Corporate travel continues to rebound, with the Global Business Travel Association (GBTA) projecting 2024 global business travel spend will exceed 2019 figures. There are many factors contributing to this growth, including increased conference attendance. As organizations return to pre-pandemic levels of business travel, changes throughout the industry continue to impact corporate travel programs.
More than halfway through 2024, there are several industry updates travel managers should be aware of:
1. United for Business Blueprint
United Airlines’ Blueprint offers preferred partner benefits, including a more comfortable, streamlined travel experience. Even with minimal spend, this program is highly accessible with multiple tiers, each with access to discounts and amenities. Discounts range from 2-8% on select mid to high tier fares.
Contact your Account Manager to learn more.
2. American Shifts its NDC Strategy
American Airlines continues to distance itself from its previous decisions around NDC implementation. Travelers can expect to see fewer fare discrepancies as American reduces content fragmentation and takes a more sustainable approach to implementing NDC.
American is also abandoning the Preferred Agency model it had previously announced to encourage NDC booking and travel program bookings will now qualify for the airline’s AAdvantage offering. However, the program remains somewhat impractical, as travelers must be enrolled individually.
3. The End of Open Seating on Southwest
Southwest announced a major shift in its strategy in response to recent shareholder pressure. Beginning in 2025, Southwest will forgo open seating in lieu of the industry’s standard assigned seating model. This will enable the airline to extend premium seating offerings in an effort to increase revenue and meet customer demands. The airline has no plans to change its “bags fly free” policy at this time, which is core to its value proposition to all customers, including business travelers and corporate travel programs.
4. JetBlue Corporate Perks
In recent years, JetBlue has gradually expanded its corporate partnership offering with programs designed to save companies time and money. In addition to discounted fares, JetBlue is introducing Corporate Perks which adds value to contracted customer’s programs and elevates their travelers’ experience. Amenities include priority boarding through a dedicated lane, same-day switches with no fee or fare difference, preferred Core seating, and expedited security at dozens of airports.
Contact your Account Manager or visit JetBlue’s dedicated page to learn more.
5. Delta Most Impacted by CrowdStrike Outage
The July 19, 2024 CrowdStrike outage caused a significant disruption to the US airline industry, impacting software that manages bookings, check-ins, and scheduling systems. The outage forced several airlines, including American, Delta, and United, to ground thousands of flights over multiple days. Delta Airlines was most impacted with delays and cancelations into the following week. The protracted disruption is estimated to have cost the company $500 million.
To mitigate the financial impact of disruption to travelers, Delta issued waivers to customers. The Travel Team is analyzing ticket cancellations from that period and will be contacting travel managers with an offer to pursue refunds should they have applicable bookings.
6. REAL ID Requirements Go into Effect
Despite being continuously delayed, REAL ID is slated to go into effect May 7, 2025. Unless delayed further, travelers will need to have REAL ID-compliant identification to fly domestically, such as a REAL ID-compliant driver’s license, US passport, Trusted Traveler card, or enhanced driver’s license.
Are your travelers ready? Learn More
7. Industry-Wide Airline Refund Policy
The Department of Transportation (DOT) recently announced an updated airline refund policy set to go into full effect toward the end of October. Eligible passengers must receive an automatic refund when owed. Airlines will also be required to deliver timely notifications to alert passengers affected by canceled or significantly changed flights of their right to a refund.
