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Business travelers face airfare hikes

Monday, March 4, 2013

Business travelers face airfare hikes

Savvy travelers often take advantage of corporate housing options that provide cost-effective serviced apartments, which act as the ideal accommodations during business trips. More companies may look to these corporate apartments in the future, as rising airfare prices could cause them to look elsewhere for affordable travel plans.

Business travelers, especially those who purchase last-minute tickets, will soon have to face significant cost hikes. A survey conducted by the Global Business Travel Association found that domestic airfare is expected to grow by 4.6 percent in 2013, which the group believes is partially due to airlines taking advantage of increasing numbers of business travelers in the stronger economy, The Los Angeles Times reports. 

Delta was the first to raise fares last week, and many of the increases were aimed at last-minute bookings typically dominated by business travelers. Other major airlines quickly followed suit to mark the first major price hike of 2013. 

"If legacy airlines are worried the sequester will stunt business travel demand, they aren't showing it," Rick Seaney, chief executive officer of a travel compare site, told USA Today. He added that airlines seem to be more concerned with turning off leisure travelers than business people who must travel, often on short notice.