=20 ---------------------------------------------------------------------- This article was sent to you by someone who found it on SF Gate. The original article can be found on SFGate.com here: http://www.sfgate.com/cgi-bin/article.cgi?file=3D/chronicle/archive/2002/03= /05/BU84803.DTL ---------------------------------------------------------------------- Tuesday, March 5, 2002 (SF Chronicle) Business flights stuck in doldrums/Ticket sales low despite amazing host of= amenities Roger Rapoport, Special to The Chronicle As airlines try to lure back their lucrative business travelers, you can expect to enjoy dramatic changes such as onboard masseuses, special VIP check-in lines, chauffeurs that whisk you to handy preboard areas, more legroom, attractive discounts, frequent-flier bonuses, new executive lounges, concierges, special lockers where you can recharge your laptop computer, and big bathroom stalls where a shelf is a perfect place for your briefcase. While these amenities and more have been added to the repertoire of many carriers, business air travel has not yet made a dramatic comeback. Corporate travel cutbacks have made it more difficult for carriers to se= ll their most lucrative seats. A reduction in the number of flights and the elimination of some routes have made it tougher for some travelers to enjoy coveted upgrades, often given to frequent travelers or sold at a steep discount. Add the fact that perceived delays at security have persuaded some passengers to travel by car, train or bus instead of plane on shorter routes, and you've got a big marketing problem. Although there was a modest rise in passenger traffic last month, some carriers say that sales of pricier business fares continue to lag behind cheap leisure fares that often require advance purchase, the dreaded Saturday night stay and daunting cancellation penalties. According to David Palmer, Alaska Airline's assistant vice president, in the weeks after the Sept. 11 terrorist attacks, domestic air travel for the airline industry fell about 18 percent while business traffic fell an estimated 30 to 40 percent. "Fortunately, January was a record month for us," said Palmer, who credi= ts a competitive West Coast fare structure, customer loyalty and popular new routes. "But business traffic is still off about 4 to 5 percent. A lot of businesses have forced their travelers to plan further ahead to take advantage of discount fares." Deals are everywhere. A new Frontier Airlines program offers a free tick= et for passengers who fly a mere 15,000 miles. Similarly, American Trans Air gives away a free ticket for passengers who buy three tickets online and complete their travel this spring. British Airways is offering its first-class passengers a pair of free tickets or triple miles. And Delta Air Lines is offering double miles for customers purchasing business-class fares. The carriers report customers are responding to these incentives. WINNING BACK TRAVELERS "In general our January numbers indicate that traffic is recovering and = we are winning back business travelers," said Rob Borden, general manager of Delta's SkyMiles customer loyalty program. At American Airlines, spokesman Al Becker also says business travelers have responded warmly to the recent completion of an extra legroom initiative that benefits every seat on 900 aircraft. "We have seen a significant increase in our seat comfort ratings," he said. Like many carriers, American has tried to increase passenger comfort in two other ways. The addition of regional jet service to smaller airports has gone over well with passengers who prefer to avoid propeller-driven aircraft. In addition, American and other carriers such as Northwest have upgraded their storm tracking ability to avoid the kind of turbulence that can make it difficult for passengers to balance their laptops. Northwest and other carriers also have tried to make business fares less expensive and restrictive while not giving up healthy profit margins. Northwest is also trying to convince business travelers that its new Detroit terminal is the hub of choice, with all domestic and international flights using the same facility, reducing connecting times. JOINING A CLUB Passengers willing to join Northwest Airlines World Club can enjoy using= a locker that comes complete with a charging station for cell phones and laptops. "The locker actually locks," said Northwest's Kurt Ebenhoch in reference to the declining availability of storage facilities at many airports. United Airlines also has joined the club wars. A handsome new facility at San Francisco International features quotes from Mark Twain and John Lennon, electrical outlets at every seat, meeting facilities and concierge service. For the very frequent traveler, United is offering flat-rate pricing with no restrictions. Prepay $13,250 and you're eligible for 25,000 miles of travel during the coming year with no restrictions. United and many other carriers such as Continental and American also have a bonus program for corporations. Points for awards and upgrades are given on the basis of total dollar volume. While the Air Transport Association says that business fares in January for American carriers excluding Southwest were 15 percent below the same period a year ago, airlines do not believe that pricing is the only carrot that will draw more business travelers back to the sky. A great deal of effort is being put into terminal comfort. For example, a Northwest survey showed many travelers do not want to listen to CNN while waiting for their flights. As a result, half the seats at the new Detroit hub are out of television earshot. "This is clearly a price-driven marketplace," said American's Al Becker. But he says convenience also is a major consideration. "For example, in San Francisco and San Jose our expanded clubs have executive centers where large meeting rooms feature audio and video equipment." American's clubs even offer strategically placed shredders, perfect for the business traveler overcome by a last-minute change of heart. Delta's Rob Borden is encouraged by some of the carrier's programs put into effect during the past year. Plasma monitor screens, also being used by carriers like United, display upgrade status for first-class standbys, weather and information on possible delays. "We have also had a good response to Crown room customers who appreciate the availability of rooms where they can close the door." PRIORITY LINES HAVE LESS WAIT Some carriers like Alaska believe an upturn in business travel will help fuel a third-quarter rebound. The carriers hope that one of their most popular innovations -- priority lines for frequent fliers and first-class ticket holders -- will be expanded in the months to come. The airlines believe the government will cooperate with this perk they feel is important for hurried business customers. But not every innovation is working out. Take Virgin Atlantic's Upper Class chauffeur service that takes business travelers to a special lounge away from the crowds. The driver even prints out your boarding pass en route. If it sounds too good to be true, it is. This plan has been put on hold at American airports due to security considerations.=20 ---------------------------------------------------------------------- Copyright 2002 SF Chronicle