Archive for the ‘Industry Service’ Category

Myths and Realities of Internet Travel

February 9, 2010

Confused about the best way to book Air Travel these days?  Don’t worry, you’re in good company. 

“Travelometry” is the science of figuring out the best way for business travelers to get from Point A to Point B, how to get around, meet, and and eat once they get their, and how to get back home — all without breaking the bank.  It’s the process of balancing competing interests to optimize travel expenses and traveler convenience.  And occasionally, good Travelometry can even show how travelers can enjoy the ride.

Our opening column explores the myths and realities of booking travel over the Internet. 

These days, it’s hard to turn on the TV without seeing a catchy ad with a traveling gnome or a hovercraft, extolling the benefits of booking travel online.  When ads become as ubiquitous as new car and beer commercials, you know what’s being sold has become a commodity.  It’s time to dig deeper, but cutting through the clutter is difficult.  As with most facets of the Internet,  information is everywhere, but knowledge is scarce.

As one might expect, the Airlines want you to book your travel directly on their proprietary websites.  Online travel  agencies up the ante and claim to  “guarantee” the lowest fares and hotel rates.  Traditional brick and mortar travel agencies still exist too, and they want to help you “manage” your business travel account. 

Throw in a hotel, airline and car rental loyalty programs to complicate matters further, and you’ve got a receipe for battle, with individual travelers pitted against corporate travel departments.  It’s been said the only thing tougher than managing employee travel is handing out assigned parking spaces in the company lot.

Before we examine the relative benefits of online travel booking sites, let’s first make the observation that employees will often turn up their noses at less costly flight options they would gladly accept when traveling on their own wallet.   Unless your company has a clearly written and well-enforced travel policy, preferably followed by senior management willing to lead by example, attempts to control spending may be doomed to failure.  We’ll address the subject of constructing an effective travel policy in a later columm.

Booking on Airline Websites

Let’s get the easy ones out of the way first.  Airline travel websites are geared towards one thing – getting you to book seats on their planes without comparing any other options.  It doesn’t take a rocket scientist to know that United isn’t going to tell you what American is offering, so it should come as no surprise that United will show you a 6 hour, $266 connection between Los Angeles and Austin and fail to inform you that American and Southwest both offer nonstop service for $188.  We’re not picking on United; all of the carriers do the same thing on their websites.   

Your grandfather may have referred to this simple economic truth as “Would Macy’s tell Gimbels?”   But today, Gimbels is as obsolete as Gladys the local travel agent.   Macy’s is still around, though.  So while times may change the players, buying travel on an airline website doesn’t make sense unless you are only looking to fly that carrier, you know exactly what you want, and what you’re willing to pay to travel the route. 

All of this is fine for leisure travelers or the savvy business traveler.  For business travel management, use airline websites with caution.  What’s saved in booking fees could easily be lost on bottom line fares.

A Better Option  – The Unbiased Website

So called “Independent” online vendors, such as Travelocity, Expedia, Orbitz, Kayak, FareCrawler, Hotwire and Priceline, generally offer a more useful and unbiased display of travel options.  The sites gather their data by mining information from the various airline Global Distribution Systems.  By cumulating this data from multiple sites, the output is more user friendly since it allows the user to specify multiple preferences.  Output can be ordered by preferred airline, time of day, preference for nonstop flights, fare levels, and the number of connections.   There may be times when it’s worth taking a connection to significantly reduce airfares, and that information is readily available from these independent sites.

Others websites use a “bid for service” or blind vendor delivery system, which can be great for travel when the details of a booking aren’t mission critical.   We recently used Hotwire for a car rental in Raleigh Durham, and the process worked flawlessly, providing a Budget car at less than half the rate we could have gotten through traditional online services.  Still, business travelers are reticent to use these sites when they aren’t footing the bill.  Simple human nature shows us that traveler convenience outweighs benefits to the company in the absences of clear direction from senior management.

It’s worth noting that some of the websites, notably Kayak and FareCrawler, invite comparisons with other sites, displaying the results from multiple booking sites simultaneously or as a part of their own output.

Online booking services have greatly improved their reliability over the past five years, especially with respect to International Travel.  As long as the traveler requires a simple roundtrip from Point A to Point B, online booking services should be able to do the trick.

What happens when the traveler is unfamiliar with the main destination, or when a trip involves two or more stops?  In these cases, online booking services become much less helpful, and the traveler can benefit from the use of a good travel agent.  Finding a good travel agent may be more difficult than it used to be, since many corporate agents know little about the world outside of their booking cubicles.  Still, even a novice agent may be able to provide valuable information by tapping a wide range of resources not readily available from online agencies.  

The airlines used to pay commissions to Travel Agents, but for the past 15 years, carriers have successfully shifted this cost to the business traveler and consumer.  While booking charges have more or less disappeared for online bookings, using a travel agent means a fee must be paid as compensation for services provided to travelers.  In a radical departure from normal legal channels, the Travel Agent is in an unusual position of dual agency — instead of being paid as an agent of the seller, payment is made more or less exclusively by the buyer.  (There are circumstances where commissions are still paid by the airlines, but generally, the cost of providing the services is borne exclusively by the Traveler).

In future columns, we’ll examine ways to evaluate the value of services provided by Travel Agents, as well as online booking tools which can be used to minimize travel expenses and the costs of processing tickets.


Should Japan Air Lines be Extinct? Will the “Battle of the Alliances” Winner be the Ultimate Loser?

January 17, 2010

Japan Air Line’s recent financial distress is front page news around the world.  Four of us recently boarded a spanking new JAL Boeing Triple 7  in San Francisco.   JAL 001 – the carrier’s flagship flight – was bound for Tokyo, and we were connecting in Narita for Singapore.   Two of us were experienced worldwide “business” travelers, and two were highly experienced leisure travelers.  We all walked away with the same conclusion – this airline needs to adapt or die.

As the third leg of an around the world tour, I admit to looking forward to this flight eagerly.  While most Americans also admit some degree of uncertainty with how to react to Japanese culture, I was not prepared for the complete indifference of the JAL cabin crew towards non-Japanese passengers.

As a first impression, we were surprised that the Japan Air Lines lounge in San Francisco appeared to have been decorated sometime in the late 70’s.   The Wi-Fi system in the lounge didn’t work – we actually had to piggy-back off of a nearby airline’s lounge which offered a strong enough signal.  When business travelers are about to embark on a 14 hour flight,  they need a reliable connection.   Requests for assistance were met with half-hearted apologies.  Clearly, connectivity was not a priority.   The lunchtime departure was delayed slightly, but with 30 some-odd passengers in the lounge, there “snacks” on offer were minimal, and clearly geared to an Eastern audience.   And while two of us will try almost anything Asian, the seaweed wraps in cellophane were pronounced inedible by both of us.  Peanuts and an egg-salad sandwich quarter were the other alternatives.  So – we headed for the flight and settled in.

Great Expectations

We all gave the new JAL business class pod seat high marks for comfort and flexibility.  Even at 6’3″ – the seat was comfortable enough to sleep in.  While not completely flat, the angle of inclination did not make one feel as if we were sliding on to the floor – as is so often the case on US carrier business class seats. 

The spacious seating of the 2-3-2 business class configuration did not seem as cramped as US versions on the plane, and in fact the sleeker design somehow contributed to a cleaner design.  Perhaps the absence of gray leather and a lower profile seat  made a difference.   The advertised “next generation” seats delivered as promised.   But from there on – it was all down hill.

The first ominous sign came from a flight hostess who instructed us – each of us separately –  to turn off our mobile phones, even though the aircraft door was still open.   This breach of basic international protocol again prevented last minute connectivity, but for no apparent reason.  Certainly it’s been proven that mobile phones have nothing to do with safety while parked at the gate!  We chalked this one up to quirkiness.

(Incidentally, the phone police mercifully did not force themselves into the cramped (but immaculate) toilets prior to takeoff).

In another protocol lapse, there were no pre-flight drinks, or even water and juice, offered prior to take off.  It was something we could live without, but seemed strange to us.  But as petty as some of the following complaints might appear, there are relatively few avenues upon which airlines can differentiate themselves.

Safety is, of course, “Job One” as the old saying goes.   While I never felt unsafe for a second on JAL, of far more importance was the general inability and/or unwillingness of the crew to converse with passengers in English.  5 minute long public address announcements in Japanese were followed by heavily accented, hard to understand 30 second messages in English.  

A Clash of Cultures

I have Japanese clients and work more than most Americans to understand the Japanese culture.  But I have also flown extensively on Chinese, Korean, Spanish, German, and French National Carriers, and even when traveling between non-US city pairs, the flight announcements are always understandable.   Had there been an emergency, I wonder if less well traveled American travelers would have known what to do – it was clear that one would be on one’s own in the case of emergency.

Airline food is a major differentiator between airlines, and while I know never to expect too much – especially in coach – it seemed that the presentation needed a lot of work.  The western cuisine was unappetizing, but the Japanese cuisine was in short supply.  Apparently, the airline did not anticipate multiple “western” passengers opting for Japanese meals.  The crew’s gracious apology for running out was accepted, but it seemed odd to run out of the modest sukiyaki styled beef offering.   Overall, the Asian style appetizer selection was excellent, but the rest of the meal was quite disappointing.

The second offering on this 13 hour flight was a western style “curried” crepe.  For those of us who dislike curry, the Japanese offering was even less appetizing.  Both meals were of a level typical of coach meals on European transatlantic carriers.

I don’t want to be trivial, but for some reason, water bottles were handed out to Japanese speaking passengers, but not to Americans.  Only after three requests was bottled water brought.  

There was no “in flight” amenity kit – a first on my intercontinental travels. 

Blankets were flimsy, and of limited value, which was OK, because the cabin stayed warm throughout the flight.  (My thermometer, which I carry to check meeting room temperatures, read 73-74F through most of the flight.  I always think airlines crank up the heat to encourage sleep).

Finally, for some reason, the frequent “turbulence” periods seemed to extend 5 to 10 minutes longer than they do on other carriers – long after the flight seemed to smooth out.

Tight Connections and “Making Up Time”

Our flight left nearly an hour late, and typically, airlines will make some effort to “make up time.”   Not so with either leg of our JAL flights.   We flew at well under maximum speed (sometimes under 450 MPH) and were 70 minutes late landing at Narita (followed by an interminable 20 minute taxi to a gate on the other end of the airport.  Since we only had 75 minutes for our connection, we were distressed that the crew seemed unaware that we and other passengers were going to miss our connections.  

Extensive information about Japanese domestic transfers was provided –  followed by – nothing! – about International connections.   We raced off the plane expecting there to be a contact at the jet bridge – but – again, Nothing!  We knew we could not be the only connecting passengers, but there were no directions and no one to guide in the right direction.  

Having transited Tokyo Narita many times, we still expected some sort of staffing at the gate, but only after 5 minutes fast walk did we come to the contact point with all our names – and the names of 15 other passengers.   We were given a sticker, and rushed to security.

Now, to JAL’s credit, the plane was held for us.  We underwent an extensive security check, including every possible electronic item (not JAL security of course) – and then were told to HURRY!   RUN! to the connecting flight.   Where we made it to our seats, and then promptly sat there for 40 minutes before the doors were closed.  (No cell phones, of course!)  

JAL is not the only airline to do this kind of thing, of course, but the urgency of having to run through Narita, only to sit for more than 1/2 hour with – again- no pre-flight beverage… well, it was no way to treat a customer. Again, the late departure was met by a disturbing insouciance by the flight crew – we were advised we would land 90 minutes late – at 1:45 AM instead of 12:05 AM – as the flight lumbered along – according to the screen display at a leisurely 390 MPH.   I don’t think they can blame that kind of performance on congestion at Narita!

Passengers or Cargo?

The moral of the story is – you can’t treat customers like cargo on competitive routes and expect them to return.   I now know I’m not missing anything by flying American or Delta to Japan.

Flying transatlantic with JAL, I expected to be treated like an honored guest.   I felt like I was an inconvenience. Would I take JAL again?  Well, only if it meant saving a significant amount of money, or if there were no other options.   I sure wouldn’t have my hopes up for an extraordinary flight.  I realize these observations are based on a single trip and two flights, but carriers rarely get a second chance to make a first impression.

So, what does all this mean for JAL’s future?   Well, in my humble opinion, if  JAL management thinks it can fill planes with 100% Japanese guests and still turn a profit, they might make it.   We can probably assume the Japanese government won’t abandon their National Flag Carrier, but you never know these days.

The Winner as the Loser

But if on lucrative US – Asia and European – Asian routes they lose a 5 or 10% market share, the only way they can stay afloat is with government money.  JAL has to become a truly International Carrier – and not one that just takes Japanese businessmen and tourists to foreign destinations.   Something has to give!  

On the other hand, JAL might stay afloat with  the foolish capital investment of a US based carrier who thinks they can make up a wasteful and ridiculous investment in a failing carrier with “volume.”  

Whether the courtship for JAL is ultimately won by Sky Team or One World investors, the winner of the battle will likely be the loser of the war!