Corporate travel experienced moderate growth throughout 2011 as companies continue to cautiously reinvest in this important aspect of their overall business, albeit with an ongoing focus on cost control and efficiency. This rebound in corporate travel is likely to continue into 2012, according to Egencia.

Egencia forecasts that many suppliers will implement slight to moderate price increases in 2012, coinciding with a limited increase in travel demand based on modestly improving market conditions.

Based on Egencia’s 2012 Global Corporate Travel Forecast, airline average ticket prices (ATPs) overall for business travellers to top business travel destinations are expected to be:

Slightly up (4%) for European points-of-sale
Slightly up (4%) for North American points-of-sale
Slightly to moderately up (6%) for Asia-Pacific points-of-sale

The hotel environment continues to show signs of year-on-year growth relative to increased corporate demand, resulting in improved hotel occupancy worldwide. In key destinations for 2012, Egencia forecasts average daily rate increases in:

Europe (up 2%)
North America (up 5%)
Asia-Pacific (up 7%)

“As of today, we haven’t seen business travel slowing down for our clients. During these uncertain economic times, companies remain cautious but, so far, haven't shown willingness to reduce overall travel spend. That being said, they are ready to take action if needed,” said Christophe Peymirat, Vice President, Global Marketing, Egencia. “The objective of our annual forecast is to provide companies with insights that can be leveraged to positively influence their 2012 planning and negotiations. So they can effectively save in the coming year.”

Europe Outlook

“Next year, air and lodging trends will be moving upwards, so the negotiating climate will be challenging for buyers,” said Germain Huber, Vice President Supplier Relations & Consulting, Egencia Europe. “That being said, there is still room for savings by leveraging the negotiating power of a TMC, booking airline tickets in advance, requiring pre-trip approvals or enforcing travel policies rigorously. And this is where Egencia technology turns out to be very helpful.”

ATPs

European businesses are slowly increasing travel demand both domestically and internationally; air prices for business travel will remain slightly up for flights to top business destinations with a few notable exceptions, including Paris, Marseille, Frankfurt, and Milan.

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