Business travel trends forecast for 2015-16

Modest economic growth and shifts in supply and demand expected
The American Express Global Business Travel Forecast 2015 says that air and hotel prices will remain stable this year as China’s economic growth slackens, legacy airlines continue to dominate in the face of low-cost upstarts, and local companies remain cautious.
The forecast predicts air, hotel and ground transportation prices to be neutral to slightly higher across all regions this year. But airline consolidations, stricter corporate travel policies and limited hotel supply are changing supply-and-demand dynamics and are expected to impact pricing next year.
An improving economy in the United States will likely cause price increases across all categories there. Despite static economic progress across Europe, the United Kingdom is a “bright spot” for the region, the forecast says, with “strong country-level financials and expectations for continued growth next year”.
Asia Pacific, following years of positive growth predictions, is expected to experience more moderate price increases over the next year as China stabilises. In particular, this will be reflected in tempered hotel rate increases for the year.
“With new hotel supply limited in many major markets, air industry consolidation and a higher focus on yield management around the world, the slight increases in business travel demand expected should put more pricing power in the hands of suppliers next year,” said Patricia Partelow, vice president and head of global business consulting at American Express Global Business Travel.
TTG Nordic
[pictured: Cathay Pacific business class; courtesy Cathay Pacific]

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