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Business Airtravel Set to Stay Down


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CategoryBusiness
DateWednesday, December 02, 2020
AuthorNewsdesk@IrishDev.com

Business Airtravel Set to Stay Down

Report by Revenue Ancillary Company IdeaWorksCompany Finds Airlines Will Suffer 19 - 36% Reductions on Business Travel

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A new report 'Journey Ahead: How the Pandemic and Technology Will Change Airline Business Travel' carried out by IdeaWorksCompany and sponsored by Dublin based CarTrawler, has concluded that business travel is likely to stay depressed as the airline industry begins its recovery from the coronavirus pandemic.

 

The report is based upon a first-ever approach of assessing business travel by trip purpose, rather than industry category. The analysis by IdeaWorksCompany, a company that helps airlines boost profits through innovations in ancillary revenue, a la carte pricing and loyalty marketing, estimates the frequency of different types of airline trips, predicts how that will change, and offers insights into how airlines can maximize new revenue in the future.

 

CarTrawler's Aileen McCormack .... airlines must adapt to meet consumers’ needs otherwise they will be left behind by their competitors.

Key Findings from the Report:

 

Analysis reveals a potential overall loss of airline business trips ranging from a low of 19% to a high of 36%.

 

Travel for “sales activity and securing clients” is the largest category of business air travel (25% of the total); it’s projected to show a modest loss ranging from zero up to 20%.

 

Intra-company meetings comprise 20% of all business air trips, and are projected to decrease up to 60%.

 

Business travel booked by US corporate travel agents had a 95% year-over-year plunge in transaction value at the beginning of the pandemic in March 2020; this slightly improved to an 85% drop by November 2020.

 

The report goes on to suggest how airlines can recover their revenue loss by enhancing leisure travel retail efforts, boosting ancillary revenue, reducing lie-flat seat capacity, and adding premium economy seating.

 

Talking about the report, Chief Commercial Officer at CarTrawler, Aileen McCormack (pictured), said: “With huge flux in the business air travel segment, and indeed the sector as a whole, it is clear that airlines must adapt to meet consumers’ needs otherwise they will be left behind by their competitors. The good news is that an innovative plan encompassing an added focus on leisure travel, ancillary revenue, and seating strategy will offset airlines’ business travel losses and ensure that carriers are well placed to emerge stronger and leaner once the pandemic is over.”

 

The full report is available to view at here

 

Related: CarTrawler News

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Corporate Information

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Visit: CarTrawler

 

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