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Business Fares  
User currently offlineBruce From United States of America, joined May 1999, 5042 posts, RR: 16
Posted (14 years 4 months 3 weeks 3 days 6 hours ago) and read 485 times:

We all know that fares for people travelling on business are higher than vacationers, primarily because they are bought on short notice and many times no saturday stay, etc.

Those fares are quite high. Even for a short flight it could be $500 - $1000 (r/t). So, how can companies afford this? Is there some secret that we don't know about - like do companies really NOT pay those published fares? For example, if a company flies a candidate in for a job interview do they REALLY spend $800 for plane fare for someone they might not hire? Do companies have some other kind of discounts?

It seems like business travel keeps growing. I don't know how companies can continue forking over huge sums of $$$$$$


Bruce Leibowitz - Jackson, MS (KJAN) - Canon 50D/100-400L IS lens
4 replies: All unread, jump to last
 
User currently offlineFLY777UAL From United States of America, joined May 1999, 4512 posts, RR: 3
Reply 1, posted (14 years 4 months 3 weeks 3 days 6 hours ago) and read 453 times:

A lot of times, companies will sign corporate travel agreements with the airlines, allotting the companies a certain amount of seats at a set fare.

FLY777UAL

Also--Pro Air (www.proair.com) has a press release or two about their agreements with Chrysler, etc.


User currently offlineReimar From Austria, joined Jan 2000, 26 posts, RR: 0
Reply 2, posted (14 years 4 months 3 weeks 3 days 5 hours ago) and read 450 times:

Fortunately companies are still spending lots of money on business tickets! As a travel agent I am depending on clients that buy expensive tickets and so do airlines. Just one example: A company bought two business class tickets from JNB to GRZ for a guy that they wanted to hire. He insisted on taking his wife with him and that he is aloud to fly business although an economy ticket was possible. Total cost for the company: USD 5600 for 2 Business Tickets instead of USD 1980 for 2 Economy Tickets.

Reimar


User currently offlineSeat 1a From , joined Dec 1969, posts, RR:
Reply 3, posted (14 years 4 months 3 weeks 3 days 5 hours ago) and read 447 times:

The first posting is pretty close to the mark. In the states, as competition is fierce, airlines will sign long term agreements with corporations and provide additional benefits to those travelling with the corporation in question.

aside from that, there are an awful lot of wealthy people along with senior executives that travel up front where there is no need to justify the price of the ticket as either they do not need too or the enhanced service is in their employmemt contract.

lastly, companies are starting to see the stress and pressure that regular domestic or international travel may bring to that persons family lifestyle, so as a perk to get on a plane with 24 hours notice from Miami to London, companies need to provide an executive service at whatever cost if they want to keep that employee.

on a lighter note, i think we have all talked about this before, and that is the prices themselves. they have infact almost become illogical and non-sensical.... but, in saying that, they are not for people like us.... they are for people that don't need to explain or justify the cost.


User currently offlineBruce From United States of America, joined May 1999, 5042 posts, RR: 16
Reply 4, posted (14 years 4 months 3 weeks 3 days 4 hours ago) and read 443 times:

I know there are people and companies who do not need to justify any cost when travelling.....but they must have a "bottomless pit" of money to do this......

Think about this: airlines say they rely on business travellers paying $1500 for a ticket to make a flight profitable so they can offer discounts to everyone else, but in the long run, the company that spends unlimited money like that is probably passing it on the consumer in the prices of their product/service.....and that consumer is probably the same one who would buy the discount fare.



Bruce Leibowitz - Jackson, MS (KJAN) - Canon 50D/100-400L IS lens
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