Business travel returning to near normal levels

Vermont Business Magazine, Mar 01, 2005 by Edelstein, Art

Business travel to Vermont is increasingly healthy but has not returned to pre September 11, 2001, levels. In Burlington and Montpelier, where most business travel can be accounted for, hotel managers and travel experts see growth but are not yet jumping for joy. With the business traveler once again venturing out, these same managers say technology and improved airport service is a key to keeping the business traveler coming to Vermont.

"Business travel continues to be on the up tick for us," said Tim Shea with the Lake Champlain Regional Chamber of Commerce. "Companies are starting to travel a bit more and we are seeing the need to travel. It's encouraging and a good indicator for the future."

"Business travel continues to improve slowly," confirms Chris Fogg at the Vermont Chamber of Commerce. This is what our members tell us."

"From 9/11 until now we saw shrinkage in the level of business travel," said the Capitol Plaza's Brian Cain in Montpelier. "However, in the past three to four months we are receiving calls from companies we hadn't heard from in years."

Cain is optimistic. "We are getting new accounts and it feels like the business traveler, with a regional area in Vermont is starting to work this area again."

The Sheraton Inn in So. Burlington has not completely rebounded from 9/11 according to Alan Hebert in sales, but he does see more business travelers than in the past few years. "It is not dramatic growth but a steady increase on a monthly basis," he offered.

The Sheraton is part of the Starwood Hotels and Resorts, a chain of 750 properties worldwide, which he said, are seeing the same trends as other markets where business travel is coming back. Vermont is showing slower growth in business travel than Boston, which he reports has double digit increases of late.

"We are seeing the trends come back," said Jim Glanville at the Inn At Essex. A big customer for the Inn has been IBM. Business travelers to Big Blue have not yet reached the year 2000 level, he said, "but are the best since 9/11. We are encouraged." IBM provides upwards of 50 percent of the Inn's business guests.

The Airport Factor

Burlington and Chittenden County see the lion's share of Vermont's business travel. Many of these visitors fly here and the Burlington International Airport has become the hub for travel. According to Shea, the airport's growth and management are contributing to the increase in business travel.

Shea said there are more flights to Burlington and the carrier Jet Blue has had much to do with this increase. During the past five years, according to him, the airport has added service that includes more jet flights instead of propeller driven planes. New cities including Detroit and Cincinnati can be accessed from the Queen City and there are more frequent flights from Washington DC to the airport. All this has made Burlington easier to get to for business travelers.

The infrastructure improvements at the airport, said Shea, which includes the increased parking and ease of access, appeal to those doing business.

While the airport in Manchester, NH has been touted as an alternative to Burlington, and some carriers offer less expensive flights from that airport than from Vermont, Shea contends that this is not hurting local departures.

"We are seeing few people going to Manchester for lower fares because of the competitive fares out of Burlington."

That contention is reflected in the numbers of passengers that the airport has seen which continue to grow. Figures from the airport show that in 2004 there were 634,798 passenger enplanements a figure up from 550,000 in 2003. From 2002 to 2003 there had been no growth.

"Burlington is more competitive because of competition among carriers," said Shea who compliments airport management. "They have expanded the facility and added service," he said.

Business travel is reaping the benefit he said, because "if there is not the level of service, frequency of flights and competitive fares people won't travel here."

Joe Carton at the Wyndham can point to one specific increase in his business travel related to flying. He said in recent years the private jet market has grown with more business travelers renting corporate jets. "We see the pilots. It's last minute type travel."

Cain in Montpelier does not see the Burlington airport as much of a plus. "I don't know that the local airport helps us. We are too far from Burlington airport for us to compete for people who need to jump off an airplane and take a cab."

Hebert said the airport works very well for business travel. "The airport is really an extension of Burlington and you are dose to downtown, five to 10 minutes away. The growth of airport has helped with more options more carriers and more geographic locations."

Keeping The Business Traveler Happy

To keep business travelers happy local hotels maintain high levels of technology. For most this means wireless Internet service in each room.

"We are modernizing hotel rooms with wireless technology," said Cain. He, like others in the hotel business, has found that this has to be complementary, like free soap for the shower and a TV in every room. "You can attempt to charge for technology but it won't work," he explained. "If you charge customers they will go where they can get it for free."