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