Thursday, June 07, 2007
Ferry services: All aboard for good business
By Roger Bray
Published: May 14 2007, FT
It is relatively slow, unglamorous and, assuming the rest of the journey is by car, not even environmentally friendly. But for business travellers needing to carry bulky presentation equipment of promotional paperwork, going by ferry can be a practical and inexpensive option.
Competition from low cost airlines and, in the case of short crossings between the UK and northern Europe, the Channel Tunnel, has ensured that ships have become smarter and more comfortable. Some ferry companies offer lounges where passengers can work or relax in peace, away from the leisure travel hordes. And while corporate ferry travel is rarely if ever prolific enough to justify negotiated fare deals, operators do offer discounts and sometimes other benefits to frequent customers.
Many business travellers between the UK and continental Europe prefer to take their own cars, often because they need to carry bulk promotional material or audio-visual presentation equipment. Major events such as trade fairs attract a significant number. The Paris Air Show in mid-June provides a perfect example. Executives with no pressing engagements in central Paris can stay outside the city and avoid the often appalling, snail's pace traffic between there and the Le Bourget showground.
However, figures illustrating the value of business travel to individual ferry companies, let alone the industry as a whole, are generally hard to come by. The best indication comes from Stena Line, which operates services across the Irish Sea, between the UK and the Netherlands and between Scandinavian and German ports. It estimates that business passengers account for about 6-10 per cent of its customers. On UK-Ireland routes the proportion is more like ten per cent and in Scandinavia 5-6 per cent.
Stena has just introduced a new incentive scheme for frequent travellers on its UK-Ireland services. Customers making 20 or more single trips qualify for 10 per cent discounts; those making 60 or more get 12.5 per cent off; and travellers who make 100 or more save 15 per cent. Membership allow customers to book via a dedicated “hotline”. Online credit accounts are available, enabling corporate customers to pay by direct debit in sterling or euros. Helen Galley, marketing executive who looks after business travel on those routes, says an earlier loyalty programme generated £1.4m in revenue but it was too early to assess the impact of the new scheme. She believes security delays at airports are encouraging business customers to use ferries.
Baltic operator Tallink, which took over the Finnish Silja Line last year, cannot provide exact figures for the number of business customers it carries as it does not ask the purpose of a trip. However, they constitute a sufficiently large proportion to make it worthwhile to negotiate contracts with corporate clients whose employees use its services frequently. Tallink says that of all its routes, that between Helsinki and the Estonian capital Tallinn attracts the highest number of business travellers. It claims crossing on its high-speed craft, which take 1hr 40min, with a minimum check-in time of 30min, is quicker than flying. Tallink's rival, Sea Containers' SuperSeaCat, which operates similarly quick crossings between the two capitals, offers frequent customers one bonus trip for every ten one-way journeys.
UK-based P&O Ferries says that while the vast majority of its passengers crossing the English Channel are leisure customers, a significant number travel on business.
A spokesman says: “They can load their cars with all their presentation gear, for example. We get a lot of business passengers going to big events such as trade fairs, such as the Geneva Motor Show.” P&O offers discounted blocks of tickets to frequent travellers.
They cost £300 for five round trips if the passenger returns within five days and £450 for five trips of unlimited duration. The tickets must be used within 12 months.
Like most ferry companies, P&O provides premium lounges. Its spokesman says: “They were originally designed to allow passengers to work. They have desks and laptop power points. We are looking at ways of installing technology which would allow travellers wifi access to the internet.
“The problem lies in getting agreement on a mobile service provider between the British and French authorities. There are ways around this, by using satellite communications but it is prohibitively expensive for consumers and we are exploring ways of bringing the cost down.”
When it comes to attracting business passengers, the most potent competitor for English Channel operators is clearly Eurotunnel, though the company is unable to provide a figure for the proportion of its traffic they represent.
Andrew Burch, who is responsible for business development at London-based travel management company Hillgate says: “I would estimate 90 per cent of business travellers who take cars use Eurotunnel.”
The best that companies such as P&O can hope for is that such travellers prefer to trade off the tunnel shuttle's shorter journey time for the undeniably greater comfort of its lounges. ¶ 4:23 AM
Published: May 14 2007, FT
It is relatively slow, unglamorous and, assuming the rest of the journey is by car, not even environmentally friendly. But for business travellers needing to carry bulky presentation equipment of promotional paperwork, going by ferry can be a practical and inexpensive option.
Competition from low cost airlines and, in the case of short crossings between the UK and northern Europe, the Channel Tunnel, has ensured that ships have become smarter and more comfortable. Some ferry companies offer lounges where passengers can work or relax in peace, away from the leisure travel hordes. And while corporate ferry travel is rarely if ever prolific enough to justify negotiated fare deals, operators do offer discounts and sometimes other benefits to frequent customers.
Many business travellers between the UK and continental Europe prefer to take their own cars, often because they need to carry bulk promotional material or audio-visual presentation equipment. Major events such as trade fairs attract a significant number. The Paris Air Show in mid-June provides a perfect example. Executives with no pressing engagements in central Paris can stay outside the city and avoid the often appalling, snail's pace traffic between there and the Le Bourget showground.
However, figures illustrating the value of business travel to individual ferry companies, let alone the industry as a whole, are generally hard to come by. The best indication comes from Stena Line, which operates services across the Irish Sea, between the UK and the Netherlands and between Scandinavian and German ports. It estimates that business passengers account for about 6-10 per cent of its customers. On UK-Ireland routes the proportion is more like ten per cent and in Scandinavia 5-6 per cent.
Stena has just introduced a new incentive scheme for frequent travellers on its UK-Ireland services. Customers making 20 or more single trips qualify for 10 per cent discounts; those making 60 or more get 12.5 per cent off; and travellers who make 100 or more save 15 per cent. Membership allow customers to book via a dedicated “hotline”. Online credit accounts are available, enabling corporate customers to pay by direct debit in sterling or euros. Helen Galley, marketing executive who looks after business travel on those routes, says an earlier loyalty programme generated £1.4m in revenue but it was too early to assess the impact of the new scheme. She believes security delays at airports are encouraging business customers to use ferries.
Baltic operator Tallink, which took over the Finnish Silja Line last year, cannot provide exact figures for the number of business customers it carries as it does not ask the purpose of a trip. However, they constitute a sufficiently large proportion to make it worthwhile to negotiate contracts with corporate clients whose employees use its services frequently. Tallink says that of all its routes, that between Helsinki and the Estonian capital Tallinn attracts the highest number of business travellers. It claims crossing on its high-speed craft, which take 1hr 40min, with a minimum check-in time of 30min, is quicker than flying. Tallink's rival, Sea Containers' SuperSeaCat, which operates similarly quick crossings between the two capitals, offers frequent customers one bonus trip for every ten one-way journeys.
UK-based P&O Ferries says that while the vast majority of its passengers crossing the English Channel are leisure customers, a significant number travel on business.
A spokesman says: “They can load their cars with all their presentation gear, for example. We get a lot of business passengers going to big events such as trade fairs, such as the Geneva Motor Show.” P&O offers discounted blocks of tickets to frequent travellers.
They cost £300 for five round trips if the passenger returns within five days and £450 for five trips of unlimited duration. The tickets must be used within 12 months.
Like most ferry companies, P&O provides premium lounges. Its spokesman says: “They were originally designed to allow passengers to work. They have desks and laptop power points. We are looking at ways of installing technology which would allow travellers wifi access to the internet.
“The problem lies in getting agreement on a mobile service provider between the British and French authorities. There are ways around this, by using satellite communications but it is prohibitively expensive for consumers and we are exploring ways of bringing the cost down.”
When it comes to attracting business passengers, the most potent competitor for English Channel operators is clearly Eurotunnel, though the company is unable to provide a figure for the proportion of its traffic they represent.
Andrew Burch, who is responsible for business development at London-based travel management company Hillgate says: “I would estimate 90 per cent of business travellers who take cars use Eurotunnel.”
The best that companies such as P&O can hope for is that such travellers prefer to trade off the tunnel shuttle's shorter journey time for the undeniably greater comfort of its lounges. ¶ 4:23 AM
