Getting With the Program - Carlson Wagonlit Travel

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38 Lower Costs, Higher Value: “New World” AirlinesBenefits for all playersEven companies that do not source low-cost carriers can benefit from the way in whichthese new players have shaken up the market. In reaction to aggressive low fares,traditional airlines have generally kept prices stable, avoiding the major price hikesobserved in other industries across the region. Many legacy airlines are also relaxingrestrictions on economy fares in order to maintain business. In addition, carriers likeQantas (owner of Jetstar) are upgrading their services by offering their own premiumeconomy class, with features such as dedicated check-in and flat beds.More competition in the market is clearly a cause for celebration among buyers, whocan use the possibility of reallocating market share as a major lever in negotiations. Inaddition, companies may benefit from the influence low-cost carriers are having ontraveler perceptions. By providing an acceptable alternative to travel with traditionalairlines, budget airlines might be making full-service economy seem a high-priced luxury,which becomes more attractive to travelers who are used to using business class. Thismay help travel managers who are trying to convert travelers from business class toeconomy with legacy preferred partners—often the single largest source of savings ina travel program.As the market continues to evolve, corporate-friendly budget carriers in Asia Pacific arepresenting growing opportunities for travel managers—indeed, a whole new world ofopportunities for companies willing to give them a try.
CWTvIsIon Issue 3 - January 20083Examples of “new world” features for corporate customersAirlineHomecountry/regionNetworkKey featuresJetstar AirwaysAustraliaand Singapore33 destinationsin Asia Pacific“StarClass”“At the price of other airlines’ standardeconomy fares”Premium cabin with meals, amenitiesand in-flight entertainment(including video on demand)Priority check-in and lounge accesswhere available30 kg allowance for checked baggageLoyalty points for Qantas frequentflyersKingfisher AirlinesIndia34 cities in India,including 13by business class“Kingfisher First”“Redefining business”Volume discounts“King Club” frequent flyer program,in alliance with Air France-KLMFirst class seats with in-flight mealsand entertainmentPersonal valet for first class customersMeet and Assist airport services for VIPsOasis Hong KongHong KongHong Kong toLondon andVancouver“Business Oasis”“Best Business Class Carrier”at the 2007 World Low-Cost AirlineAwards (September 2007)In-flight meals and entertainmentSleeper seats with 50-60 inch(127-152 cm) pitchOasis Virgin Blue,Pacific Blue andPolynesian Blue(Soon to includenew carrierV-Australia forlong-haulinternational flights)Australia,New Zealandand Samoa30 destinationsin Australia,New Zealand,the Cook Islands,Fiji, Samoa,Tonga andVanuatu“Corporate Plus” flexible faresOption to book and hold faresfor 48 hoursFully refundable tickets (fee: AUS$30)Cancellation or flight changes allowedup to 24 hours after the scheduleddeparturePriority check-in and lounge accessfor Australian domestic flights32 kg allowance for checked baggageSource: CWT Travel Management InstituteBased on carrier Websites, October 2007
Page 1: Insights into Effective Travel Mana
Page 4 and 5: 2 ContentsEDITORIAL5 Looking AheadH
Page 6 and 7: 2008
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Page 20 and 21: 18 Priorities for MobilityWe have a
Page 22 and 23: 20 Priorities for Mobilitycontribut
Page 24 and 25: 22 Priorities for Mobility“The mo
Page 26 and 27: 24 Priorities for MobilityQuestion:
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Page 32 and 33: 30 Open Skies: Opening up Opportuni
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Page 44 and 45: 42 Ten Business Travel trends for 2
Page 46 and 47: 44 Ten Business Travel trends for 2
Page 48 and 49: 46 Smart Solution: Program Complian
Page 50 and 51: 48 Smart Solution: Program Complian
Page 52 and 53: 0Ground Transportation: Worth Anoth
Page 54 and 55: 2Ground Transportation: Worth Anoth
Page 56 and 57: 4In BriefIn Brief54 Snapshot56 Soun
Page 58 and 59: 6In BriefSOUNDBITE“Air travelers
Page 60 and 61: 8In BriefNumerous airlinesunveiled
Page 62: 60 In BriefINDICATORSEvolution of a

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