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

Author

Listed:
  • Bender, Alan R.
  • Stephenson, Frederick J.

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.

Suggested Citation

  • Bender, Alan R. & Stephenson, Frederick J., 1998. "Contemporary issues affecting the demand for business air travel in the United States," Journal of Air Transport Management, Elsevier, vol. 4(2), pages 99-109.
    • Handle: RePEc:eee:jaitra:v:4:y:1998:i:2:p:99-109
    DOI: 10.1016/S0969-6997(98)00007-6
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    Citations

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    Cited by:

    1. Goh, Kevin & Uncles, Mark, 2003. "The benefits of airline global alliances: an empirical assessment of the perceptions of business travelers," Transportation Research Part A: Policy and Practice, Elsevier, vol. 37(6), pages 479-497, July.
    2. Lian, Jon Inge & Denstadli, Jon Martin, 2004. "Norwegian business air travel–segments and trends," Journal of Air Transport Management, Elsevier, vol. 10(2), pages 109-118.
    3. Paul Haynes & Alessandra Vecchi & James Wickham, 2006. "Flying around the globe and bringing business back home?," The Institute for International Integration Studies Discussion Paper Series iiisdp173, IIIS.
    4. Denstadli, Jon Martin, 2004. "Impacts of videoconferencing on business travel: the Norwegian experience," Journal of Air Transport Management, Elsevier, vol. 10(6), pages 371-376.
    5. Aguilera, Anne, 2008. "Business travel and mobile workers," Transportation Research Part A: Policy and Practice, Elsevier, vol. 42(8), pages 1109-1116, October.
    6. Pantelaki, Evangelia & Papatheodorou, Andreas, 2022. "Behind the scenes of glamour: A systematic literature review of the business aviation sector," Journal of Air Transport Management, Elsevier, vol. 105(C).

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