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Airline greed could see profits drop

25 January, 2010

Businesses not directly involved in sport or tourism will still be impacted by the Fifa 2010 World Cup - and not always in a good way! AstroTech CEO Liza van Wyk explains that business disruption will include the excessive domestic airfares during the tournament which will lead many companies to cancel local flights during that time.

Van Wyk said too that excitement about the 2010 Soccer World Cup was being tinged with growing concern about business disruption especially excessive domestic flight costs.

"A major banking group has told us that they have cancelled all business travel throughout the group for that six week period.

"All businesses are looking at alternative forms of conferencing and holding meetings including video conferencing and Skype. Airlines could find that afterward many companies may find it is more cost effective to do business in hightech ways than to send delegates on business trips.

"We're certainly concerned about the impact on courses and are trying to develop strategies to cope with the fact that most businesses will not allow staff to travel during the World Cup and even if they did, it is already hard to get accomodation for less than three days at a time almost anywhere and the prices are significantly higher than the norm.

"In the last year or so we have seen businesses make a substantial shift to inhouse courses to save on travel for staff and accomodation costs, it also means more staff get training and teams benefit."

She said that high airfare costs could see businesses cut down on all transport expenses "and once they realise the savings, it will be hard to get them to budget upward again. The airline industry could be sowing the seeds of its own future misfortune.

"What we are seeing now is a rise in project management and time management courses as companies try to cram as much work as possible into the next four to five months."

Van Wyk said companies were also adopting bulk booking packages for training as a further cost cutting measure.
"We are not seeing a slowdown in training but for some sectors; rather companies are becoming more savvy about which courses they choose. They want to see results the day after delegates return from a course.

"There is a shift from knowledge enhancement courses to practical on-the-job applications."

Full details about AstroTech available here.

 

SOURCES:
Airline greed could see profits drop - The Skills Portal