Expected hotel rate increases have not materialized in key global markets, and prices are actually dropping in some places. That good news for travel buyers is among several refreshed outlooks available in the newly released infographic update to Advito’s 2017 Industry Forecast. Here’s an overview:
Hotel trends
- In North America and Africa, Advito has lowered the upper range for hotel rates. That means prices should not rise as much in 2017 as was anticipated at the start of the year.
- In the Middle East, softer demand is coinciding with increasing supply. The business travel consultancy now expects rates to decrease in Oman, Qatar, Saudi Arabia and the United Arab Emirates. The shift is from a previously predicted 2% to 4% rise to a 1% to 3% drop.
Air trends
- A pickup in the economic cycle is driving increased international air travel, although performance is mixed in key domestic markets.
- Advito now forecasts a 2% jump in airfares for North America and the Middle East. In Latin America, intercontinental economy fares should drop 1%.
- Capacity expansion prompted by low oil prices pushed down average fares in many markets. Airlines now are trying to stabilize prices and may resort to capacity adjustments to raise airfares in 2017, Advito predicts.
Advito Vice President Jeroen Hurkmans advises travel buyers to use the reprieve from market volatility to make strategic plans for program improvement. “While there is relative travel price stability around the world, it’s an ideal time for companies to turn their attention to other ways to have an impact on travel program performance besides supplier management and policy changes,” he said. “It’s time to influence traveler behavior by applying tried and true digital marketing practices to your travel program.”
Travel buyers can employ traveler engagement tactics—akin to strategies retailers use to guide consumer behavior—to influence their travelers’ decisions. The result, Hurkmans said, is increased savings; heightened traveler safety; increased employee productivity; and improved traveler satisfaction.
