"Bargains to be had for buyers" - Amex
Air fares bought by corporate customers in the first quarter saw discounts of as much as 78%, a survey by American Express Business Travel has revealed.
The American Express Business Travel Monitor EMEA report found that business travellers had "benefited from a continued decrease in Economy Lowest fares and some substantial discounts."
But Amex said published air fares had held steady as airline capacity remained higher than expected. It said corporate customers were being encouraged to fly through fare discounts and the "increasing trend in downgrading" seat class.
Joakim Johansson, Amex's vp advisory services, said: "Travel managers and procurement professionals need to ensure they have insight and a holistic view of their program, weighing up any top class travel with the new discounts available in lower classes.
"Obviously this is good news for businesses where discounts were had in every class except First, however not such great news for consumers who may have expected to see deeply discounted fares."
Amex found that UK air fares had remained stable in the first three months of 2009. But it said "consistently volatile" economy fares had come under the most pressure in the economic downturn, dropping 18.6% year-on-year, while business fares fell just 7.1%.
UK first class fares increased 13.6% year-on-year. Amex said this was still some way off the European average of 30.4%.
Amex's survey found signs of recovery in the UK hotel sector as the decline in average daily rates (ADR) slowed in the first quarter compared to Q4 2008.
London hotel rates fell 3.2% year-on-year, compared to the European average of 9%. Heathrow hotel rates remained stable.
Amex said the best hotel deals could be found in Europe's cities, with Paris, Rome, and Madrid seeing rate drops of 31%, 25% and 22.4% year-on-year.
Karen Penney, Amex's vp business strategy and colutions, said: "There are undoubtedly bargains to be had for buyers that know where and how to find them."
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