Is American Airlines making a “reckless rodeo bet”?

by Tom Johansmeyer on

American Airlines’ decision to pull out of Orbitz has triggered a war in the travel industry, as airlines and online travel agencies vie for ownership of the customer. The latest step was Expedia’s decision to minimize the exposure of American Airline options in searches on its site, likely a play to reduce the risk of a move by American to pull out of Expedia, too.

According to a statement by the Business Travel Coalition, this could erode American Airlines‘ standing in the market further. In addition to losing visibility on a major booking site, the airline will lose the additional sales that come when a visitor to an online travel agency leaves the site to book directly with the airline.

Says Kevin Mitchell, chairman of the Business Travel Coalition, said, “American is making a reckless rodeo bet that it can rope its best customers like calves and then push and pull and kick them toward aa.com and Direct Connect.” He continued, “Online consumers may not even know American’s flights are missing. The ones who will gain the most here are American’s competitors United, Southwest and others. They should be thankful for this early Christmas present.”
Striking a somewhat alarmist tone, Mitchell noted that American Airlines Direct Connect “takes the consumer problem of hidden airline fees to a much darker and dangerous place for consumers.”

While this may be a bit extreme, there are clear implications of the shakeup, especially for bargain-shoppers and occasional leisure travelers.

The fact that Expedia appears to have come to the defense of its competitor, as Mitchell stated – “Expedia’s decision to support the consumer and its competitor Orbitz underscores the enormity of the economic damage American Airlines’ Direct Connect plans could have on consumers due to lessoned [sic] price transparency and impeded comparison shopping” – should be taken within the context of what could happen to Expedia’s business if it didn’t implement this defensive measure.

The real impact of this is pretty simple: customers loyal to the American Airlines brand will continue to buy from American Airlines. Those who are searching for the cheapest fares will balance their behavior between visiting online travel agencies and airline websites.

American Airlines may not have made a “reckless rodeo” bet, but is making a statement about the future of its business. The airline is betting on its own brand, and the online travel agency community is responding.

[photo by ReneS via Flickr]

Five real reasons behind business traveler hotel choices

by Tom Johansmeyer on

It’s not just flights – business travelers are easing up on cost when it comes to hotels, too. Rather than try to stretch their dollars until they squeal, road warriors are finally looking for ways they can be a little happier when sleeping in beds that aren’t their own (unless, of course, they’re sharing a bed with … well, you know).

Hotels tend to love business travelers, because they have cash to spend and tend to use it for more than just the room-night. Restaurants, bars and other services – these guys know how to open their wallets!

So, how do they choose? The latest Orbitz for Business / Business Traveler Magazine Quarterly Trend Report offers the five priorities that business travelers want when they decide to offer up their credit card information. While some are mundane, others will shock you:1. Give us a reason to be loyal: business travelers are whores for points, and that means loyalty programs top the list. Rather than save the company some cash, they want to make sure they won’t have to shell out to take the wife, girlfriend or mistress out of town for a few days.

2. Close to work: business travelers are interest in proximity to the reason they’re staying in a hotel. Speaking from experience, nobody wants to wake up in a hotel and then drive half an hour to visit a client. It blows.

3. All in one place: on-site amenities make life easier. That includes wifi, on-site cleaners and an exercise center. Nobody’s going to be happy wandering around town to find this stuff.

4. Size does matter: size of the bill, that is. For business travelers, hotel room rates still make a difference. Cheaper tends to be better.

5. The need to see stars: this one actually surprised me. Business travelers care about a hotel’s star rating. I never looked at it from that perspective but was always interest in choosing a place that didn’t feel third-world (having made a few bad choices along the way).

The least important factor? Well, that’s whether a particular hotel is on a company’s preferred supplier list. And, only a handful said that user reviews were “extremely valuable in their selection process.” As expected, sharing a room is almost totally out of the question.

Five perks business travelers MUST have

by Tom Johansmeyer on

If you’ve ever been a road warrior, you know that the following is true. Spending hours upon hours on a plane several times a week, every week of the year, even the smallest benefits can make a profound difference. It’s sad but true that happiness is measured in on-time arrivals and exit rows, but such is the nature of frequent business travel.

According to the latest Orbitz for Business / Busienss Traveler Magazine Quarterly Trend Report, what business travelers want is changing. During the recession, cost was paramount, as cash-strapped businesses put pressure on employees to keep expenses under control in a bid to protect profit margins. Now that economic conditions are changing, travel priorities are too.

Ancillary services are gaining importance, as passengers are looking for ways to be comfortable again, especially if looser travel budgets are resulting in more time on the road. According to IATA, the airline industry is likely to pull in an aggregate $8.9 billion in profits from ancillary services this year, indicating that the money is likely to come from somewhere.

Let’s take a look at the five things the white collar travel folks are beginning to crave:1. A seat in the aisle: this isn’t surprising; everyone wants the chance to stretch out, even if it means the risk of getting slammed by the beverage cart.

2. Priority access at the security line and early boarding: hey, nobody wants to wait, right?

3. Airline lounge or club access: if you’re going to be stuck in an airport, you might as well enjoy it.

4. A seat at the front of the plane: boarding isn’t the only priority – business travelers want to get off quickly, too.

5. Extra leg room in coach: sense a theme here?

Like the opportunity to keep one’s dignity while flying, baggage check didn’t make the top five. Though among the most used ancillary services for leisure travelers, it came in sixth for business travelers, likely because frequent fliers have learned to avoid checking their bags at all costs. Interestingly, the least-used ancillary services are priority standby for an alternative flight and internet access, though I expect the latter to increase as it becomes more widely available.

The Gadling gift guide for the business traveler

by Scott Carmichael on

The business traveler is a hard one to shop for – you don’t want to give them something that will make them have to work harder, but you also want to be sure you give them something “cutting edge”. So, we’ve collected a sample of some of the best business travel friendly products on the market.

If you need other ideas, check out our gift guide for the iPad/iPhone owner.

Toshiba Portege R705 ultra-portable notebook

Unless your office supplies you with a corporate laptop, you’ll be on your own when it comes to shopping around for the perfect machine. As far as we are concerned, perfect is how we describe the Toshiba Portege R705. At a tad over three pounds, this machines has it all – built in optical drive, HDMI, VGA, plenty of storage space, eSATA expansion port and impressive battery life. Combine this with a price tag under $1000, and you’ll understand why we like it so much. The R705 lineup includes all kinds of combinations – including models with a fingerprint reader and processors options up to an Intel i7.

Price: from $899

Product page: Toshiba Portege R705

Gadling review

iDapt charging kit

Traveling with more than one gadget? the IDAPT line of device chargers can take care of all your needs in a single product. With a variety of charger plugs, this product can be placed on a desk, and just one outlet, you’ll have all your gadgets at 100% before you know it.

Price: from $34.99

Product page: IDAPT

Pogoplug

Ever been on a trip only to discover that you forgot to copy a really important file to your laptop? Pogoplug could be the one product you need to fix that for good. Plug the Pogoplug into your network (or let it connect to Wi-Fi), attach a storage device, and you instantly create a network storage system that can be reached anywhere in the world. Access can be gained through a browser, desktop software or one of the various mobile clients.

Price: $99.99

Product page: Pogoplug

Sewell VGA adapter

Got a laptop without a regular video output? The Sewell VGA to TV adapter can turn your VGA signal into a normal composite signal, which means you can then watch Netflix movies or PowerPoint presentations on the old hotel TV.

Price: $34.95

Product page: Sewell Direct

Gadling review

Black Box retractable cable kit

With six different laptop cables and accessories in a single kit, the Black Box retractable cable kit has everything you need to be a real efficient road warrior. Includes USB and Ethernet cables, a retractable power cord, headphones, LED light and an optical mouse.

Price: $38.95

Product page: Black Box

Gadling review

Pelican 1510LOC rugged overnight laptop case

Scared of the airlines breaking your laptop or other gadgets? Teach them a lesson with the Pelican 1510 rugged overnight laptop case. When your luggage has its own “pressure relief valve”, you just know you are dealing with something special. If you are concerned about its strength, just remember that the U.S. Military trusts these cases with their weapons.

Price: $200

Product page: Pelican cases

Briggs & Riley BRX line

Looking for some budget friendly luggage that doesn’t scream “PowerPoint presentation master”? The BRX line from Briggs & Riley has it all – great looks, rugged frame and tons of internal storage space. Plus, because the top isn’t rigid, it’ll expand nicely.

Price: from $160

Product page: Briggs & Riley BRX line

Gogo Inflight Internet 6-pack

What better product to treat the road warrior to than the ability to get even more work done inflight! Of course, inflight Internet access through Gogo Inflight doesn’t always have to involve work – just don’t tell the boss.

Price: $49.95

Product page: Gogo Inflight pricing options

Gadling review

[Photo from Flickr/Peterbartsch]

Jawbone ICON headset

Lets face it; business travelers love their Bluetooth headsets. Anyone that has sat at an airport staring at all the people walking by will know how important the headset is in the road warrior arsenal. So, if you are going to wear a headset, at least let it be a decent one. One great contender? The Jawbone ICON headset. Besides fantastic sound quality, the ICON also supports Jawbone apps and different voices for text to speech.

Price: $99

Product page: Jawbone

Gadling review

Balanzza Mini luggage scale

Sooner or later, even the best packer will need to hand their bag over to the airline to be checked in the luggage hold. For these times, a portable luggage scale could mean the difference between just under, or just overweight. And sadly, overweight means costly charges. The Balanzza can weigh bags up to 100lbs and hooks to almost any piece of luggage.

Price: $24.95

Product page: Balanzza

Gadling review

Wilson Electronics MobilePro signal booster

Being stuck in a bad hotel for a business trip is no fun, but things get worse when you are stuck somewhere with little to no signal. Suddenly, you are not just physically in the middle of nowhere, and when your Blackberry displays “no signal”, you’ll be in for a long stay. Thankfully, the MobilePro signal booster kit by Wilson Electronics can turn any dead zone into a 5-bar location. Its internal antenna picks up your signal, and boosts it to a magnet mounted antenna outdoors.

Price: From $184.99

Product page: Wilson Electronics

Gadling review

Livescribe Echo Smartpen

If the switch to “all digital” hasn’t made you any more efficient, consider the Livescribe Smartpen. This pen records your writing, and records audio in meetings or more. Best of all, the pen can be outfitted with handy pen based apps. Once written, you can transfer writing and recordings to your computer, or send them out on the web to Livescribe or Evernote.

Price: from $149.95

Product page: Livescribe store

The Art of Shaving travel kit

Just because you are on a business doesn’t mean you can’t pamper yourself a little. The Art of Shaving kit contains everything you need for a professional style wet shave, plus a stainless steel Gillette razor.

Price: $150

Product page: The Art of Shaving

Gadling review

AAXA M2 portable projector

During the day, you can give presentations, and at night, you can use this projector to watch a movie. The AAXA technologies M2 portable projector is one of the best on the market, with a 100 lumen LED lamp, hi-def resolution, HDMI input and a built in 1GB media player, things don’t get more compact or more entertaining. But the best part? Its insanely low price!

Price: $369

Product page: AAXA Technologies

AVIIQ laptop stand

Not many travel products can claim German engineered hybrid composite materials and “lightest in the world” in a single product. But the AVIIQ laptop stand does work hard to justify its $79.95 price tag. When not in use, this laptop stand folds up into a neat little package and unfolds into a full size ultra-light stand.

Price: $79.95

Product page: AVIIQ Laptop stand

Gadling review

TSA to impede travel market recovery? Not buyin’ it

by Tom Johansmeyer on

When I finally crawled out of bed and caffeinated Saturday morning, I made the rounds on Twitter and found a bold statement by travel journalist Christopher Elliott: “Thanks to TSA, 2011 could be a flat year for travel”. Despite the digging he did, I’m just not buying it. Passenger inconvenience, especially when it comes to leisure trips, isn’t likely to have a major effect on the travel industry in 2011.

You’ve read it from me on Gadling before: it isn’t the leisure traveler that defines the travel market; it’s the business traveler. These are people who have no choice but to hit the road, whether because they are instructed by their bosses or because they recognize business opportunities that they need for growth or simply to keep their companies alive. As business conditions continue to improve in the broader economy, demand for flights is likely to increase, and those buying tickets will have relatively little choice in the matter.

We’re looking back on what’s shaping up to be a positive year for the travel industry, particularly the airlines. And, according to Elliott, on his blog, “2011 was shaping up to be the best year for travel since the recession began.” He cites expectations of higher prices, even if only slightly, but pent up demand by travelers for “long-postponed vacation[s].”

Thanks to TSA, 2011 could be a flat year for travel http://bit.ly/gsbOfTless than a minute ago via webChristopher Elliott
elliottdotorg

The next year of the recovery could be imperiled, however, by new measures implemented by the Transportation Security Administration, specifically body scanners. In fact, Elliott writes:

But now that the Transportation Security Administration has introduced full-body scanners at many American airports, and subjected those who opt out of the machines to an “enhanced” pat-down, the 2011 outlook has changed, say travelers.

To support this claim, he talks to Jeff Cohen, an Austin, Texas-based securities trader, who claims to be “torn about whether I’ll travel more next year or not.” Cohen tells Elliott he goes on “a couple of large trips a year” and had a big one in mind for the first half of next year, “to somewhere exotic.” Now, Cohen tells Elliott, “[T] he recent TSA crackdown has me rethinking that.”

Further, the Consumer Travel Alliance sees the traveling public as generally unlikely to increase its travel activity. Elliott continues:

A majority (46 percent) say they will travel “about the same” as they did this year. Slightly less than a third (30 percent) will travel more, while just less than a quarter (23 percent) will travel less. This contradicts several earlier surveys, which had predicted a significant upswing in travel next year.

The key word here is consumer. The focus, here, is on leisure travel. The needs of business travelers are again overlooked.

Let’s consider Cohen’s case for example. So, he’s rethinking his leisure travel plans for next year. If he has to hop on a plane to close a deal or bring in a new client, is he going to do that? Would he sacrifice a two-hour flight for a 10-hour drive do so? I don’t know the guy, but drawing on my white-collar experiences, I think I know how he’d react to a major business opportunity a few states away … and it wouldn’t involve turning the key to the ignition.

The business traveler really has little choice in whether to hit the road. Could he skip a business opportunity or pass on a project in favor of something local – or to wait for a gig nearby to arise? Of course. But, that would mean turning down the very fees that put food on the table. Sales professionals need to travel to bring in business, fulfillment teams (e.g., the folks who provide the good or service sold) may have to take to the friendly skies and support sometimes needs to be provided on site. This is just how the nature of commerce has evolved. If conditions continue to improve, more of these people will be buying plane tickets.

And, they’ll pay more for them.

The nature of business travel, given that it occurs in order to support subsistence or the accumulation of wealth (both important), is that it is inelastic, at least relative to leisure travel. There is effectively no choice but to get on a plane, unless extreme measures are brought into the equation. Since business travel relatively inelastic, these travelers will pay more, which supports a continued travel industry recovery.

The fact that business travelers tend to be willing to pay more for their tickets also means that they have less choice in whether to fly. Sure, there are tools out there such as videoconferencing and online collaboration software that can provide a substitute, but a recovering market means that there’s more capital available, which facilitates investment in face-to-face meetings. When your boss tells you to travel, you travel.

As a result, the decision to travel is itself relatively inelastic for the business traveler.

So, if the business traveler is the backbone of the travel industry recovery, the TSA is unlikely to get in the way in 2011, even if every passenger listens to the snap of a rubber glove before an invasive pat-down begins.

Now, let’s take a closer look at the leisure traveler. The impact of the TSA security measures may involve a bit of hype there, too.

Even before Thanksgiving, the close to two thirds of consumers thought the body scans weren’t a big deal, with 70 percent stating they didn’t expect the enhanced security measures to slow travel down during the busiest travel season of the year.

Further, economic growth, if it occurs, will provide consumers with more disposable income. Those who have an interest in travel are likely to become more ambitious, taking the trips they’ve always wanted to. Elliott finds many who disagree with this assessment, but there’s nothing like having a freshly filled checking account to alter your perspective.

We all love to hate the TSA, and I’ll admit that I’m among the many in that camp. There’s nothing worse than waiting in a long security line at a crowded airport. The notion of having to devise and carry out strategies for getting through the checkpoints faster indicates the absurdity of what goes on in airports today. Efficiency is as low as customer service, and there’s little we can do about it.

That said, will body scans and pat-downs impede a travel market recovery next year? It doesn’t seem likely. General global economic trends will determine how many people get on planes next year, not the policies crafted and implemented by government employees.

[photo by oddharmonic via Flickr]