German Corporate Travelers Lengthen Advance Air Bookings - 2008-11-17

German corporate travelers are booking flights further in advance of departure to take advantage of cheaper fares, especially in business class, according to figures from AirPlus International.

Third-quarter statistics from AirPlus also show a major rise in booking volumes despite the worldwide economic downturn. Global transactions rose 5 percent from the same quarter in 2007. AirPlus believes there is a direct connection between the two sets of figures, with German companies attempting to fly not less but smarter.

Among AirPlus' large clients, defined as those spending more than E10 million annually on air, the average number of days flights were booked in advance of departure rose from 12 in 3Q07 to 13 in 3Q08. The increase was even greater for clients with E1 million to E10 million in air spending, up from 14.75 days to 16.25 days.

The lengthening of booking periods was more pronounced in business class than in economy. For large companies, the number of days in advance of departure for economy extended from 13.6 to 14.4, while in business class it grew from five to 7.5. Advance booking in economy for medium clients went up from 16 to 17 days, while in business class it grew from 6.9 days to just shy of 10.

"German companies see global recession knocking on the door and fear they may lose orders if they reduce their travel," said Michael Fuerer, AirPlus director of sales for Germany. AirPlus claims 20,000 corporate clients in Germany and handles 15 million flight coupons in the country annually. "Since they cannot cut travel, they are booking smarter instead, especially in business class, where a lower fare can make a much bigger price difference."

Traditionally, lower fares for advance purchases have been associated with economy class because budget airlines introduced the model of selling buckets of seats that progressively become more expensive. However, AirPlus said discounted but restricted business class fares have become much more common in Germany in the past year. In many cases, those restrictions include an advanced booking condition.

AirPlus said those fares especially are used by smaller companies unable to gain discounts through negotiated agreements.

Germany is by no means the only European country where corporate buyers are encouraging travelers to book earlier. Bernadette Basterfield, U.K.-based international head of travel for JPMorgan Chase Bank, said her company is actively communicating the benefits of advanced purchasing. Another company told BTN it is telling European travelers they can save the firm hundreds of thousands of dollars by booking at least 14 days in advance, in an effort to double those bookings.