Copenhagen, December 4, 2013 – Global economic growth will be stronger in 2014, as advanced economies continue to recover. But that recovery won’t translate into an across-the-board uptick in airfares and hotel rates, according to the update released this week by market-leading consulting firm Advito to its 2014 Industry Forecast.
“The increasing capacity in the Gulf region and low-cost expansion in Asia requires a greater need to advise our clients so they always are offered the best possible trip. That is why we continuously improve our products and train our staff, so they are ready to advise customers of these changes.For example we have just introduced a new and improved version of our unique Online Booking Tool, Nordic Business Online. The tool gives travelers a number of new opportunities for themselves to book trips”, says Per Markussen, VP Commercial, BCD Travel Nordic.
Advito, an arm of BCD Travel, continually monitors changes in economic growth, inflation, travel demand and oil prices. It revises its annual Industry Forecast each quarter to highlight subsequent updates to the original air and hotel pricing predictions.
Following are a few of the update’s key findings:
- Weaker than anticipated business travel demand growth in Europe is making it difficult for airlines to maintain fare increases, so Advito’s update calls for regional fare development to remain flat.
- As a result of low-cost carrier expansion in Asia, Advito has lowered by 2 percentage points its original forecast for regional airfare increases.
- With capacity rising thanks to the opening of Dubai’s second airport and a steady flow of new intercontinental routes to the Gulf, Advito is trimming by 2 percentage points its forecast for Middle East intercontinental fare rises.
- Demand growth is outpacing capacity in Latin America causing Advito to adjust its earlier prediction for airfare increases for regional economy upward from 3% to 5%, and for intercontinental business from 3% to 4%.
- Stronger than expected demand for hotels in London will drive overall average daily rates upward in the U.K.
The update and the original Advito 2014 Industry Forecast are available at www.advito.com (in the Resource Center section under “White Papers”).
Nordic Press Contact
Vice President Commercial, Nordic
Phone: +45 2895 4617
Advito provides travel-management advisory, procurement and outsourcing services that guide clients through a complex travel environment. Our focus on consulting delivers proven value, unbiased counsel and a customized approach for every client and every engagement, together with industry expertise and access to data to drive quantifiable decision-making. We are headquartered in Atlanta, and operate in key business markets around the world. We are an independent operating unit of BCD Travel, the world’s third-largest travel management company, owned by BCD Holdings N.V. 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 nearly 100 countries with almost 11,000 creative, committed and experienced people. And it’s how we maintain an industry-leading client-retention rate of more than 95%, with 2012 sales of US$21.2 billion. For more information, visit www.bcdtravel.com.
About BCD Holdings N.V.
BCD Holdings N.V is a market leader in the travel industry. The Dutch, 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 and Vayama), Park ‘N Fly (off-airport parking), TRX (travel transaction processing and data integration), Airtrade (consolidating and fulfillment), VakantieXperts (leisure) and Parkmobile International (mobile parking and traffic applications). BCD Holdings employs more than 13,000 people and operates in almost 100 countries with total sales, including franchising, of US$22.8 billion. For more information, visit www.bcd-nv.com.