Australia’s Jetstar has become the latest low-cost carrier to target budget conscious business travellers and expects strong demand from small to medium enterprises.
The Qantas offshoot has launched a new Flexibiz option that allows business travellers from Australia, Singapore or New Zealand to change their flights, gives them an extra carry-on allowance and allows them an to select an upfront seat without paying the usual charge. They can also get a credit voucher for a cancelled booking that is valid for six months.
The bundle can be added to Jetstar’s starter fares for up to $34 on domestic flights, $39 on short haul international flights and $55 on international flights.
The move follows a road paved by other low-cost carriers such as Ryanair and easyJet and comes as Virgin Australia has changed its fare structure.
Ryanair introduced “business plus’’ fares two years ago which allowed passengers to make changes to their flights, albeit at cost, and offered a 20kg luggage allowance and fast-track security clearance. EasyJet introduced a more flexible fare in 2010 which included unlimited changes, free hold luggage, free seat selection, fast track security and priority boarding.
Jetstar Group chief executive officer Jayne Hrdlicka said the airline was responding to feedback from small to medium size businesses who want to save money but want more flexibility and some value-added extras.
Hrdlicka said the airline was seeing a growing number of business travellers happy to fly with a low-cost carrier but needing the flexibility to change flights when a business meeting ended earlier or later than expected.
She said Jetstar was expecting strong demand from small and medium size businesses.
“While the majority of customers travel with us for leisure purposes, on particular routes during peak times we see a significant number of customers travelling for business,’’ she said. “Qantas is well-established in the premium corporate travel market, and we want to complement this by ensuring that the other end of the business market is well-catered for. This is part of our dual-brand strategy, where each airline focuses on specific market segments.
“Our aim is to further grow our market share of the price-sensitive business market.’’
The new flexible fares are available for businesses who have registered at Jetstar’s Business Hub website using an Australian Business Number or the New Zealand or Singaporean equivalent.
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