Insulated but not isolated

Being in Dubai is like a bubble. You feel it the moment you step on the plane, with the premium classes packed (such a contrast to when I flew back from the US a few weeks ago, when Club was half full).

BA launches a fourth daily in its winter schedule and the airline’s Middle East regional manager, Paul Starrs, told me he believes the route could support an all-business airline.

Then, when you arrive at the airport, where the gleaming new T3 has just been opened, and get on one of the many busy six-lane highways that snake across the city, and you can see the lights of the Burj Dubai, the world’s tallest building, winking in the distance, you realise this place is – for the moment at least –unaffected by the credit crunch afflicting the West. 

I was over there for just three days earlier this week for the Business Travel Show. 

YouGov report

The organisers commissioned a YouGov report, which to me neatly summarises the state of business travel in the Gulf region. 

These are the highlights:

• more than 80% of the respondents expect their company’s travel frequency to increase, with almost half expecting the increase to be big 

• company travel budgets have increased in the last year for more than three quarters of respondents

• 75% expect this trend to continue in the next 12 months

• almost a third of bookers are expecting to see more business-class travel in the next 12 months

Contrast this with two recent polls, one from the Business Travel Coalition, which surveyed 192 travel managers from 14 different countries (72% from the US), a quarter of whom have instigated emergency travel cutbacks in the past fortnight and 35% of which were planning on introducing a complete travel freeze.

Is an increase in travel budgets on the horizon? 

An Acte survey found that just a third of 131 members surveyed expect to increase travel budgets, with the rest evenly split saying they will either spend the same or less next year.
 
And you can bet that of those expecting to spend more they’ll probably be spending it on travel to the Middle East.

Qatar Airways’ European corporate sales manager, Jo Lloyd, when asked what the airline’s growth plans were replied: “Full steam ahead – corporate travel is still strong and continues to remain so.”

And she added that the airline was not best pleased at the Boeing strike which means its Doha-Houston launch will have to be delayed.

Panel debates

At the show, I listened to two excellent panel debates which includes airlines, hoteliers, travel buyers and TMCs. All agreed unanimously that the credit crunch was not affecting the region. 

Some, however did register a note of caution saying that it was almost inevitable that Dubai would likely feel something, but as Carlson Wagonlit’s regional director Derin Cameron said: “Dubai’s growth rate last year was 18%, so if we see a drop to 15% that’s still a very good level.”

Meanwhile, Hilton Hotels’ regional director of sales and marketing, Guy Epsom, described the region as “insulated, but not isolated” from world economic turmoil.

The bubble might contract a bit, but I don’t believe it’s going to be burst.

Is business travel riding out the present economic downturn?

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Adam Coulter, interviewed by a colleague, gives his reasons for why TMCs are surviving the economic downturn.

Here is the orginal story from TTG Business.

When Avis says it will drop off your car at your door, would you say no?

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Even though my nearest Avis office is a five minute walk or so down the road, the idea of getting up, gathering together all my documentation and then going out first thing on a Saturday morning (fine at this time of year, hideous in winter), never excites me. I usually end up co-ordinating an elaborate plan with my girlfriend about what time she needs to get our son ready for when I return with the car – which always needs to be finely timed between his breakfast and the on-the-dot arrival of the traffic wardens at 0830 – whether we should grab coffees before or after we hit the road and what time we actually leave.

So, when Avis kindly offered for me to try out the home delivery service they have recently launched, I jumped at the chance. Being a cynic, I assumed that the promised 0800 drop off would likely be nearer half eight and I’d end up calling the location, so used to I am with pizza delivery men and mini-cab drivers not finding the flat not to mention various parcel companies claiming they have delivered when clearly they hadn’t.

I sat there at about quarter to thinking: “I bet I’ll end up having to wander down there,”, and started making the inevitable elaborate plans with my girlfriend…Anyway, there’s not a great deal to add at this point except: the car turned up on time, the two (not sure why that was necessary, but I felt very privileged), men could not have been more helpful and polite, I signed a couple of things, and that was it. I’d factored in at least an extra half an hour so I didn’t know what to do with myself! The return was even more smooth – and welcome – as I had to get off to work and my son had to be dropped off at the childminder. Again, the man (just one this time), turned up on the dot, I handed him the keys and that was it.

It was a great service. Beats getting up early on a Saturday morning that’s for sure.

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