Industry Research

Companies Cautious, But Not Cutting Back On Travel Spend

Posted on November 2, 2011

BELLVUE, Wash. — Expedia Inc.’s corporate travel arm, Egencia, has released its 2012 Corporate Travel Forecast and Hotel Negotiability Index, finding that airline average ticket prices and hotel average daily rates for top corporate travel destinations will be slightly up overall in Europe, North America and Asia-Pacific.

“As of today, we haven't seen business travel slowing down for our clients,” said Christophe Peymirat, vice president of global marketing for Egencia. “During these uncertain economic times, companies remain cautious but, so far, haven't shown willingness to reduce overall travel spend. That being said, they are ready to take action if needed. The objective of our annual forecast is to provide companies with insights that can be leveraged to positively influence their 2012 planning and negotiations. So they can effectively save in the coming year.”

The hotel environment continues to show signs of year-on-year growth relative to increased corporate demand, resulting in improved hotel occupancy worldwide. In key destinations for 2012, Egencia forecasts average daily rate increases in:

  • Europe (up 2%)
  • North America (up 5%)
  • Asia-Pacific (up 7%)

According to a survey  of more than 250 travel buyers in Europe and North America respondents, 43% of European buyers (versus 23% last year) and 42% of North American buyers (percentage is flat year-over-year) have slightly or significantly increased travel during the last six months, signaling a continued rise in overall travel demand.

Mobile devices are becoming increasingly important to today's travel managers, with 80% of European respondents saying that mobile devices/functionalities are moderately important to very important to their travel programs. Respondents identified the following as the most important uses for mobile technology during business travel.

  • Online check-in (77%)
  • Check flight status (68%)
  • Urgent destination/flight alerts (56%)
  • Paperless boarding (56%)

Read the rest of the report here.

Download the full 2012 Global Travel Forecast and Hotel Negotiability Index here.

Source: PR News Wire

Related Topics: business travel, corporate travel, mobile applications, research and trends

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