Firms use airline deals to control fare costs. USA TODAY: 2/14/00

Firms use savvy planning, airline deals to control fare costs

By Donna Rosato - USA TODAY: Feb. 14, 2000

NEW YORK - Business travelers' revolt against high airfares is showing results.

How're airlines doing?

One sign is Northwest Airlines' launch of a discount fare for business fliers last week. It has been matched by America West and TWA on domestic routes and by American, Delta and United on routes where Northwest competes.

The BizFlex fare is as much as 40% off full-coach fares and requires a one-night stay at the traveler's destination. Most discount fares require a Saturday-night stay, a difficult restriction for weekday business travelers.

But as full-coach fares have soared, more companies have accepted all kinds of restrictions to save money.

Last year, for the first time since at least 1996, the gap between what business and leisure fliers pay narrowed. Business fliers paid an average $346 more round trip last year than leisure fliers, down from $366 in 1998, says business travel consultant Topaz International.

"There's increasing pressure from business travelers who are being required to fly smarter," says Mark Altherr, a Salomon Smith Barney analyst.

Business travelers are saving money by:

Buying more non-refundable tickets. The percentage of non-refundable tickets purchased by business travelers climbed to 37.4% last year, up from 34% in 1997, according to Topaz International.

Using Saturday-night stay fares. Last year, 66% of companies surveyed by the National Business Travel Association required employees to use Saturday-night stay fares, up from 44% in 1998.

Using low-fare airlines. Denver-based Frontier Airlines says that its Fortune 1,000 corporate accounts rose to 3,500 last year from 1,250 in 1998, a 180% increase.

Self-booking.Hundreds of companies are using software that lets employees book their own business trips. American Express, whose AXI Travel software is used by more than 200 corporations, says its initial research shows self-bookers' trips cost an average of 20% less than trips booked through corporate travel agents.

Charles Schwab got rid of its corporate travel agency four years ago, and today 44% of its business trips are booked by employees using Sabre BTS software over the company intranet. Schwab says it saved $3.1 million last year in agency commissions and labor costs.