Airfare Fuel Cost Model

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TRAVEL ANALYTICS INC. Airfare Fuel Cost Model. April 2006. Finding Bigger Savings Faster SM. Purpose of This Model. Airfares have increased significantly since 2004 Airlines typically point to the dramatic rise in jet fuel prices as a driver of the fare hikes - PowerPoint PPT Presentation

Transcript of Airfare Fuel Cost Model

  • Airfare Fuel Cost ModelFinding Bigger Savings Faster SMApril 2006

  • Purpose of This ModelAirfares have increased significantly since 2004Airlines typically point to the dramatic rise in jet fuel prices as a driver of the fare hikesMany corporate buyers are sympathetic to the airlines need to pass fuel costs on to buyersFare hikes that exceed the cost of jet fuel should be fair game for negotiationsThis Model Helps Buyers Recognize Fair Fuel Cost-based Increases

  • Using This ModelTravel Analytics has supplied several reference points regarding Average fuel efficiency by aircraft typeHistoric spot prices for U.S. jet fuelDistances for some major marketsUsers are encouraged to print this document before using the model The user will need to put this file into Slide Show mode in order to use the dynamic properties of the modelGo to View; Slide ShowOr press the F5 function keyOnce the file is in Slide Show mode, then move the sliders on the last page to reflect the values you wish to model

  • Fuel Cost Model Reference Points

  • About Travel AnalyticsWe provide sophisticated negotiating and spend management services to corporate and government travel buyers worldwideOur support services includeSavings diagnosticsAirline contract analysisAirline negotiation supportStrategic sourcing project managementSpend analysis and reportingTravel policy cost analysesFor more information:travelanalytics.com +1 440.248.4111