NEW YORK -- Business air fares are expected to finish 1997 about
17% ahead of levels from a year ago, following record fare levels
during October and November, according to the American Express
business air fare index.
According to the index, the typical business air fare rose 3% in
October from the previous month and another 1% in November. Fares
in November were about 9% ahead of levels from a year ago.
American Express said the current one-way composite typical
business fare of $445 is the highest recorded by the index since
the company began tracking prices in January 1992. It said the
repeated lapse and reinstatement of federal airline ticket taxes in
1996 and 1997 combined with continued growth in passenger demand
for airline seats are helping push fares higher.
"As airlines continue to raise business fares, more companies
are applying travel management strategies -- some tried and true,
some new --- to help them cut air travel costs," said Ed Gilligan,
president of American Express corporate services. "For instance,
some companies are tightening travel policies and requiring
employees to book only the lowest logical fare. Other companies
will start to use Internet-based, on-line travel reservations
systems, which are designed to help corporations channel bookings
to preferred suppliers while at the same time reduce travel's
administrative costs."
American Express breaks air fares into four categories,
including the following:
Full coach fares are economy class fares that are
unrestricted.Typical business is generally the lowest economy fare available
to the business traveler. Seats are limited due to capacity
controls, and fares may require advance reservations.Lowest discount fares usually require a seven-, 14- or 21-day
advance purchase, a minimum stay and roundtrip travel, and there
are change/refund limitations.Average fare paid is the average one-way price paid during a
month, primarily by business travelers booking through American
Express Travel.American Express also said the average fare paid set a new
record of $292 each way during October.
October fare levels rose 3% above September levels, and the
October level was about 7% above October 1996 levels. In November,
the average fare paid was 4% above November 1996.
Fares for the first 11 months were 9% higher than 1996
levels.