No-frills travel gains business credibility - Procurement Leaders

Greener and cheaper airlines are providing a viable lever against rising business travel costs.

Integrating more low-cost flights into companies? travel schedules for their managers and employees could clearly work in favour for many organisations.

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As highlighted in a recent Procurement Leaders category report, using low-cost carriers for business travel on intercontinental flights would help the environment and lead to cost savings at a time when fuel prices are pushing up prices.

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This would require a dramatic cultural change within organisations, since managers, and especially senior managers, have to scale down their expectations. Most of the time of category managers responsible for air travel is spent on conducting conversations with internal stakeholders regarding their travel preferences, which illustrates how tough it already is to convince managers and employees. According to one category director working in a professional service company, up to 80% of her time is spent on those kinds of interaction. ?

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According to a report conducted by Brighter Planet in 2011, among the world?s 20 largest airlines Ryanair emerged the most fuel-efficient and therefore the greenest one.

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To assess the fuel efficiency of the airlines, Brighter Planet takes five variables into account: Aircraft fuel economy, passenger load factor, seat density, freight share and flight distance. There were huge differences among the selected carriers. For example, to transport its average passenger mile, Ryanair uses roughly one-third of the fuel American Eagle does over the same passenger distance (American Eagle was ranked the last).

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With EasyJet coming off third in the ranking two of the top three were low-cost carriers. ?It shows that especially no-frills airlines can offer the most carbon-efficient flights. Ryanair, as well as EasyJet has constantly achieved high passenger load factors in the recent years. A higher passenger load factor combined with higher seat density than other full-service airlines allow these carriers to transport more passengers over the same distance and with the same amount of fuel.

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Members with access to category reports can find the full report into air travel here.

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Peter Lueckert is research analyst for Procurement Leaders.

Source: http://www.procurementleaders.com/news/news/no-frills-travel-gains-business-credibility

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