Demand for business travel services tipped to again outweigh supply in 2008

Published: 24 Oct 2007

This will drive continued increases in rates across air, hotel, car rental and corporate meetings and events. While worldwide airfares are expected to continue their climb, hotel rates are projected to experience high double-digit increases in demand-heavy markets across the US, Europe and Asia.

"Travel managers and procurement professionals can expect another capacity-restricted, challenging year and a continued push to keep travel and entertainment budgets in check. However, opportunities still exist to further control costs without curtailing business travel," said Mike Streit, Vice President and Global Leader for American Express Business Travel Advisory Services.

"Heading into 2008, successful T&E management strategies will focus not just on controlling travel expenses, but also on identifying additional areas to control costs and save, such as entertainment and related services including corporate meetings and events."

Streit added, "In 2008, we expect a domestic trip inclusive of airfare, car rental and hotel stay will increase six percent, or $63 USD, bringing the average trip cost to a total of approximately $1,110 USD. For an international trip, the increase is expected to be nearly seven percent, or approximately $205 USD, bringing the cost of an average trip to $3,171."

Global Airfare Forecast

Pricing pressures that have influenced the rise in airfares in the past are expected to continue in 2008, but more competition in certain markets should help ease increases.

· Fuel costs, improvements in airline inventory and pricing technology, capacity constraint and demand for long-haul are likely to drive price increases.

· We anticipate that greater competition through the USA-EU Open Skies Accord, growth of low-fare pricing models and more efficient aircraft will temper increases.

Global Hotel Rate/Meetings Spend Forecast

We expect that hoteliers around the world will continue to benefit from their market position in 2008.

· High demand and slow growth of supply is likely to force prices up and will impact access hoteliers give to last room availability rates. Companies may also encounter minimum and maximum stay requirements and instances when corporate rates do not apply.

· Continued infusion of capital to hotels should benefit travelers through renovations and upgrades of properties and additional amenities, particularly in lower market tiers. However, these improvements will force hotels to maintain rates at historic highs.

· Rising hotel rates are likely to contribute to the expected increase of 8% -10% percent in global meeting spend (guestrooms account for nearly half of all meeting spend, excluding airfare).

· Focusing on meetings as an area of savings will help drive down T&E expenses.

Comments

You must be logged in to post comments.

Upcoming Conferences, Events & Reports


The Get Funded Show - The Travel Industry

19-20 May, London, Collacted with the Travel Distribution Summit

Where investors meet, examine the investment potential and do deals with top travel entrepreneurs. The place to find the future leaders of the Travel industry

EyeforTravel Research & Reports

01/07/08

Latest data & analysis for the worlds online travel markets - NEW European Online Travel Report 2008, India, China, Russia...

Travel Distribution Summit North America

Caesars Palace, Las Vegas 1-2 October 2008

America's annual meeting place for hundreds of senior travel marketing, distribution and technology professionals. The highlight being the Travel Distribution Executive Conference which attracts the crème de la crème of the travel industry.

Ancillary Revenue in Travel USA 2008

Caesars Palace, Las Vegas 1-2 October 2008

Our new event is guaranteed to show you how to add substantial profits directly to your bottom line. Learn directly from hotels and airlines who have sucessfully developed Ancillary Revenue programs.

Revenue Management and Pricing in Travel USA 2008

Caesars Palace, Las Vegas 1-2 October 2008

Senior travel executives involved in pricing and revenue management convene for an annual update on the latest RM techniques. This event grew dramatically last year.

Social Media Strategies in Travel Europe 2008 (Part of the Sales & Marketing in Travel Europe Summit)

Munich, 14 - 15 October

Social Media and user-generated content are revolutionising online marketing, opening up exciting new ways to raise brand awareness and adhere to customer expectations. Attend this inaugural event for the European region and find out how real travel companies are implementing and managing Social Media and Web 2.0 features. The event will be held as part of the Sales & Marketing in Travel Europe Summit held annually in Berlin.

Online Sales & Marketing in Travel Europe 2008 (Part of the Sales & Marketing in Travel Summit Europe)

Munich, 14 - 15 October

Europe's annual event for travel marketers returns for a 7th year to provide you with key insight into the latest best practices to market and sell your travel product to the dynamic European market. Twinned with our inaugural 'Social Media Strategies in Travel Europe' conference the event is guaranteed to give you the real-world advice and the competitive edge you need to boost sales in Europe's increasingly crowded online marketplace.

Hotel Revenue and Distribution Management Masterclasses

14-15 October, Munich; 19-20 November, Prague; 2-3 December, Barcelona

Specifically designed for independent and small chain hotels, this two day workshop will teach you how to dramatically improve 7 core elements of your revenue management and distribution strategy - performance; business intelligence; pricing; channel management; yield management; forcasting; communication

Travel Distribution Japan 2008

Tokyo, Conrad Hotel, 29-30 October

The global trend in online travel is now hitting Japan in a big way. The internet is re-defining the way your customers research and book travel, and creating a whole host of critical business issues, challenges and hurdles to overcome. This conference is an opportunity for you to explore best practices to help you distribute your travel product in Japan and gain the contacts you need to succeed!

Mobile Technology in Travel@WTM 2008

11th November 2008, World Travel Market, ExCel, London

Mobile is a force you can no longer ignore. This groundbreaking event cuts through the hype and presents you with proven strategies to make money, engage customers and foster loyalty form this innovative channel. Hear from top travel and mobile companies on how to take a first-mover advantage. You know mobile is causing a stir - it's time to do something about it!

The Travel Leadership Forum@WTM 2008

12th November, World Travel Market, ExCel, London

The Travel Leadership Forum: Evolution of Online Travel brings together the online travel leaders from around the world to discuss the changing face of online travel. Only the most senior and innovative executives are being handpicked to share their expertise during keynote presentation, topical discussion and thought provoking debates. The Forum is the essential meeting place for executives within the online travel space - don't miss out on this unique opportunity to join the travel elite!

Online Content and Conversion Strategies@WTM 2008

13th November, World Travel Market, ExCel, London

Online Content and Conversion Strategies is a conference designed with a single purpose: to show you how to drive conversions using compelling online content. With so many options to improve your site and engage your customer the task can often seem daunting. That's why we have brought together the top performing web experts to show you what information, media and functionality will turn a looker into a booker.

Travel Distribution Central Eastern Europe 2008

19-20 November, Angelo Hotel, Prague

A unique conference for leading travel distribution, marketing and pricing executives to discuss the latest trends, challenges and opportunities in this highly fragmented yet rapidly growing travel market.

Travel Distribution Summit India 2008

26-27 November 2008

The annual meeting place for India's online travel industry. The Indian online travel market is reaching a critical point in its evolution. Whilst the opportunities are huge, challenges and obstacles to growth must not be under-estimated. Attend this event to formulate the partnerships and strategies you need to succeed in India

Revenue Maximisation for the Travel Industry

26-27 November, Taj Lands End, Mombai, India

A 2 day conference looking at Revenue Management, a proven management strategy that ensures you manage yield and price and so substantially increase your profitability and Ancillary revenue a proven strategy to increase your profits. One LCC has generated an estimated US$334 million in 2007 through the sale on non flight product:

Revenue Management & Pricing in Travel Europe 2008

Munich, 2-3 December

In a period of economic uncertainty it has never been more important to re-visit your revenue and pricing strategies. Hear from top travel companies on how they plan to optimise revenue during this tricky period. This unique annual conference attracts Europe's leading revenue and pricing in travel experts and provides you with the key insight you need to benchmark your strategy and stay ahead of your competitors. Visit the conference website to find out how you can be a part of it!

Travel Distribution Iberian Peninsula

2-3 December, Barcelona

The Travel Distribution Iberian Peninsula comprises of the best in Online marketing, Travel Distribution, Web 2.0, Destination Marketing, Ancillary Revenue and the most important factors that are transforming Spain and Portugal into one of the most lucrative in Europe and the World (held in Spanish and English).

Hotel Revenue Management & Pricing Middle East

15-16th December 2008, Abu Dhabi

Cutting edge revenue and pricing techniques to maximise Middle Eastern hotel profit margins

Travel Distribution Summit Asia 2009

1st - 2nd April 2009, Singapore

Asia Pacific's largest meeting for the travel business, and the key networking hub of the the new year. 2009's schedule includes:
- Travel Distribution & Sales
- Revenue Management & Pricing
- Hotel Technology Forum
- Online Content & Conversion Strategies

Travel Distribution Summit Europe

19-20 May 2009

The event helps attendees sell more, reduce distribution costs, form lucrative distribution partnerships, price your product right and keep your customers happy.... key goals of any successful travel company!That why 1500+ decision makers attend each year making this the world's biggest event for online travel executive and heads of pricng and distribution.

Travel Payment Conference

19-20 May 2009, Part for the Travel Distribution Summit

With the credit crunch biting airlines, hotels and intermediaries are all looking to reduce the cost of taking online payments. This event will examine how the industry intends to do this and make payments more customer friendly.

Hotel Technology Forum

19-20 May, Bussiness Desighn Centre, London, Part of the Travel Distribution Summit

Evaluate the Best Distribution and Reservation and Distribution Technology for your Hotel.