Providence Business News

Most business owners are acutely aware that every penny they spend on what might be considered non-essentials is one cent that’s not being invested back in their business, whether it’s flying three executives from New York City to Chicago to meet with a prospect, or flying 100 executives from New York to Frankfurt to attend a major pharmaceutical conference.

There’s a lot of time and energy spent on financially planning these all-important trips. But there’s one cost-saving measure that you should simply skip. And that’s flying anything less than first class is not only a strategic mistake, but could hurt a potential deal.

A little TLC and some much-appreciated extra legroom might not seem worth the added expense of paying for a ticket upgrade. But have you really thought about what that higher fare buys you?

In a recent New York Times article, David Liu, co-founder and CEO of TheKnot.com, explained why he thinks business owners and executives should rethink their habits of flying coach.

“I’ll never forget one of my first meetings with a venture capitalist,” said Liu. “I booked the round-trip ticket for less than $200. Of course, on the way back, there were three layovers. It didn’t matter to me because any money I saved could be used to hire personnel.

“It was a great meeting because she understood how we were trying to grow the business. I told her that I was leaving for the airport at 3 p.m. for a red-eye back to the East Coast. She was really confused because obviously a red-eye flight doesn’t leave midafternoon. But then, I told her my flight from Los Angeles had several layovers and I was actually going to get back to New York at 6 a.m. She looked at me like I was crazy.”

Added Liu, “I remember her telling me that travel can make people stressed, and they couldn’t afford to have a stressed-out CEO. She rebooked the flight for me and got me a first-class ticket. I’ve always remembered her advice that having a chief executive who is half-dead from bizarre travel schedules doesn’t do a company any good. Unless your company is in its infancy or dire financial straits, take a clear-eyed look at the costs associated with economy, and the case for avoiding cattle class becomes clear.”

To read the article on the Providence Business News website please click here