Business Travellers Ditch Luxury for Low-Cost Airlines

Strategic Insights -

As companies seek to cut costs, business travellers are becoming increasingly cost-conscious, with almost two-thirds being asked to fly from airports served by "no-frills" airlines. This shift is driven by the need to reduce spiralling travel budgets, with executives flying at the weekend to economise. The move is partly a response to perceived overcharging by traditional airlines and partly due to the convenience of internet-based booking and reservation systems.

Key Takeaways:

  • Almost two-thirds (64%) of business travellers are being asked to fly from airports served by "no-frills" airlines, according to American Express.
  • 74% of executives have flown at the weekend to economise, highlighting the cost-cutting measures being taken by companies.
  • Business travellers account for between 30 and 50% of passengers on no-frills airlines, such as Easyjet, Virgin Express, and British Airways' Go.
  • International business class fares from Britain are expensive, with companies paying up to 76% more for transatlantic business fares than businesses elsewhere in Europe.
  • Business travellers often have to pay substantially more than leisure travellers if they want flexible travel terms, making low-cost airlines an attractive option.
  • All no-frills airlines have websites allowing customers to make reservations and pay online, providing convenience and saving time.

Statistics:

  • 64% of business travellers are being asked to fly from airports served by "no-frills" airlines (American Express).
  • 74% of executives have flown at the weekend to economise (American Express).
  • Business travellers account for between 30 and 50% of passengers on no-frills airlines (no-frills airlines).
  • International business class fares from Britain are 76% more expensive than in Europe (study published earlier this year).
  • No-frills airlines provide internet access for customers to make reservations and pay online (all cited no-frills airlines).

Sources:

  • American Express, reportedly by Iain Robertson, head of UK corporate travel section.
  • Study published earlier this year, cited in the article but without specific details on publication date or author.