Business travelers still aren't coming back to the good seats, despite airlines' best efforts. FareCompare.com reports that many business class tickets to Europe are going to be 33% to 66% cheaper this fall relative to last year. Companies are being careful with their cash – which means stacking people in coach rather than giving them a little leg room on overseas flights. With back-of-the-plane tickets going for a quarter of the price (or less) than their business class equivalents, this isn't exactly shocking.
On Wednesday, Delta's (NYSE: DAL) cheapest NYC-to-London's cheapest roundtrip coach fare was $716 (for an October 23 departure and October 30 return), according to a report in USA Today. To take the same trip in business class, you were looking at a hefty $4,634. So, even though prices are down year-over-year, it doesn't mean that business travelers are being allowed to enjoy the opportunity.
And, it's unlikely to change.
Next week, the National Business Travel Association is going to release a report saying that premium travel will continue to be constrained next year. This is tough on the carriers, which derive 25% to 30% of their revenue from the folks shelling out big cash for better meals. The number of top-shelf ticket buyers plunged 20% in the first seven months of 2009, according to the International Air Transport Association. Overall, IATA expects airline industry revenues to drop 15% from last year.
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