Business travel sector urged to shun no-frills
ITM National Conference Special: Traditional airlines are hitting back in their battle with low cost carriers by focusing on value and service, not just price, a conference has heard. As the no fills airlines – Ryanair in particular – came under heavy criticism, delegates at last week’s Institute of Travel Management conference in South Wales said customers too were beginning to look for value. Keith Haynes, senior vice president for global travel company Radius, said the low cost carriers are fooling its business and leisure passengers with high prices and poor service. Describing how a travelling companion had paid £300 for a Ryanair ticket – only to be told to “come back tomorrow” because the flight was overbooked – Haynes said: “Ryanair don’t want to know about you as a customer, even when you pay top dollar. They take pride in that. Whether you are paying £17 or £300 you get the same service.” Claiming travellers are being “duped” by Ryanair, he added: “We’ve all rattled on about value but it’s only when you miss is that you realise what value is.” BMI corporate sales divisional manager Neil Tolefree said people are beginning to “wake up to the fact” that they are being treated shabbily. Traditional airlines meanwhile are altering their model to attract the corporate market. “There are some things now that corporates are not prepared to pay, such as business class on 45-minute flight just for a couple of extra inches leg room,” he said. “KLM for example now has three levels of economy class. This will happen more and more.” He added it was critical for airlines to be priced competitively but also to offer punctuality, convenience of airports, an extensive route network and lounges. “The short haul market has been commoditised,” said Tolefree. “You need competitive pricing but to get loyalty you need to do the other things very well.” Chris Crowney, Radisson SAS director of sales and marketing, added: “I was taught years ago about selling the difference. Airlines are learning that now. They are talking about the value of what they are offering.” Report by Steve Jones
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