Contemporary issues affecting the demand for business air travel in the United States

Alan R. Bender and Frederick J. Stephenson

Journal of Air Transport Management, 1998, vol. 4, issue 2, 99-109

Abstract: Business travel is the cornerstone of US airline industry revenues and profits. However, recent evidence suggests problematic trends in business passenger demand. Pressures to reduce travel costs, corporate downsizing/re-engineering, improving telecommunications technologies, and increased automobile substitution could shift the balance of power toward corporate buyers, collectively threatening the future prosperity of high cost carriers. This paper examines demand-side risks to US business air travel. It concludes that air carrier control of the business travel market is weakening and customer loyalty to airline transportation has diminished. Carriers are advised to maintain cost controls and be more trend conscious and customer responsive. Failure to adjust strategies may accelerate the use of airline substitutes in the future.

Keywords: Business air travel; Videoconferencing; Corporate travel management (search for similar items in EconPapers)
Date: 1998
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jaitra:v:4:y:1998:i:2:p:99-109

DOI: 10.1016/S0969-6997(98)00007-6

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