Buyers Expect Better Year for Business Travel, but Rising Rates and Tough Negotiations Loom
Big Jumps Anticipated for International Airfares and Hotel Rates
Highlights from the report include:
- Buyers expect travel prices to increase substantially in 2013, from 4.6% for domestic economy airfare (to $492/trip) to 8.3% for international economy airfare (to $1,318/trip).
- Hotel rates will also see marked increases, from 3.7% for domestic hotels ($161) to 8% for international ($297).
- However, buyers expect just a 2.9%increase of their budgets – which will struggle to keep pace with projected rate hikes.
- International travel prices will experience the largest price jumps, signaling healthy demand and a recovery in global business travel. International travel spending should comprise 30% of total business travel budgets according to those surveyed.
- A majority of travel managers said higher rates (65%) and airline fees (60%) will be the top factors driving higher spending in 2013. Two in five travel buyers (42%) believe that higher spending will be driven by more trips and 33%expect to spend more because they are putting more travelers on the road.
- Travel buyers are gearing up for a challenging negotiating landscape with hotels, airlines and meeting venues. In fact, nearly half of buyers (48%) think that negotiated discounts with hotels will be worse in 2013; 29% say the same about airline discounts and 28%about meeting venues.
- Travel buyers are slightly more optimistic about the state of the economy: 37% feel it's doing better, 48% believe it's the same and only 15% say it's worse. Half (50%) feel the economy will improve over the coming year and 47% believe the business travel industry will be in better shape as well.
The GBTA 2013 Industry Pulse: Business Travel Buyers Sentiment report surveyed 297 travel buyers in the U.S. in October 2012. The report is available exclusively to GBTA members by clicking here and non-members may purchase the report through the GBTA Foundation by emailing email@example.com.
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About the Global Business Travel Association
The Global Business Travel Association (GBTA) is the world"s premier business travel and meetings trade organization headquartered in the Washington, D.C. area with operations on six continents. GBTA"s 8,000-plus members manage more than $345 billion of global business travel and meetings expenditures annually. GBTA and the GBTA Foundation deliver world-class education, events, research, advocacy and media to a growing global network of more than 28,000 travel professionals and 125,000 active contacts. To learn how business travel drives business growth, visit www.gbta.org.