June 14, 2024

Corporate air fare discounts coming under pressure

Negotiated corporate discounts are likely to come under pressure in 2024 as airlines continue to prioritise yield management.

Further adoption of New Distribution Capability (NDC) could also impact corporate travel programmes as pricing strategies from airlines evolve and become increasingly dynamic.

These are the predictions from the latest Air Monitor from American Express Global Business Travel, released today, which also forecasts that air fares will stabilise – and even fall – across key regional and international routes during 2024.

Transatlantic fares are expected to rise very marginally by 0.3% in business class but drop by 2.5% in economy.

Business class fares within Europe are forecast to rise by 1.1% and by 1% in economy.

Premium fares from Europe to Asia are expected to drop by 4% and by 3.4% in economy, with similar reductions for flights to the Middle East – 3.5% down in business class and 2.8% down in economy.

Flights between Europe and South America are predicted to drop by 3.9% in business class and by 10.4% in economy.

“While the expected softening of fare rises is good news for our customers, sourcing for corporate travel programmes remains a challenging environment,”saidDan Beauchamp, Head of Consulting at Amex GBT.

The report says sustainability is expected to be a growing priority for corporations and travellers, urging swift integration of sustainability metrics in air sourcing.

amexglobalbusinesstravel.com

See our November/December issue for an in-depth look at how shifts in demand and new distribution strategies will impact your airline programmes

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