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Tilstone says the industry is likely to be faced with
reduced choice and increased fares, but believes the “saving
grace” might be an increased focus by airlines on duty of
care. “Maybe companies will need to place more people in
business class to ensure they are capable of doing the job
they need to do at the other end and that they and their
travellers are not at risk.
“It might actually be good news overall, then, for those
who survive the airline sector. There will be less traffic
but more premium travellers, meaning greater profit for
MICHAEL HARE KEN MCLEOD PAUL TILSTONE the airlines. For buyers there may be a dip in travel spend
commercial director, director corporate, executive director, and transactions, but maybe the spend will rise ahead of
Portman Travel Advantage Institute of Travel transactions as more is spent on caring for those who do
Management need to get on a plane.”
Sustained downturn on the way?
own costs. It’s inevitable that more will go to the wall. Will Hutton, chief executive of research consultancy
The question is whether all these factors will affect air The Work Foundation and one of the UK’s foremost
travel for good. commentators on the economy, recently predicted that
“It’s very important to remember that all of this comes the UK faces the sort of financial turmoil endured by
at a time when technology, such as videoconferencing Japan and Latin America throughout the 1990s. If he’s
and teleconferencing, are becoming increasingly adopted. right, it means we could be in for a sustained downturn.
It could mean businesses change their practices to adopt Much will depend on government policy, and the
technology over travelling. financial institutions’ ability to regain their solvency.
“I know of a number of companies have spoken about In the meantime, while oil prices help maintain a sliver
this behavioural change. If the economy bounces back, of stability, the business travel industry can only sit back
we may see an increase in traffic, but I doubt it will and wait for the results of the impending consolidation
return to pre-2008 levels.” matches to roll in. L52159
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