Each year Advito, a premier travel industry consultancy, produces a corporate travel forecast that benchmarks business travel expenses. Companies can use this to project a price range for airline tickets, hotel rooms and ground transportation costs for the markets in which they travel.

Key Findings From the 2015 Corporate Travel Forecast Include:

• Economists predict that the global economy will continue to improve, even with volatility in the Middle East and Ukraine. Businesses travel will grow, although companies remain cautious of spending, so travel growth will be moderate.
• Even though demand is up, airline ticket prices are not expected to increase dramatically. Competition is increasing in the short-haul routes of Asia and Europe and the long-haul Middle Eastern carriers, so carriers fear damaging demand by raising rates quickly.
• In the U.S. domestic market, consolidation has diminished competition, so prices are rising in some markets; however, airlines don’t want to risk consumer confidence with sharp fare increases which would damage the record profits they are already making. Travel Maestro tip: See Advito’s air savings recommendations on page 10 of the full report.
• Hotels are pursuing corporate rate increase of 6% to 8%, but the forecast suggests that they will accept much less from travel buyers who have a history of driving business to selected suppliers will be able to contain rate increases, much as in 2014. Travel Maestro tip: Find Advito’s hotel recommendations on page 25 of the full report.
• In the meetings market, there is a strong demand and little new supply, so it’s a seller’s market. Booking lead times are lengthening to secure better pricing and total pricing is sliding up with an increase in charges such as food and beverage service fees. Travel Maestro tip: See page 31 of the full report for more meetings recommendations.
• Corporate car rental rates have been flat for years, but 2015 may finally see a small increase in pricing. Travel Maestro tip: Find out how to keep your rates stable on page 34 of the full report.

The forecast also discusses ancillary fees, the sharing economy and ITM (integrated travel and meetings). Download the Advito Industry Forecast to stay in the know on key corporate travel trends in 2015 – then ask your Covington Account Manager how we can help you get ready for what’s ahead.