With higher fares and a stumbling economy, more and more business travelers are opting for the cheaper seats, according to American Express Business Travel.
Hervé Sedky, vice president of global advisory services at American Express Business Travel, told USA Today that “[o]n international flights, the number of business-class tickets American Express (AXP) sold dropped two percentage points in the second quarter.” First class ticket sales for North American travel dropped to three percent. That’s four percent lower than for the same time period last year.
Business travelers who opt for coach instead of first class on domestic tickets typically save between $400 and $800. For international travel, the savings range from $4,000 to $5,000 if not more.
Sedky tells Travel Weekly that companies are buying tickets in advance to take advantage of lower fares. He says that during the second quarter of 2008, 89 percent of tickets purchased were domestic discount fares.
There are companies who still purchase international business class tickets, but Sedky says that only 49 percent of the tickets purchased were business class tickets, which is “the lowest percentage since the third quarter of 2004.”
“Companies aren’t putting an end to air travel…but are asking how they can gain market share by making a trip.”
Air travel price tracker Bob Harrell at Harrell Associates agrees. “I think business travelers will keep on flying, while trying to economize as much as they can.”
