Business travelers value flight schedules, airport services, cabin treatment, and frequent flyer programs, making them essential for major U.S. and global airlines.
Due to this, business travelers often pay three or four times more than leisure travelers. To attract and retain these high-value customers, airlines have adjusted their fleet, schedules, seating, airport space, management, and strategies. This article explores the steps taken by American Airlines after losing out on almost $1.
5 billion in revenue last year due to an unsuccessful attempt to change the way it competes for business travel. The significance of business travelers Business travelers contribute significantly to airline revenue by using frequent flyer and other incentive programs, as well as by purchasing extra services. However, the majority of that 60% of passenger consumer revenue comes from business travelers, who make up a far larger percentage of the total than those who fly for leisure or enjoyment.
Although they make up 12% of all airline passengers, business travelers are usually twice as profitable as other passengers and purchase more costly seats and last-minute tickets. Business travelers actually account for 75% of an airline's earnings on some flights. Every year, Americans take over 405 million business trips.
Airlines are working to seize the business travel market. Companies such as Southwest , which are renowned for their budget travel and low fares, have also been focusing on business.
