Corporate travelers keep closer eye on costs (The Dallas Morning News)

Mar. 20--Gloria Nevarez stopped in an airline VIP lounge at Dallas/Fort Worth International Airport recently to catch up on some work, scrolling through e-mail on her Treo before a flight home to San Francisco. "The terminals are so noisy," she said, sipping a glass of wine at American Airlines Inc.'s Admirals Club. "I can focus more on work in here and be more productive." In major airports nationwide, these lounges have become a sort of office away from the office for frequent travelers such as Ms. Nevarez -- a place to pick up faxes or conduct meetings. Welcome to the new era of business travel, when one of the last vestiges of the glamorous good old days is more about productivity than leisure. As the nation's largest carriers struggle to reverse their sliding financial fortunes, business travelers are finding that life on the road isn't as much fun these days. Employers want more bang for their buck. More companies are dispatching their road warriors on low-cost carriers, where first-class seats generally aren't an option. Often, the discounters offer only connecting service between major cities. Comfort? American has not only eliminated its "More Room Throughout Coach" seat configuration, it's taken away the pillows. Hungry? Unless you're in first class, most major airlines now charge for food. "The hassle factor continues unabated," said Jack O'Neill, chief operating officer for Carlson Wagonlit Travel, the second-largest travel management company behind American Express Co. Business traffic has come back significantly in the last year, but "companies are more aggressively managing those costs," Mr. O'Neill said. Unlike in previous economic downturns, when purse strings were tightened, many of the changes that corporate travelers have made are permanent, travel experts say. "There has been a sea change in what is considered smart travel," said Kevin Mitchell, chairman of the Business Travel Coalition in Radnor, Pa. Corporate travel policies today are more thorough, laying out guidelines requiring the use of alternative airports and airlines. Those traveling less than 400 miles often have to drive. Michal Stewart, a Southlake-based corporate travel manager and president of the Dallas-Fort Worth Business Travel Association, said there's more pressure on employees to cut costs where possible. She recently priced a business-class ticket to Paris -- something her company's travel policy allows for flights longer than six hours. But once she saw the $7,000 price, she opted to buy a coach ticket for $4,500 and use frequent-flier miles to upgrade. "Prior to 2000, no one even suggested you look at a cheaper ticket," Ms. Stewart said. "It was just policy that you went business class." Business travel watchers admit the glamour of flying has been gone for more than a decade. Terry Trippler, a Minneapolis-based travel expert with Farefacts.com, recalls the late 1980s and early 1990s, when "it was an unwritten rule that business travelers paid walk-up coach fares." Now many companies push fliers to book in advance or take a connecting flight if it means significant savings, Mr. Trippler said. A focus on travel costs has meant that more corporate travelers -- even executives -- are booked onto low-cost carriers. "It's even considered a little chic to fly a low-cost carrier now," Mr. Trippler said. "Luxury doesn't cut it with a lot of companies now." Airline clubs have become particularly important in recent years because travelers arrive at the airport earlier to allow time for security-related delays. "If you've got an hour before your flight, it's a place you can be productive," Mr. Mitchell said. Once pitched as a place for traveling executives to relax and play, lounges such as the Admirals Club are now marketed mostly as a place to work while on the road. A new individual membership costs $450 a year, or a customer can cash in 70,000 frequent-flier miles. Fees drop for renewals. Customers with elite status in American's AAdvantage program receive discounts. American launched the Admirals Club -- the industry's first VIP lounge -- at New York's LaGuardia Airport in 1939, offering its best customers a place to relax, drink and get away. Travelers can still relax at the clubs, but "it's also a place to do business," said Nancy Knipp, American's managing director of premium services. Amenities such as the Admirals Club are figuring more prominently into the marketing efforts of Fort Worth-based American Airlines as it searches for ways to differentiate itself from low-cost rivals. "It's definitely more of a value-based message now," Ms. Knipp said. "The business environment has changed. [Travelers] are much more aware of their contribution to the company, and they want to be more productive." The result is that membership in Admirals Clubs has been growing, and the airline has added capacity. This year, American will add four clubs -- including one in D/FW's new international terminal.

By Suzanne Marta, The Dallas Morning News Knight Ridder/Tribune Business News