Travel Leaders Corporate released travel data that compares the average costs of international and domestic trips (combining air, car and hotel) for their business travel clients and found that the cost decreased for international trips but increased domestically in the second quarter.
However, Travel Leaders Corporate notes car rental costs declined in both categories. The latest findings also offer insights into the “class of service” booked most often for long haul flights. Travel Leaders Corporate is a division of Travel Leaders Group.
The average cost of an international trip – including combined air, car, and hotel costs – was $2,398 in the second quarter of 2013. That’s lower than 1Q13($2,534); it’s also a decrease when comparing year-over-year pricing per quarter. Meanwhile, the average cost of a domestic trip increased to $965 in the second quarter of 2013; however, it is still lower than second quarter of last year ($981).
"Interestingly, when looking at the average trip cost – whether domestic or international – the average daily rate for a car rental has decreased for our clients. It is down 1 percent domestically compared to last quarter and down 5 percent internationally when comparing the first two quarters of this year,” said Travel Leaders Corporate President David Holyoke.
“We have worked hard on behalf of our clients to incorporate agreements with suppliers that have saved our clients 3 percent when comparing second quarter year-over-year. Once the agreements are in place, we continue to provide reports and guidance on how well a client’s business travelers are adhering to their corporate travel policy and where there are gaps. By helping our clients eliminate the gaps, we assist them in saving even more," Holyoke said.
Holyoke continued, “What sets us apart is that our team is focused on understanding our customers’ business needs and offering custom solutions. That’s what drives results for our customers, and makes us a departure from the ordinary.”
Travel Leaders Corporate took a closer look at its top “long haul” flight routes (at least seven hours long) during Q2 2013 and identified the breakdown in tickets purchased by the “class of service.” On average, the percentage of travelers flying various classes were as follows: (First Class 9%; Business 23%; Premium Coach 20% and Coach 48%)
“To us, this clearly indicates that the Premium Coach product being offered by a number of airlines is popular with our business travel clients especially those traveling to London from the East Coast,” added Holyoke.
Among other second quarter findings from Travel Leaders Corporate:
· The average cost of clients’ international airline tickets was $1,624 in 2Q13 compared to $1,698 in the first quarter of this year. Also, airfare costs make up 67.7 percent of the overall international trip cost when looking at air, car, and hotel.
· The average cost of a domestic airline ticket ($443) increased 6 percent compared to the first quarter of this year; however, that is nearly identical to the average cost of a domestic ticket in 2Q12.
· The average nightly rate for a domestic hotel room increased 3 percent compared to the first quarter of this year, while the average nightly rate for an international hotel room decreased by 3 percent when comparing the first two quarters of this year.