Meetings will only become more expensive: BCD Travel
BCD Travel has just released their 2008 Industry Forecast, and it seems that the industry is set to see published fares lift by between 2-4%, ...

hotel rates lift 6-9% and the continual surge of the meetings market.

Powered by Advito, the report is produced every year by the corporate travel management company, and it appears that the outlook for 2008 is bright, with no apparent deflation of the travel sector.

But of course this comes with a catch – higher prices.

“We expect growth, and higher prices, to continue through 2008,” said Mary Ellen George, Advito General Manager.

“Over the past two years, we’ve seen strong, sustained growth in business travel, and this continues to drive industry prices higher,” she added.

Whilst Advito is forecasting a global published airfare lift of up to 4%, it has also added that corporate airfares are likely to lift no more than 2%, due to more airlines providing corporate discounts.

Hotel rates and supply globally will tend to fluctuate from region to region with some Asian and Middle Eastern countries expecting double digit growth, and some European hotels to hold somewhat steady due to current overcapacity.

In spite of this, average daily rates in most countries are expected to continue to grow at rates of between 6-9%.

On the rail front it is expected that the consolidation in Europe will see rail prices lift, and car rental prices globally will lift between 5-7%, the report predicted.

In the current market climate, travelling for any purpose, leisure or business is expected to lift, but corporate budgets to high-demand destinations, like Asia and the Middle East, are expected to become more stretched, with average group room rates increasing 8-10% in major markets.

“Tight market conditions are placing a higher demand on the skills and expertise of travel buyers and travellers to meet travel policy requirements and effectively conduct company business,” commented Ms George.