Recession grounds business class

Washington: Despite signs that America's economic free fall may be bottoming out, demand for business travel continues to plummet, putting financial pressure on airlines and hotels.

As businesses continue to tighten spending, corporate travel is projected to drop by 15 per cent in 2009, compared with last year, while overall travel demand will decline by 11 per cent, according to a study by PhoCusWright, a market research company.

Corporate travel - defined as business travel managed under corporate policies - has historically represented about 40 per cent of the total travel market, but PhoCusWright predicts that share will drop to 35 per cent in 2010.

Other business travel by smaller companies that do not have a travel policy dictating the types of travel, supplier or rates represents about 12 per cent of the market. While the PhoCusWright study did not look at what is called "unmanaged business travel", a company spokesman said such travel demand is also down.

As a result of such declines, airlines are struggling to fill those premium-class seats, typically reserved for business travellers with hefty expense accounts.

Some airlines are considering replacing premium-class seats with economy or coach seats. And many airlines are simply cutting capacity by taking airplanes out of service.

Tony Tyler, chief executive of Cathay Pacific Airways, Hong Kong's biggest carrier, said his airline may resort to pulling out premium-class seats.

"We're going to have to make fundamental changes to our business," he said.

British Airways, which experienced a 12 per cent drop in revenue in the first quarter of 2009, announced plans to cut capacity later this year by parking 22 aircraft, primarily the older Boeing 747 and 757 planes.

However, there is some good news in the sector.

The US Bureau of Transportation Statistics reported yesterday that the on-time arrival rate for the nation's largest airlines had improved to 76.1 per cent in June, compared with the 70.8 per cent for same month in 2008.

Hawaiian Airlines won the top spot on the ranking, with a 93.3 per cent on-time rating, followed by Alaska Airlines with a rating of 85 per cent and ExpressJet with an 82 per cent rating, according to the monthly report.

The airlines with the worst on-time arrival rates: Comair had a 60 per cent on-time record, followed by Frontier Airlines of Denver, with a 68 per cent rating and American Airlines with a 70 per cent rating.

All airline seats are not created equal. At least, that's what Expedia.com believes. The online travel-reservation giant has teamed up with SeatGuru.com to offer internet reviews of the airplane seats that customers are considering booking.

SeatGuru.com, part of the TripAdvisor.com media network, surveys travellers on such considerations as leg-room, seat recline and proximity to bathrooms, among other things.

For example, reviews of a flight from Burbank to San Jose in California on US Airways, warned against taking any of the six seats on row 26 of the Airbus A320, saying the proximity to the bathroom was "bothersome".

Meanwhile, the seats on row 11 have extra leg-room due to the adjacent emergency exit.

Speaking of bothersome travel problems, the infestation of bedbugs in hotels, apartments and dormitories is on the rise.

Pest-management companies have reported a 71 per cent increase in bedbug calls since 2001, according to the National Pest Management Association. Bedbug numbers are creeping up in all 50 states, the association said.

The wingless insects that feed on the blood of humans and other warm-blooded creatures have grown to such a problem that the American Hotel and Lodging Association and the pest-management group are co-hosting two National Bed Bug Symposium events, on August 25 in New Jersey and August 27 in Seattle.

The NPMA has reserved rooms for the symposium at an airport-adjacent hotel. Ironically, the hotel where the nation's top pest-control experts will sleep has a report by a TripAdvisor.com reviewer of a itchy problem with - you guessed it - bedbugs.

One way to avoid bedbugs at a hotel is to eliminate the bed. At Rancho Bernardo Inn in San Diego, you can save money by bringing your own pillows, linen, towels and toilet paper.

The 'Survivor Package' lets guests reduce their rate by cutting out typical hotel amenities.

A room for two starts at $219 (Dh804.3) per night, but you can lower the price by doing without towels, sheets, air-conditioner, lighting and a bed. For the rock-bottom price of $19, you can stay in a bare room, furnished with nothing but a small tent. The deal runs from August 16 to August 31.

General manager John Gates said the idea was tried in June as a way to spoof the bargain deals offered at other hotels. However, he said the Survivor Package has now become a popular way to attract new customers to the inn.

He added that most guests who have signed up for the package keep the bed, but cut out extras like breakfast and towels.

"Most people are not taking the bed out," he said.