Survey: Network Carriers, Higher-End Hotels Reclaiming Business Travelers

More business travelers than last year expect to primarily use major network carriers as opposed to low-cost carriers, according to a new Accenture survey of 533 business travelers. This new data may be an early indicator that major carrier pricing reform enacted in January and February may begin to achieve a stated goal: regaining market share from such rapidly expanding competitors as AirTran, JetBlue and Southwest airlines.

The survey also indicated that more business travelers expect to increase their use of luxury hotel properties and what Accenture termed mid-range hotel brands--properties in the upper upscale and upscale segments--at the expense of some midprice and budget properties.

To be officially released this week, the Accenture study was conducted in early March and assessed business traveler behavior and perceptions of airline and hotel suppliers. In addition, the survey suggested general business travel recovery would continue throughout 2005. Specifically, more than half of all respondents--53 percent--said their level of business travel in the next six months would roughly equal that of the past six months, while 33 percent expect to travel slightly more or much more. Only 13 percent said they expect to travel less for business in the coming six months. Meanwhile, 23 percent said they expect to travel outside of the United States and Canada, up from 17 percent in 2004.

The survey may represent a rare morsel of positive news for ailing major carriers. About 82 percent of polled business travelers said they primarily use network carriers, up from 72 percent a year ago. At the same time, however, a majority of respondents said their use of low-cost carriers either would stay the same or increase. Excluding price, carrier selection is based primarily on convenience of schedule, followed by frequent flyer programs and quality of customer service.

Other findings showed that more respondents--93 percent versus 87 percent last year--use air instead of car as their primary mode of transportation for trips under 300 miles. About 46 percent said they book more than 14 days in advance and another 33 percent said they generally book between 8 and 14 days in advance. Only 3 percent said they book within two days of travel.

Meanwhile, more than 70 percent of respondents said they primarily book airline flights in an online channel, up from 61 percent last year and 57 percent in 2003. Correspondingly, only 22 percent said they primarily use a live travel agent to book their reservations, down from 36 percent two years ago.

Similarly and as expected, more respondents this year are using Internet channels to book hotel rooms, specify accommodation preferences and access account history. Meanwhile, 81 percent of respondents said they primarily use what Accenture termed mid-range hotel brands--Hilton, Hyatt, Marriott, Sheraton, W and Westin--up from 72 percent last year. At the same time, use of budget chains dropped from 18 percent of the survey base last year to 10 percent this year.

Other hotel findings from the survey suggest proximity is most important to business traveler when they decide which hotel to use, followed by price range, reputation, customer service and reward programs.

The Accenture survey covered active U.S. business travelers from companies of all sizes and was conducted between March 2 and March 11. The qualified sample size of 553 closely corresponded with last year's sample size of 544.