Companies scoff at airlines' cheapest business class tickets. 'The real value is flexibility'

Airlines Delta and United have recently introduced budget-friendly business class tickets for certain flights, sparking concerns among companies. These stripped-down business class fares lack advanced features such as seat selection, lounge access, and the ability to change flights without incurring fees. Meanwhile, companies are wary of the new fares, with some executives stating that the real value lies in the flexibility, and paying a bit more is not necessarily a cost.

The cheapest option for long-haul international flights won't come with amenities like airport lounge access or in-seat seat selection. Change fees could range from $99 to $500 for cancellations, adding to the cost if travelers need to purchase a new flight. The fare difference could be several hundred dollars to nearly $1000 or more.

Only a small percentage of a corporation's business travelers usually fly in top-tier cabins, but the higher fares could further increase travel costs. United's Polaris cabin lie-flat pod doesn't include access to the premium airport lounge, and travelers can't select their seats in advance without paying a fee. Travelers can only cancel the flight with a fee.

Airline executives argue that these fares provide customers with more choice and control over their travel experience. However, travel managers are concerned about the lack of flexibility and may seek to block these fares altogether. Airfare is expected to rise globally by nearly 5% this year, with premium fares increasing by 9.5%.