The majority of travel departments/managers are only empowered, authorized or capable of looking at travel management from a cost perspective exclusively. However, to truly ensure that the process of travel is efficient, profitable and safe; a much wider focus is required-predominantly in the areas of cost, productivity and safety. When such a wider and more comprehensive perspective is engaged, most organizations will discover that business class flights are in reality much cheaper than economy class for the majority of their executives and traveling talent.
Original Title
Business Class is Cheaper than Economy: Whole-of-journey Travel Risk Management
The majority of travel departments/managers are only empowered, authorized or capable of looking at travel management from a cost perspective exclusively. However, to truly ensure that the process of travel is efficient, profitable and safe; a much wider focus is required-predominantly in the areas of cost, productivity and safety. When such a wider and more comprehensive perspective is engaged, most organizations will discover that business class flights are in reality much cheaper than economy class for the majority of their executives and traveling talent.
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The majority of travel departments/managers are only empowered, authorized or capable of looking at travel management from a cost perspective exclusively. However, to truly ensure that the process of travel is efficient, profitable and safe; a much wider focus is required-predominantly in the areas of cost, productivity and safety. When such a wider and more comprehensive perspective is engaged, most organizations will discover that business class flights are in reality much cheaper than economy class for the majority of their executives and traveling talent.
Copyright:
Attribution Non-Commercial (BY-NC)
Available Formats
Download as TXT, PDF, TXT or read online from Scribd
The majority of travel departments/managers are only empowered, authorized or ca
pable of looking at travel management from a cost perspective exclusively. Howev
er, to truly ensure that the process of travel is efficient, profitable and safe ; a much wider focus is required-predominantly in the areas of cost, productivit y and safety. When such a wider and more comprehensive perspective is engaged, m ost organizations will discover that business class flights are in reality much cheaper than economy class for the majority of their executives and traveling ta lent. Consider a short-haul flight of under four hours. For an executive this will typ ically translate to an eight-hour working day. If traveling in economy class the y will typically need to be at the airport nearly 2 hours before departure. Even with privileged frequent-flier status they will need to be checked in much earl ier than their business class counterparts. Without such privileges, the time re quired maybe even longer as check-in queues and airline efficiency lengthen and decline respectively. The immigration processing will potentially be lengthened also as many airlines now have preferential immigration processing of business t ravelers. The traveller in economy will now be left to fend for themselves in th e public seating/WiFi/meals environment of economy class travel. Boarding time will be lengthened and carry-on luggage will be reduced which agai n will have added to the overall pre-departure time. Regardless of the physical size of the traveller, their work laptop, the airline or the seating space; very few people get anything close to productive work conducted whilst in economy. N ot to mention, when corners have been cut, everyone within proximity of a busine ss laptop user can often see the entire content and context of business presenta tions, e-mails, discussions and intellectual property. The arrival stage will al so entail longer immigration processing times, time lost awaiting baggage and jo stling within the bulk of the flights travelers. If after all this, on a short-h aul flight you expect the traveller to bring their A game or deliver pivotal bus iness results, you should prepare yourself for disappointment now. Conversely, a journey that has been considered in a whole of risk manner will pl ay out significantly different. First, the traveller will have the time and flig ht best suited to the work productivity objectives and reduced commute, check-in and processing times. Utilization of the business lounge will ensure productivi ty and access to information and systems prior before departure. Overall fatigue and affect on the individual will also be reduced. Whilst not entirely risk fre e, the threat to personal belongings, company information or other valuables wil l also be reduced. Productivity (best calculated by adding the per hour cost to the company for the executive and the per hour revenue potential of the trip or executive) will also be enhanced by a compact yet usable mobile workspace. Even if the individual is not conducting work on a computer platform, the demands to the individual are also diminished. It is also almost ensured that the executive will hit the ground running and clear the aircraft, immigrations and baggage cl aim much faster, leaving only the commute from the airport to the place of busin ess. This streamlining and efficiency is also replicable for multiple travelers or trips. When analyzing all of these factors (even in a developed country) the hundreds o r even thousands of dollars between economy class and business class travel is o ften much cheaper than the thousands or tens of thousands of dollars of business productivity, time and dollars at risk. However, the functional heads responsib le for cost, productivity and safety are all typically measured and evaluated on cost containment rather than profitability or maximized earnings of their senio r executives. All of these elements are significantly amplified in developed or developing countries. When the entire journey is constructed along whole-of-jour ney travel risk management lines thousands or even millions of dollars in opport une business can be preserved while appropriate expenditure managed. Reduction o r elimination of disruption and wastage can be easily achieved. When it comes to whole-of-journey travel risk management most companies are penny wise and pound foolish. There is nothing more comical and economically tragic than a senior ex ecutive or CEO traveling on a budget airline. While sitting in cheap seats being nonproductive and paying five dollars for peanuts or drinks they are losing tho usands of dollars or even millions in productivity or earnings for the sake of a few bucks. In the wake of the financial crisis, some very savvy financial insti tutions openly conveyed that they dare not reduce the privilege, risk or status of their major wealth generation executives for fear of losing them to more comp etitive or sophisticated banks or financial institutions. Why should this be any different in the face of many other threats to talent and revenue? The empirical data and evidence of enhanced productivity and efficient travel ri sk management exists at present in every company. The only limitation is that fe w are rewarded or supported in harvesting, processing and analysis of such data. If companies and their respective leadership took the time to stop and analyze such processes or even historical culture within the organization, they would fi nd that simple and efficient adaptation of such processes like the use of busine ss class travel versus economy class travel could potentially unlock thousands o f hours of productivity and greater business competitiveness. This is certainly the case in developed markets and significantly more acute in developing markets where there is an accumulation of much greater threat, costs, threat disruption s and safety issues. The question then is not â Is business class is cheaper than economy?â but more a case o â Can you accurately prove that itâ s not?â