NBTA Provides Members Research on Fuel Price Increases

     Caleb Tiller , 703-684-0836, ext. 138
     Courtney Leigh Beisel , 703-684-0836, ext. 133

Alexandria, VA (May 4, 2006) -- The National Business Travel Association (NBTA), the leading corporate travel industry association, today provided its members with research designed to help them better understand the impact of fuel price increases on travel and to quantify the responses of corporate travel managers to that impact.

The research is in two parts:

1) An analysis of fuel-based airfare hikes provided by Travel Analytics, Inc. The analysis examines airfare changes from March 2005 to March 2006; jet fuel price increases from 2003 to 2006; and how jet fuel cost hikes impact airline costs, dependent upon the type of plane and distance flown.

2) An NBTA report based on a survey of travel manager members on the impact of fuel price increases on the air and ground transportation components of corporate travel programs.

“As travel managers, we all see what takes place within our programs on a day-to-day basis,” said NBTA President and CEO, Suzanne Fletcher. “What NBTA can offer is information that puts that knowledge of our own programs into the context of what is taking place in the broader marketplace and what our colleagues in other companies are doing. These reports do exactly that – give NBTA member travel managers the big picture of fuel price increases. That context helps us be more effective as we manage our individual programs.”

Some key findings of the research are as follows:

General

• Nearly two thirds of travel managers report increased fuel prices are impacting their travel purchasing.
• Two thirds also indicate budget stakeholders (e.g., department heads) within their companies are concerned about how they can maintain 2006 travel budgets and meet business needs in the face of rising airfares and gas prices.
• Of those who indicate fuel price hikes are currently impacting travel purchasing, 51.7 percent say the increases have added US$51 - $100 on average to the cost of a domestic business trip. Twenty-five percent report an impact of $50 or less, 13.3 percent note increases of $101 to $150, and 10.0 percent indicate a per-trip increase of $151 or more.

Air

• The average U.S. domestic airfare rose $12 from March 2005 to March 2006, with changes varying significantly by class of service.
• Asked about their responses to rising airfares, the highest number of travel managers indicated taking the following actions:
• Asking or requiring travelers to consolidate multiple trips into one – 38.0 percent
• Encouraging or requiring less air travel – 33.7 percent
• Driving people to travel alternatives, such as web-based meetings or conference calls – 30.4 percent
• Tightening purchase requirements for business or first class tickets/driving more coach tickets - 28.3 percent
• Implementing stricter pre-trip approval requirements – 27.2 percent
• Opening discussions with preferred airlines – 19.6 percent
• Several respondents used an “other” category to indicate they are putting a stronger emphasis on advance purchase or air tickets.

Ground Transportation

• Asked about their responses to the impact of rising gas prices on ground transportation, travel managers indicated taking the following actions:
  • Opening discussions with preferred ground transportation providers – 16.3 percent
  • Tightening the mandate to use preferred ground transportation providers – 16.3 percent
  • Changing requirements regarding purchase of gas for rental cars – 16.3 percent
  • Implementing stricter pre-approval requirements for any form of ground transportation – 15.2 percent
  • Encouraging or requiring greater use of public transportation where available – 14.1 percent
  • Recommending a lower car class – 13.0 percent
• The following percentages report using these ground transportation options more or less in response to rising gas prices:
  • Rental cars
    • 3.5 percent more
    • 18.6 percent less
  • Chauffeured Transportation
    • 7.2 percent more
    • 21.7 percent less
  • Taxis
    • 13.1 percent more
    • 8.3 percent less
  • Corporate fleet
    • 3.8 percent corporate fleet cars more
    • 9.0 percent less

NBTA members can access the complete data at www.nbta.org/Research/Surveys/SurveyDownloads.htm.  Members of the media who would like these reports should contact the NBTA Public Relations department as listed above.

The National Business Travel Association is the source for critical information on the business travel industry. For more than 35 years, NBTA has dedicated itself to the professional development of its members through advocacy, education and training, and networking opportunities. NBTA represents over 2,700 corporate and government travel managers and travel service providers, who collectively manage and direct more than $170 billion of expenditures within the business travel industry. For more on NBTA, visit www.nbta.org.

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