BCD Travel Consulting Releases Industry Forecast for Business Travel
Corporate airfares to increase up to 11 percent; hotels to rise up to 14 percent
London, 26 September 2006 – Corporate airfares will increase up to 11 percent next year, and hotel costs will rise as much as 14 percent in some markets, according to the BCD Travel 2007 Industry Forecast.
“Over the past two years, we’ve seen strong, sustained growth in business travel, and this continues to drive industry prices higher,” said Mary Ellen George, general manager of BCD Travel Consulting, which produced the forecast. “We expect growth – and high prices – to continue for at least the next two years.”
BCD Travel, the world’s third-largest corporate travel-management company, produces an industry forecast each year for clients. The forecast draws on BCD Travel’s extensive knowledge of the corporate travel industry, offering a look ahead to the next year.
The full BCD Travel 2007 Industry Forecast is available at www.bcdtravel.com (in the Information Centre section under “White Papers”). Here are a few of the report’s key predictions:
*Airfare increases: During the first six months of 2006, overall air passenger traffic grew by 6.8 percent. We expect this passenger growth rate to continue into 2007, resulting in corporate airfare increases of 7 to 11 percent.
*Hotel rates and supply: BCD Travel Consulting expects the 2007 average daily room rate to increase by 6 percent on average, with rate increases in some markets as high as 14 percent. We do not anticipate relief until well into 2008, when the supply of hotels begins to approach demand.
*International hotel rates: The Asia-Pacific and India regions are expected to see daily lodging rate increases from 14 percent to 17 percent. The same is true in the Latin American region, where lodging daily rate increases are currently tracking at 13 percent to 16 percent. Europe is experiencing minimal or negative daily rate changes.
*Meeting costs: Average group room rates will increase 3 percent to 5 percent in 2007. In popular meeting destinations, group room rates are expected to increase 8 percent to 9 percent.
*Car rental rates: Car rental rates will increase by 5 percent to 7 percent in 2007.
*Long lines and security: We expect travellers will continue to experience long lines at airport security checkpoints, overbooked flights and high airfares, and face increasing fuel surcharges as airlines offset operating costs with all available revenue sources.
BCD Travel
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