Airlines' Stripped-Down Business-Class Fares Pose New Challenge for Corporate Travel Managers

United Airlines and Delta Air Lines have launched stripped-down business-class fares, omitting perks like seat selection, lounge access, and free changes, mirroring their approach with coach class. This move poses a new challenge for corporate travel managers, who must weigh the cost savings against the lack of flexibility and amenities. AerSale’s Jackie Carlon noted that paying more for flexibility is seen as “insurance” against the high costs of changes. Delta’s basic business-class change fees range from $0 to $400, with cancellations costing $99 to $500. United’s base Polaris fare on a Newark to London flight was $4,490, compared to $4,890 for the standard fare and $5,390 for a flexible ticket. Travel managers express concern over the value of basic fares, especially given the potential for additional costs due to inflexibility. Navan Group’s Dane Molter highlighted the need for detailed policy controls to manage these new fare options. The Global Business Travel Association forecasts a 9.5% increase in premium airfare, with basic business-class fares potentially driving this growth by encouraging “buy-up” behavior. American Express Global Business Travel’s John Bukowski noted that while some clients might block these fares, many haven’t yet, differing from the response to basic economy tickets. Scott Laurence of Oliver Wyman suggested that while basic business fares might appeal to price-sensitive companies, they could complicate travel management and lead to feedback from travelers accustomed to certain perks.