Corporate world to biz travelers: get back in coach!

The aviation information analyst, Ascend’s new corporate survey finds that corporations are pushing business travelers back into coach, even out of premium economy and even on long haul flights.

The survey which analyzed business travel for the years 2009, 2010 and 2011 in both Europe and the US.

Findings from the survey said:

• 92% of respondents have made at least one short-haul trip for business. 87% have made at least one long-haul trip for business. In 2011, these figures were 95% and 71% respectively (though note the definition of short/long-haul has changed from +/- 5 hours previously to +/- 3 hours in 2012). The average number of short haul flights taken in the last year is 12, compared to 7 for long haul.

• There has been a small shift away from premium economy to economy class for long-haul flights – with 25% travelling in economy and 14% in premium economy vs. 20% and 19% last time this research was conducted. Of those travelling on long haul flights, 61% travel by either business or first class.

• 33% expect the number of flights taken by employees of their company to increase over the next year, compared to last year. 16% expect this increase to exceed 10%. Correspondingly, 37% are expecting to see a rise in their company’s corporate travel budget over the coming year.

• The three most important aspects of managing corporate travel costs were identified in 2011 as using the internet to find cheaper fares, considering a choice of hotels and using agencies to achieve deals. In 2012, they are using the internet to find cheaper fares, reducing the number of staff travelling and reducing conference/exhibition travel, indicating that companies are now more inclined to reconsider employee travel requirements as a means of reducing costs.

• The aspects of air travel that many respondents feel has improved over the past 2 years include the check-in experience (with the ability to check-in online being mentioned positively by many), convenience, passenger contact/information processes and choice of flights/airlines.

• By far the biggest complaint about corporate air travel was security processes causing queues and delays, which was also the biggest issue raised in the 2011 survey. Respondents felt that this problem had worsened over the past two years. Another negative aspect raised was poor customer service, particularly on-board the plane although business/first class passengers rated the service more positively than economy class passengers.

• Rising fair prices were also reported. These are generally felt not to have been met with a corresponding improvement in service. The problem of high prices is expected to get worse by many, as 79% of the sample agreed that global consolidation in the industry will result in less choice and higher prices.

Source: Ascend