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November 12, 2007

Changes Coming for Business Travel

Filed under: Business Travel — Rick Seaney @ 2:02 pm

What do business travelers need to know for 2008? Prices are rising, passenger numbers are growing, and things could start to get really expensive.

There is hope though, as more airlines are turning their attention to courting both domestic and international Road Warriors.

 

Just as Southwest is introducing new programs for business travelers, we’re seeing changes across the business travel landscape, as demand rises and supply dwindles:

“As a result, the average cost of a domestic trip in 2008 is expected to rise 6 percent, or $63, to $1,110, according to research by American Express Business Travel. Overseas trips are forecast to rise 7 percent, or $205, to $3,171.” (from The Dallas Morning News)

To keep from breaking the bank, many corporate travel managers are limiting business class travel, keeping closer tabs on when and where free car rental is needed, and taking advantage of lower 14-day and 21-day advance airfare purchases.

I’m interested to see if Southwest’s low-cost fares and added business travel perks attract larger corporations that are feeling the heat from rising costs, or if “unmanaged” (smaller companies that do not have corporate travel oversight) become the airline’s major business travel demographic.

I’m also interested to see if other airlines adopt new business policies to maintain their business traveler customer base. Let me know what you think will happen to business travel in 2008.

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