Fares for budget airlines have grown by 10% in the last year and now account for one in eight business travel bookings, according to a survey by business travel company, Hogg Robinson Group.
The Air Trends survey also found traditional carriers have reduced the cost of their economy fares by 5% in response to the growth of low–cost airlines.
EasyJet has increased its prices over the last year, following arise in business market share to 20% on popular routes, said the report.
The survey looked at flights and prices paid by 250,000 business travellers booking between May 2006 and June 2007. The findings also revealed that business–class tickets have increased 4%in price.
Hogg Robinson Group industry affairs director Mike Platt said: “We are seeing more businesses choose low–cost carriers for domestic and some short–haul flights. It is interesting to see business–class ticket prices increasing by 4%, despite ticket sales remaining static, reflecting the airlines’ confidence in the popularity of the business–class cabin.”