Trains taking on low cost carriers – FCm Travel Solutions

Airport security issues are helping drive more business travellers to the railways, according to a leading travel management company.

FCm Travel Solutions saw rail business rise by 25% last year, driven by new online rail booking tools and flexible fares in addition to problems at UK airports

Managing director Alan Spence said: “There has been a big increase in travel by rail from London to Manchester for example.

“Clients want to know they can arrive on time and at the moment you have a better chance of arriving on time by rail than by car or air. That is because our UK road infrastructure is so congested, or travellers face delays at the airports.

“Clients have also realised that they can work on the train and make much better use of their time, plus they are becoming increasingly aware of the environmental factor.

“Booking rail travel has also become easier due to new online booking tools, plus the rail companies have altered their fare structures. You now have one way fares and more flexible return fares – the rail companies have basically taken on the low cost carriers in terms of pricing.”

He believes business travel on low cost carriers will continue throughout 2007, although clients will have more choice in terms of fares.

“Business travellers will still use low cost carriers as they can often no longer see the difference between service levels on a low cost airline compared with a scheduled carrier,” he said. “But there is now more choice in the marketplace. The low cost carriers are still good value, but there are other players in the market now.

“Use of regional airports will also continue to grow and that again is where the low cost carriers come in.

“If your office is in Milton Keynes, it is much easier to fly from Luton than Heathrow, for example. As a result of last summer’s heightened security checks, more regional clients are also bypassing London and instead flying to a European hub and then connecting to a long haul flight.”

Spence thinks new long haul business travel airlines will do well.

“Long haul clients are still looking for value, as well as reliability. The success of Eos and Maxjet is likely to grow – business travellers are prepared to pay a sensible price for a more comfortable seat.

“Virgin and BA are now following suit with their new seats in Premium Economy and World Traveller Plus. Airlines need to offer travellers more to win repeat business. It’s no longer about being a brand name.”

Giving an upbeat forecast for 2007, Spence added: “The feel good factor is there and that is not going to change. The airport security threat last August was a blip and everyone has forgotten about it and moved on since then.

“The economy is good; companies are hungry for acquisitions; company results are all up, even for major high street stores. That is all good news for business travel.”