Travel Report Volume 20, Number 2 July 2011

Transcription

1 Travel Report Volume 20, Number 2 July 2011 IN THIS ISSUE: Ticket Profile... 2 Average Airfares... 2 Cost per Segment... 4 Cost per Mile... 5 Negotiated Airfares... 6 Market Fare Analysis... 8 Domestic City Pairs... 9 International City Pairs Summary of Audit Results Topaz Travel Report 2nd Quarter, April June, 2011

2 Average Airfares Ticket Profile Percent of Segments Domestic International *See fare basis definitions on page 8. Domestic Airfares The average cost per domestic PNR increased from $533 in the 1st quarter of 2011 to $556 in the 2nd quarter of International Airfares The average cost per international PNR for the 2nd quarter of 2011 was $2,223, up from $2,146 in the 1st quarter of Percent of Change Comparison Percent of Change Comparison Average Cost Per Domestic PNR % Change Average Cost Per International PNR % Change 2006 to 2007 $470 $ % 2007 to 2008 $470 $ % 2008 to 2009 $522 $ % 2009 to 2010 $480 $ % 1Q11 to 2Q11 $533 $ % 2Q10 to 2Q11 $544 $ % 2006 to 2007 $1,666 $2, % 2007 to 2008 $2,112 $2, % 2008 to 2009 $2,174 $1, % 2009 to 2010 $1,865 $1, % 1Q11 to 2Q11 $2,146 $2, % 2Q10 to 2Q11 $2,373 $2, % 2 Topaz Travel Report 2nd Quarter, April June, 2011

3 Average Domestic PNR Price Average Airfares Jan $466 $446 $423 Feb $429 $530 $610 Mar $437 $498 $520 Apr $428 $531 $546 May $511 $538 $570 Jun $488 $578 $552 Jul $575 $570 Aug $464 $431 Sep $436 $562 Oct $452 $455 Nov $486 $475 Dec $470 $498 Average International PNR Price Jan $4,841 $2,463 $2,322 Feb $2,189 $1,678 $2,602 Mar $1,415 $1,894 $1,909 Apr $ 939 $2,438 $2,072 May $2,088 $3,060 $2,289 Jun $2,333 $1,896 $2,244 Jul $1,379 $1,545 Aug $1,610 $1,247 Sep $1,739 $1,998 Oct $1,465 $2,102 Nov $2,440 $1,691 Dec $2,604 $1,533 Average Cost per PNR by Corporate Air Volume Domestic International 3 Topaz Travel Report 2nd Quarter, April June, 2011

4 Cost per Segment Cost per Segment by Fare Basis Domestic $1,200 $1,000 $800 $600 $400 $200 $ Y AP PRO NR YD NEG D FD FEG C BEG Fare Basis * Cost per Segment by Fare Basis International $5,000 5,171 $4,000 $3,000 $2,000 $1,000 $ ,694 2,469 2,598 3,063 PRO NR Y AP NEG PP D YD F BEG C FEG FD Fare Basis* *See fare basis definitions on page 8. Average Cost per Domestic Segment by Airport Average Cost per International Segment by Airport SEA $ 275 DFW $ 318 SFO $ 359 CVG $ 341 LAX $ 344 LGA $ 266 DEN $ 261 ATL $ 258 ORD $ 273 BOS $ 285 SEA $1,419 MIA $1,107 SFO $2,241 LHR $1,584 LAX $1,968 CDG $ 942 ORD $1,814 HKG $1,880 DFW $1,537 MEX $ 680 JFK $2,202 SYD $ 551 ATL $1,939 NRT $2,856 4 Topaz Travel Report 2nd Quarter, April June, 2011

5 Cost per Mile Cost per Mile by Fare Basis Domestic $ $1.00 $ $0.00 NR PRO AP NEG C YD FD FEG D BEG Y Fare Basis * Cost per Mile by Fare Basis International $ $1.00 $ $0.00 PP NR NEG PRO AP D YD Y BEG C F FEG FD Fare Basis* *See fare basis definitions on page 8. 5 Topaz Travel Report 2nd Quarter, April June, 2011

6 Negotiated Airfares Average Percent of Domestic Negotiated Discount by Corporate Air Volume Average Percent of International Negotiated Discount by Corporate Air Volume 12% 8% 4% 8.0% 5.0% 6.2% 10.6% 40% 30% 20% 10% 18.9% 34.0% 30.0% 25.7% 0% Corporate Air Volume in Millions 0% Corporate Air Volume in Millions Domestic Negotiated Airfares by Corporate Air Volume International Negotiated Airfares by Corporate Air Volume Percent of Segments Booked 80% 60% 40% 20% 56.5% 69.5% 58.6% 71.3% Percent of Segments Booked 60% 40% 20% 47.9% 42.2% 66.4% 53.3% 0% Corporate Air Volume in Millions 0% Corporate Air Volume in Millions Fare Basis with Domestic Negotiated Discounts Fare Basis with International Negotiated Discounts Y 0.1% YD 6.8% AP 2.0% D 13.7% YD Y 8.1% 1.3% PP 8.9% AP 0.1% D 28.2% NR 77.5% NR 53.5% Negotiated Airfares The information on the Corporate Negotiated airfares is derived from the Topaz Database and represents actual corporate discount levels with various carriers and corporations. 6 Topaz Travel Report 2nd Quarter, April June, 2011

7 From the President Following are the current links to our most recent announcements. Topaz Press Releases: Brad s Blog: Jill s Blog: Twitter: Resources: LinkedIn: Join the Topaz International Group on LinkedIn and Facebook for discussions and news! 7 Topaz Travel Report 2nd Quarter, April June, 2011

8 Market Fare Analysis Topaz Market Fare Analysis Each quarter, Topaz selects the most frequently booked city pairs from its proprietary database to appear in the Market Fare Analysis. The average cost per segment and cost per mile is provided for the city pair, broken out by fare basis. The segment data included here is one of the very few easily accessible reference documents that can help the user understand how other business travel is priced. Cost per Segment The most popular use of cost per segment is to analyze the company s expenditures compared to the Topaz averages which can be broken down by fare basis. Companies often change policy to reflect significant cost reduction based on analyzing the averages by fare type. For instance, the nonrefundable airfare is typically the lowest type of airfare a business traveler can use. A change in policy could result in cost savings if travelers booked a nonrefundable instead of discount coach airfare. Having the ability to quantify the impact of a policy changes can encourage policy mandates as well. Definitions: PNR: Passenger Name Record may include multiple tickets Segment: The origin/destination cities at which a fare is broken AP: BEG: Advance purchase, no penalties (KNAP3, QAP7, MA3) Negotiated business class C: Business class (C, COX, C25, CTCON, C06, C26, CF8UA, CR, J, JR, JOX) CON: Negotiated fare to/from a city, zone or system wide D: Unrestricted capacity controlled discount (BTW, K25, M25, B8US, BEE, B26MDW, BN, BUABIZ1, MR, Q, QJFK, B, H, H8) F: First class (F, A, P) FD: FEG: Discounted first class (A25, A4COACH, F4COACH, FFY, FSHUTTLE, FUABIZ1, F8, F25, F26, F06, FUA, FN, G) Negotiated first class Cost per Mile The cost per mile component is useful when a company or agency wants to reduce cost to a common denominator. Most often, cost per mile is used in airline negotiations, since cost per mile is a common unit of measurement in the airline industry. Knowing cost per mile sets the stage for effective airfare negotiations. Some companies look at cost per mile as a measurement tool for benchmarking purchasing performance. GOV: MTG: NEG: NR: PP: PRO: Government Negotiated fare for an individual meeting to a specific city Negotiated (includes CON and MTG fares) Non-refundable (HE7N, QE7NR, QSE14NQ, HE14NR, VE14NR, KNR, BE7IP, K14X236N) Advance purchase, partial penalty (HE14P25, HE7P50, MWE7P50) Promotional (VE1ADN, VE1CMN) Y: Full coach YD: Discounted coach (Y06, YSHUTTLE, YH, YX, YW, YEE, YN, YL, Y6, Y26, Y8, YUA, Y25) 8 Topaz Travel Report 2nd Quarter, April June, 2011

9 TOPAZ TOP 50 DOMESTIC ANC BET CON NR ANC ENA CON D NR YD ANC FAI CON FD NR PP YD ANC JNU CON FEG NR PRO ATL DFW CON FEG NR ATL EWR CON D FEG NR ATL LGA BEG CON FEG NR PRO ATL ORD CON FEG NR YD ATL RIC CON FEG NR YD ATL STL AP CON NR YD AUS SJC CON NR YD BNA RIC AP CON FEG NR BOS DFW CON FEG NR BOS EWR AP BEG CON D NR BOS LGA CON D FEG NR BOS ORD AP CON D FEG NR CLE ORD CON D FEG NR Topaz Travel Report - 2nd Quarter, April - June,

10 TOPAZ TOP 50 DOMESTIC CLT LGA CON D FD NR YD 1, DCA LGA CON D FD FEG NR DEN SNA CON NR YD DFW EWR CON D 1, FEG NR DFW IAH CON D FD FEG NR DFW LGA CON D FEG NR DFW ORD CON FEG 1, NR DFW SFO CON D FEG NR YD EWR IAH BEG CON D FEG NR EWR MCO AP BEG CON D FEG NR EWR MSP CON FD FEG NR EWR ORD BEG CON D FEG NR EWR SFO BEG 1, CON FD 1, FEG 1, NR EWR TPA BEG CON FEG NR IAD SFO CON D FEG 1, NR IAH MSY BEG CON FEG Topaz Travel Report - 2nd Quarter, April - June, 2011

11 TOPAZ TOP 50 DOMESTIC IAH SFO BEG CON D FEG NR JFK LAX AP BEG 1, C CON D FD 1, FEG 1, NR JFK SFO AP BEG 1, C 1, CON D FEG 1, NR JNU KTN CON NR PRO YD LAX ORD AP BEG 1, CON D FD 1, FEG 1, NR YD LAX SFO CON D FEG NR YD LAX SJC CON D NR YD LGA ORD CON D FD FEG NR LGA RIC CON D NR LGA STL CON FD FEG NR LGA YYZ BEG 1, CON FEG 1, NR MSP ORD CON D FEG NR ORD RIC CON D NR ORD SFO BEG C 1, CON D FEG 1, NR Topaz Travel Report - 2nd Quarter, April - June,

12 TOPAZ TOP 50 DOMESTIC ORD STL CON FEG PHL RIC CON NR PHX SJC CON D NR YD SJC SNA D NR YD Topaz Travel Report - 2nd Quarter, April - June, 2011

13 TOPAZ TOP 15 INTERNATIONAL ARN CPH BEG C CON D NR PRO YD CDG GVA BEG C CON D FEG NR PP Y DUS MUC BEG CON NR YD EWR LHR BEG 2, C 3, CON D 1, NR PP YD 1, , FRA HAM BEG CON NR HAM STR BEG CON NR HKG SFO BEG 2, C 4, CON 1, FD 6, NR , JFK LHR BEG 2, C 2, CON D 1, FD 9, FEG 6, NR PP YD 1, , KUL SIN C CON D NR PP PRO YD LHR ORD BEG 2, C 2, CON D 1, FD 2, FEG 4, NR Y 1, YD , LHR SFO BEG 3, C 4, CON D 1, FD 10, FEG 5, NR , MEL SYD BEG C CON D FD NR Topaz Travel Report - 2nd Quarter, April - June,

14 TOPAZ TOP 15 INTERNATIONAL PP NCE ORY AP BEG CON D NR PP PRO Y ORY TLS AP CON D FD NR PP PRO Y PVG SFO BEG 2, C 3, CON 1, NR PP 1, , Topaz Travel Report - 2nd Quarter, April - June, 2011

15 Summary of Audit Results Year Year Year 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Average Price per PNR:* Domestic $ 521 $ 480 $ 508 $ 533 $ 556 International (Global) $ 2,174 $ 1,865 $ 1,952 $ 2,146 $ 2,223 International (US/CAD only) $ 3,441 $ 3,015 $ 2,614 $ 2,401 $ 2,522 Average Negotiated Discount Domestic 8.28% 5.37% 7.94% 9.63% 9.02% Average Cost per Segment: ** Domestic $ 266 $ 245 $ 257 $ 267 $ 290 International (Global) $ 975 $ 855 $ 909 $ 978 $ 1,045 International (US/CAD only) $ 1,615 $ 1,385 $ 1,253 $ 1,128 $ 1,233 Average Cost per Mile: Domestic $ 0.30 $ 0.26 $ 0.28 $ 0.29 $ 0.32 International (Global) $ 0.38 $ 0.33 $ 0.33 $ 0.30 $ 0.39 International (US/CAD only) $ 0.39 $ 0.35 $ 0.35 $ 0.30 $ 0.41 Average Cost per Error: Domestic $ 113 $ 201 $ 177 $ 154 $ 142 International $ 322 $ 256 $ 204 $ 241 $ 298 Overall $ 194 $ 220 $ 193 $ 180 $ 193 *PNR: Passenger Name Record may include multiple tickets **Segment: The origin/destination cities at which the fare is broken Topaz Publications The Topaz Travel Report includes four quarterly issues. The Monthly Airfare Index consist of twelve monthly reports. Subscribers include financial, administrative and purchasing executives responsible for managing the expense of air travel, travel agencies serving the business traveler, airlines and travel accounts. Subscription Information: 1 year of quarterly Topaz Travel Report $ year of Monthly Airfare Index $ Copyright 2010 Topaz International Ltd. No part of this publication may be reproduced in any form without permission from the publisher. Bradley Seitz, Publisher Michele Simon, Editor Please advise of address changes. Back issues of the Topaz Travel Report are available to current subscribers for $62.50 each. Previous issues of the Monthly Airfare Index are available for $10.00 each. To order, send or Fax request to: Topaz Publications Topaz International Ltd. PO Box 3185 Tualatin, OR P: F: Topaz Travel Report 2nd Quarter, April June, 2011