Business travelers poised to take fun out of social media tools

by Tom Johansmeyer on

Where are you looking for the latest travel information? Well, if you’re a business traveler, especially with a mid-sized company, you’re probably turning to social media tools. And, that makes more than a little sense, given the reach of platforms such as Facebook and Twitter (the former of which pierced the 500 million-user mark this week).

According to the latest research by American Express Business Travel, the white collar crowd is turning to social media more and more to stay in touch with other travelers and keep up with travel industry developments. This is just the beginning, however. Down the road, many expect to use these online utilities to engage more directly in business, particularly through webcasts, forums and online video.

Basically, businesses will figure out how to put to work what kids have been doing for years. The good news? Since social media tools will become synonymous with work for this population, wasting time on Twitter won’t be fun any more, and the boss will recapture some productivity.
According to Christa Degnan Manning, director, eXpert insights, American Express Business Travel, “As businesses around the globe alter the way they communicate and receive information from clients and prospects, social media has also proven to be a useful and effective tool to share pertinent information with employees and drive change in organizations.”

Half of the respondents to the American Express Business Travel survey indicated that “they use social media to some extent to support travel management today,” and the proportion went up to 59 percent for mid-sized companies (defined as $3 million to $10 million in air volume).

So, why do they use social media tools? Forty-four percent say they want to stay up on the latest travel information, with 43 percent reporting that they can “learn and communicate best practices and reduce business travel costs”. Other priorities include finding preferred vendors and services (42 percent), hunting for travel patters that could result in improved rates or services (34 percent) and encouraging networking among travelers (26 percent).

What’s most horrifying about this research? Well, it’s that social media tools are becoming useful …time to kill that FarmVille account, right?

A gloomy travel market for 2010 will follow an ugly 2009

by Tom Johansmeyer on

Everybody seems to want the travel market to recover next year, but it looks like more time will be spent in yards, instead. According to a new USA Today/Gallup poll, only 16 percent of us are going to hit the skies or crash in hotels more than we did in what will go down in history as a dismal 2009. Close to a third said they are going to spend less time in guestrooms and cramped plane seats. The main reason, of course, continues to be the state of the economy.

Slow improvements to the economy, according to some industry analysts, should push demand for tickets and hotel rooms higher – not to mention services related to the convention and meetings business. But, the baseline is set pretty low, with 2009 having been so weak. American Express, the largest travel agency in the world, doesn’t see a recovery coming anytime soon.

The bar has been reset, and it’s low. It will stay low for a while.

The big beast to be tamed in the travel market, doubtless, is business travel. Until the corporations start to send people on the road more liberally, the airlines, hotels and other businesses involved in travel will continue to feel the squeeze.

What’s going to happen by sector? See below.

Airlines: Industry analysts see hints that the market is turning, with demand for seats up year-over-year (by month) since May. United Airlines sees “a very encouraging trend line,” and US Airways notes a steady improvement. But, the latter continues that a decline of 30 percent to 35 percent in corporate spending has been a drag, and November was the first month in which it was up year-over-year. And, November 2008 wasn’t a tough month to beat.

Analysts believe that “even a modest rise in the USA’s gross domestic product,” says USA Today, will kick the airlines back into profitability. Gary Kelly, CEO of Southwest, isn’t that optimistic, telling the newspaper, “Business travel still lags, and I don’t know that I’m comfortable in reporting that we’ve seen any improvement in that market.” He doesn’t expect business travel to bounce back next year.

Hotels: What can I say that Melanie Nayer hasn’t? Not much, really. The past year has been miserable, with PricewaterhouseCoopers reporting occupancy plunging to 55.2 percent this year, from a 2006 peak of 63.3 percent. Next year, it’s expected to tick up only to 55.8 percent.

Room rates fell precipitously in 2009 relative to 2008, causing an average decline of 16.4 percent in the industry’s average revenue per available room-night. PwC expects 2010 to be worse than 2009, conflicting with the Business Travel Monitor report from American Express. But, there’s room for both views. Leisure travelers will have to spend a bit more, but hotels in business-heavy markets will still win some favorable pricing.

Conventions: Look for a slight increase next year – again, relative to a brutal 2009. For the good news about the conventions, you’ll have to wait until 2011 and 2012, says Roger Dow, president of the U.S. Travel Association. Through the end of 2010, approximately 40 percent of corporate and association meeting planners, reports USA Today, are likely to postpone or sink off-site meetings for the next year.

Hotel prices on the rise in 2010

by Melanie Nayer on

If you didn’t score your travel deal-of-the-year in 2008 or 2009, you’d better start planning for 2010. According to a report from American Express Business Travel, the economy is on the rebound and so are hotel room rates.

American Express released third quarter data from its Business Travel Monitor last week and if the index is correct, leisure travelers should start saving. While luxury hotel rates continue to decrease, the index shows a continual increase in mid-price, economy and budget tier hotels.

“Continued drop in demand has impacted both international and domestic hotel bookings,” said Christa Degnan Manning, director, eXpert insights, Global Advisory Services, American Express Business Travel. “However signs point to an increase in demand from the bottom up, where rates have notably increased up to seven percent in lower hotel tiers, driven by a positive up-tick in demand from travelers wanting to travel, yet doing so more cost-consciously.”

All that aside, there’s still plenty of room to score a hotel deal in the coming year.Before you book:

  • Always check the hotel promotions page to see what offers might fall during your stay. Don’t turn down a discount for a free meal, spa or hotel credits. You never know when you’re going to want room service and if for some reason your flight is delayed, a few hours at the spa won’t be so terrible.
  • Join a hotel loyalty program – Hotel loyalty programs are free and usually come with added perks like free in-room Internet access (which can save travelers up to $15 a day).
  • Ask, and you’ll likely receive – “Please” and “thank you” are two phrases that work very well in the hospitality industry. Ask politely for an upgrade when you check in. If there’s not one available, ask to be moved to a corner room (they are generally bigger).

The silver lining in all this? Seems spenders are feeling a little more optimistic about the economy, which is good news for the travel industry.