Air travel demand to strengthen throughout 2014
Advito releases update to 2014 Industry Forecast for business travel
ATLANTA, June 16, 2014 – In the latest update to its 2014 Industry Forecast, travel consultancy Advito projects robust global air travel demand growth to continue, or even strengthen through the year. Global economic recovery is supporting this growth, but there remains regional variation in the strength of demand and in the airlines’ response to it, forecasts Advito.
Advito, the consulting arm of BCD Travel, continually monitors changes in economic growth, inflation, travel demand and oil prices. Each quarter, it revises its annual Industry Forecast to highlight subsequent updates to the original air and hotel pricing predictions.
The update and the original Advito 2014 Industry Forecast are available at www.advito.com (in the Resource Center section under “White Papers”). Following are a few of the update’s key findings:
- With only slight growth in demand this year, and little new capacity added, airfares in North America are holding steady. Advito forecasts that intercontinental business and economy fares will rise by 1% year-over-year. Regional business fares will be flat, as transcontinental expansion by JetBlue and Virgin America increases competition, but economy fares are still expected to rise by 2%.
- While demand across Latin America remains strong, there are early signs of a loss of momentum, as fears of an economic slowdown emerge. Advito is maintaining its forecasts for intercontinental fares at 4%, and for regional business at 2%, but lowering the figure for regional economy from 5% to 3%.
- Low-cost carriers’ pursuit of corporate travelers in Europe will keep regional business fares flat. And in Asia, increasingly price-sensitive customers and an influx of low-cost carrier capacity mean falling regional and intercontinental fares.
- Advito updated hotel forecasts for two regions. Stronger market conditions have continued to provide upward momentum to hotel rates in Mexico, resulting in a rise in Advito’s North American forecast from 2-4% to 3-5%. In Asia Pacific, increasing hotel capacity has coincided with a softer economic outlook. This is most noticeable in India, where Advito once again predicts a fall in hotel rates.
Advito provides travel-management advisory, procurement and outsourcing services that guide clients through a complex travel environment. Our focus on consulting delivers proven value, unbiased counsel and a customized approach for every client and every engagement, together with industry expertise and access to data to drive quantifiable decision-making. We are headquartered in Chicago, and operate in key business markets around the world. We are an independent operating unit of BCD Travel, the world’s third-largest travel management company, owned by BCD Holdings N.V. For more information, visit www.advito.com.
About BCD Travel
BCD Travel helps companies make the most of what they spend on travel. We give travelers innovative tools that keep them safe and productive, and help them make good choices on the road. We partner with travel and procurement leaders to simplify the complexities of business travel, drive savings and satisfaction, and move whole companies toward their goals. In short, we help our clients travel smart and achieve more. We make this happen in 109 countries with almost 14,900 creative, committed and experienced people. And it’s how we maintain the industry’s most consistent client retention rate, with 2019 sales of US$27.5 billion. For more information, visit www.bcdtravel.com.
About BCD Group
BCD Group is a market leader in the travel industry. The privately-owned company was founded in 1975 by John Fentener van Vlissingen and consists of BCD Travel (global corporate travel management and its subsidiary BCD Meetings & Events, global meetings and events agency), Park ‘N Fly (off-airport parking) and Airtrade (consolidation and fulfillment). BCD Group employs over 15,900 people and operates in 109 countries with total sales of US$30 billion in 2019, including US$10.9 billion partner sales. For more information, visit www.bcdgroup.com.