The global economy will pick up speed in 2014. But uncertainty about companies’ willingness to spend on travel will make suppliers cautious about fare hikes. This, in turn, will create savings opportunities for travel buyers, according to the 2014 Industry Forecast. Download the updated, 2015 Forecast here.
Advito, an arm of BCD Travel, publishes its Industry Forecast annually to provide travel buyers with insights and tools for planning budgets and negotiating with suppliers. One overriding theme for 2014: Travel buyers will have the most leverage when negotiating travel between Africa, Europe and Asia Pacific. Here are some of Advito’s other key findings about the year ahead:
- Overall price increases in the air, hotel and car sectors should be in line with inflation.
- Soft demand will keep airfares flat or restrain increases in most regions, but a surging Brazil will drive up Latin American airfares. In North America, fares aren’t expected to rise, but carrier consolidation will lead to fewer choices in seats and routes.
- Hotels will look to raise corporate rates by 4-6% but are unlikely to fully achieve these targets.
- Smaller cities will offer travel buyers the best opportunities for negotiating savings on hotels.
- Meetings demand will grow faster than transient travel, which will lead to modest price increases for venues.
- Competition among rental car companies should keep rates in check for 2014, but travel buyers should consider locking in prices for multi-year contracts.
Advito’s Industry Forecast offers much more intelligence on supply, demand and pricing trends for air, hotel, meetings, car rental and rail. The 2014 report also spotlights airline mergers, travel and meetings integration, unbundled ancillary fees and more.
Get the 2015 forecast to learn more about the business travel year ahead. And ask your account manager how Advito can help you get ready.