Business Travel News - November 19, 2007 - (Page S10)

European 100 Airline Benchmarks Buyers Push For Point-Of-Origin Pricing BY JAY BOEHMER ravel buyers are looking at point-of-origin pricing, alliance deals, percentage-off discounts and policy actions to maximize value and ease contracting for air Percentage of European air tickets travel services at the European point of sale. Airline for which companies received spending on average this year comprised more than a negotiated discount, 2006 54% half of the travel euro for companies with more than €20 million in air tickets booked at the European point of sale, according to those who shared data. Little more than half—54 percent—of tickets purchased in CAT 25 does is allow ATPCo. to load the compare fare and the 2006 by companies among the 100 largest corporate travel percentage discount into the GDSs. That means the GDS should spenders in Europe received negotiated discounts, respondents be capable of showing the discounted fare—that was a techsaid. Companies reported net effective coach discounts that nical issue that not all GDSs were able to do.” ranged from 5 percent to 45 percent, but averaged 22 percent Moves toward point-of-origin pricing and alliance contractin Europe. Companies reporting are among other trends ed an average European tickdriving the European corpoet price of €517.50. rate air travel market, he said. Full 2006 Coach Net Effective Discount Prism Group vice president A Carlson Wagonlit Travel Average savings as a percentage of the published spend, of Europe, the Middle East client advisory note issued including front-end and back-end rebates and other incentives and Africa Herman Mensink this fall said that point-of-orisaid the European market is gin pricing this year “has Europe Elsewhere “gradually”shifting to percentcome to the forefront as a 22% 26% age-off discounts from net new opportunity for organifares, though “a lot of airlines zations with global airline are still offering net fares in contracts to increase savings.” the market without any correlations to compare fares.” Helping Airlines—like many managers of supply and demand—price to drive this shift, he said, are new global distribution systems ca- their product differently depending on the market in which it is pabilities to load and manage such fares in Europe. sold. “Because their position is different in different countries, “One of the reasons it has taken so long in Europe is the fact they want to be able to offer cheaper fares in the markets where that CAT 25 wasn’t available in all GDSs,” Mensink said. “What they have low penetration and higher fares in their dominant markets,” Mensink said. IKEA global travel purchaser Yves Galimidi—like other European-based Airline Business Class Policies, 2006* travel buyers—bemoaned a lack of consistency in fare pricing on the same routes when purchased in different For trips of more than a certain number of hours countries. Galimidi is among many Eu(average is 6 hours) 60% ropean buyers aiming for point-of-oriFor international trips 28% gin pricing with carriers. “Airlines sometimes are hesitant to For certain executives 20% do that. They’d rather keep it point-ofFor transcontinental trips 12% sale,” said Mitch Cwanger, air practice For flights on the way to doing business 8% leader for American Express Business For trips involving clients 8% Travel Global Advisory Services. “If you have a large enough volume, you can Other 12% convince airlines that this is something No use allowed 0% that must be put into a program.” *Respondents allowed to choose more than one answer. T Most Tickets Discounted Continued on page 12 10 EUROPEAN 100 BUSINESS TRAVEL NEWS WWW.BTNONLINE.COM http://WWW.BTNONLINE.COM

Table of Contents for the Digital Edition of Business Travel News - November 19, 2007

Business Travel News - November 19, 2007
Contents
Avis Ups Its Bet With Carey Investment
Notebook: ACTE Assails Green Taxes
EC Adopts Revised CRS Code Of Conduct
Dynamic Discovery: General Dynamics’ Loper Mines Data
American First: AA Wins BRN's 2007 Air Survey
Perfecting Attendance: CA’s Brust Deploys Event Reg. Tech.
Mtg. Buyers Grapple With Price Hikes
Business Travel News - 2007 Resource Guide
Table of Contents
Airline Benchmarks
Siemens: Global Balance
Hotel Benchmarks
Syngenta: Selective Sourcing
Online Booking Benchmarks
Pfizer: Cross-Border Mtgs. Consolidation
Meetings Benchmarks
Planes, Trains and Striking Good Deals

Business Travel News - November 19, 2007

https://www.nxtbookmedia.com