Cost of airfare is skyrocketingThursday, May 16, 2013 3:13:47 PM
Regular business travelers may want to stick to renting cars in the future instead of buying plane tickets - the price of airfare is skyrocketing.
According to a study from consulting firm Boyd Group International, the price of a one-way airline ticket has increased by nearly 30 percent since 2008, mostly due to a developing trend of airlines charging fees for services that they used to offer for free.
"Today the fare is just the down payment," Michael Boyd, chairman of Boyd Group International, said in a statement. "It is estimated that ancillary fees for services such as first-bag check, early boarding, 'preferred' seating, on average adds approximately 15 percent to the base fare of a one-way trip."
"Airlines today are profitable largely due to the revenue streams from these fees," he added.
The rising price of airline tickets is having a particularly large effect on small businesses, according to Resources for Entrepreneurs, who are having to rethink their business travel strategies to accommodate higher airfares.
Using a business car rental could be a viable cost-saving option, particularly when visiting clients who are less than a one-day drive away.