|By Business Wire||
|April 8, 2014 07:01 AM EDT||
Yapta, the developer of FareIQ, the corporate travel industry’s only independent airfare price tracking solution, today published the findings of a benchmark study examining corporate airfare prices tracked by FareIQ across 34 large and mid-size corporations. The findings offer unprecedented insight into corporate airfare pricing – including the types of corporate fares that have the greatest volatility, when corporate fares are most likely to drop in price, and which origin cities and airlines experience the most significant price fluctuations.
“We conducted this study in an effort to provide actionable insights into airline pricing that will help corporate travel managers better manage their T&E budgets, and travel management companies provide enhanced client services,” said James Filsinger, Yapta President & CEO. “The results were quite illuminating, offering a unique view into the lifecycle of various corporate fares – and identifying the windows of time and fare characteristics where prices are most likely to fluctuate.”
The study looked at corporate air travel itineraries from July 2013 to December 2013, revealing pricing volatility around various ticket classes, specific days of the week, airlines, and origin cities. The study also examined price volatility both inside and outside of void windows, and inside and outside of normal business hours. Lastly, the study also compared volatility across penalty versus non-penalty fares, negotiated rates against public fares, and tickets over and under $500.
A number of key findings were revealed by the study:
- Corporate flights originating from San Francisco, New York (JFK) and Denver showed the greatest proportion of price volatility, while flights from New York (LGA), Houston and Minneapolis were least volatile in price.
- Airlines with the greatest proportion of business airfare price volatility included British Airways, Air France, Lufthansa and American Airlines. Alaska Airlines and US Airways indexed the lowest proportion of price volatility.
- The most frequent airfare price drops occurred early in the week, specifically on Tuesdays (21%) and Wednesdays (19%).
- The average net identified savings (defined as savings available less airline change fees and associated travel management company change fees) was $306 per ticket for those over $500. For tickets under $500, the average net identified savings was $58 per ticket.
- 73% of all price changes in the data set were on negotiated fare bookings. The average net identified savings alerts (defined as savings available less airline change fees and associated travel management company change fees) were $204 on negotiated rate fares, and $291 on public rate fares.
- 46% of price drops occur within the business travelers’ standard business hours, while 54% occur outside of business hours.
- 68% of price drop “alerts” (defined as notifications when savings on identical itineraries are significant enough to reticket) issued by FareIQ were for tickets in different classes of service within the originally ticketed cabin, and 32% were for the same class of service in the same cabin.
- 60% of total dollar savings opportunities (as measured in dollars) occurred inside of the void window, during which rebookings could be made without penalties. The remaining 40% were outside the void window.
- 78% of tickets with savings opportunities (measured in number of tickets) were inside of the void window, and 22% were outside of the void window.
- 87% of penalty ticket “alerts” were sent within the void window – while 13% were outside of the void window. Meanwhile, 40% of non-penalty tickets that were eligible for saving were within the void window – while 60% of non-penalty tickets that were eligible for savings were outside of the void window.
How FareIQ Works
FareIQ’s patent-pending Intelligent Price Tracking™ technology provides in-depth, 24x7 analysis and insights into corporate airfares, spotlighting opportunities to re-book tickets at lower prices, saving corporations crucial T&E dollars on a daily basis. The solution integrates seamlessly with agents’ workflows by dynamically monitoring pricing on individual passenger name records (PNRs) that are placed on a queue by the corporation or its travel management company. Upon recognizing a savings opportunity, FareIQ immediately issues a series of messages, including email alerts, a FareIQ web portal notification, and remarks posted directly in the PNR, that enables those savings to be acted upon by an agent or a travel manager.
FareIQ has proven to be very successful at identifying savings opportunities for corporations, including:
- Savings opportunities on 11.2% of all itineraries tracked
- When savings are found, the average savings are $260 per ticket, even after accounting for airline change fees and TMC/agent rebooking fees
- Customers recognize an average savings per ticket of 14.4%
For more detail on the FareIQ benchmark study, please visit: http://bit.ly/1ja4X2q.
Yapta is a pioneer in airfare price assurance services for travelers, and the developer of FareIQ, the corporate travel industry’s only independent airfare price tracking solution. Launched in 2007 as the travel industry’s first airfare price tracking and refund alert service, Yapta quickly gained more than 1 million registered members and delivered more than $450 million in airfare savings alerts to consumers. Today, Yapta’s technology is helping companies with heavy travel volumes reduce their spend and extend their T&E budget by constantly tracking booked airfares and flagging lower rates when they become available. For more information about Yapta, visit www.yapta.com. To learn more about FareIQ, visit fareiq.yapta.com.