Cheryl Hutchinson
President/Association of Corporate Travel Executives
Statement: American Airlines Expanding Simplified Fare Programs
For Immediate Release!
December 20, 2002
Alexandria, VA (Dec. 20) -- Serious attention being paid to simplified airfare structures by three airlines in the United States is likely the beginning of an industry-wide shift, according to a statement released by the Association of Corporate Travel Executives today.
"American Airlines' decision to extend its experimental simplified fare structure from 23 routes to 400 sends a very a positive message to the business travel community," said Hutchinson. "It's an indication that the carrier is ready to seriously approach the issue of pricing, from the standpoint of the business traveler."
Hutchinson added the speed with which American has expanded its "experimental fares" (less than a month) suggests the carrier may have found something of merit in the process worth exploring on a much larger scale.
"Delta Airlines is to be encouraged with its simplified fare experiment and America West Airlines complimented for a very progressive approach to pricing," said Hutchinson. "I believe America West has discovered the benefits of making it easier for business travelers -- and their corporations -- to save money." (America West was the first to simplify fares, drop the price of "walk-up tickets," and eliminate the Saturday night stay-over earlier this year.)
Hutchinson emphasized that pricing strategies must not try and circumvent corporate contracts. "ACTE is concerned that recent DOT actions may not address the travel management objectives of the corporate consumer. We will convene a task force to study the impact of recent DOT rulings on ACTE members after the first of the year, then publish our findings. ACTE's goal is to initiate long-term airfare rationalization while jump-starting the travel economy," said Hutchinson.
ACTE spearheaded a business travel industry initiative, last April, when it circulated a white paper calling for major airfare rationalization with regard to simplified fares, access to Web fares, and less disparity between leisure and business fares. Each of these areas, once considered beyond discussion, is evolving into reality as carriers come to grips with reshaping their cost structures and pricing models.
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.
