Business Travel Tips: Despite Price Increase Predictions, MacNair Travel is Reducing Travel Costs

Photo Credit: MacNair Travel Management

With the worst performing week on Wall Street and a worsening economic crisis, companies are looking for ways to save money. In 2008, the travel industry has been faced with rising air prices, increasing airline fees, reduced capacity and cancelled routes. What can companies do to ensure their travel costs are kept under control or even, yes it’s possible, save money without sacrificing travel?

Unfortunately for the business traveler, 2009 is not predicted to show any relief. Advito, BCD Travel’s consulting arm, expects U.S. travelers and corporations to experience further increases in air fares, hotel rates and rental car prices, according to its 2009 Industry Forecast.

The airlines will react to the challenging environment by further trying to reduce costs and exploring ways to add new revenues, leading to an increase in the total cost of air travel, as reported by Advito.

“On average we predict 2009 rates to increase against 2008 by 6 percent to 8 percent, but with clear differences by region and trip category,” said Bob Brindley, vice president of Advito. “Unlike previous years, unbundling of services and the resulting fees are on the rise, and are projected to add another 3 percent to 5 percent to the total cost of air travel.”

However, despite these rising costs, there is one travel management firm that is actually beating the odds and saving its clients money on airline ticket prices. MacNair Travel Management, a privately owned American Express Representative Office, reveals that its clients have saved an average of 23 percent on domestic tickets and 53 percent on international airfare. This consists of a combined average savings of 46 percent for the second quarter of 2008.

These average airfare figures are benchmarked against Topaz International, an organization that tracks airline ticket costs. For the second quarter of 2008, Topaz reports that the average domestic ticket price was $575.96, and $3,692.77 for international fares. The combined average ticket price for the second quarter of 2008 was $1,227.18.

By contrast, MacNair Travel’s second quarter results are an average of $446.00 for a domestic airfare ticket and an average of $1,722.00 for an international airfare ticket. This is a combined average ticket price of $663.00.

Michael MacNair, president & CEO, MacNair Travel Management & author of Smooth Landings

MacNair Travel’s President & CEO Michael MacNair says, “With increasing airline prices this year, reduced capacity and less flights available, air travel is experiencing more turmoil than ever. However, through an implemented and enforceable travel management policy, there are ways for travelers to reduce this cost.”

MacNair Travel is delivering significant savings by offering more fares on more airlines than are available from any other Web site. This is possible because the travel management company has access to legacy airline fares, low-cost carrier fees and Web fares not available through most public travel sites.

“Companies are looking to cut costs in any way they can in this tight economy and without sacrificing necessary work trips. We have found a way they can do this and still save money,” MacNair, who is author of travel management book Smooth Landings explains. “By enforcing a travel management policy, our travel team ensures the traveler is taking the travel options the company wants which might include considering an alternate airport, connection or low-cost airline if the savings to the company represents $100.00 to $500.00 or more per transaction.”

MacNair also says that the agency’s expert team of travel consultants has developed a travel management system that delivers unparalleled results.  “We can document the lowest fare offered to the traveler for the company’s use,” he adds. “I have found that when we can show the lost opportunities to a company by applying their policy thresholds, we can get the organization and its travelers on board a true travel management system that drives costs as low as possible.”

MacNair offers tips to both travel managers and the road warriors. For travel managers, he recommends:

• Clarify value expectations in your policy and police them;
• Leverage your combined volume to secure deals;
• Make sure that the system being used to deliver the lowest fares considers low cost carriers, legacies, and more; and lastly
• Book ahead more than before.

For corporate travelers, MacNair advises:

• Make sure the system you are using to search fares isn’t biased like airline sites and public sites (travel management company sites are less biased) but be aware of what you aren’t seeing;
• Book ahead as there are less seats available; and
• Consider connections and alternate airports.

“Pick your battles in comfort by insisting on comfort for longer trips but taking the cheaper inconvenient route for shorter ones,” MacNair adds.