2008 Business Travel Lessons

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At the end of each of the thirtysomething years that I have survived a life on the road, I inevitably reach the same conclusion: It sure has been another bizarre 12 months for business travel.

Who'd have guessed that more than 80 airlines would fold in 2008, many of them destroyed by the price of oil this spring and summer? Who'd have imagined that the airlines could cut domestic seat capacity by double digits this fall and still see chairs go empty and fares drop? And who'd have thought hotels, expecting record increases in room rates in 2008, would end the year discounting lustily and mulling huge declines in 2009?

But all this chaos does have the proverbial silver lining: You learn stuff. Here are five things I've learned this year.

The Rich Aren't Different
The upper end of the travel industry has insisted that its increased emphasis on $20,000 first-class airline seats and $1,000-a-night hotel rooms was justified because the rich were different. The wealthy would always travel, claimed the developers of new luxury resorts and the executives of every airline that unveiled another pricey, front-cabin offering. But the rich aren't different—except that they've curtailed travel faster than the rest of us. According to I.A.T.A., the worldwide airline trade group, premium-class travel dropped 8 percent in September, 6.9 percent in October, and "early indications for November point to further large declines." Occupancy rates at luxury hotels have plummeted faster than the lodging industry at large, and even fancy brands such as Ritz-Carlton and Four Seasons are suddenly discounting like crazy and throwing in extras like free nights and gratis breakfasts.

Better Airline Mousetraps Don't Guarantee Success
Last year at this time, there were four all-business-class airlines flying the North Atlantic skies and a fifth prepping for launch. They offered extraordinary in-flight comfort for a lot less than major carriers charged, and they expected business travelers to beat a path to their cabin doors. Turns out, building a better mousetrap doesn't guarantee survival in the dog-eat-dog airline world. Maxjet, EOS, and Silverjet all folded on the New York-London route and L'Avion, which flies between New York and Paris, sold itself to OpenSkies, B.A.'s boutique carrier that launched in June. But OpenSkies is struggling too. Its revolutionary prem+ cabin has confused passengers, who expect the back of the bus to be cramped and cheap, not spacious and fairly priced. And the lie-flat beds up front have yet to steal enough business from its larger competitors on the Paris and Amsterdam runs.

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