As part of a broader downturn in travel, businesses are making big
cutbacks in trips forcing airline and hotel brands to embrace new
tactics. British Airways and American Express have both been pushing
affiliations with value brands and services, in order to help their
customers through difficult times.
BA's Executive Club has been pushing its affiliation with Tesco Clubcard to help its members earn air miles. American Express recently announced new reward offerings, enabling consumers to redeem points for petrol, household appliances and gift cards. Back in December. AMEX also launched a complimentary travel assessment service for businesses of all sizes, anywhere in the world, helping them tackle the recession.
Some budget brands are capitalising on rising demand for affordable travel. Travelodge has introduced a new business account card, which acts as a credit card for businesses looking to spread the cost of travel expenses. According to company info, Travelodge has seen considerable growth and aims to take an extra £30 million in business from competitors in 2009.
Looking at the overall industry, prospects for 2009 are not great. At the corporate end of the market, nearly three-quarters of large companies now plan cuts in the US, according to the Association of Corporate Travel Execs (USA Today). Research from the CIPD (Chartered Institute of Personnel and Development) finds some two-fifths of companies have reduced travel spend in the UK.
