»»Managing Traveler Behavior To Offset Rising Business Travel Costs
According the analysis on business travel cost for 2007 released yesterday by American Express Business Travel, international rates experienced increases while rates in the U.S. remained stable.
Tight global supply and high fuel costs drove continued price growth for international business travel in 2007. However the average airfare for U.S. stabilized in 2007 due to a combination of factors including the expansion of low fare models and the behavior of travelers who book their trips further in advance by taking advantage of lower, advance purchase fares.
Herve Sedky, Vice President and General Manager, Global Advisory Services, American Express Business Travel, says: “Companies can achieve savings in this environment through a well managed, dynamic travel and entertainment program allowing the flexibility to adjust their travel policies in real-time accordance with fast-moving industry changes“.
American Express Business Travel has recently added Change Management as a consulting competency. A practice area that offers best practices for monitoring and influencing traveler behavior to improve compliance to corporate policies and procedures.
Frank Schnur, Vice President, Advisory Services, American Express Business Travel, says incremental cost savings made possible through this new practice area can range between 11 percent and 33 percent of a company’s total air spend.
Below data from American Express Business Travel’s analysis on business travel cost for 2007.
- International average airfare paid:
2001 - $1,461
2002 - $1,473
2003 - $1,469
2004 - $1,514
2005 - $1,614
2006 - $1,707
2007 - $1,836
- Annual average domestic airfare paid:
2001 - $259
2002 - $243
2003 - $243
2004 - $225
2005 - $216
2006 - $231
2007 - $230
- International Average Booked Rates Increased $36 in 2007:
2000 - $190
2001 - $192
2002 - $188
2003 - $195
2004 - $197
2005 - $212
2006 - $230
2007 - $266
- Average Domestic Booked Rates:
2000 - $131
2001 - $133
2002 - $129
2003 - $127
2004 - $132
2005 - $137
2006 - $141
2007 - $157
- Average daily car rental rates:
2001 - $63
2002 - $64
2003 - $65
2004 - $65
2005 - $66
2006 - $69
2007 - $72
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