FREQUENT-FLIER PROGRAMS COST US FIRMS

June 8, 1992

Frequent-flier programs raise costs for United States corporations by more than $6 billion a year, a University of Georgia study says.

Of 504 corporate travel managers surveyed, 87 percent of them said choosing one carrier over another to gain frequent-flier mileage often results in air fares 7.9 percent higher than necessary.

About 67 percent of the respondents said travelers often use more expensive hotel accommodation to gain additional bonus points.

Each year, US companies spend about $80 billion on corporate travel.