MORE corporates are turning towards the buoyant LCC sector as a way to keep travel costs down while budget airlines simultaneously evolve to cater to this market.
Speaking at a panel discussion at ACTE Executive Forum Singapore yesterday, Todd Arthur, vice president, sales & account management, Asia Pacific, BCD Travel and also Asia board member of Association of Corporate Travel Executives (ACTE), said: “LCCs now account for over 15 per cent of Asia’s fleet which outstrips the growth of full-fledged airlines.
“The bulk of the new aircraft is all coming from the LCCs and these are evolving into hybrid carriers to expand themselves into the corporate market.”
Lisa Akeroyd, vice president, global sales & program management, Carlson Wagonlit Travel, said: “The trend of the LCCs is very real and our clients are starting to have conversations about them and questioning if they have to continue solely supporting the national carrier.
“We see that hybrid carriers, which is a cross between no-frills and full service, are fitting into corporate travel requirements,” she said.
Citing the example of how LCCs are increasingly available on the GDSs, he said: “The GDSs are not stagnant too and we see that every one is making progress in these spheres.”
However, Joana Yap, general manager, HRG Singapore highlighted that while her clients request for an LCC option for price comparison, most still opt for full-fledged airlines. “At the moment, it is not the corporates’ mandate to use LCCs because given the choice, most of them will still prefer a flight that provides everything from baggage to meals.
“While companies may look at various ways to keep their travel budget tight, corporate travellers will use the reasoning that full-fledged airlines will promise them and the company good productivity to get away (from LCCs),” Yap added.
