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Book Late and You'll Pay More

COMPANIES that leave their airfare bookings until the last minute risk paying almost twice as much for their tickets, a study from SME business travel and expense management specialist Corporate Traveller has revealed.

The study, which uses one-way fares for nine key corporate domestic routes, compares ticket prices for bookings made one day in advance, two to five days, six to 10 days, 11 – 20 days and more than 21 days in advance.

The study included the cheapest available fares advertised by Corporate Traveller between 6am and 8am for a month-long period.

Corporate Traveller executive general manager Shannon O'Brien said the results showed that business travellers who booked their tickets one day before their departure date risked paying on average 123 per cent more for their tickets.

Mr O'Brien said booking tickets as early as possible was an important strategy for businesses to manage and reduce their spend on air travel and was also a good reminder for leisure travellers taking a holiday to book their fares as far out from the departure date as they could.

"This study clearly shows the reduction in ticket prices for airfares that are booked a few weeks in advance across a spread of domestic routes," Mr O'Brien said. "With a number of the last minute airfares costing twice as much as tickets bought three weeks or more in advance, the financial impact of early bookings on a business's bottom line is significant.

"Our study shows that on routes such as Melbourne to Adelaide travellers would have paid 207 per cent more for a ticket purchased the day before travel compared to a ticket booked 21 days or more in advance. Travellers would have paid 161 per cent more for a ticket bought the day before on the Sydney to Brisbane route, 157 per cent more if they booked the day before travel on the Sydney to Melbourne route, 119 per cent more on the Sydney to Adelaide route and 117 per cent more on the Adelaide to Melbourne route."

Mr O'Brien said that although savings on domestic tickets would fluctuate throughout the year according to daily prices, the snapshot of fares used in the study was a good indication of how businesses could boost savings through forward planning and early bookings.

"For businesses with a number of employees on the go, it's a smart idea to include an advance booking policy in your travel program to ensure everyone plans their travel as early as possible," he said.

Mr O'Brien said FCm had noticed a growing portion of Australian SME businesses mandating advance airfare bookings in their travel policies, some of which included two week lead times on domestic fares.

"Company travel policies help to ensure everyone knows what is expected of them when they are travelling for business," he said. "Obviously booking in advance isn't always going to work in the case of emergencies and unforseen events, but when corporate travellers know an event is happening a few months or weeks ahead it's wise to book as early as possible."

Mr O'Brien said corporate travellers heading overseas should also book as early as possible with at least a six week lead time recommended for advance airfare purchases.