Business Travel

MILES AND MUCH MORE

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For business travelers, there's a silver lining around those dark storm clouds that have gathered on the economic horizon. For the first time in quite awhile, life on the road could be getting less crowded and more comfortable.

When the stock market sinks and the economy slows down, the number of both business and leisure travelers starts to taper off. The result? The travel experience improves immensely. That's because there aren't as many others behind you, ready and willing to pay for that business-class window seat to London, that corner suite on the hotel's concierge floor, or the last convertible off the rental car lot.

In recent years, demand for travel services has been at an all-time high. Planes have been packed to the galleys. (When was the last time you had an empty seat next to you?) Hotels have been so full that they've barely had time to renovate. (Notice the stained carpet or chipped furniture at that five-star hotel?) Airports have been maxed out. (Trouble finding a seat or a desk at airline clubs?)

When the economy cools and demand drops, the travel industry quickly responds with pampering and promotion, hoping to hang on to its bread and butter: You, the business traveler.

For example, airlines are beefing up business class offerings and showering premium-fare passengers with more opportunities to upgrade. Technological advances like Internet boarding passes, automated kiosks, and roaming check-in counters are helping to cut back on the time spent standing in long lines.

And finally, with a little prodding from Washington, airlines are making moves to alleviate delays by reducing or spacing out flights during peak hours at their airport hubs. Meanwhile, in a number of cases it is becoming easier, and economically feasible, to avoid airport hassles altogether by chartering your own aircraft.

The recent hotel building boom has resulted in newer, cleaner, and more technologically advanced properties. And on the subject of technology, business travelers have never had it so good. Many mobile phones can now be used in almost any major city in the world. Newest-generation PDAs are eliminating the need to haul around that brick of a laptop and its equally heavy peripherals.

So, busy traveler, sit back, relax, and enjoy your personal space. Keep an eye out for improvements, and focus on the silver lining as those economic storm clouds move in.

When you have a moment, take a peek at our Travel Biz Quiz, the online complement to this special section at www.fortune.com/sections. Play the game by October 1, 2001 and be eligible to win two free round-trip tickets between the U.S. and South Africa on South African Airways.

If you've got a question, comment, or suggestion about this section, please drop me a line. Send e-mail to chris@travelskills.com, or via hotlink at www.travelskills.com. Or write me at: Travel Skills Group, Inc., P.O. Box 52927, Atlanta, GA 30355. Happy travels!

Christopher J. McGinnis

A Life on the Road

Christopher McGinnis is the author of The Unofficial Business Traveler's Pocket Guide (McGraw-Hill), and editor of "The Ticket," an e-mail newsletter and Web site portal for business travelers found at www.travelskills.com. Since 1988, Chris has commented regularly on the Weather Channel, CNN, and other television and radio networks on trends and issues affecting business travelers. He has also penned popular columns for the Atlanta Business Chronicle, the Atlanta Journal-Constitution, Condé Nast Traveler, and Entrepreneur.

As director of Travel Skills Group, Inc., an Atlanta-based communications and consulting firm specializing in the business travel industry, he logs thousands of frequent flyer miles on the public-speaking circuit, promoting his books and helping business travelers, corporate travel managers, and other clients better understand and improve their lives on the road.

What's Up...

Tech to the Rescue

Surveys show that, more than anything else, business travelers do not like to stand in line. But, thanks to technological innovation, some airlines are eliminating that annoyance. Now, within 24 hours of departure, Northwest Airlines customers with electronic tickets can check in for flights at nwa.com and print their boarding passes before leaving for the airport. They can also go online to change seats, obtain space-available elite upgrades (or purchase them), or change to a different flight. Currently, only Alaska Airlines offers similar technology-but expect other airlines to adopt it very soon.

When airport lines lengthen due to flight delays or cancellations (or just high volume) United Airlines employs battery-powered portable check-in stands-called "mobile chariots"-which use wireless technology to transmit check-in data or print boarding passes.

Other carriers are focusing on stationary automated airport check-in "kiosks" that ask the required security questions, and then print boarding passes and/or receipts. Some kiosks even allow you to change seat assignments, or stand by for earlier flights. Better yet, some airlines offer mileage bonuses to encourage use of the new kiosks. Northwest reports that approximately 100,000 passengers a week now check in via the Internet or at a kiosk.

Of course, one easy way to avoid lines is to hire your own plane. New online charter flight booking services like FlightTime report a surge in new business as travelers seek ways to avoid major-airport inconveniences. When several travelers need to fly together to the same destination, charter flights can be less expensive than commercial flights. For more information on this option, see "The (Private) Jet Set" later in this special section.

Like people, airplanes sometimes have to wait in line, too. To help solve this problem at the nation's busiest airports, the airline industry and the U.S. government are considering plans to increase the price of tickets for flights scheduled during peak travel times. The idea is that higher ticket prices would make travelers less inclined to travel at peak times, and result in less congestion.

More Cities, Better Amenities

Over the last decade, airlines have made huge investments in their international first- and business-class cabins. Passengers at the front of the plane enjoy truly royal treatment, with improved offerings like in-flight beds, gourmet food and wine, personal entertainment systems, and even massages. And now, as the number of U.S. airports getting nonstop flights to cities overseas grows, you may not have to stop at a hub to get where you want to go.

Lufthansa has recently added daily Airbus A-340 nonstops between Washington, D.C. and the German capital, Berlin, plus flights from Denver and Phoenix to its hub in Frankfurt. Angelenos can now fly nonstop between LAX and Munich on a new 747-400. All flights offer first-class seats that flatten into beds for sleeping.

Both United and Continental have launched new over-the-Pole nonstops linking New York City to Hong Kong. Both flights take just under 16 hours each way-two of the longest commercial flights in the world.

Long flights are nothing new to travelers headed to southern Africa. For years, South African Airways' New York-to-Johannesburg flight ranked as the longest, at just under 15 hours.

For flights to Jo'burg (from its New York or Atlanta gateways), SAA rolls out the red carpet in first class. It's one of the few remaining international carriers still serving caviar. And once you've enjoyed your in-flight meal and movie, your seat reclines into a flat bed, and you can wrap up in a linen-covered duvet for sleeping. If you are a member of Delta's SkyMiles program, you'll earn Delta miles for the SAA flight. (For more information on SAA check out their updated Web site at www.flysaa.com.)

Finally, if the idea of a flying bed appeals to you but your company frowns on first-class travel, you'll be happy to know that British Airways, which pioneered the concept, has now brought the bed to business class. Its new Club World seats flatten out into six-foot-long beds on most of its long-haul flights.

Hotel Upgrades

If you are planning on spending a lot of time working in your hotel room on business trips this summer, consider paying a premium and asking for a room on special business floors, if they are available. First, you'll be less likely to encounter hotel guests who are not traveling on business. Second, you'll appreciate all the extras.

For example, on Hilton's Towers Concierge Class floors, you'll have access to a private lounge area where you can enjoy a complimentary Continental breakfast and evening hors d'oeuvres and snacks. Check-in and checkout are taken care of on the floor, not in the busy main lobby. Plus, you'll get an in-room fax machine, bathrobes, and evening turndown service.

Expect to see plenty of changes at Marriott crown jewel Ritz-Carlton in the coming months. Early this year, longtime president, Horst Schulze, stepped down and was replaced by Marriott exec Simon Cooper. Right off the bat, expect to see lighter woods, softer fabrics, more contemporary artwork, and a casual elegance versus the more formal feel you might be used to. (New hotels will open in Boston, Manhattan, Miami, and the Georgetown section of Washington, D.C. in the next 18 months.)

Starwood's Sheraton brand is in the middle of a chainwide upgrade to a more consistent, upscale hotel room. It will soon be offering a standard room that will include a sleigh bed, a large desk and office-style chair, richer window treatments, and a stylish new color scheme. Tip: When you book, be sure to ask if your room has been updated.

The Four Seasons Hotel in Las Vegas is the only one in the city to have recently received the AAA Five Diamond award. What's so great about it? Of course, there's the high level of service you'd expect at any Four Seasons, but it is also one of the few "non-gaming" hotels in town, which means you don't have to walk through a cavernous, smoky casino to get to your room. Plus, the pool area is flawless. For those who do want a bit of Vegas, the Mandalay Bay casino is adjacent.

All in the Family

Early this year, the Ford Motor Company purchased all outstanding shares of the Hertz Corporation, making it a wholly owned subsidiary. While Hertz says that the merger will have little impact on day-to-day operations, expect to see an even larger Ford presence on its lots. Surprisingly, "Ford" also now means Jaguar, Land Rover, Lincoln, Mazda, Mercury, and Volvo. (For exciting news about a new luxury car program from Hertz, see "Miles to the Max" later in this section.)

Problem Solved

The folks at Cingular Interactive have overcome two of the main reasons many business travelers have shied away from using wireless devices: the inconvenience of multiple e-mail accounts and corporate security issues. After your company signs up for Cingular's new Corporate E-mail PLUS solution, you can access the corporate e-mail that's on your PC back at the office when you take the company's wireless handheld device with you on the road. Plus, you can communicate instantly with your colleagues who are using similar devices. And most importantly, all messages sent to and from wireless devices are secured by encryption technology. (For more information, see www.cingularinteractive.com/ce23.)

The (Private) Jet Set

Which would you prefer, three meetings in one day or three days of meetings? If you used a private jet, you could easily pull off three meetings-in three different cities-in a single day. Try that using regular, scheduled airlines.

As an alternative to the eternal hassles of commercial airline travel, many companies are turning to private or charter aircraft. This is especially true of organizations with far-flung operations in small or midsize cities where commercial service is irregular, or even nonexistent. Private aircraft can land at approximately 5,400 airports in the United States, compared to the 580 served by the scheduled air carriers.

Since private jets normally try to avoid delay-prone hub airports, execs spend less time dealing with airport headaches and more time working. There are no delays waiting for connecting flights or luggage, no long trudges through endless corridors or stops at security checkpoints. Also, time onboard is better spent because most business aircraft today are outfitted with such capabilities as computer docking stations, fax machines, telephones, and other communications tools.

Companies generally have three options when it comes to using private aircraft:

• Ownership-outright or partial. Ownership can be expensive, but it has certain tax advantages, provides guaranteed accessibility, and offers more privacy. If your company doesn't need a jet ready and waiting 24/7, consider shared or fractional ownership options.
• Charters. In this case, a company "rents" aircraft that belong to others. This is becoming increasingly easy and cost-efficient using the Internet (see sidebar). Costs vary widely, depending on aircraft type, ranging from about $800 an hour for a turboprop to $5,000 an hour for a large and luxe Gulfstream V.
• Scheduled Charter Service. In some cases, business travelers can buy individual seats on charter aircraft flying regularly between major business centers. For example, an outfit called Indigo (www.flyindigo.com) offers seats on flights between Chicago's Midway Airport and Teterboro Airport in New Jersey, about 10 miles from Manhattan, for about $600 each way.

All in a Day

Pricing and booking private aircraft is getting easier, now that many charter companies have opened shop on the Web with booking engines that are as simple to use as those of the airlines. For example, Waltham, Massachusetts-based FlightTime has access to more than 2,000 aircraft around the world from its Web site (www.flighttime.com) and can provide a quote in seconds.

Let's say you have six board members who need to take a trip fromNew York City to a plant in Baton Rouge, Louisiana and on to a mill in Greenville, South Carolina, then stopping off in Washington, D.C., to pick up a lobbyist on your way home in time for a good night's sleep. This type of day trip would be impossible using commercial carriers, of course. But it's all in the day's work in the world of charter. Recently, that itinerary was popped into the booking engine at flighttime.com, and in seconds that trip was confirmed on a private nine-seat Falcon Jet at a cost of about $3,500 per passenger.

Technomads

When it comes to discussing technology and business travel, the subjects can range from wireless devices and Internet access to airplane design.

Late last year, European plane maker Airbus Industrie made big waves by announcing that it will soon start building the new A-380, a double-decker, 550-seat super-jumbo aircraft, with enough room for passenger bunks, a play area for kids, a gym, and small work spaces. Soon after, many of the world's largest international carriers lined up to buy them and they should be in service in about five years.

Not to be outdone, Boeing recently announced that it will focus on the development of a new approximately 200-passenger "sonic cruiser" that will travel at just under the speed of sound, cutting about an hour off current transcontinental flight times and even more off longer transoceanic routes. While many airlines have expressed serious interest in the new jet, it is still in the development stage and is not expected to be in operation until the end of the decade. (For a look at the futuristic new bird, go to www.boeing.com/news/feature/concept/.)

Have you ever sat in an all-day meeting, unable to get to a telephone to find out whether or not you've been upgraded to first class for the flight home that night? Northwest Airlines now automatically notifies elite members of its WorldPerks program regarding the status of their upgrades via pager, mobile phone, PDA, or via e-mail or voice mail. Members must first register for the service at www.nwa.com/elite.

Similarly, American and United now send flight status updates to the portable device of your choice once you request it from their Web sites, delivering any last-minute changes to arrival and/or departure times, along with gate numbers and baggage claim locations.

WAP-enabled mobile phone usage is much more common in Europe than it is in the U.S., so it comes as no surprise that when flying Lufthansa, you can check in and obtain your seat assignment from your WAP phone on the way to the airport with just a few easy punches.

Even though Silicon Valley is ground zero for high tech in this country, frequent business travelers to the area have long complained about the lack of quality hotel rooms. Luckily, the brand-spanking-new 280-room Hilton Santa Clara has opened and features high-speed Internet access (natch) via desktop ports or wirelessly. The hotel is located within a mile of the headquarters of local tech giants 3Com, Cisco, and Intel. (Make your reservations early, as the place is regularly sold out.)

One World, One Phone--Finally

One of the first things U.S.-based business travelers learn when traveling outside the country is that the cell phone that they depend on at home doesn't work in most other places. In the past, this has meant having to rent or buy another phone, swap out internal cards, or simply doing without. To solve this problem, Nextel now offers its Worldwide service, using a Motorola i2000plus phone (currently discounted to $199 from the standard $299 at www.nextel.com) that conforms to mobile phone platforms in the U.S. and abroad, allowing users the luxury of a single phone-as well as a single number-in the U.S. and more than 80 countries. International rates run from 99 cents to a few dollars per minute, which means that a call from your Nextel phone could be cheaper than the sometimes-bloated phone rates encountered at hotels overseas.

Online Site-ings

While Web-based booking sites like Expedia and Travelocity made the first initial push to get travelers to book trips online, airlines themselves are becoming much more aggressive in their attempts to draw travelers directly to their sites. Clearly they are succeeding, as the number of visitors to airline Web sites grew 26 percent over the last year, while traffic at non-airline travel sites increased only 7 percent, according to Jupiter Media Metrix.

It has become standard practice for most major airlines to offer 1,000 bonus miles for trips booked online. Beyond that, many carriers are becoming more creative in their lures. Let's take a look at some examples.

Lufthansa's recently enhanced Web site (www.lufthansa-usa.com) now provides visitors with "cybercoupons" good for fare discounts or upgrades to business class on certain routes (through May 31), weekly ticket auctions, and an online newsletter for its Miles & More members who earn 2,500 miles per online booking instead of the standard 1,000 (through June 30).

First-time online bookers at Northwest's site (www.nwa.com) now earn a bonus of 4,000 WorldPerks miles. And when the airline rolled out its online award redemption center earlier this year, it deducted 1,000 miles from the total miles required for a free trip to those booking online.

Delta Air Lines has designed a site for small to medium-size companies at www.myobtravel.com. The site allows employees at registered organizations to make air, hotel, and car reservations online while earning rewards and/or getting 10 percent to 30 percent discounts when flying on Delta. Even better, individual travelers can earn bonus frequent flyer miles, and are automatically enrolled in drawings for free weekend getaway trips.

Online come-ons are not just limited to airlines. Hertz now offers last-minute specials and double airline miles to online bookers at www.hertz.com. To see its list of online specials, click on "special offers."

Before you make your next hotel reservation, go to www.hilton.com and click on the "Value Rates" button, which lists Hilton properties offering big discounts on last-minute reservations-usually a week or two in advance. If you sign up for the Hilton HHonors program on the site, you'll earn a 1,000-point bonus.

With the overabundance of travel-related Web sites, it's harder than ever to separate the winners from the duds. However, Los Angeles-based online travel impresario John DiScala takes it upon himself to vet the Web each week, identifying the truly useful sites, then categorizing and posting them on his popular site at www.johnnyjet.com. DiScala's top picks for business travelers:

• General business travel information and links - www.sky-guide.com
• Help getting your laptop connected - www.kropla.com/phones.htm
• Your rights when things go wrong - www.rulesoftheair.com
• Cutting-edge restaurant reviews - www.ontheroad.com/products/BusinessDining.html
• Keeping track of all frequency program earnings - www.milesandpoints.com

Travel Budgeting Blues?

Budgeting for a business trip can be tough, but Uncle Sam helps out with www.policyworks.gov/perdiem, a searchable database of the cost of doing business in hundreds of cities. The rates listed below are the maximum amounts the U.S. government reimburses its employees and contractors traveling on official business for lodging, meals, and incidentals. These figures are also used by the IRS to compute deductibility. (Keep in mind that your costs might be slightly higher, as the government is often able to obtain discounted hotel rates. Nonetheless, the site provides good "ballpark" estimates for planning purposes.)

FEDERAL GOVERNMENT PER DIEM ALLOWANCES-SELECTED CITIES