Corporate travel still alive in the Pikes Peak region

Colorado Springs Business Journal, Oct 17, 2003 by Becky Hurley

Fred Veitch, vice president of commercial development for Nor'Wood, isn't crazy about air travel these days.

All the airlines out of Colorado Springs have gone to using those 50-passenger regional jets, he complains, and you can't use your upgrade coupons or frequent flyer miles anymore. I lost nine upgrades last year because there just aren't any business- or first-class seats around.

Veitch further finds the frustration of multi-legged trips, lengthy security lines and the necessity of flying only when and where a carrier offers flights a major disincentive. Still, the executive manages to tuck his six-foot-four-inch frame into a compact seat and buckle up. After all, he has a job to do, and so far the Internet and video-conferencing just don't achieve the desired results.

In an October 8, 2003, update on Financial Times' website, FT.com, Amy Yee reports that an increasing number of business travelers rely on video-conferencing, Web casting and low-fare airlines with today's corporate travel belt-tightening.

According to the Business Travel Coalition (BTC), nationally, corporate budgets have been trimmed by at least 7 percent - but corporate travel still accounts for 30 percent of all airline travel - generating about one-half of the industry's revenues.

BTC chairman Kevin Mitchell estimates three-quarters of companies surveyed said they had increased the use of technology such as video and Web-casting - and nearly 33 percent use online corporate booking instead of managed travel services.

Griffis-Blessing CEO Buck Blessing says his company operates more traditionally. We've thought about putting in video-conferencing and do occasionally utilize teleconferencing for a board meeting, but when it comes to our investors, there's still a lot of value to sitting down face-to-face. I'm probably not traveling as much as I was a few years ago, but that's partly due to the long-term relationships we have in place.

Large national entities like Minneapolis-based Taylor Corporation, parent to Current, Inc. in Colorado Springs, are keeping a closer eye on the bottom line. Shelly Eesley, employee travel coordinator for the 15,000-employee company, says many of Taylor's departments incorporate use of video-conferencing, but more often turn to Internet WebEx or Placeware to combine teleconferencing with real- time Internet communication.

She estimates between 100 and 150 meetings at the Pikes Peak region plant require employee travel each year and admits sales calls still require in-person meetings.

Faith-based organizations depend heavily on travel to attend national and regional conferences as well as to meet with donors. Focus on the Family, for example, employs approximately 200 people who travel regularly. We've cut our air travel by as much as 10 percent, says corporate travel manager Donna DeLanghe, and we've always used low-fare carriers.

DeLanghe sees real value in relying on a local travel agency to book flights rather than going online for e-fares. There are so many unknowns these days, she says. With smaller regional planes, flights can be overbooked or cancelled. When that happens, the travel agent tracks the situation and can re-book or find alternate flights quickly. Otherwise, our folks would have to stand in line and do it themselves with no guarantee of success.

We also subscribe to the Perks Plus booking tool that rewards with free tickets, helps process status changes and tracks mileage for us, DeLanghe continues.

DeLanghe, who currently serves as the president of the local chapter of the Business Travel Association, has witnessed numerous changes in airline policies in the past few years, but says the nonprofit uses travel to build one-on-one relationships with contributors.

Like Focus on the Family, the American Academy of Forensic Sciences, headquartered in Colorado Springs, also still relies on corporate travel to accomplish its mission. Our 6,000-plus members look forward to the opportunity to meet and present abstracts, workshops and programs, says AAFS director of administration Nancy Jackson.

We've never had a request for video or online conferencing, she adds. Many of our members are government employees on a strict budget, so we do arrange some discounted fares through our preferred airline.

Director of operations for Carlson MTS Guide Travel, Kelly Schoenfeld, estimates 70 percent of the travel agency's business continues to center on corporate and group travel.

We'll never see the level of air travel that we saw pre-9/11, she notes. Our business customers have generally cut back, but people still travel.

What has changed, she says, is most airlines are now using regional jets, fewer scheduling options, and many trips now include an extra connecting stop.

The good news is that we now have access to third-party software that allows us to go online to get the same e-fares advertised on Travelocity or Orbitz. We still don't use Priceline.com because their windows for getting e-fares are so short - you may have to be ready to leave the next day. They're best for leisure travel.