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It appears that business travelers are only 12% of passengers but they make up most of the profits due to higher rates: https://www.investopedia.com/ask/answers
by grumple 3y ago
It appears that business travelers are only 12% of passengers but they make up most of the profits due to higher rates: https://www.investopedia.com/ask/answers/041315/how-much-revenue-airline-industry-comes-business-travelers-compared-leisure-travelers.asp https://www.investopedia.com/ask/answers/041315/how-much-rev...
If you got rid of business passengers, you'd have to increase rates to get the same profit, sure, but I suspect competition would keep prices low. The reason business rates are higher is because big businesses don't look too closely at prices and better service is seen as a little perk for employees.
- ghaff 3y agoI’ve seen somewhat higher numbers but I’m still surprised it’s that low if only because many business travelers travel so much more. It’s the rare person who travels 50K miles per year for pleasure and that’s not a typical company employee for many positions but it’s by no means an outlier. Business travel, especially sales, also involves a lot of last minute booking and changes and those are expensive on both many planes and long distance trains. But, yes, at most companies you can’t just book business but you can always plead better schedule and also avoid economy basic sort of torture.