Spending on corporate air travel by U.S. companies during the fourth quarter of 2020 was down 96 percent year over year, according to newly released data from Coupa. The business spending management specialist's latest Business Spend Index also revealed a 93 percent year-over-year drop in average itineraries purchased per week during the quarter as corporate travel remains largely grounded amid the Covid-19 pandemic. Both figures represent plunges from four-year highs that occurred during the first months of 2020, before the rapid onset of the global outbreak in March.
With demand for flights depressed to a trickle, the resulting downward pressure on pricing led to a 40 percent reduction in the average cost per itinerary during Q4, according to Coupa.
Based on data from "hundreds" of U.S.-based companies using Coupa's Business Spend Management platform, the BSI report also revealed that those travelers who are booking trips are doing so closer to departure date. The average number of days between booking and departure in Q4 2020 was down 38 percent compared with a year prior, according to the report. That change largely was due to airlines and hotels updating booking polices as a result of the pandemic to extend lower rates and flexible cancellation policies to bookings made on short notice, Coupa said.
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