028-31_TTGB air feature 5/11/08 13:17 Page 30
L50776 already operates a daily Frankfurt – Dubai service. problems for everyone started when oil prices rocketed to
“This will be positive for the business traveller as the $140 a barrel. Now that it’s back down to about $70, the
fares most at risk of increasing in cost or becoming less airlines are in a more comfortable situation.”
available have never been easily accessible to the late
booking, flexible market demanded by many business Another Great Depression?
travellers. Airport congestion will also reduce, leading to McLeod believes that comparisons between the current
an improved travelling experience,” he added. economic climate and the Great Depression suffered in
the 1930s are not too far-fetched. But he is adamant the
Capacity issues industry will get through the present slowdown faster
Hare believes the faltering economy and its effect on air WITH LESS than many people think.
travel means that TMCs have never had such an
COMPETITION
“In those days, news travelled very slowly. But
important role to play. now we live in a fast-paced digital media age, where
“With less competition and capacity in the market,
AND CAPACITY IN
information is passed on instantly. This will be more of
customers will be looking to us more than ever to assist
THE MARKET,
a rollercoaster ride than a painful trudge to the other
with impartial advice with airline negotiations, and
CUSTOMERS WILL
side. Corporates are going to change their travel habits
provide alternatives that exist in the market. Many
LOOK TO TMCS
as there is immense pressure on them to cut costs. And
customers are already finding capacity issues on certain though that may have an effect on point-to-point
routes, and a good TMC will be able to facilitate the
FOR IMPARTIAL
domestic air travel or some short-haul, the mid to
needs of the customer during these peak times.” ADVICE ON long-haul market should stay strong.”
Ken McLeod, director corporate of travel agent
NEGOTIATIONS
Paul Tilstone, executive director of the Institute of Travel
consortium Advantage, says that while consolidation is a
foregone conclusion, predictions that only five airlines
WITH AIRLINES
Management, knows buyer members of his organisation
will be challenging the number of trips made by their
will survive are “wide of the mark”. companies in the coming year. He cites a “triple
“The BA/Iberia tie-up may not be the last involving whammy” of reasons: fuel prices, the ailing economy and
the larger airlines, but many of the smaller carriers, while the environment.
they may be acquired by larger businesses, will still retain “For all this, we are likely to see a dip in business travel
their identities,” he said. “In the US it’s inevitable that at demand at a time when airlines are struggling with
least one major carrier will disappear. But the big pressure from the leisure market and increases on their
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