Steady growth forecast for business travel
Business travel will experience steady, if unspectacular growth during 2006 with GDS deregulation continuing to dominate the industry, FCm Travel Solutions has predicted.
Managing director Alan Spence forecast growth of 5%, marginally ahead of last year’s 4% increase, with India and China expected to be among the strongest markets.
He stressed steady growth was far more preferable than a “boom or bust scenario.”
Spence said: “The industry has faced up to so many challenges in the last four years, from terrorist acts to SARS and the impact of the internet, but we have come through that and 2005 has been a positive year,” he said.
“Average air fares are still down but transactions have grown steadily and we intend to build on that. 2006 will be a good year barring any accidents. I don’t think business travel is necessarily going to see any spectacular development, but steady growth is far more preferable than a boom or bust scenario.
“India and China have opened up and are competing in terms of price so we are definitely seeing more clients travelling to those markets from the UK.”
Spence predicted rail travel could experience a renaissance in 2006 as improved service, schedules and rolling stock make it a more attractive proposition.
“The rail companies seem to be getting their act together and so travelling by rail for business purposes has become much easier and quicker.”
He added that GDS deregulation and APIS – Advanced Passenger Information System – will dominate the travel agenda.
“If deregulation gets the green light and certain airlines decide to sell their seats through one particular GDS, that will limit choice and have a dramatic effect on the corporate customer,” said Spence.
“And the extra work involved in gathering data to meet US security requirements could also become an issue for TMCs. We are already looking at how we handle this in readiness for when APIS comes into effect.”
Report by Steve Jones
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