CHICAGO, December 8, 2015, – Corporate travel departments should expect to pay more for hotels in 2016 than was projected just three months ago, according to analysts at global business travel consultancy, Advito. Rates in five of seven regions are now expected to climb faster than projections from September indicated — with increased estimates in eight European markets.
Rising hotel rates is one of a handful of key trends emerging in the final weeks of 2015 that could affect corporate travel buying decisions. Potential savings from managing corporate travel effectively is particularly enticing to companies needing to balance savings with talent management and to attract qualified workers to job openings.
Other findings in Advito’s December update to the 2016 Industry forecast include:
- Low oil prices should curb any large hikes in airline fares next year
- U.S. hotels will continue tacking on fees for Internet, early check-in and other amenities
- Global hotel supply will become more concentrated as major chains like Marriott and Starwood consolidate
- Airline fuel surcharges will continue falling more in line with actual jet fuel prices
Advito’s annual Industry Forecast and quarterly updates help corporate travel buyers establish cost baselines for negotiating discounted corporate rates with travel suppliers. In addition to publishing its findings on global airline fares by class and hotel rates by key markets, Advito also educates corporate travel buyers to emerging trends in travel technology, pricing, and marketing that affect travel program costs and effectiveness.
The Advito 2016 Industry Forecast, released in September, features special sections on Travel risk and security, Airbnb, hotel program innovation and Lufthansa’s distribution cost charge. Advito’s trusted advice on travel risk and security has been of particular interest to travel managers following terrorist attacks in November on civilians in Paris.
Advito is the travel industry’s most progressive consultancy, enabling procurement leaders to modernize their approach to managing the travel and meetings spend category. Led by a unique team of multi-disciplinary experts and thought leaders, we work with both clients and suppliers to push the boundaries of traditional air and hotel sourcing and strategic meetings management for higher program returns. We provide advisory, procurement and outsourcing services in the area of corporate travel sourcing, expense and meetings management, along with RFP development and management; benchmarking and vendor management services. We minimize our clients’ travel spend and maximize their travel program value in a data-rich, consumer empowered world. Headquartered in Chicago, Advito operates in key business markets around the world. For more information, visit www.advito.com.
About BCD Travel
BCD Travel helps companies make the most of what they spend on travel. For travelers, this means keeping them safe and productive, and equipping them to make good choices on the road. For travel and procurement managers, it means advising them on how to grow the value of their travel program. For executives, we ensure that the travel program supports company objectives. In short, we help our clients travel smart and achieve more. We make this happen in 110 countries with more than 11,000 creative, committed and experienced people. And it’s how we maintain an industry-leading client-retention rate of 96%, with 2014 sales of US$24.2 billion. For more information, visit www.bcdtravel.com.
About BCD Group
BCD Group is a market leader in the travel industry. The privately owned company was founded in 1975 by John Fentener van Vlissingen and consists of BCD Travel (global corporate travel management), Travix (online travel: CheapTickets, Vliegwinkel, BudgetAir, Flugladen and Vayama), Park ‘N Fly (off-airport parking) and joint ventures Parkmobile International (mobile parking applications) and AERTrade International (consolidating and fulfillment). BCD Group employs over 12,500 people and operates in 110 countries with total sales of US$ 25.6 billion, including US$ 10 billion in partner sales. For more information, visit www.bcdgroup.com.