Media Releases

14 May 2010

Business Travel frequency boosted by discount airfares

DISCOUNT domestic airfares are helping to resuscitate the corporate travel market with businesses using 'Best Fare of the Day' to purchase cheap tickets boosting travel volumes.

Brent Novak from SME business travel specialist Corporate Traveller, said businesses using Best Fare of the Day strategy to buy low-cost airfares were getting increasing value from their travel budgets and travelling more frequently as ticket prices plummeted.

"Companies using Best Fare of the Day to purchase airfares are in the best position to take advantage of the low-price tickets we're seeing flood the market at the moment. By using Best Fare of the Day, travellers can book the cheapest ticket available from a spread of airlines at the time of booking," Mr Novak said.

"This strategy is best used by travellers that know their plans aren't going to change, which means they can secure a discounted, restricted ticket well in advance of their departure date."

According to the Federal Government, airfares are 26 per cent lower than they were this time last year and statistics from the Federal Government's domestic airfare index shows 'best discount' tickets have dropped 20.4 points from May 2009 to May 2010.

Mr Novak said that during the past few months Corporate Traveller had seen a spike in the frequency of flights from their business customers as the price warfare continued to deliver record low ticket prices.

"Companies are always going to travel for business, but they're going to travel more frequently when airfares are more affordable as they are at the moment, which is partly why we're seeing an increase in domestic business travel volumes," he said.

"While some companies choose to fly with preferred airlines, those that utilise Best Fare of the Day policies can take advantage of the eye-catching deals we've seen recently including $60 one-way tickets between Sydney and Melbourne, which is a major corporate route.

"The strategy of buying airfares in advance to secure the cheaper, restricted tickets won't suit all business travellers but it will benefit travellers who know their plans are set in stone.

Mr Novak said the flow-on effects of cheaper flights meant businesses were left with more money to spend on extra business trips, cabin upgrades, accommodation and entertainment.

"For companies where travel is an essential component of their operation it's a win-win situation."