The recession has driven airfares down to their lowest point since early 2005, says American Express’ business travel arm, and employees are flying coach at their highest rate this decade.
The average price businesses paid for international airfare dropped to $1,603 in the second quarter, while the average domestic ticket cost $212, the least in more than four years. Both are down nearly 20 percent from the same time last year.
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Businesses kept 91 percent of their North American airfare purchases for employees in the cheapest economy seats. When the survey started in 1999, only 83 percent were discount coach buys; a year ago, that was 89 percent.
For international fliers, 59 percent of airfare purchases were “economy” class, while 36 percent flew business class. A year ago, half of all international tickets were business class.
Car rentals are at their cheapest since 2006, said American Express.
Hotel rates, however, while down 12 percent from a year ago, edged up $13 from the first quarter of this year to an average $241 per room in the second quarter.
American Express has been tracking its business travelers’ spending since 1999. –AP
