Average daily hotel rates and average ticket prices in the first quarter increased overall in business destinations in North America, Europe and the Asia Pacific region, according to Egencia's 2012 Global Corporate Travel Benchmarking Study and Travel Manager Research, released yesterday. The study did not focus on other regions. For the study, the online business travel agency analyzed industry trends, supplier data and capacity information, and surveyed more than 300 travel buyers internationally.
Average daily hotel rates were up approximately 6 percent over last year in North America destinations, 3.3 percent in Europe and 5.7 percent in the Asia Pacific region. In most cases, strong demand, coupled with a slowed increase in supply, accounted for the price change. Strong percentage increases were found in Boston (+6.4 percent), Chicago (+5.9 percent) and Calgary, Alberta (+5.6 percent). In Europe, leading the way were Stockholm, Sweden (+9.2 percent), Dublin, Ireland (+6.5 percent), and Marseille, France (+6.3 percent). Notable rate increases in the Asia Pacific market included Jakarta, Indonesia (+23.6 percent), Seoul, Korea (+15.4 percent), and Hong Kong (+12.4 percent).
Average ticket prices, meanwhile, were up by about 6 percent year-over-year in North America and Europe, and an average of 3 percent in the Asia Pacific region. In North America, the increase was driven by higher fuel prices, tighter management of capacity and continued airline consolidation, the study found. Double-digit increases were reported for Minneapolis (+12.5 percent) and Atlanta (+11.4 percent). European ticket-price increases likewise were driven by rising fuel prices and tightly managed capacity; notable decreases, however, were attributable to overall financial vulnerability, and increased competition from low-cost carriers and high-speed rail. In the Asia Pacific region, markets varied considerably; increases were due in large part to fuel costs and increased demand in China. But capacity has increased significantly in the region, leading to decreases in some destinations.
The full study can be found here.