Expert: Soren B. Jacobsen - 12/10/2001

Question
Can you,please, describe me the business passenger profile? Do they have any prefferences or are they influenced by prices? How do they buy their tickets?

Answer
Hello Raluca,

This is an interesting question and unfortunatly not one that is easily answered.

Most business travel at larger companies is done by a corporate travel agency.  In this scenario, each individual traveler has a profile which is maintained at the agency with their prefferences for things like seating, meals, hotels, etc.  Any mileage programs memberships are also in this profile to ensure that proper mileage credit is given.  

These profiles are usually governed at a higher level by a corporate travel policy developed by the company (frequently with the assistance of the travel agency).  the travel policy addresses such issues as how much a person can pay for a ticket, what class of service they are allowed to fly (i.e. many corporations require travelers to fly coach domestically and business internationally... no first class).

Price is a large motivator in corporate travel programs. Travel is typically the second or third largest controllable expense in a company so the bottom line is always a factor.  Many companies further restrict travel options by enterting into a contract with a single carrier.  The company agrees to put X% of their business on that carrier and in return that carrier will pass on a certain discount on tickets purchased by that company.

Again, most companies purchase business travel through traditional travel agencies, some have moved into the on-line world and are using internet travel agencies like e-travel, getthere.com and expedia for their business travel procurement.

I hope this helps, if you are looking for something more specific please feel free to contact me.

Soren B. Jacobsen
sorenj@managementreporting.com
http://www.managementreporting.com
http://codes.managementreporting.com