Airlines Aim For Smaller Biz Base Via Web Solutions
<B>Airlines Aim For Smaller Biz Base Via Web Solutions</B>
By David Jonas
Airlines increasingly are pursuing small and medium-size businesses to expand their corporate customer base and attract higher yield business travelers. Share-for-discount agreements is one avenue the airlines are traveling down more often these days, though they continue to push specially tailored programs for corporations without the travel volume to warrant traditional corporate discounts.
Surfacing in the past year or so, the airlines' newer initiatives are Internet-oriented programs, which generate distribution savings for the carriers while incentivizing smaller businesses.
For example, Northwest Airlines' E-Biz Perks is an Internet-based incentive system for more modest travel programs. All travel booked through Northwest's Web site accumulates points--each dollar equals an E-Biz Perks point--that can be redeemed for future travel, upgrades and elite status. The program has enrolled roughly 4,000 corporations--about 60 percent of which are located in the carrier's hubs--and has doubled incoming volume from last year (BTN, June 26, 2000). Northwest shortly will expand the program to include codeshare flights on allied carriers, as well as non-airline partners, and announce further incentives.
<B>Alaska Takes It Easy</B>
Alaska Airlines' EasyBiz, a no-cost Internet-based incentive program, has been updated since hitting the scene last spring (BTN, May 15, 2000). A stronger marketing effort now is underway, though the client list already includes 110 small and medium-size companies. "These kinds of companies are harder to find and quantify, but we know there is a huge number in this untapped group that we had never been able to handle from a sales point of view," said Bob Dersé, Alaska's manager of corporate Internet sales. "Generally, these companies are lightly managed, may or may not use a travel agency, have lots of traffic throughout the Alaska/Horizon route network and are exploring savings via the Web."
One of the most significant enhancements to EasyBiz is the addition of online real-time reporting, including e-ticket tracking, a process airlines generally are unwilling to facilitate. "The airlines are the only ones that can easily track e-ticket status," Dersé said. "Unused e-tickets can be a big problem, especially for less sophisticated travel programs, so we decided we needed to be more flexible with that. Although purchased e-tickets already count as revenue either way, we believe that the customer deserves to use that ticket."
The reports are easily downloaded into a spreadsheet and include 11 fields, with one that can be customized and used in any way a company sees fit, such as listing department numbers. Aside from cost savings and control, EasyBiz users will continue to benefit from waived change fees until the system can handle online changes. The carrier said charging a traveler to make changes over the phone--the only current way to make changes--is unfair as it pushes online booking.
Meanwhile, Alaska later this month will begin development of a profile pre-population feature within EasyBiz to further streamline the booking process.
Delta Air Lines still is developing Mind Your Own Business Travel, a dedicated Web site for small businesses offering air, hotel and car rental functionalities (BTN, April 24, 2000). The launch is expected later this month.
There also are several existing non-Internet programs available for the midmarket and below, including Continental's RewardOne program. RewardOne now has more than 6,000 enrolled companies, up about 50 percent from last summer. Corporations earn two points for every $1,000 spent, except for travel to and from the carrier's primary hubs of Cleveland, Houston and Newark, where one point per $1,000 is earned. Points are redeemed for domestic and international tickets, elite frequent flyer status and other perks. Travelers also continue to earn personal frequent flyer points. RewardOne manager Heather Carroll said several enhancements are in the works, including expansion into Europe, more program partners and online account tracking.
US Airways has a similar program that rewards companies with upgrades, free domestic tickets, preferred memberships and club passes. Corporate Dividends is based on quarterly spending, with $10,000 set as the minimum. American Airlines' BusinessExtrAA and United Airlines' Perks Plus also are based on quarterly flown revenue. Additionally, a few smaller carriers have options for more modest travel programs. For instance, Frontier Airlines provides its program enrollees with a 5 percent savings on flown revenue, and now has a client roster numbering more than 6,700 accounts.
Overseas, several airlines have small business programs available or in development. Lufthansa, for example, will debut Corporate Flyway and Partner Plus Benefit in Germany later this year. The carrier hopes to introduce these programs to foreign markets next year. British Airways, meanwhile, recently unveiled Your Travel Manager, a portal designed for managing travel budgets (BTN, May 1, 2000).