Intercontinental air fares to fall or stay flat in most regions as outlook for world economy is stable; oil price assumption holds at US $50 per barrel, finds update to Advito 2017 Industry Forecast
CHICAGO, Dec. 13, 2016 – Advito’s first update to its annual forecast of key economic trends affecting the business travel industry finds that companies in North America , Africa and Asia can expect to pay slightly less for intercontinental business class air travel in 2017 than was projected just three months ago in the Advito 2017 Industry Forecast. Forecasts for regional business class fares also dropped in Asia and the Middle East.
Hotel price projections went up for several European countries, while a higher rate forecast for New Zealand lifted the figure for Southwest Pacific. The outlook for rates in Asia and Latin America was decreased after forecasts for key markets in those regions were reduced.
In addition to projected prices, Advito’s December update identifies two trends likely to capture the interest of corporate travel and procurement leaders:
- The use of identity management to improve the customer journey and enhanced personalization capabilities for a tailored customer experience
- The continued enhancement of seamless connections across travel, expense and reimbursement
Other takeaways in Advito’s December update to the 2017 Industry forecast include:
- The outlook for the world economy remains stable with growth expected to gradually improve in 2017.
- Advanced economies will contribute less to global growth than previously thought, as uncertainties arise from the US presidential election and Brexit decision.
- The original oil price assumption holds steady at US$50 per barrel.
The December update reexamines market drivers behind the Advito 2017 Industry Forecast released in September 2016. Advito publishes this annual Industry Forecast to give travel and procurement managers a range of projected price movements they can use to benchmark success against key performance indicators and prepare for supplier negotiations and budgeting. The forecast report includes supply, demand and pricing trends for air, hotel, ground transportation and meetings for all major regions in the world. The original forecast featured special sections on artificial intelligence in travel, alternative accommodations, hotel direct booking and more. The Advito 2017 Industry Forecast December update is available at www.advito.com.
Advito is the travel industry’s most progressive consultancy, enabling procurement leaders to modernize their approach to managing the travel and meetings spend category. Led by a unique team of multi-disciplinary experts and thought leaders, we work with both clients and suppliers to push the boundaries of traditional air and hotel sourcing and strategic meetings management for higher program returns. We provide advisory, procurement and outsourcing services in the area of corporate travel sourcing, expense and meetings management, along with RFP development and management; benchmarking and vendor management services. We minimize our clients’ travel spend and maximize their travel program value in a data-rich, consumer empowered world. Headquartered in Chicago, Advito operates in key business markets around the world. 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.