Online Consumer Sites Not Always Cheaper for Corporate Travel
Download this page in PDF formatFor the second consecutive year American Express Business Travel has come up trumps in an independent survey that reveals it offers cheaper rates for corporate travellers across flights and accommodation, than can be secured through online consumer travel websites.
The study1 was conducted by The Online Travel Benchmarking Group, a division of travel advisory firm Harrell Associates. The study compared domestic airfares and hotel accommodation rates of popular online consumer travel websites with search results from the online booking system2 offered by Australia’s leading travel management company, American Express Business Travel.
The study analysed 80 business travel itineraries across 20 different routes. It examined a range of cost factors such as: ticket type, length of trip, air route and date of purchase and was completed in June 2010.
“Our research continually debunks the myth that online agencies are lower-cost alternatives for business travel booked online,” says Bob Harrell, CEO of Harrell Associates, principal for the Online Travel Benchmarking Group and author of the study. “American Express Business Travel continues to hold the pole position in the competition for savings.”
Trena Blair, Vice President and General Manager for American Express Business Travel in Australia and New Zealand, says, “There is still the perception among many corporate travellers that they are better off using an online consumer travel website for booking their corporate travel. While these types of websites can offer attractive deals for the leisure traveller, independent research continually demonstrates that a travel management company offers greater overall savings for businesses – whether that business is large or small.
“What distinguishes a travel management company such as American Express Business Travel from consumer travel websites is that we apply business intelligence in an online environment. This allows us to assess and customise the best overall travel itinerary for our clients. We don’t simply assume that the first option is the best option, but rather we look at a range of factors and ensure that all travel is in-line with our client’s business objectives.”
Blair believes that the strength of travel management companies such as American Express Business Travel also comes from their ability to negotiate competitive rates with suppliers on behalf of their clients. Aside from monetary savings, Blair says there are many other benefits for small and large companies using a travel management company over an online consumer travel website.
“From reporting tools that allow all travel spending to be captured, to traveller tracking capabilities that allow employers to know their travellers’ whereabouts at all times when they’re on the road, a travel management company offers strategic, consultative advice and tools to optimise the effectiveness of a travel program.”
Summary of study findings –
- For domestic airfares, American Express Business Travel offers the lowest fares – up to 36 percent cheaper than an online consumer travel website. For unrestricted domestic airfares American Express Business Travel is up to 53 percent more affordable.
- For hotel rates, American Express Business Travel offers lower overall hotel rates – up to 4 percent cheaper than online consumer travel websites.
Concludes Blair, “Experience tells us that the largest uncontrollable travel expense occurs when employees make their own travel arrangements through online travel agencies. With the lasting effects of the global financial crisis placing continued emphasis on controlled spending, it’s crucial for businesses to understand where true savings lie while not losing sight of the vital role travel plays in business.”
