Travel: Keep your budget under control
Just like film and television, travel is an industry in which change is the one constant. Hitting the road during 2011 will have its challenges, but as Stage and Screen Travel Services’ general manager Sue Garrett explains, you can stay ahead of rising costs and changing dynamics with some smart management under your belt.
There’s no denying that those golden days preceding the turbulence of the Global Financial Crisis were good for film and good for travel. Production levels were high, budgets were healthy, and distance was no barrier. Then along came the GFC, which saw projects shelved and the clamps put on travel and entertainment activity.
In 2011, the screen industry is not only facing the latest challenge of a strong Australian dollar, but also rising costs in the form of higher travel rates, excess baggage charges and traveler security.
The good news, however, is that there are strategies you can use to be more savvy in your travel buying and keep your costs within budget.
BEATING THE RISING COSTS
With business and consumer confidence steadily making its return, travel demand is again on the rise. But as we all know, when demand climbs so too does the price.
In air travel, carriers are now managing their yields by closing off lower or special fares faster, rather than opening up more seats at those prices. This activity tends to push up average ticket prices (ATPs) without
increasing the published fare prices, making it harder for you to find low airfares – or seats, for that matter.
Within Australia, airfares are expected to increase by at least 10 percent, including a likely price rise around the middle of this year.
In hotels, rate rises within Australia are expected to be among the biggest in the world according to the latest industry research. This is particularly the case in cities such as Brisbane, the Gold Coast and Perth,
where demand is outstripping supply and increases could be as high as 20-25 percent. Sydney rates are expected to climb as much as 18 percent, while Melbourne increases could be in the more modest range of 5-10 percent. Within the next 12 months, we could also see hotel rates return to pre-GFC levels.
The rate rises are being driven by an overall increase in activity, as well as inbound travel and international conventions. Discounted room nights in any given city will be harder to find when demand in that city is high, so it’s important to make bookings as soon as you can. In car hire, pricing has experienced some increases; however, they have been relatively minor.
The key to secure the lowest prices is to work with a travel company that knows the film industry and has the relationships with travel providers to assure you of the best rates. Look for a travel company that:
-Negotiates production-specific film travel rates with airlines, hotels and car hire companies, through established relationships with selected suppliers
-Adds value by having the supplier relationships to negotiate complimentary extras such as hotel car parking, wi-fi internet access, breakfasts, and room upgrades or free-of-charge rooms for VIPs, if your booking volumes are high
-Arranges special privileges for A-Listers and VIP travelers, such as direct and private access to their room so they can avoid the spotlight of media and the wider public
-Negotiates long-stay hotel rates and long-term car hire rates if required, including the ability to book any type of vehicle you require
-Provides account managers who work strategically beside you to understand your cost limitations and ensure you can keep within your travel budget at all times
-Looks for opportunities to consolidate and reduce your number of suppliers if it means lower rates as a result of higher-volume business
-Constantly develops its relationships with suppliers, for your benefit
-Helps you plan your travel as soon as possible so they can negotiate and book with suppliers well in advance, to further reduce your rates and fares.
MANAGING EXCESS BAGGAGE
Excess baggage charges have presented ongoing challenges for the screen and other entertainmentrelated industries for many years. Stage and Screen’s aim has been to work with the airlines to make them more aware of the impacts of these costs and encourage them to introduce measures such as:
-A ‘sliding scale’ approach i.e. the larger the group and the higher the excess baggage volume, the lower per kilogram the cost
-Mandatory ‘baggage pooling’, whereby any allowance amount not used by one traveler in a group can be allocated to another traveler in the same group (one person with 15kgs and one person with
25kgs results in no excess baggage charges when the allowance is 20kgs)
-Allowing equipment like film canisters and cameras to be carried on board as cabin baggage, and increasing the linear dimension allowances of such baggage.
In a step forward, all Australian domestic airlines are starting to review their excess baggage charges, with baggage pooling likely to be among changes introduced this year.
Qantas, for example, has indicated that from 1 June it will allow each domestic passenger one piece of luggage weighing up to 23kg, and will charge for any excess baggage per piece up to two additional pieces.
This will replace the previous system of charging per kilogram block over the allowed weight. The change will represent savings to travelers in many situations, as long as each piece is under the domestic maximum of 23kg each. Qantas now also allows for pre-payment of these excess charges using your frequent flyer points instead of cash, if your budget is tight.
The following actions can help you reduce excess baggage costs:
-When working with your travel manager to choose a preferred carrier, take their excess baggage charges into account as these can vary from airline to airline.
-Check the full range of benefits you receive in any airline membership you may have, as some airlines allow additional weight (and therefore cost savings) as part of their membership.
-If you don’t already have airline membership, explore the options because loyalty to a particular airline can pay dividends in higher levels of membership and higher baggage allowances.
When booking your next flight, tell your travel company as soon as possible if you think you will have excess baggage, so they can negotiate the costs directly with the airline. This usually costs more per kilogram or piece if paid at the airport, and negotiation often can’t be done at the last minute, so you need to advise your travel manager as early as you can.
SMARTER REPORTING
This has become a growing area of focus within the screen industry, as more of you are looking for better insight into your travel activity and want to know how your budget is being spent. The phrase ‘knowledge is
power’ is absolutely true when it comes to tracking your expenses. How can you know what you are spending if you don’t have the tools to report on all your travel bookings and costs?
Travel reporting technologies are becoming more sophisticated and providing a better view of your travel patterns and expenditure than ever before. The more advanced online tools not only allow you to source the
best rates and fares of the day in real time, but also provide reporting capabilities that can be as broad or intricate as you need. For example, you can:
-Report on your total travel spend for a production, either as a whole or by individual areas.
-Track the travel activity of just one person, or the usage of one particular airline or hotel – or all.
-Report on your number or value of credits on hold with a particular supplier (e.g. unused flights or hotel rooms).
-Download statements to pay invoices.
-Download itineraries.
The greatest benefit of online travel reporting is that you can see, from anywhere in the world at any time, exactly where the travel costs of your production stand. With this type of information, you not only have the ability to better manage your costs but also to wrap your production faster.
If you don’t already have a travel reporting tool in place, work with a travel company that offers advanced and flexible reporting technology so you can adapt it to meet the needs of your production. You must ensure your reporting is in line with your overall budgetary goals, so you are extracting the information that is most helpful to you in achieving those goals.
STAY SAFE
In recent times, we’ve seen situations like natural disasters, political turmoil and extreme weather cast grey clouds over the plans of many travelers. These elements can not only present unforeseen risks but
also add costs to your budget if you have to change your bookings.
To maintain your duty of care and protect your travelers’ safety as much as possible, it is important that you can access the following services through your travel company:
-24/7 emergency support worldwide.
-Proactive travel alerts, advising of any ‘hot spots’ or emerging issues around the world that may present a risk to your safety.
-Location tracking and reporting on any travelers who may be caught in the middle of a crisis situation.
-The ability to liaise and negotiate directly with airlines and hotels etc on your behalf, to make booking changes.
-Travel insurance policy options that are comprehensive.
By using a combination of the above strategies, you can help manage the travel issues that are most likely to impact your production budgets during 2011.
The key to savings ultimately lies in the experience of your travel management provider, how well they know the film and television business, and the effectiveness of their supplier relationships. If these elements are all strong, travel is one area where you can take control and cut your costs.
Stage and Screen is Australia’s largest travel management advisory specialising in film and other entertainment sectors. www.stageandscreen.travel
