AA-US Merger Implications for Gov and Biz Travel

This morning I pointed out some new frontiers in managed travel to the Society of Government Travel Professionals. ¬†Things like traveler friction, trip tailoring, edit rights, Managed Travel 2.0 and traveler dashboards, along with their implications for the government travel program.¬†(here’s the full deck)

Then I shared this slide to make the point that airfares will go up after the AA-US merger:

Airline Profit Margins Rise as Competition Falls

Fewer competitors in a market result in higher profit margins for the suppliers. Looks like that basic economic theory holds true in the airline category. (For non-government readers, YCA fares are the U.S. Government’s equivalent of full Y fares – fully refundable, last seat availability in coach.)

The significant implication for the U.S. Government and businesses Continue reading