IATA Survey: Travelers Adhere To Policy
<B> IATA Survey: Travelers Adhere To Policy</B>
By David Jonas
The number of companies with policies that restrict travelers' choice of airline, and the rate at which travel policies are followed, are both on the rise this year, according to the International Air Transport Association's 1998 Corporate Air Travel Survey.
Seventy-four percent of companies have such travel policies, IATA found, with 67 percent of travelers nearly always following policy. The choice of class in which they can fly was the most common element that policy addressed, at 44 percent, followed by the choice of airline, at 25 percent, and routings, at 13 percent.
Fewer travelers are purchasing full fare tickets, down from 55 percent last year to 41 percent this year. At the same time, the percentage of travelers buying discounted business class tickets increased from 22 to 30 percent. Company policy was the number-one reason for not choosing a "no frills" carrier, cited by 18 percent of respondents, and most prevalent at larger companies, said IATA.
This second report on the corporate market by IATA polled 1,000 business travelers from around the world who averaged 14 trips a year. It also found that about two-thirds of business travelers favor airline alliances, down from 75 percent last year.
IATA attributed this decrease in the popularity of alliances to the inconsistent service levels in which they often result. "This response is consistent across all regions and classes of travel, and appears slightly stronger among frequent travelers," the report said.
"There is a fear that service typical of one airline will contaminate the service of another airline known as a quality provider," said Rolfe Shellenberger, senior consultant for Rochester, Wis.-based Runzheimer International. Travelers from outside the United States fear their "hometown airline will get swallowed up" in the course of alliance alignment. As a result, he said, "this has become such an inflammatory issue that many people are saying gee, this must be bad."
But survey respondents saw the up side of alliances as well. They cited the increased number of destinations and flights--and the better connections--alliances offer as their top advantages.
Not surprisingly, IATA's survey found that both schedule and seat comfort continue to be the most important factors contributing to the choice of airline. Also to be expected, delays remain travelers' number one concern.
More than half of those surveyed (54 percent) said the type of aircraft itself plays a role in their decision--and the number climbed to almost 70 percent for travelers in North America. Interestingly, only 43 percent of respondents said they were "very willing" to fly a low-cost carrier--a 12 point decrease from last year.
Frequent flyer programs continue to be very popular, and 82 percent of all respondents are enrolled in at least one. In North America, that number is 96 percent, of which 80 percent belong to multiple programs, with nearly one-third belonging to more than five. More available routes and more awards were the most cited benefits of multiple memberships. Despite the high enrollment, though, only half said they "always" or "often" take frequent-flyer programs into account when choosing an airline.
On the technology front, frequent travelers are making more use of the Internet and other emerging conveniences. More than one-third (37 percent) have flown on electronic tickets, though that number is substantially higher in North America, where 70 percent of e-ticket users said they are very comfortable with the process.
About 65 percent of North American respondents have connected to the Internet to obtain flight information, up 10 points from last year. Of those who do have not, most call a travel agent rather than the airline directly.
One trend that had risen dramatically in the past few years and has now leveled off is the use of videoconferencing as a replacement for air travel. About half of respondents said they participated in between two and five videoconferences in the past 12 months as a substitute for long haul travel, citing savings in time and cost savings as their goal.