Corporate take-up rate on LCCs is still very low: CAPA Asia Corporate Travel Summit

CAPA - Centre for Aviation noted (15-Nov-2016) panelists at the CAPA Asia Corporate Travel Summit, speaking on the topic of LCCs and corporates, said that the conversion rate when it comes to corporates booking on LCCs is now very low. Travel managers are keen to offer an LCC option but corporates are generally not selecting it. They pointed out LCCs often do not offer the lowest cost option when including all the ancillaries and extra costs involved with such items as buying a meal at an airport before an LCC flight. They also stated that there are higher risks associated with flying on LCCs and when these are factored in they typically decide to stick with full service airlines. In a poll of the audience, only 45% of travel managers said they have LCCs in their travel policies while 55% do not even offer an LCC option.