Business Travel Tips

According to a report released in the past week by the U.S. Department of Transportation’s Bureau of Transportation Statistics (BTS), the number of scheduled domestic and international passengers on U.S. airlines during the first seven months of 2008 declined by 0.8 percent from the same period in 2007, dropping to 448.5 million, 3.6 million less than a year earlier.

- Busiest Airports -

More total system and domestic passengers boarded planes in the first seven months at Atlanta Hartsfield-Jackson International than at any other U.S. airport and more international passengers boarded U.S. carriers at Miami International than at any other U.S. airport.

- Top 10 U.S. Airports, ranked by January-July 2008 International Scheduled Enplanements

Passenger numbers in thousands (000)

(Source: Bureau of Transportation Statistics)

- Top 10 U.S. Airports, ranked by January-July 2008 Domestic Scheduled Enplanements

Passenger numbers in millions (000,000)

(Source: Bureau of Transportation Statistics)

Starting early 2009 U.S. air passengers will be required to give full name and their date of birth when buying a plane ticket, Department of Homeland Security officials announced yesterday. Airlines will submit personal information collected from travelers to Department of Homeland Security, which will compare the information against terrorist watch lists and then send the results to the airlines.

(photo by debaird – CC license)

Through this move, so-called “Secure Flight” proposal, the Department of Homeland Security hopes to improve aviation security also with the number of false matches drastically reduced.

A centralized checking system will replace the screening performed autonomously by airlines whom currently match reservation names against lists provided to them by the Transportation Security Administration (TSA).

As airlines will have to send data to the government at least 72 hours before flight departures, they will likely have to bring changes to their booking systems and set up adequate networks to interact with the government’s.

Based on forecasted economic conditions for 2009, airfares may decrease next year. That is one of the findings included in the Global Business Travel Forecast and Trends, the annual report by American Express Business Travel, published today.

The report also evaluated the impact on Business Travel of market activities that have occurred over the last 30 days.

In certain markets, the Forecast predicts a negative increase in 2009 to airfares and hotel rates. However, this doesn’t necessarily correlate to a decrease in prices paid as airlines continue their pursuit of expanding the suite of fees charged for services such as in-flight meals and baggage.

Hervé Sedky, vice president and general manager, Global Advisory Services, American Express Business Travel, says: “Considering airfare, car rental and hotel stay, we expect the average domestic trip to increase 2.8 percent, or $31 USD, to a total of approximately $1139 USD. An increase of 4.3 percent, or approximately $147 USD, is expected for international trips to bring the average cost to $3556. However, if you include the costs of additional travel expenses including baggage fees, dining, airport parking and even package shipping, it can add an estimated $400 to the total trip cost.”

Below the report (more…)

Despite oil prices dropped dramatically airline industry says fares may not drop with fuel costs.

The Detroit Free Press writes that as the average price per-gallon jet fuel cost for U.S. carriers for most of 2008 was $3.38, as of October 10 it was $2.56.
However the airlines after recording losses in the previous quarters due to rising fuel costs, now are facing a worsening economy and the financial crisis that have grounded many travelers.

The Free Press quoted David Castelveter, spokesman for the Air Transport Association, saying “You don’t recover from multibillion-dollar increases in your fuel bill in the matter of a few weeks. The carriers are still on track to lose $5 billion this year.”

Michelle Aguayo Shannon, a spokeswoman for Northwest Airlines, added: “but you have to really look at the airfares; there’s a false sense that fares are through the roof.”

Rick Seaney executive officer of farecompare.com, says domestic U.S. airfares are up from 2007’s 20% to 40%.
Tom Parsons, chief executive officer of bestfares.com, advises to look for deals on flights to Europe as fuel surcharges on international flights have declined and U.S. dollar doing better against the pound and the euro.

A survey by The National Business Travel Association (NBTA) released today shows that more than 50 percent of travel managers are encouraging less air travel and eliminating all non-essential corporate travel.

The study, again reveals the significant impact the global crisis is having on business travel.
The corporate business travel managers surveyed say they are implementing policy and process adjustments to manage additional fees, increased fares, and reduced budgets for travel.

Highlights from the research findings include:

• More than 50 percent of travel managers say new airline fees are having an impact on their planning and they are encouraging less air travel and eliminating all non-essential corporate travel.
• 76 percent of survey respondents believe that airlines are in fact misleading the public with their “low” and “advertised” fares by adding substantial fees.
• 83 percent of respondents indicate that re-introduction by airlines of minimum stay requirements – such as Saturday-night-stay – will increase business travel airfares. A significant percentage of travel managers encourage travelers to consider staying over a Saturday night if the difference in airfares is greater than the hotel and meal costs.
• Travel managers are promoting travel methods like ride-sharing, using public transportation, and suggesting alternatives like Internet-based meetings for business dealings.

NBTA’s research shows that there have been increases this year in the average costs of both domestic and international business trips:
– Respondents indicate domestic trips now cost $140 – $175 more than at the end of 2007.
– International business travel costs have increased $315 – $400 per trip since December of last year (more…)