Cheap travel versus peace of mind
SYDNEY – Corporates being lured by travel websites promising‘lowest rates’ are in some cases paying a higher price in the long term, according to global travel management consultancy, FCm Travel Solutions.
FCm has advised corporates to be aware of the ‘real’ cost of using online booking sites for air travel, hotels, car hire and rail travel, that require pre-payment in full and provide no flexibility on tickets.
FCm’s executive general manager, Anthony Grigson, said in the current climate of belt-tightening, FCm had seen evidence of small to mid-sized companies believing travel websites offered the most cost-effective solutions.
“This may be tenable for companies whose travel plans never change. But for most this is not a realistic approach and some degree of flexibility is needed in their travel itineraries,†he said.
“We have seen companies forfeit hundreds or thousands of dollars in lost room nights or airfares when their travel plans have changed, after booking and paying for tickets that could not be amended and were non-refundable.
“Every company is focused on value right now – even more than before. However, value in travel doesn’t come from buying what appear to be the cheapest tickets online. There are several factors that can push up the total cost of these bookings.â€
Grigson said that while costs associated with booking changes were the biggest factor to consider, lost employee productivity was also a potentially significant expense.
“A business traveller or personal assistant can spend hours trawling the Internet to find what they perceive to be the best rates, when not all available fares are displayed on the Internet and there are hourly price changes.
“That’s time and productivity impacting the real cost of the ticket and the company’s bottom line,†he said.
“There is also the issue of pinpointing the location of your travellers in an emergency – which is part of any company’s duty of care – and tracking what all your travellers are spending on their trips.
“Web bookings do not provide any of these benefits, which can be critical to overall expenditure.”
Grigson said companies using TMCs also had the peace of mind of traveller security services and 24/7 emergency assistance.
“Corporates need to ultimately weigh up whether they want short-term gains or long-term consolidation, which is value that can only be driven by strategic travel management with a holistic approach to their travel and purchasing activity,†he said.
Ian Jarrett
Vegas’s Billion-Dollar Secrets – What They Don’t Want Tourists to Know
Visit Florida’s New CEO Bryan Griffin Shares His Vision for State Tourism with Graham
Chicago’s Tourism Renaissance: Graham Interviews Kristin Reynolds of Choose Chicago
Graham Talks with Cassandra McCauley of MMGY NextFactor About the Latest Industry Research
Destination International’s Andreas Weissenborn: Research, Advocacy, and Destination Impact
Graham and Don Welsh Discuss the Success of Destinations International’s Annual Conference
Graham and CEO Andre Kiwitz on Ventura Travel’s UK Move and Recruitment for the Role
Brett Laiken and Graham Discuss Florida’s Tourism Momentum and Global Appeal
Graham and Elliot Ferguson on Positioning DC as a Cultural and Inclusive Global Destination
Graham Talks to Fraser Last About His England-to-Ireland Trek for Mental Health Awareness
Kathy Nelson Tells Graham About the Honour of Hosting the World Cup and Kansas City’s Future
Graham McKenzie on Sir Richie Richardson’s Dual Passion for Golf and His Homeland, Antigua
ADS PRO 
Phocuswright reveals the world's largest travel markets in volume in 2025
Cyclone in Sri Lanka had limited effect on tourism in contrary to media reports
Higher departure tax and visa cost, e-arrival card: Japan unleashes the fiscal weapon against tourists
Singapore to forbid entry to undesirable travelers with new no-boarding directive
In Italy, the Meloni government congratulates itself for its tourism achievements