Sky High Fares
August 13, 2008
Increasing costs of air travel does not fly well with incentive planners
By Jeanie Casison
Airlines are causing a lot of frustration for more than just travelers these days. Incremental charges for extra luggage, preferred seating, food, blankets, pillows and other items are creating cause for concern among those responsible for organizing incentive trips. Fewer flights, frequent delays and declines in service are steering planners into a holding pattern.
Although Scott Siewert, divisional vice president of USMotivation in Atlanta, has not experienced outright cancellation, he has noticed some changes associated with air travel costs. "We haven't seen canceling, but some clients are limiting the number of people on a program. Many clients now have a very keen eye on the travel component of their incentive program," he says. "It used to be air costs what air costs. Now it's 'I need to control my air, and inform my CFO of the costs this minute.'"
The most recent ATA Airline Cost Index released by the Air Transportation Association in Washington, D.C. doesn't looking promising, confirming that expenditures are indeed rising at rapid rate. According to the ATA Index, which includes fuel, labor and transport-related expenses, U.S. passenger airlines saw first-quarter 2008 costs grow at the fastest pace since the second quarter of 1980.
Higher costs force incentive travel professionals to be more flexible in their program planning. "The rising cost of fuel and additional air surcharges means less money to play with on land. Add in the weak dollar, and we are seeing some clients cutting days, changing destinations or reducing the number of participants," says Eve Sotnak, a senior buyer for Carlson Marketing in Minneapolis.
Despite the challenges, there are ways to address air travel concerns to ensure seamless experiences for incentive clients. One option is to stick closer to home. "Instead of Europe and Asia, some clients are going to Mexico, the Caribbean, Hawaii or the continental United States and beefing up program content," Sotnak says.
As for extra baggage, both Siewert and Sotnak have worked on programs where fees were taken care of for a group, either through the distribution of a debit card or by payment in advance. "These people earned this trip, and should be treated with respect and not have to pay $50 to put bags on the plane. There is this aggravation but you can turn that into a positive," Siewert says. "The real essence of incentive travel is to motivate people to be top performers. As an industry we have to figure out the best ways to minimize the aggravation factor, so that travel is still a motivator. People still want to travel but with the high prices they will be more conscious and make better decisions to save money."
|
RSS
