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PARIS,
LONDON, MUNICH, BRUSSELS, June 15, 2011 - Egencia™, an Expedia,
Inc. company, today unveiled its 2011 Corporate Global Travel
Benchmarking Study, evaluating the current business travel landscape
and supply environment for air and hotel. Focusing on top domestic and
international business destinations in Europe, North America and
Asia-Pacific, Egencia analysed industry trends, supplier data
and capacity implications in Q1 2011. Additionally, Egencia
surveyed nearly 350 travel buyers globally regarding travel programme
expectations, policies and challenges.
"We strive to provide our customers with the most insightful knowledge of the market so that they're able to adjust their travel policy and negotiatewith suppliers," said Jonny Shingles, Managing Director, Egencia UK. "Our proprietary solution enables us to have access to data very easily and to pass them on to our clients via our annual studies which clearly reflect industry trends." The study reveals that:
For full study: https://www.egencia.co.uk/public/uk/en/promotion/landing-supply-benchmarking/?Campaign_ID=701200000004AvZ MAIN HIGHLIGHTS Average Ticket Prices (ATPs) Europe European airlines are tightly maintaining their capacity discipline in 2011. European businesses are slowly increasing travel demand both domestically and Internationally; this has resulted in an increase in average ticket prices for specific business destinations (Dublin, Munich and Frankfurt), though the picture is more varied and not as clear cut as in North America. Increased ATPs can be attributed to rising fuel prices (although the fuel price in Euros hasn't risen as much as the fuel price in USD due to currency fluctuations), tightly managed capacity by airlines, and airline consolidation and alliances. Tax increases in UK and Germany have also contributed to rising prices. Conversely, in some areas of Europe, prices are being driven downward. The main factor is that competition between airlines has increased, especially due to low-cost carriers and high-speed rail. Airlines have adjusted their products and services accordingly. Compared to 2010, the trend of ATP changes YoY has stayed the same; i.e. the ATP upward trend for North American destinations and downward trend for European destinations in general. The chart below illustrates Q1 YoY ATP figures in top business destinations for European points of sale.
Sources ARC, Smith Travel Research, OAG, Expedia Internal Analysis Local currency North America As a result of increased cost pressures in Q1 2011, ATPs have increased for most routes departing from North America. These increases can be largely attributed to higher fuel prices, tight management of capacity, strong demand on major corporate routes, and continued airline consolidation. YoY has remained the same: Average Ticket Prices continue to go up on domestic destinations, while going slightly down for overseas destinations. The chart below illustrates Q1 YoY ATP figures in selected business travel destinations for North American points of sale.
Sources ARC, Smith Travel Research, OAG, Expedia Internal Analysis Local currency APAC Asia-Pacific represents a truly heterogeneous air pricing landscape, varying on a market-by-market basis. However, as a whole APAC is averaging a decrease in overall ATPs. Prices for Intra-APAC destinations have decreased by an average of two percent YoY, with prices for North American destinations down by an average of one percent YoY. Decreased ATPs can be attributed to increased competition in the local markets, increased capacity on majority of routes, and the domestic and international pricing battle for Australia. Increased ATPs can be attributed to the mixed capacity environment for APAC destinations, increased fuel cost, potential of joint-ventures on trans-Pacific routes, and increased demand into India and China. The chart below illustrates Q1 YoY ATP figures in top business destinations for APAC points of sale.
Sources ARC, Smith Travel Research, OAG, Expedia Internal Analysis Local currency Hotel Average Daily Rates (ADRs) In the first quarter of 2011, hotel ADRs increased in most major business destinations, reversing the downward trends from the previous year. The increase in ADRs can be attributed to the return of corporate demand, reduced scale of new supply, improved occupancy, and higher air capacity. The charts below illustrate Q1 YoY ADR figures in selected business travel destinations globally.
Sources ARC, Smith Travel Research, OAG, Expedia Internal Analysis Reflected in local currency for each city Travel Management Trends According to respondents of Egencia's survey of nearly 350 travel buyers, 54 percent of buyers expect their travel volumes to increase during the remainder of 2011, with 17 percent planning to change their travel policies during the year. Additionally, 38 percent of travel buyers said they will negotiate more this year than they did in 2010. Travel Managers universally identified cost control/reducing spend as the greatest challenge facing travel programs. Specific rankings of travel program challenges are as follows:
For full study: https://www.egencia.co.uk/public/uk/en/promotion/landing-supply-benchmarking/?Campaign_ID=701200000004AvZ Research Methodology Forecast and projections are based on the statistical analysis of the past and present industry trends, macroeconomic factors, market research and vendors' capacity forecasts for 2011. Smith Travel Research (STR) and OAG filings were leveraged for a market-level analysis of both Lodging and Air capacity. ARC, STR and Expedia Internal Data were used for market-level analysis of pricing. About Egencia, an Expedia, Inc. Company Egencia is the fifth largest travel management company in the world. As part of Expedia, Inc., (NASDAQ: EXPE), the world's largest travel marketplace, Egencia helps businesses get ahead by offering the only truly integrated corporate travel service. Egencia's industry expertise helps drive results that matter, delivering meaningful advancements that have a real impact. By combining a powerful offline and online service, Egencia delivers a complete corporate travel offering supported by global market expertise and a best-in-class technology platform. For more information, go to http://www.egencia.co.uk This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are not guarantees of future performance. These forward-looking statements are based on management's expectations as of the date of this press release and assumptions which are inherently subject to uncertainties, risks and changes in circumstances that are difficult to predict. Actual results and the outcome of events may differ materially from those expressed or implied in the forward-looking statements for a variety of reasons, including declines or disruptions in the travel industry caused by, among others, prolonged adverse economic conditions, health risks, increased adverse weather, natural disasters such as earthquakes or volcanic eruptions, war and/or terrorism and bankruptcies. Egencia and the Egencia logo are either registered trademarks or trademarks of Expedia, Inc. in the U.S. and/or other countries. Other logos or product and company names mentioned herein may be the property of their respective owners.© 2011 Egencia, LLC. All rights reserved. CST # 2083922-50 |
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