Corporate Travel’s Global Fare Problem: Why Discounts Vanish Across Borders
Photo Credit: Business travelers Adobe Stock Images via Mastercard
Skift Take
Just 59% of international economy tickets benefit from corporate discounts, Emburse says. That means on higher-priced long-haul routes, a huge share of travelers are paying full fare.
For decades, corporate travel programs have touted their global reach. But for many companies, those programs start to look a lot less global the moment an employee boards an international flight.
According to recent Emburse data, 93% of U.S. domestic fares are negotiated, ensuring employees, if they book following their companies’ policies, don’t have to pay market rates.
Cross a border, however, and that grip loosens dramatically. Just 59% of international economy tickets benefit from corporate discounts, meaning on higher-priced long-haul routes, a huge share of travelers are paying full fare.
The financial stakes are massive. Emburse estimates that the average international market fare is $710, compared to $646 with negotiated rates. That $64 gap adds up quickly, and when multiplied across thousands of international trips, it represents billions in missed savings globally each year.
A Systemic Weakness in “Global” Programs
