Carriers Expand Group Deals
American, Continental and Delta continue to be the most aggressive airlines to court meetings business by recently expanding their discount options and reaching out to planners on the Internet.
These carriers-which also bested the competition in upgrading group offerings last year-see that as load factors are up, so is the demand for group programs. Their moves signal that the period in which the carriers virtually ignored the meetings segment has ended, and group programs are finally getting the respect and consideration they deserve.
American Airlines plans to pursue meetings buyers online with a Website dedicated to "First Call" group business early in May, supporting the program it launched in March that highlights special city-pair discounting options. The site will be yet another way to market a program that is helping to drive group business.
The city-pair program offers different discounted destinations each month. For example, April saw such wide-ranging destinations as London's Gatwick Airport and Washington, D.C.'s Dulles Airport featured among its list of discounted options.
"When the Website is up, we'll give planners the ability to get their information using the Internet," said Penny Chen, manager of group and meeting sales for American. "They won't have to rely on our fax or phone call if they don't want to." The new city-pairs program has been fairly successful, Chen said, and use of group packages-which in previous years was a less favorable option-is increasing.
"American is taking a very aggressive stance toward group travel," said Chen. "We don't believe that we've captured as much business as is potentially out there, and we intend a continual process of evaluation. We will continue to roll out new discount opportunities as the market presents demand for new forms of product."
Continental also continues its efforts with a new discount opportunity: Groups flying to or from Chicago's Midway Airport will receive one free ticket for every 15 passengers, upping the ante on the standard of one free ticket for every 25 passengers.
The program is good for any city served except cities in the Pacific beyond Honolulu, and European cities. "We hope this will be an incentive for planners to try a really convenient airport with excellent facilities that sometimes gets lost in the fray," said group sales coordinator Brenda Davis.
Continental, which reduced fares in some zones last June, will continue to monitor its product and will adjust it or offer destination-specific discounts when load factors warrant it, Davis said.
In addition, Continental Airlines has launched an online means for meeting planners to take advantage of its MeetingWorks discounts and rewards program. In the first of several meeting enhancements to its Website, called COOL, Continental added a form that planners can complete and submit electronically to request participation in MeetingWorks.
Over the next year, Continental intends to debut other offerings that will allow delegates to seemlessly link from a meeting site to Continental's to book their airfare, said Steve Cossette, vice president of distribution planning.
As they move from the meeting site to Continental's and back, data elements, such as the passenger's name, address, flight itinerary and other details, could be carried to each site. An Air Transport Association Electronic Marketplace Committee, which Cossette heads, is developing the standards on data and transfer.
Delta, which launched its group Website in January and hopes to have group booking capabilities by sometime next year, is planning changes in its international offerings, said Gail Childs, system manager for meetings, incentives and group sales. "One of our main initiatives is to increase the service to meetings and conventions around the world," she said.
Delta believes it can win group business by blanketing the globe, and is adding flights-which currently number 611 daily-out of its international gateway in Atlanta. The carrier will add new service to two Brazilian cities-Rio and Sao Paolo-this June, which ties in to its current schedule of flights to that country.
Another enhancement to its international service is the Atlantic Excellence partnership with Swissair, Austrian Airlines and Sabena Airlines. The details of the multicarrier marketing alliance have yet to be worked out to a formal group and incentive program, but the carriers are taking steps to do just that. In the meantime, they work together to bid on group business going to Europe.
The net effect? More group business than last year at this time. "I would say that group business is doing very well-we're priced right and offer most groups a solid discount by opting for the group fare," Childs said. Because the zone fares were revised with fewer restrictions, including no Saturday night stayover requirement, they are ideal for most midweek meetings, she noted.
Domestically, Delta has experienced a renewed interest in its zone fare and Delta Express product, which has hourly service between meeting-heavy destinations such as Washington, D.C., Atlanta, New York and Chicago.
Robert Pietro, senior manager, air operations with Amex's GTMS unit in Norcross, Va., said the carriers can "afford to be proactive" now that they have had success in this market.
"Although load factors are up to 75 percent and fares are at a level that spell profitability for carriers, I think they are looking at meetings business as a specialty market that needs to be carefully addressed for that other 25 percent opportunity," he said.