Advito Forecasts Moderate Travel Price Hikes
Next year's corporate price increases for air, hotel and rental cars should be minimal and in line with inflation, according to the annual industry forecast from Advito, the consulting arm of BCD Travel. Soft demand likely will prevent significant airfare increases in Europe and the U.S., the report notes, while Latin America's increased demand could drive up fares by 2 to 3 percent in that region. Good deals likely will be found on Asia business-class fares, as well as many routes on Gulf carriers between Africa, Europe and the Asia Pacific region. Corporate hotel rates are expected to increase by about 2 to 3 percent overall, with the sharpest demand growth occurring in Latin America and Africa. Double-digit rate increases are likely in international cities like New York and Hong Kong, as well as in emerging cities such as Sao Paulo, Brazil, and Luanda, Angola, but rates in smaller cities should be far more negotiable. Meetings demand is growing faster than transient travel, according to Advito, resulting in moderate meeting-price increases. Supply growth continues to be very low in the North American and European markets, while new supply in China, India, Malaysia and Indonesia might lead to smaller rate increases in the Asia Pacific region. Lead times continue to shrink, which has resulted in decreased availability for preferred places and dates in North America and Europe. Hotels likely will increase meeting rates more sharply in 2014 than they have this year.