Workers told to fly cabin class by US employers

An increasing number of companies in North America have revised their employee travel policies over the last two years to discourage them from flying in first or business-class seats. Nearly 75 per cent have installed a new system of rules for business trips, while many are even forbidding their workers from sitting at the front of the plane.

According to the new survey of corporate travel managers out today, companies are increasingly pushing workers to go for the “lowest logical fare”. These tickets are often non-refundable but are defined by being lowest flight fare that doesn’t impose inacceptable burdens on time and comfort.

North American businesses spent an estimated £48.7 billion on airline tickets for their staff last year, but the survey’s publishers, Egencia and the National Business Travel Association Foundation, say they could save a further $30 billion if the lowest logical fare rule was more widely implemented.

Egencia is the corporate travel arm of online flight and hotel search engine Expedia. Vice president of Egencia, Christophe Peymirat, said that despite an increase in revised travel policies, it is not common place for businesses to push workers to book non-refundable fares.

He added that companies could save 38 per cent each by encouraging travellers to be more flexible by compromising on departure times and taking cheaper connecting flights rather than one-stop services. Many frequent travellers can still sit up front by using their frequent-flier status to upgrade, he said.

US airlines lost $26.3 billion in 2008 and 2009, which is mainly attributed to the global recession and a downshifting to cheaper tickets. The industry is now beginning to bounce back, however, thanks to an increase in leisure travellers taking advantage of cheaper prices.

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