Yapta, the developer of FareIQ, the independent airfare price tracking solution, has published the findings of a benchmark study examining corporate airfare prices tracked by FareIQ across 34 large and mid-size corporations.
The study looked at corporate air travel itineraries from July 2013 to December 2013, revealing pricing volatility around various ticket classes, specific days of the week, airlines, and origin cities. The study also examined price volatility both inside and outside of void windows, and inside and outside of normal business hours. Lastly, the study also compared volatility across penalty versus non-penalty fares, negotiated rates against pubic fares, and tickets over and under $500.
Among the key findings of the study:
• The most frequent airfare price drops occurred early in the week, specifically on Tuesdays (21 percent) and Wednesdays (19 percent).
• Corporate flights originating from San Francisco, New York (JFK) and Denver showed the greatest proportion of price volatility, while flights from New York (LGA), Houston and Minneapolis were least volatile in price.
• Airlines with the greatest proportion of business airfare price volatility included British Airways, Air France, Lufthansa and American Airlines. Alaska Airlines and US Airways indexed the lowest proportion of price volatility.
• The average net identified savings (defined as savings available less airline change fees and associated travel management company change fees) was $306 per ticket for those over $500. For tickets under $500, the average net identified savings was $58 per ticket.
• 73 percent of all price changes in the data set were on negotiated fare bookings. The average net identified savings alerts (defined as savings available less airline change fees and associated travel management company change fees) were $204 on negotiated rate fares, and $291 on public rate fares.
• 46 percent of price drops occur within the business travelers’ standard business hours, while 54 percent occur outside of business hours.
“We conducted this study in an effort to provide actionable insights into airline pricing that will help corporate travel managers better manage their T&E budgets, and travel management companies provide enhanced client services,” said James Filsinger, Yapta president and CEO. “The results were quite illuminating, offering a unique view into the lifecycle of various corporate fares – and identifying the windows of time and fare characteristics where prices are most likely to fluctuate.”