By Chelsea Franklin, Marketing & Communications Manager, Advito
If you missed the recent ACTE 2018 Corporate Travel Industry Forecast webinar, featuring Advito’s Bob Brindley and Jason Kramer, here are the highlights to help you understand the landscape in the year ahead:
- Expect a minimal rise in global airline prices due to the relatively low price of oil at US$50 barrel and a relative balance between capacity and demand.
- Hotel rates are expected to rise by 2 to 4 percent globally as demand outpaces capacity. There are exceptions in specific markets. For example, London prices may rise by double digits and those doing business in Argentina may experience rates 25 to 30 percent greater than 2017 due to the inflationary effects on currency devaluation. Take a look at the complete 2018 Industry Forecast here for predictions about specific markets where your company travels.
Our experts also examined emerging trends:
- No room at the inn at your preferred rate? It’s an increasingly common problem. Hotels are amping their yield management techniques to improve their profitability by increasing their average price and room rate. The result — plenty of inventory over weekends or on shoulder dates, but no rooms at preferred prices on the week’s busiest travel days. Buyers can level the playing field by using tools to monitor actual availability, noting negative trends to reopen negotiations with properties, switching to other hotel chains when appropriate, and using rate assurance plans to also take advantage of lower average rates.
- IATA’s New Distribution Capability (NDC) enables airlines to sell their products in much the same way as they do on their own websites. Yet the hype currently exceeds performance. For buyers to ensure they are getting the best deal, they need to examine each supplier’s offering in different channels, adding more layers of complexity to their process.
- Machine learning in mobile travel applications promises to help save money and reduce traveler stress by employing algorithms that “learn” traveler behavior and preferences based on how they are using the tools. Check out page 11 of the 2018 Industry Forecast PowerPoint presentation here to see what companies are providing outstanding service in this evolving realm.
Don’t miss any of the details you need to prepare for 2018. Take a look at the big picture by downloading a copy of our 2018 Industry Forecast at https://www.advito.com/2018-industry-forecast-for-corporate-travel/.