For Immediate Release!
January 10, 2002
Travel Managers Divided On "Meals Not Included" Issue
Alexandria, Va (Jan. 10) -- Business travel managers are almost evenly divided over the issue of carriers charging extra for meals served onboard, according to a survey conducted by the Association of Corporate Travel Executives. The subject became a point of contention last week when America West Airlines initiated an experiment on a few flights, whereby passengers are given the option of paying $3 to $10 for in-flight meals ranging from simple snack boxes to full-course dinners. The carrier says that this experimental action was intended to offset the cost of in-flight catering, and not developed as a profit-making program.
Forty-five percent of the poll's respondents claimed that charging for meals -- and offering passengers a greater variety -- would be beneficial to travelers, while 55 percent indicated it would be an inconvenience.
A majority of poll participants (52 percent) said the additional meal charges would not be a significant drain on the travel budget, as most travelers would prefer to eat before or after a flight where food was not served. Thirty-eight percent claimed no significant cost would be incurred if a reduction in airfares reflected a decrease in catering costs. Only ten percent expected to see an increase in the cost of travel owing to the additional expense on onboard meals.
Forty-eight percent stated that charging for meals might be part of the correct formula for carriers to apply in restructuring operating costs. Twenty-seven percent felt that air service was continuing to erode and travelers were losing an entitlement. Twenty-five percent said that charging for meals was just one of the tradeoffs the industry will encounter on the route to profitability.
Travel managers expressed a degree of skepticism as to the profit motivation driving the extra charge approach to onboard meals. Fifty-seven percent stated that carriers would probably charge for meals without lowering ticket prices. Thirty-five percent expected the airlines to just start cutting back on all amenities. Twenty-two percent thought the airline industry would become creative, offering cheaper tickets with amenities on demand.
For more information, contact:
Jack Riepe, ACTE Communications
1-610-256-0124 or [email protected]
Founded in 1988, the Association of Corporate Travel Executives (ACTE) is a member-driven organization wholly dedicated to the science of business travel management with an international constituency. ACTE membership totals more than 2,400, including business travel executives in Asia-Pacific, Canada, Europe, Middle East, Africa, Latin America and the United States. The organization is headquartered in Alexandria, Va., with regional offices located in Brussels, and Singapore. ACTE's web site is www.acte.org.
