KEEP YOUR EYE ON THE TRAVEL ROI By Ovation Travel Group chairman and CEO Paul Metselaar Despite the fact that our company specializes in managing travel for professional service firms, Ovation's clients are no exception to the recent recession-driven trend of belt-tightening, travel cutting and premium service shunning. This unprecedented reaction to the global economic crisis is understandable: Cut all costs, including travel, and where travel can't be cut, cut premium service. Without fully considering the consequences, however, this could have the opposite of the desired effect. In September, the National Business Travel Association unveiled a study showing for every $1 spent on business travel, the average ROI is $15. The study said, "Companies are potentially losing out on nearly $200 billion in 2009 in additional gross profits because they are not optimizing their investments in strategic business travel." So, how to strategize business travel? First, acknowledge it as an investment toward future gains, which is intuitive and which the NBTA study seems to prove. Second, the old adage, "You have to spend money to make money" comes to mind, as does the fact that "business class" service was named that for a reason. Business travel often is obligatory. What you can control, though, is the wear and tear on your traveler, and their physiognomy may reflect directly on your ROI. Here's a hypothetical situation involving a seasoned road warrior on a long-haul flight to make a best-and-final presentation that could mean millions in new revenue. The competition has been narrowed to two contenders and you have a 50/50 shot at this new business. Option 1: You choose to send the road warrior in economy class. They spend a six-hour flight cooped up with a very tall gentleman and his elbow, a man who, by the way, has the sniffles. Little rest or relaxation is had. In fact, a migraine edges in, as does a neck cramp. Exhausted, our road warrior barely makes it to the hotel and wakes the following morning with fatigue, migraine, a neck cramp and, on top of everything else, the sniffles. The road warrior gives their all at the best-and-final, but of course their "all" is somewhat depleted, and your ROI is zero. Option 2: You choose to send the road warrior in business class. They spend the flight somewhat stretched out with full use of both arm rests. They review the presentation, fine-tune some things and still are able to catch some shuteye. Migraine-free, they wake up feeling energized and alert. The road warrior knocks the socks off the prospect. Your ROI is millions of dollars. Let's say your company chooses Option 1 and your competitor chooses Option 2. You saved a few hundred dollars on the plane ticket. Your competitor shelled out a few hundred more on the plane ticket but won the business. I'll add salt to the wound. You probably wouldn't have had to spend hundreds more to secure premium class. You or your travel management company could have upgraded the traveler, utilized their frequent flyer miles to secure the upgrade or negotiated a superior rate on your company's behalf. Planning a corporate program wisely means much more than ham-fistedly taking travel to the chopping block. You have the opportunity to choose your own ROI. That means first understanding that travel is as much investment as expense, and then taking a surgical approach to maximizing the return on that investment by closely monitoring and exploiting all cost-cutting and upgrade options, without sending your road warriors through the wringer. 14 WAYS TO SURVIVE A HOLIDAY FLIGHT Lighten up Ship your presents. Nearly every U.S. airline charges a fee to check a bag, so shipping gifts is now cheaper and more convenient than carrying them in your luggage. If you decide to tote your gifts aboard, don't wrap them first—the Transportation Security Administration reserves the right to open anything, including the presents you so painstakingly prepared. Weigh your options Calculate your overweight-luggage fees at home. You can scope the fees out in advance by visiting new site Luggage Limits, which provides the latest info on more than 90 airlines. Have a drink later Bottles of wine and gin? Perfume? Gift baskets? You can't take any of them on the plane. Liquids in containers larger than three ounces are a no-no, and even three-ouncers must be stored in a single quart-size, clear bag. You can bring cakes and pies through airport security, but you may be subject to additional inspections. For full rules, go to the TSA's site. A blue Christmas Fly nonstop, even if it costs a little more. The combination of huge crowds and bad weather is a massive delay waiting to happen: One big storm and the system backs up, leaving you and all the others stranded. And that's a terrible way to spend the holiday. Leave amateurs in the dust Trust us and get to the airport an extra half-hour early. The check-in and security lines are filled with inexperienced fliers, and it's a slog. Plus, if you decide to cut it close you may not get onto the flight at all. To reduce costs, airlines have dramatically scaled back on flights and routes. The remaining flights are more likely to be oversold, especially on busy travel days. Fliers who check in early are the least likely to get bumped from oversold flights. Self-sufficiency wins Movies, food, pillows, water—it's hard to keep up with exactly what airlines will nickel-and-dime you for nowadays. Cut the guesswork and bring your own amenities, including snacks, entertainment, and a travel blanket. A homemade sandwich usually tastes better than the $7 airline version, anyway. BYO antibacterial wipes, too No one wants to get sick, especially during the holidays, when people always seem to be fighting colds. Wipe down the airplane seat-back tray and the armrest, and anything you'll touch in the plane and airport bathrooms. BOEING DREAMLINER MAKES FIRST FLIGHT The future of commercial aviation arrived yesterday — albeit 28 months late — when Boeing's 787 Dreamliner took off from Paine Field in Everett, Wash., just before 10:30 a.m. on its maiden flight. The Dreamliner, whose test flight was repeatedly postponed, won't enter commercial service until late next year at the earliest. And that's only if everything goes perfectly during what promises to be the most rigorous flight-testing and certification program in commercial aviation history. The Dreamliner is the first commercial aircraft to be made mostly from composites rather than conventional aluminum and steel. At one point, Boeing had nearly 940 orders for 787s. But the delays and tough economic conditions caused airlines to cancel at least 83 orders this year alone. At present, airlines have more than 840 firm orders in place for 787s. Airlines desire the 787 because it promises to cut the cost of flying long-range route s by 15% to 20%. Reduced weight, advanced design and more efficient engines from General Electric and Rolls-Royce make those savings possible over long distances, where the fuel savings can add up. Consumers also are expected to benefit from the 787's wider and taller fuselage and its advanced environmental control systems, which Boeing officials claim will make the 787 the world's most comfortable plane. The 787 offers passengers the prospect of more overhead baggage space. And it will have larger windows than current jetliners because the structural integrity of its hull won't be compromised by larger windows, as would be the case on conventional metal planes. Boeing also has added a nifty creature comfort to the larger windows: electric shades that roll up or down at the touch of a button.
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The huge conservatory suites are steeped in sunlight. Interior feature floor-to-ceiling marble bathrooms and crisp yet cosseting wools, silks and linens in cool taupes and creams. The Halkin is also home to Nahm, the Michelin starred Thia restaurant from Australian chef, David Thompson. For fast-track access to the capital, make use of an exceptionally knowledgeable concierge – for reservations at the hottest restaurants, for private drivers and personal shoppers. Once experienced, travelers will come back again. The Halkin has a modern soul of its own, with a commitment to privacy and service of the most meaningful kind. The Ovation Preferred Hotel Partners Program rate at The Halkin is £240 (compared to a corporate rate of £255).*
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Magnificence and beauty surrounds one at the Hyatt Regency Waikiki Beach Resort and Spa. This welcoming Waikiki hotel offers the ultimate combination of personalized service, outstanding amenities and a perfect location close to all that embodies the island. Stroll to such landmarks as Diamond Head, Honolulu Zoo and the Waikiki Aquarium from the spectacular setting fronting Waikiki Beach. Surrender to the total pampering of this Waikiki, Hawaii hotel spa, or awaken the adventurous side with surfing lessons. Experience the true meaning of Hawaiian hospitality. The Ovation Preferred Hotel Partners Program rate at the Hyatt Regency Waikiki Resort & Spa is $189 (compared to a corporate rate of $253).*
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Panoramic views of the Bay Bridge and the city skyline fill each of the 410 guest rooms. Take in the view from the SoMa district's newly renovated W San Francisco combining whimsical Asian influences like Chinese checkers and origami butterflies with the cloud-like comfort of the W signature bed. An oasis beckons. Unwind in the heated lap pool, Zen on the cabana-ringed outdoor terrace. Melt in Bliss Spa's 5,000 square foot tension-banning oasis. Then relax with the perfect XYZ elixir & warm to Paul Piscopo's delights at XYZ Restaurant. The Ovation Preferred Hotel Partners Program rate at the W San Francisco is $209 (compared to a corporate rate of $239).* * All rates are subject to availability. Ovation Corporate Travel |
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