Corporates have rarely had it so good, with a recent airfare study indicating the price of corporate Economy Class tickets dropped on key international routes in 2016 and fell by as much as 7% on the top domestic routes, according to the latest Australian Aviation and Airfare Analysis report.
The report, which was produced by FCM Travel Solutions' sister brand 4th Dimension Business Travel Consulting (4D), includes a benchmarking study that compares the price of corporate and leisure airfares purchased in 2016 compared to airfares purchased in 2015 and 2014.
4D’s analysis of corporate and leisure tickets purchased through the FCTG’s staple of travel brands, demonstrates that Australian travellers continue to see excellent value from the price of their air tickets.
Felicity Burke, General Manager, 4D, said the outcome of the latest research into corporate and leisure fare movement painted an extremely positive picture for companies and smaller businesses, as well as holiday travellers, that have been booking their travel through a travel management company or retail travel agency such as those that fell under FCTG.
“Not only are FCTG’s corporate customers purchasing extremely well-priced fares but they are also getting all the additional value that comes with booking through a travel company such as 24-hour global traveller support, access to experienced consultants that manage their company’s travel policy, travel spend and activity reporting capabilities as well as access to our online booking technology,” Mrs Burke said.
“And the really good news is that this experience is about to get even better for travellers with the likes of Virgin Australia and Qantas both acutely focused on enhancing the traveller experience to grow market share and increase loyalty, particularly in the corporate sector.”
Fare tracking conducted by 4D for first Quarter 2017 indicates a moderate increase of between 3% - 5% in domestic Economy Class fares across both the corporate and leisure buying groups.
Further to this, both the major Australian airlines introduced ‘Days of the Week’ fares late 2016, which has travellers on certain routes, with certain ticket types paying a higher price to fly on Thursday and Friday.
The data collected suggests a definitive shift away from the long-held beliefs of travel buyers – that booking 14-21 days in advance delivers the best deal on the busiest routes. With a likelihood of one in 10 tickets being changed by corporate travellers after a ticket is issued, 4D highlights that customers should consider the benefits of ‘flexible’ fares to avoid costly change fees. The report shows the average cost of change charged by the airlines is $165.
Internationally, the big changes in 2017 include:
- Start of non-stop Qantas flights from Perth to London
- Virgin Australia expanding to Hong Kong and Beijing
- The opening of Qantas’ flagship international lounge due to open at London Heathrow
- Qantas adding services to Beijing and Tokyo (Narita) and;
- Virgin Australia reintroducing a Melbourne to Los Angeles service.
Download our report snapshot below for an overview of findings. If you would like access to the full report please contact your FCM Account Manager.