Advito forecasts slow, fragile recovery in business travel
Travel buyers: Negotiate now, before opportunity vanishes
Susan Avery -- Purchasing, 10/26/2009 4:23:01 PM
With increases in airfare and other costs of business travel on the way, Advito advises travel buyers that opportunities for savings may soon start to shrink.
Advito, the independent consulting unit of BCD Travel in Dallas, has released its
"The negotiating outlook remains excellent for corporate clients in 2010, and there will be impressive discounts for customers who deliver ample business to their airline suppliers," says Mary Ellen George, general manager at Advito. "However, carriers may become fussier about their mix of business, possibly even withdrawing deals for clients that only buy tickets in the lowest fare classes. Prospects for a deal will remain particularly good in business class."
At the same time, Advito warns that travel buyers should watch unpredictable factors carefully. Downside risks such as a major H1N1 flu outbreak or a major rise in oil prices due to speculation or geopolitical affairs could alter the dynamics of travel and travel management.
Advito forecasts travel volumes will stabilize at the end of 2009, and the number of trips will gradually move upward in the second half of 2010, gathering more momentum in 2011. Here are some other highlights of the forecast:
- Worldwide, Advito expects low to moderate increases in average airline fares of 1.5% to 5%.
- Next year is still predicted to be a buyer's market for corporate hotel programs despite moderate increases in some markets.
- The outlook for rates in 2010 remains relatively flat. Advito forecasts car rental rates to vary only slightly, according to local conditions.
- Rising demand and continuing monopolies on nearly all rail routes result in increases in unregulated fares, especially on high-speed lines where heavy capital investment will need repaying for many years.
See also: Corporate travel buyers seek and find new ideas at NBTA conference
Corporate travel spending to grow in 2010
10/20/2009
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