Save on Airline Tickets with Advanced Purchases

Significant savings can be obtained by booking airline tickets in advanced.  A 2012-published survey by Egencia found that advanced purchases of airline tickets to several destinations could result in savings from 11% to 47%.  Purchases were at least 22 days in advance compared to near term travel purchases.  Click here to read the data in this survey (PDF file).

In Priceline (click here), I found that I could save from 31% to 87% if I purchased round-trip tickets from Baltimore to 4 destinations (Boston, Chicago, Denver, and Miami) four months in advance rather than a few days in advance.

However, special factors, such as advanced bookings to a destination when a seasonal or

well-publicized event is happening during the desired travel dates, might reverse this finding to where a purchase price is higher than lower for an advanced booking.

I also found that there was no material difference in purchase price whether through Priceline or directly from the airlines at their websites.   But, using Priceline is very convenient because several airline prices are shown in one search, from which the best price can be chosen.  Otherwise, each airline has to be searched separately.

No airline consistently had the lower price.   Airlines recognized as being low price carriers did not have more “lowest” prices than other airlines.  There was great variability between the airlines in who offered the lowest price.   Also, there was often a wide range between the lowest price and the highest price.

According to the Aberdeen Group report entitled “Travel & Entertainment Expense Management – Reducing Processing Costs & Improve Policy Compliance”, travel and entertainment expenses, on average, account for between 8% and 10% of total operating expenses.  The report provides several recommendations for a more efficient and effective management of a company’s travel needs.  As this report and the above data on advanced bookings suggest, policies and procedures related to a company travel needs can lead to significant cost reductions.  (Click here to read the Aberdeen report.) (PDF file.)