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
European report confirms 95.8% of bathing waters in Greece have 'excellent quality'
Greek FinMin utilizes Recovery Fund, NSRF to be in vanguard of green transition
Former US Secretary of State Pompeo addresses Archon Conference in Athens
Greek PM: We will continue to work hard to curb rising prices
'The Enigma of Keros' clinches Audience Favorite prize at International Festival in Oregon
Princess Kako takes part in 125th anniversary of Greek-Japanese diplomatic relations
Delegation from the Saudi Arabia visits ONEX shipyards in Elefsis near Athens
Türkiye's Ambassador to Athens on boosting economic, commercial, and cultural relations
National Opera offers free tickets to the dress rehearsal of 'Tosca' for the jobless
4th International Conference on Religious Freedom of Archons commences in Athens
Outgoing Mayor Kostas Bakoyannis notes he left behind Athens a better city
Cruise ship 'Azamara Onward' docks in Greek port of Thessaloniki
New Evinos bridge in Central Greece inaugurated by Transport Minister
Climate Perception: Greece most resilient to global warming among Med destinations
Greece hosting meeting of International Organization of Securities Commissions May 26-29
Greek government to improve ties with Diaspora and consular services by AI
Greek Deputy Foreign Minister highlights efforts to counter brain drain
Greece doubles Golden Visa threshold for foreign investors wanting passport
Greek Deputy Transport Minister flies in first test seaplane flight from Lavrio port
Greek Prime Minister meets with Turkish President in Ankara (video)
Greek Foreign Minister congratulated new Serbian counterpart on assumption of duties
HFSF announces successful conclusion of Attica Bank's share capital increase scheme