As a consequence of the corporate cost-cutting precipitated by the economic downturn suppliers are adapting existing – and launching new – products to reflect the changing needs and expectations of business travelers – and corporations’ reduced budgets.

Just as network airlines responded to client resistance to traditional pricing levels by adopting the practice of unbundling and charging for extras which would once have been an assumed part of the product, other suppliers are reviewing how to present products appropriate for the new demand.

As one example, Eurostar will relaunch its mid cabin product in September. Leisure Select, which was positioned between standard and business classes, will be replaced by Standard Premier. Seating and service will remain the same, but tickets on the new service, which is priced competitively with air services between London and Paris and Brussels, will be both flexible and refundable.

Hotels have always itemized charges for ‘extras’, but they too are launching products suitable for the post credit crunch business traveler. The Grand Hyatt New York has introduced a grab-and-go food service, Market, which caters for travelers who want a quick, healthy meal, for example, when arriving late from a flight or meeting. Guests are able to charge these food and drink purchases to their room.

Traditional airlines are taking account of this new market when configuring new aircraft or reconfiguring old. The initial customers of the A380 super jumbo jets installed business class cabins in much the same proportions as their existing long-haul aircraft. More recent deliveries are retaining first class, which has always been considered to have inelastic demand, but reducing business class cabins in favor of premium economy or economy seats.

Why it matters

• New supply pool A changing product portfolio should prompt a review of what’s appropriate for the company travel policy.

• Purchasing New product offerings might affect what class you’re looking to buy.

• Policy The existing segmentation of class of travel may require review.

What to look out for in the future

• Future trends New services and small innovations may herald larger trends to come. For example, the spotlight has been on airline ancillary fees. That trend could very well extend into other sectors such as car rental and rail.

• More new products Product launches follow market trends. Expect more business travel products tailored to the changing market of restricted corporate budgets for business travel.