of time can be helpful. When you can back to your hotel room, for example, do a few pushups and situps before you go to bed – maybe while you watch some television. Over time, you’ll find yourself doing more reps.

5. Watch the booze
When someone else is picking up the tab, it’s all too easy to have another glass of wine, especially if you’re accustomed to slurping vino from a box. All those team and client dinners add up, though, and you wind up paying for it in the end. At some point in the evening, switch to sparkling water or soda water with lime. It looks like liquor and feels different from the nonalcoholic stuff you normally drink. The best part: it’ll be easier to get up in the morning.

6. Roam when you call home
Having a family can make the road warrior’s life even harder. Any chance to call home becomes incredibly valuable, and just about anything else will be sacrificed when you want to dial those all-important digits. Instead of calling from your room, walk the hotel grounds while you talk. If you’re staying in your room, do some flutter kicks or toe-raises while you chat away. Don’t work out so hard that you can’t carry on a conversation, but do use more muscles than those in your jaw.

Europeans still booking travel online

This year, the online travel business in Europe is expected to creep higher this year. Travel research firm PhoCusWright forecasts that online bookings will edge up to 0.6 percent this year in its latest report. Yet, this outperforms the hell out of the broader European travel market, which is expected to be down 10 percent in 2009.

Carol Rheem, director, research at PhoCusWright, says, “As Europeans seek to make the most of their treasured time off this year, they are increasingly using online options to plan the best holiday for their budget.” She continues, “Online travel agencies are weathering this economic storm better than any other booking channel.”

Though there’s still room for some sort of surprise by the end of the year (not likely), the European online travel space is expected to see gross bookings of €23 billion when we close the book on 2009, with supplier websites lagging online travel agencies.

“Even in the bleak travel backdrop of 2009, some travel companies are thriving — and not all of them are OTAs [online travel agencies]. Countercyclical trends bolster these companies while exacerbating decline for others. Those dependent on business travelers are among the hardest hit,” Rheem observes. Business travel is expected to be off 17 percent for the year.

Five ways to make long flights more productive

Every business traveler has said or heard: “I’ll get to it on the plane.” By the time your bags are stowed safely overhead, however, it occurs to you that the flight won’t be long enough for everything on your list. The problem I’ve seen is that most business travelers don’t use this distraction-free environment as effectively as they could. If you could get more out of your flights, you’ll have more elbow room in your schedule when you touch down. So, here are five ways to help you get the biggest bang for your time on board.

1. The flight starts at the gate
While you’re waiting to board, find a power outlet, and plug in. pick up a wireless connection, and take care of e-mails. This seems obvious, but distractions can encroach. When you’re going through your inbox, focus on anything that seems most likely to matter when you’re on the plane: reassess your priorities. The unimportant can wait (or be addressed via Blackberry when you’re waiting for the door to close).

2. Get an extra battery
I’m still amazed at how many times I’ve seen business travelers shut down because the juice is gone. Ask your employer for an extra battery – you’ll have a few more hours of high-octane work time.

3. Print what doesn’t have to be electronic
This is especially true if you can’t score that extra battery. Do on paper what can be done on paper, and save the battery life for work that must be done on your laptop. You’re effectively increasing the value of your battery.

4. Set goals
Don’t try to deal with everything. Determine what you want to accomplish on the flight, and zero in on it. If you have time left over, you can work on other things (or, better, sleep). Be realistic when you define your objectives. If you aren’t, you’ll be perpetually frustrated.

5. Know when to stop
If you’re close to exhaustion or just can’t get your mind to work, take the hint. A plane isn’t the ideal office environment). Close your laptop. Put down your pen. Ask for some pill water, and let someone else suffer at your expense for a change!

Congress to end long flight delays

The business travel community is siding with Congress on a new law that would address flight delays on the tarmac. The Business Travel Coalition, which represents the travel departments of 300 companies, is announcing today that it supports a new law that would give passengers some elbow room when a plane’s stuck on the ground.

If a plane is delayed for three hours or more on the tarmac, according to the bill, airlines would have to let the passengers get off the planes. This would provide welcome relief in among the gloomiest of travel situations. And, it could work to the airlines’ favor – though they wouldn’t admit it – as it would prevent negative public relations situations due to poor judgment. There have been enough delays to warrant at least the introduction of a bill, so there’s obviously a problem.

The Business Travel Coalition made the decision after surveying 649 corporate travel departments, travel agents and business travelers. More than 90 percent of the corporate travel departments and approximately 80 percent of travel agents and business travelers support the proposed rule. The National Business Traveler Association and American Society of Travel Agents have both come out in favor of the bill.

Since January 2007, USA Today reports that in excess of 200,000 passengers have been stranded on more than 3,000 planes for at least three hours after pushing back from or while waiting to approach a gate. There were 278 flights in this situation in June 2009 alone. While this is still a small portion of total passenger traffic, 200,000 people is a statistic that’s hard to ignore.

The issue of long tarmac delays was triggered recently by a Continental Express fight that was stuck on the ground in Rochester, Minnesota. The Senate has approved a version of the bill with the three-hour rule, while the House of Representatives has passed a less specific version, requiring that airlines submit a plan to the Department of Transportation for letting passengers off in the case of a long delay.

The Air Transportation Association is against the bill, though it calls long delays “unacceptable” (not exactly a hard position to take). The vice president of the ATA, David Castelveter, claims that airlines have contingency plans to deal with these situations and can handle the situations themselves.

According to USA Today, he says, “We continue to believe that a hard-and-fast mandatory rule for deplaning passengers will have substantial unintended consequences, leading to even more inconvenience for passengers and, ultimately, more flight cancellations.” He also explains that airlines have spent more money and invested in new technology to improve the service they provide.

Of course, we see how well that’s worked over the past three years for enough people to comprise a small city. I’m not a big fan of Congressional involvement, but it’s clear the airlines can’t handle this one on their own: they’ve proved it too often.

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