One more figure helps explain why


fares are moving upwards. Last year, the proportion of flights by Airplus customers on low-cost carriers fell from 36.5 per cent to 34.9 per cent. For years, the trend had moved inexorably the other way. It begs the question of whether low-cost carriers may have passed their high watermark in terms of winning share in the business travel community. Another couple of years of data are required before judge- ment can be passed.


DIFFERING TRENDS Headline figures from other issuers tell a different story from the key Airplus finding of steeply rising fares – although the data is much more sparse, making direct comparisons difficult. Total air ticket purchases by American Express UK corporate customers were flat last year, while total air spend rose 2.5 per cent, meaning average ticket price must also be up by around that much. For Citi, the trend was in the opposite


direction, though its figures are for mul- tinational corporate clients not just in the UK but across the whole of Europe. They show that air transaction numbers rose 12-13 per cent while air spend grew only 6-7 per cent, in which case average transaction value fell. Steve Robson, EMEA head of com-


mercial cards at Citi, attributes falling ticket prices to having a client base consisting largely of major corporations. “They are mainly in the Fortune 500,” he says. “Perhaps they find it easier to control their spending and put rules in place. They are encouraging travellers to book much further in advance and go for lower fares. If they book less than one week before travel, they have to get it signed off.” If all else fails in the quest to bring down average fares, one final statistic from the Airplus data set suggests a more radical, if implausible, solution that companies could try: sacking all their male employees. In 2017, the average fare paid by male


travellers was £656, compared with £605 for females. One reason was that women were more conscientious about booking in advance – 22.9 days ahead, compared with 19.3 days for men.


12 BBT CORPORATE CARDS SUPPLEMENT 2018


UK BUSINESS TRAVEL


AIR SPEND BY NUMBERS AVERAGE TICKET PRICE


All


UK domestic Continental Long-haul Economy


Business First


2016 £531 £172 £295


£2,074 £314


Premium Economy £1,688 £2,934 £3,655


PERCENTAGE OF SPEND UK domestic Continental Long-haul Economy


Premium Economy Business First


8%


37% 55% 56% 6%


37% 1%


PERCENTAGE OF TICKETS Economy


Premium Economy Business First


92.0% 1.7% 6.1% 0.2%


2017 £580 £176 £300


£2,245 £322


£1,792 £3,216 £3,506


8%


35% 58% 52% 6%


40% 1%


91.5% 1.8% 6.5% 0.2%


Source: Average of all air tickets booked by UK customers of Airplus International, 2017


£427 The average


amount designated as “tax” on a long-haul ticket in 2017, according to Airplus, accounting for 18.2 per cent of total ticket price.


BEWARE RISING CANCELLATION FEES


Data from virtual card technology company Conferma points to another fast-rising hidden travel cost. The average hotel reservation cancellation fee processed through its virtual card transactions shot up from £96 in 2016 to £107 in 2017. This figure is increasingly significant for travel managers. Until a few years ago, free cancellation before 6pm on the day of arrival was common, especially for guests on corporate rates. However, big chains, including Marriott and Hilton, subsequently moved to a 24-hour cancellation policy and, over the past year, have extended the period again to 48 hours. With Conferma’s data suggesting the cost of those cancellations is on the increase, this could prove to be a growing expense for companies unless they take mitigating steps, such as communicating the issue to their travellers or, where they can, negotiating on the fee.


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