Booking Business Travel via the Internet
Topaz International, 4/5/2007
Portland, Oregon -- Since 2001 Topaz International has conducted comparative studies of corporate travel airfares between actual corporate travel agency booked itineraries and various public internet sites, including Orbitz, Expedia, Travelocity and airline direct websites. During the most recent results from 2006, Topaz found that business travel itineraries booked by a designated corporate travel agency averaged $75 less than the same itinerary booked on a public internet site, one of the largest margins since 2002. In addition, the average agency fare and average internet fare were the highest they have been since 2002.
Further evaluations were conducted to determine if the volumes of corporate airfare spend influenced the results. Smaller corporations generally have higher priced airline tickets when compared to corporations with larger volumes of air spend. However, and very telling, some small sized corporations are spending less per ticket than some of their larger counterparts who should have greater discounts because of their volume. (For a complete release including comparative data by corporate size and year visit our website at www.etopaz.com/news.)
"The five years of comparative airline purchasing patterns indicates that the online alternatives are not always cheaper, but in fact are higher than the past few years" said Bradley Seitz, President and CEO of Topaz International. "The game of distribution continues to be fragmented and a great cause for headaches all over the world. Full content is not full content, availability is not consistent, and as I have said in the past, the overriding desire of the airlines is to control and price their product where they can obtain the most value."
"The complexity will continue. Airlines must raise their rates to compensate for the recent losses in the industry and the continuing rise of fuel costs. The challenge of every corporate travel leader will be to ensure that they have processes in place to locate and book the lowest alternatives, and validate that their service providers are giving the levels of contracted offerings that have been agreed to. What travel management companies have done, and proven here, is that they continue to show value to those that use them in both price and in service."
Topaz International will continue to conduct these studies where we compare data between traditional booking sources and various internet sources, giving corporations the ability to measure the performance of their travel program against alternative distribution channels.
About Topaz International, Ltd.
Topaz International provides strategic support to the corporate travel management professional. With over 25 years of experience analyzing travel related expenditures, Topaz is a world leader in airfare & hotel auditing, providing benchmark information and consultancy services to improve the delivery of corporate travel services. Supporting travel managers, buyers and agencies, Topaz helps improve performance and facilitate cost savings.
For more information about the complete line of travel audit products, as well as other services, please contact Michele Simon, michele.simon@etopaz.com, or call 800-888-2423. Website: http://www.etopaz.com.
Topaz International is a member of the Association of Corporate Travel Executives (ACTE) and the National Business Travel Association (NBTA).
Topaz International, Ltd. Bradley Seitz
President & CEO
E: brad.seitz@etopaz.com
P: 207.797.9154
Topaz International Ltd. Michele Simon
Director of Marketing
E: michele.simon@etopaz.com
P: 503.651.4300 x302
Information regarding this press release including additional data can be found at www.etopaz.com/news