Airlines Reporting Corp. (ARC) in collaboration with Egencia today released new analysis that reveals how much money a company can save by implementing an advance purchase policy for air travel. The analysis, which is based on analysis of ARC’s database of more than 2,000 U.S. and 4,000 EU travel management companies, may also help business travelers understand how to arrange travel and stay within policy.
“Saving by planning travel farther out is not new news, but this study gives much deeper insight into the amount of savings that is available,” said Chuck Thackston, ARC managing director of data science and research. “This is vital information for travel managers trying to balance the needs of travelers with the need to get the most for their travel spend.”
The average ticket price for U.S. domestic economy flights was $454 with a 22-day advance purchase versus $541 if booked 8-14 days before departure. Travelers who wait until three days before departure paid an average of $733, or 61% more than the 22-day advance ticket.
Travelers who booked 22 days in advance for U.S. domestic premium airfare paid an average of $1,260 compared to $1,486 if booked 8-14 days before departure. The average ticket price for domestic premium booked three days before departure was $1,703, a 37 percent increase compared to the 22-day advanced purchase.
For premium travel from the U.S. to Asia, the average ticket price 22 days before departure was $6,494 compared to $6,944 if booked 8-14 days before departure. Tickets purchased three days prior to departure were an average of 15 percent more than the 22-day fare.
“Businesses of all sizes can benefit from working with a travel management company, putting an advance purchase policy in place, and using the right tools to enforce the policy at the time of booking,” Tristan Smith, Egencia brand vice president of global transport supply. “Egencia data shows that the probability of someone booking a U.S. domestic flight within 7 days of the departure date is more than 15% lower if there is an advance purchase policy in place. For international travel, the likelihood is nearly 20% lower.”
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