Business travelers getting 17% air fare reductions
Business travelers are now saving up to 17% on domestic air costs, according to a new study.
“With looser restrictions, average business airfares will likely drop 10% or more beyond the average seven-percent drop in published rates for a potential decrease of more than 17%,” said the National Business Travel Association (NBTA).
The association estimated loosening such restrictions as Saturday night stays eliminated 10% of average airline costs in the US. On average, airlines also had a 7% decrease in domestic fares.
Other findings:
• American Airlines and Delta had the greatest average fare reductions, 11%. AUS Airways had the smallest reduction, one percent.
• Average undiscounted domestic fares fell seven percent from last December to February of this year, from $286 to $266.
• Fare changes more widely between booking classes, with some dropping by more than 40% and others not changing or increasing.
• Network carrier changes in the restrictions on fares have more of an impact on corporate costs than average fares.
• Carriers now offer multiple tiers of corporate discounts applicable to the “old” and “new” fares; some are tied to booking classes while others are tied to published ticket prices.
Said NBTA president and CEO Carol A. Devine:
“These complex shifts in the travel landscape make this industry exciting, and they underscore the importance of corporate travel management.”
She said travel managers are already making adjustments based on the analysis.
The study, the first of its kind, used a fare data base of 2,500 flight routes earlier this year. NBTA commissioned Travel Analytics Inc. to do the study.
Report by David Wilkening
David
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