A corporate travel policy may stipulate that travelers must purchase what is called the ‘lowest logical fare’ to reduce unnecessary expenditure. It’s often required that employees purchase the cheapest available route. That routing may include additional legs to the journey if it is significantly cheaper than a direct, point-to-point, routing.
The company’s travel manager will set the parameters as to what is an acceptable trade-off between cost and total travel time.
More recently, unbundling of airfares have seen sharp increases in ancillary costs either in advance of travel or at the airport. This makes it difficult to benchmark ‘apples-to-apples’ and ensure that what may appear to be the lowest logical is just that.
There are additional components that are now being included as part of what the lowest logical policy incorporates such as loss of productivity on aircraft without Wi-Fi, power points, or seat pitch.
Read our most recent travel industry blogs
Fast Read: FairFly’s 6 Top Tips for Busy Travel Managers
Travel managers tend to be incredibly busy, particularly in this new era of seemingly constant rebooking. Time is always of the essence, and there [...]
Travel Program Management: The Need to Optimize
A recent McKinsey study predicts that firms have until 2023 before 80 percent of pre-pandemic corporate travel resumes. The question remains whether companies will [...]
Travel News Round Up – August/ September 2021
The corporate travel industry is constantly changing. FairFly's latest news roundup helps you stay on top of those changes, from predictions for the future [...]