American Express Global Business Travel’s Forecast: Modest price gains
The American Express Global Business Travel Forecast 2016 predicts air, hotel and ground transportation prices will see modest gains in 2016, as a slowly-improving global economy and stronger demand outpace increases in supply. Led by favourable market conditions in North America and moderate growth in Asia, the airline industry will see small pricing gains as increased demand is offset by similar growth in capacity, partially spurred by lower fuel costs.
Global hotel performance is also expected to improve moderately in 2016, as limited increases in inventory fail to keep pace with the growing global appetite for travel. Overall, North America is expected to continue its momentum from 2015 and experience healthy rate increases, while Asia-Pacific and Europe will show temperate gains. Ground transportation rates are expected to remain relatively flat as overcapacity, strong competition and a continued focus on ancillary fees persist globally.
Travel management program recommendations
American Express Global Business Travel's ("GBT") annual Forecast provides subscribers with over 1,800 pricing predictions across airfares, hotel rates and car rental rates in the Americas; Europe, Middle East and Africa (EMEA); and Asia-Pacific (APAC), as well as related travel management program recommendations.
"While we expect modest increases in global travel prices heading into 2016, travel managers are operating in an era of new challenges and evolving disrupters," said Caroline Strachan, Vice President, Consulting, American Express Global Business Travel. "In addition to handling tasks such as measurement and compliance, new factors such as the sharing economy and mobile booking channels are becoming increasingly popular for business travellers. In order to thrive in this digital era, travel managers need to be aware of and dynamically adapt to these forces across a variety of geographies."
EMEA Predictions & Dynamics
In 2016, European air prices are expected to remain relatively stable, with the exception of premium cabin travel costs, which are expected to tick higher. Variability persists across the region, however, the United Kingdom is poised for another strong year with steady demand and new routes being added among airlines. Air prices are expected to remain stable in the Nordic countries, despite the expansion of Low Cost Carriers (LCCs) across the region. Taking advantage of their new, highly efficient fleets, these carriers will put pressure on short-haul Economy fares. Continued pressure from both LCCs and Gulf Carriers will place strong downward pressure on fares throughout Europe, particularly on short- and long-haul routes to Asia.
In the Middle East, the combination of rapid capacity growth by Gulf Carriers and lingering weakness in the region's oil-based economies are generally pushing prices lower, with the exception of premium long-haul fares. In Africa, airfares are expected to increase slightly in 2016 as a result of protectionist policies impacting intra-regional flights and higher infrastructure costs. Given Africa's limited ground infrastructure, air travel to and from the continent continues to be the most convenient method of travel. However, high operating costs, a lack of low-cost carriers (outside of South Africa), and stringent intra-continental regulation are expected to support fare increases within the region.
While increased competition and growing demand for smaller, more fuel-efficient vehicles should keep base fares relatively flat in 2016, the average daily rates for ground transportation in Europe, the Middle East and Africa are all expected to rise in 2016 on higher ancillary expenses. Car-sharing services will also see significant growth in 2016 as major car rental companies make further investments in this area.
EMEA Airfare & Car Rental Forecast
Short-Haul Long-Haul Short-Haul Long-Haul Car Rental Base
Region Business Class Business Class Economy Economy Rates
Europe -1% to 2% 1% to 3% -2% to 1% -3% to 0% -1% to .5%
Middle East
& Africa 2% to 5% 1% to 3% 2% to 3% 0% to 1%
Source: American Express Global Business Travel Forecast 2016
In 2016, hotel rates across Europe are expected to experience moderate price increases, as Europe's economy stabilises and demand increases without much corresponding growth in inventory. Growth will generally be stronger in larger cities where the weaker euro is spurring increased tourism. In the Middle East and Africa, an increasing inventory of mid-range offerings will provide travellers with more affordable choices, but rates will still rise on stronger economics in 2016.
EMEA Hotel Forecast
Region Mid-Range Hotel Upper-Range Hotel
EMEA 1.7% to 3.3% 1.8% to 3.5%
Source: American Express Global Business Travel Forecast 2016
RELATED TOPICS: Greece, Greek tourism news, Tourism in Greece, Greek islands, Hotels in Greece, Travel to Greece, Greek destinations , Greek travel market, Greek tourism statistics, Greek tourism report
FTI provisional insolvency admin strives for fastest possible solutions for clients
Japan's Princess Kako tours Greece and visits National Foundation for the Deaf in Corfu
Turkey denies allowing Lord Elgin take Parthenon Marbles off Athens Acropolis
Regalia of King Otto on display in the Greek parliament in Athens until 2073
Migration & Asylum Ministry greenlights extra funding for 5 Greek island municipalities
Greek wine promotion event in London held under the auspices of GNTO
Conference and Summit of Global Archons conclides with dinner at Zappeion
Posidonia 2024: Minister wants more ships and related firms registered in Greece
Eight groups submit expression of interest for Greek port of Lavrio
Traffic restrictions in Athens on Sunday morning for Cancer Survivors Day event
Piraeus Port and Genoa Chambers of Commerce ink memorandum of cooperation
Sailing from ports of Piraeus and Lavrio back to normal after high-velocity winds end
New Democracy chief to attend Barack Obama event at SNF on Thursday
American Express report highlights Global Travel Trends during 2024
Greek and Swiss ministers meet in Athens on investments and cooperation
Tsakopoulos Collection & Hellenic Studies Program marked their 20th anniversary
'Greece through the Art of the Tourist Poster' exhibition in Chengdu of China
Greek Culture Minister hosts Turkish counterpart for ‘Romeo and Juliet’ premiere
Economist Conference in Thessaloniki: Minister and construction firms talk sector
Payment by bank cards now accepted on Athens Airport Express bus lines
Athens State Orchestra presents 'St. Matthew's Passion' by Bach on April 30th