Tool Helps Corporations Identify Luggage, Seat Selection and Other Fees
Travelocity Business(R) today announced a solution that is a first step in improving visibility into airline ancillary fees, bringing additional insight to clients in an area of travel expenses that can range from 2 percent to 10 percent of a traveler's average ticket price (ATP).
Travelocity Business is able to break ancillary fees by carrier, then by category. The company will also be able to report the carrier with the highest prices by category. Travelocity Business has developed an algorithm that looks at credit card reports from customers and determines what charges are attributable to ancillary fees. With this knowledge a customer is able to better negotiate with suppliers since they now have a better idea of total cost of ancillary fees. The information will also help the customer set policy regarding these fees.
"While it is clear the industry needs more transparency on fee structures and improved clarity throughout the settlement process, Travelocity Business also understands that corporations can't wait to begin gaining insight into a significant travel cost," explained Yannis Karmis, president of Travelocity Business. "Our new Ancillary Fee solution begins to give travel and procurement managers visibility into fees by carrier, category and traveler."
According to the Department of Transportation (DOT), U.S. airlines collected more than $7.8 billion on ancillary revenue in 2009, of which $2.7 billion was from baggage fees alone. And ancillary fees now comprise 6.5% of all airline revenue with the majority of the fees being collected post booking at the airport or on-board the aircraft far from the preview of managed corporate travel.
Common fees include luggage, seat selection and items purchased on the plane. Without the ability to delineate and extract the amount paid for ancillary services, corporations cannot determine the impact of these fees on air spend, decreasing their ability to apply policy controls to travelers and to gain leverage with the suppliers in contract negotiations.
Travelocity Business ranks among the top 10 travel management companies in North America, offering corporations a compelling combination of best-in-class automation and traditional travel management services.
About Travelocity Business
Southlake, Texas-based Travelocity Business is a full-service corporate travel management company. Travelocity Business is one of the business travel industry's fastest-growing TMCs, ranking among the top 10 travel management companies in North America. Travelocity Business combines the expertise, service and travel choices of Travelocity(R) with corporate experience gained from serving more than half of the Fortune 200 companies. For more information, companies can visit http://www.travelocitybusiness.com.
Contacts:
Vollmer Public Relations for Travelocity Business
Meredith McKee,
972-488-4790
mmckee@vollmerpr.com
Mary
Kate Smither, 972-488-4790
marykate@vollmerpr.com