Airline Bankruptcy Often Sends Business Travelers to Other Carriers According to Survey
BALTIMORE, September 15, 2005 - An airline's bankruptcy can send a
significant portion of business travelers to other carriers, according to a
recently completed Business Travelers Poll conducted by Safe Harbors Travel
Group, a leading business travel management company.
The informal survey, which queried more than 6,200 visitors at
www.SafeHarbors.com, asked "Would you book travel away from an airline because
of bankruptcy?" Forty-eight percent of respondents answered "yes." Safe Harbors'
website attracts mostly business travelers and travel managers.
"The results of the survey are a clear indication that airlines in bankruptcy
face a very serious challenge with business travelers," said Jay Ellenby,
president and CEO of Safe Harbors Travel Group. "While there are always
additional contributing factors to booking business travel, bankruptcy is
clearly a major issue."
"The poll results support what we hear regularly from clients," added Ellenby.
"Reliability is a critical concern of business travelers and travel managers.
The uncertainty that bankruptcy adds to a travel purchase decision can easily
tip-the-scales to another carrier. Business travelers are also protective of
their frequent flyer benefits and want to accrue travel credits with more stable
carriers. As a result, airlines already struggling with bankruptcy are compelled
to spend even more on marketing and lower fares to attract and retain business
travelers."
The poll was concluded prior to the bankruptcy filings by Delta Airlines and
Northwest Airlines. "These are the third and fourth major airlines to declare
bankruptcy since the attacks on September 11th, preceded by United Airlines and
US Airways, leaving few alternatives for business travelers," commented Ellenby.
"The change in business traveler behavior is fairly predictable. However, while
the long-term impact of the bankruptcies remains to be seen, at this time we are
confident that there will be little or no impact on short-term travel
itineraries. Recent good news from US Airways is raising hopes they will emerge
from bankruptcy soon as another solid travel alternative."
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