Small businesses pinching pennies on travel finally have good reason to cheer: Prices are down significantly from last year, and some business-travel categories are actually cheaper than they were five years ago.

According to the Business Travel Monitor, the quarterly price survey produced by American Express Business Travel, airfares dropped significantly in the second quarter--18 percent for domestic fares and 19 percent for international fares--compared with the same period in 2008. U.S. hotel prices remained flat in Q2, but hotel rates abroad posted double-digit declines.

The numbers reflect not just the effects of the global recession but the different strategies companies of all sizes are taking to cut their travel and entertainment costs. They are negotiating discounts; booking as early as possible; and trading down by requiring travelers to fly coach instead of business class, stay in mid-tier instead of luxury hotels and rent compact instead of full-size cars, according to Christa Manning, director of eXpert Insights and Research, a new consulting practice within American Express Business Travel. Her group also produces various best-practice reports, including "Creative Cost Savings in Air."

So how creative can you get with airfares? Here's a sampling of what you can do.

1. Restrict restricted tickets. This is a bit counterintuitive, since non-restricted fares are generally much more expensive than restricted fares, the kind you typically get from advance booking. But the numbers tell an interesting story. The American Express survey found that in 2008, one-third of short-haul, non-restricted tickets were actually less expensive when average change fees were factored in. If you or your travelers frequently change itineraries, the smarter bet is to book non-restricted fares.
    
2. Consider a connecting flight. In exchange for longer travel times and an extra takeoff and landing, you may be able to fly in the front of the plane for the price of a seat in the back. Northwest's ConnectFirst program allows passengers to upgrade to a first-class seat if they purchase a full-fare coach-class ticket and connect though Minneapolis/St. Paul, Detroit or Memphis. Note that first-class seating is available only on jet flights; there are also a slew of terms and conditions, mostly having to do with frequent-flyer miles.
    
3. Use premium economy rather than business class. Virgin Atlantic Airways invented the concept of a 'tween kind of cabin class in 1992. It's a category that still flies under the radar, so to speak, of travel policies that say no to front-of-the-plane bookings, even on overseas flights. With premium economy comes more leg room, a cushier seat and a little more attention from flight attendants, without the hair-raising price of business class.
   
   Many major international carriers, including Japan Airlines, Air France, Qantas and British Airways have launched their own versions of premium economy, typically offering some sort of enhanced meal service, an amenity kit (with mask, toothbrush and toothpaste, and earplugs) and a fancy in-seat entertainment system. Some also offer noise-canceling headsets, priority baggage and check-in, and a power source for plugging in electronic devices. JAL Premium Economy passengers are treated to fun snacks (instant noodles, ice cream) and plenty of champagne during their journeys, as well.
   
   Do be aware, however, that you may need an adapter to actually use the power source, and those can cost you dearly: British Airways charges £75 if you don't have your own. Also be aware that premium economy is not offered on all flights. Usually, it's just on jumbo jets for transoceanic flights, although some airlines offer it on intra-European flights. And premium economy may not be a discrete cabin--in other words, it may just be the front section of coach rather than a separate compartment.
   
   In any case, the best-practice survey found that for daytime, long-haul flights, choosing premium economy over business class can save an average of $2,000 per one-way segment. The seats may not fully recline, but for daytime flights that's usually not an issue. And a $4,000 savings is nothing to sneer at, unlike an economy-class seat on an eight-hour flight.
   
   Another tip about premium economy: The closer to departure time, the smaller the differential between a full coach fare and a premium economy fare, says Bob Harrell, an airfare analyst and founder of Harrell Associates. The difference may be as little as 15 percent. In that case, Harrell says, trading up is a good value.
    
4. Book a better seat in coach. United's Economy Plus is a section in the front of the coach cabin; you get five more inches of leg room for an additional fee. It's $14 for certain domestic routes (such as San Francisco to Los Angeles), $39 for longer routes (Denver to Seattle) or $89 internationally (Chicago to London). You can switch a regular coach seat to this mini-upgrade by paying online or at check-in, either at the airport counter or at the gate. If you're a Mileage Plus Elite member, you're entitled to a seat in Economy Plus, free, if there's space available. Spirit Airways' version of this better-seat, front-of-coach section is called Big Front Seat.
    
5. Book a discount, one-class carrier. Flying to Paris? Consider flying OpenSkies, the remaining one-class airline flying over the Atlantic, now that Eos and Silverjet have been mothballed. Its fares are often cheaper than premium economy on competitors' routes, and it's a full-fledged business-class product, with lie-flat seats, reasonably good food and wine, and attentive service. The airline recently discontinued its New York to Amsterdam service, but it still flies to Paris from JFK and Newark.

Despite the significant price drops in fares this year, there are some indications the current buyer's market isn't cause for giddiness. "We're seeing a leveling in pricing and even an uptick in some areas in our Q2 vs. Q1 data, as well as in our monthly Business Travel Monitor data," warns American Express' Manning. Still, the idea that 2009 fares are about the same as they were in 2004 is cause for celebration, even if the 2004 freebies (luggage service, magazines, blankets, pillow, food) are a distant memory.