Advito’s 2016 Industry Forecast outlines opportunities and potential pitfalls for business travel buyers. The consulting firm’s analysis indicates airfares will remain relatively flat next year, but hotel rates will continue going up—increasing as much as 5% in 2016.
The recently released forecast—which offers details on seven distinct regions around the globe—allows travel buyers to benchmark how much they can expect to pay for airline tickets and hotel rooms in major markets. It also includes insights on trends like Lufthansa’s distribution changes, Airbnb’s effect on corporate bookings and total hotel program management. Among the Industry Forecast highlights:
Airfares
Airlines continue to enjoy the benefits of cheaper oil, and the savings gives airlines the confidence to expand capacity. That increase in supply will halt airfare hikes in most markets in 2016, and drive them down in regions where competition is intense. But be warned: The air pricing environment could change very quickly if oil prices shift significantly.
Here’s a look at some regional variations for airfares:
- Business fares will be stable in North America, Europe and Asia, but they’ll fall by 2% to 3% for intercontinental travel in the rest of the world.
- For regional trips within Latin America and Southwest Pacific, business fares are likely to rise.
- Economy fares will fall in most markets, with the biggest decreases likely in Africa and the Middle East.
- Fares should only increase in North America and Latin America in response to strong demand for regional travel in these markets.
Hotel rates
As demand recovers in North America and Europe, a lack of new supply will enable hotels to increase prices. Rates also will rise in Latin America, reflecting continued strong demand. Conversely, widespread openings, specifically in China and India, will keep average daily rates down in Asia.
To help travel buyers navigate the changing accommodation landscape, the Industry Forecast features a three-step plan for innovating within corporate hotel programs. In addition, the latest edition of the Industry Forecast is redesigned and organized by region; it gives an in-depth look at air and hotel trends ahead in seven global markets.
Get more analysis and insights by downloading the 2016 Advito Industry Forecast. Want to discover how to use the insights to improve your travel program? Talk to your BCD Travel account manager or email Advito at [email protected].
