Travel Reference
In-Depth Information
Natural disasters
business travel also goes hand-in-hand with companies
trying to cut their carbon emissions and impacts on the
environment.
Natural disasters, such as volcanic eruptions, fl oods and
hurricanes, can cause havoc to a country's travel and
tourism sector. The Asian tsunami that affected Indian
Ocean countries in late 2004 and Hurricane Katrina's
devastation of New Orleans in 2005 are examples that
are all too familiar, as is the hurricane that devastated
much of Haiti in January 2010. The 2010 eruptions of
the Icelandic volcano and subsequent ash cloud over
Europe is another case in point. Air travel for business
and leisure was halted at an instant, with serious
consequences for airlines and other travel and tourism
industries. Although tourism can be badly affected very
quickly when natural disasters occur, the sector has
proved itself to be very resilient in the face of adversity.
Tourism in areas affected by natural disasters usually
returns to its former state, on the back of investment in
new hotels, infrastructure and other tourist facilities.
Sales of business travel products
Cuts in business travel budgets change the types
of products sold by business travel agents. Many
companies 'trade down' by choosing lower-priced travel
services and accommodation. The current recession
has seen a sharp drop in demand for fi rst and business
class travel on aircraft. Some commentators are
predicting the end of expensive, business class
travel services on aircraft altogether. Also, in times of
recession there tends to be a shift away from
expensive city centre 4-star and 5-star hotels to budget
accommodation when travelling on business.
Activity 10.8
Write a short report on how the current downturn in
the global economy is affecting the business travel
environment and operational practices. Discuss how
business travel agents are responding to this current
challenge.
This activity is designed to provide evidence for P4, M1
and D1.
Ef ects
The factors described in the previous section are having
major impacts on the business travel industry, as the
following examples illustrate.
Company travel budgets
In the current period of austerity following the global
recession, many private companies and public sector
bodies have put a freeze on all but the most essential
business trips taken by staff. Budgets have been cut
and managers are asked to justify all types of travel
within the UK and overseas. Saving money by reducing
Budget accommodation such as Premier Inn is increasingly
popular with business travellers
