January 1, 2005
You know that waiting until the last minute to purchase your plane ticket will end up costing you more than buying it early, but do you know how much more?
According to Runzheimer International, the Wisconsin-based management consulting firm, average airfare prices increase as much as 152% in one day, when comparing seven-day advance purchase airfares to less than seven-day advance purchases (see table).
The difference in price becomes even more striking when comparing the average price of 14-day advance purchase airfare to a ticket purchased within six days of the travel date. Waiting one week translates into a nearly three-fold price increase.
"It is common knowledge that airfares increase the closer the purchase date gets to the departure date," said Phyllis Schumann, travel consultant and travel product manager at Runzheimer International, "what is less commonly known is just how large of an impact one day can have on the price of a ticket."
According to a survey of corporate travel managers on airline procurement practices conducted by Runzheimer, airfare makes up the lion’s share of an organization’s travel and entertainment budget, between 46% and 50%.
"A well-managed travel program--enhanced by airline negotiations--lessens the gap between advance fare pricing differences," added Schumann. As organizations strive to extract cost savings from large controllable expenses such as travel and entertainment budgets, travel managers are monitoring airfare prices more closely and benchmarking spending against industry norms.
AVERAGE, DOMESTIC, ROUND TRIP ECONOMY/COACH AIRFARES |
Airfare* Type Comparison |
Price Difference |
7 Day Advance Vs. < 7 Day Advance |
152% |
14 Day Advance Vs. < 7 Day Advance |
192% |
14 Day Advance Vs. 7 Day Advance |
16% |
*based on a national average of 651 airfares priced 1/1/2005
About Runzheimer International
Founded in 1933, Runzheimer International serves 60 percent of the Fortune 500. Recognized for providing innovative solutions relating to employee mobility, Runzheimer is a global leader in employee-provided business vehicle reimbursement programs, employee compensation and relocation, and travel management. For more information contact Luella Dooley at ljd@runzheimer.com or (262)971-2271, Runzheimer International, Runzheimer Park, Rochester, Wisconsin 53167, www.runzheimer.com.
