NEW YORK, NY – The American Express Global Business Travel Forecast 2015, predicts air, hotel and ground transportation prices to be neutral to slightly higher across all regions in 2015. At a country-by-country level, airline consolidations, stricter corporate travel policies and limited hotel supply are changing supply and demand dynamics and are also expected to impact pricing next year. In North America, an improving economy in the United States will likely cause price increases across all categories. Despite static economic progress across Europe, the United Kingdom is a brightspot for the region, with strong country-level financials and expectations for continued growth next year. Following years of positive growth predictions for Asia Pacific, the region is expected to experience more moderate price increases next year, as China stabilizes. In particular, this will be reflected in tempered hotel rate increases for the year. American Express Global Business Travel’s (“GBT”) annual Forecast provides subscribers with over two thousand pricing predictions across airfares, hotel rates, and car rental rates in the Americas; Europe, Middle East and Africa (EMEA); and Asia Pacific (APAC), as well as related travel management program recommendations.
“With new hotel supply limited in many major markets, air industry consolidation and a higher focus on yield management around the world, the slight increases in business travel demand expected should put more pricing power in the hands of suppliers next year,” said Patricia Partelow, Vice President, Head of Global Business Consulting, American Express Global Business Travel. “Consequently, it will become even more important for travel managers to have access to relevant and reliable data on their company’s travel spend. Armed with this insight, travel managers and their travel management companies can leverage it in supplier negotiations, as well as ensure an organization’s travel investments are appropriately allocated to support its overall business objectives.
“Although we have been producing the Forecast for over a decade, we’re proud to present our first edition as a stand-alone company equipped to power the development of the next generation of products and state-of-the art capabilities. We look forward to working with our clients to use this type of data and insight to deliver the greatest return on their travel investments.”
Americas Predictions & Dynamics
In North America, business travelers can expect price increases across travel categories in 2015. With an improving economy and greater corporate confidence, capacity discipline by US carriers, and the recent consolidation of the domestic market, airlines are predicted to raise their long- and short-haul fares in the coming year. Inventory controls are likely to improve yields for airlines, leading to fewer seats in lower fare classes on busier routes. In Canada, the Forecast predicts prices to rise as the country continues to benefit from the improving US economy. Additionally, North American companies continue to redefine their cabin eligibility policies, which may create greater opportunities for Asian and European carriers who offer distinctive “premium economy” classes for companies looking to book cheaper seating options with minimal traveler resistance. - See more at: http://www.traveldailynews.com/news/article/63428/regional-economic-climates-to-drive#sthash.PwmOlEel.dpuf
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