NBTA Addresses Current State of Airline Industry - White Paper Outlines New Corporate Travel Priorities
ALEXANDRIA, Va.--The National Business Travel Association's (NBTA) Aviation Committee released a white paper last week addressing the current state of U.S. airlines and corporate travel. Entitled "The Critical Condition of the Airline Industry," the white paper focuses on the causes of the current crisis and what needs to happen to move the industry in the right direction.
Aviation Committee Co-chairs Suzanne Fletcher, Director of Travel and Meetings for Weyerhaeuser, and Robert McGurk, Vice President for Turner Broadcasting Systems, led the group's work to develop this white paper.
"The industry is at a critical point right now and our goal is to address the concerns of corporations while also highlighting the changes the airlines have been going through," said Fletcher. "We hope to provide guidance for travel managers and suppliers to make it through these turbulent times," said McGurk.
The white paper outlines a new definition of the corporate traveler as someone who is more flexible in their travel planning and who has access to more information.
It also addresses the changes in corporate buying patterns, including the attractiveness of non-refundable fares, the increased availability of options such as web conferencing and private charters, and the perceived decrease in value received from travel agencies.
The paper goes on to discuss how the airlines have made unilateral marketing and pricing decisions that seemingly benefit only themselves, leading to new, almost confrontational, relationships between corporations and airlines.
"The profile of the corporate customer has changed, perhaps forever," said NBTA President Kevin Iwamoto. "We need the airlines to understand this new reality and recognize the true value and volume of corporate travel when planning their business models and negotiating corporate contracts."
Further on in the paper, NBTA's Aviation Committee suggests how the airlines can change their pricing and business models in order to regain the corporate market. Strategies include revisiting corporate contracts to benefit both parties, listening to their best customers, and better communicating policy decisions to corporate clients.
The document also suggests that corporations review their travel programs and remain flexible when negotiating contracts.
The National Business Travel Association, established in 1968, represents over 2,400 corporate travel managers and travel service providers. NBTA members manage and direct more than 70% of expenditures within the business travel industry. NBTA is committed to the professional development of its members and offers educational and training opportunities.
It is the source for critical information on the business travel industry.