Source: Fortune
Summary
According to SAP Concur, the platform that processes travel and expense data for millions of business travelers worldwide, fuel transaction costs jumped 14% in a single month, from $50 in February to $57 in March. Airfare was up 4%, hotels up 5%, and car rentals up 3%. Companies are now looking to offset these increased costs by cutting trips. Average domestic ticket prices climbed roughly 15% in April, while U.K. fares jumped 17–18%. Business travelers are swapping cars for trains as fuel economics tip.
Our Reading
The numbers tell one story.
SAP Concur’s data shows a 14% fuel-transaction spike in February-to-March, an early-warning signal that the energy market was tightening. Car rental bookings dropped 4% in Q1 while rail bookings climbed 6%. Business travelers, especially in Europe, are quietly swapping cars for trains as fuel economics tip. The $1.5 trillion global industry is feeling the pinch, with budgets staying flat and trips decreasing by 15%. Companies are flying blind into the most expensive travel season in years.
The announcement sounds like a familiar phase: companies are paying more to do less.
Author: Evan Null
