Advito releases 2013 Industry Forecast for business travel
Slowdown in business travel demand will combine with strict supplier capacity limitations to produce moderate price increases
Atlanta, 13 September 2012 – Demand growth for business travel is projected to slow heading into 2013, according to the just-released 2013 Industry Forecast from Advito, BCD Travel’s independent consulting unit. Continued sluggishness in the euro zone is softening growth rates in other regions, even in historically strong driver markets like China. But demand will nonetheless continue to outpace supply, with airlines keeping a particularly tight hold on inventory. As a result, buyers should brace for low- to mid-single digit price hikes in air fares and hotel rates.
“With the current macro economic situation uncertain and limited capacity going into next year, it’s more important than ever that buyers have a clear understanding of their buying power going into their negotiations, make better use of data analysis in their decision making process, and closely monitor their travel spend,” said Bob Brindley, principal at Advito. “For instance, with air fares projected to increase, buyers should pay close attention to fare restrictions and recommend smarter purchasing behavior for their travelers. On the hotel side, options include searching for internal savings such as minor downgrades in accommodation standards and expanding the number of properties used in high demand markets to improve the likelihood of booking availability.”
2013 Industry Forecast
Advito draws upon industry and economic data through August and transactional (hotel and air) data through June 2012 to forecast demand and pricing developments in the air, hotel, car rental, rail and meetings categories. The 2013 Industry Forecast also shines a spotlight on Middle Eastern airlines, Australian and Indian markets, airline consolidation, ancillary fees and important considerations in hotel negotiations.
Vital information for planning
The analysis builds on Advito’s thorough understanding of the business travel market and the influence of global and local factors, providing travel buyers and managers with vital information for planning.
This year the forecast for the first time also includes analysis of secondary spend categories, including dining, mobile roaming and ground transportation. Such expenses are estimated to account for 18% of total T&E, and will become a major savings opportunity in 2013 and beyond.
Key predictions for 2013
The Advito 2013 Industry Forecast is available at Advito.com (in the Resource Center section under “White Papers”). A few of the report’s key predictions:
- Advito is forecasting moderate airfare increases across all regions, with the strongest demand occurring in Latin America, with expected year-over-year fare increases between 6 and 7%, and lowest in Europe (2 to 3%). North America and Asia will see fare increases between 4 and 5%, and Southwest Pacific between 2 and 4%.
- Disciplined capacity management by airlines will be a primary factor behind cost increases.
- Advito forecasts hotel average daily rate (ADR) to grow in 2013 – though not as high as hotels are pushing in early negotiations. Exceptions include Australia and Latin America, where demand is driving rates up considerably.
- Anticipated rate hikes include: 6 to 7% in North America; 8 to 14% in Latin America; 2 to 4% in Europe; 5 to 10% in the Middle East; 5 to 8% in Asia and 6 to 10% in Southwest Pacific.
- Double-digit ADR increases are probable yet again in the top rung of international gateway cities such as New York, Hong Kong and Singapore and in some Latin American cities.
- Advito expects car rental rates to freeze in the U.S. – the largest car rental market worldwide – in 2013.
- In Europe, Advito expects high-speed railfare increases of around 3 to 5%, similar to 2012.
End of press release
Lauren Holmes, Advito
+1 678 443 3140
Advito provides travel-management advisory, procurement and outsourcing services that guide clients through a complex travel environment. Advito 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. Advito is headquartered in Atlanta, and operates in key business markets around the world. Advito is an independent operating unit of BCD Travel, the world’s third-largest travel management company, owned by BCD Holdings N.V.
About BCD Travel
As a leading provider of global corporate travel management, BCD Travel simplifies and streamlines the business of travel. This benefits the organization on every level: from the bottom line to the business traveler. BCD Travel operates in more than 95 countries, with US$ 20.8 billion in total sales and a combined worldwide work force of more than 11,000 people. BCD Travel is a BCD Holdings N.V. company. More about BCD Travel »
About BCD Holdings
BCD Holdings N.V is a market leader in the travel industry. The Dutch, privately owned company was founded in 1975 by John Fentener van Vlissingen and consists of BCD Travel (global corporate travel management), Travix (online travel: CheapTickets, EasyToBook.com, Vliegwinkel, BudgetAir and Vayama), Park 'N Fly (off-airport parking), TRX (travel transaction processing and data integration), Airtrade (consolidating and fulfillment), VakantieXperts (leisure) and Parkmobile International (mobile parking and traffic applications). BCD Holdings employs approximately 12,400 people and operates in more than 95 countries with total sales, including franchising, of US$ 24.4 billion.