Christopherson Andavo Business Travel is a member of the National Business Travel Association. The below article is one of the many we have received from them with regards to travel forecasts in 2010.
The National Business Travel Association (NBTA) — the leading global business travel organization — has provided its members with the 2010 U.S. Business Travel Buyers’ Cost Forecast. This latest installment of the widely-respected annual tool for the U.S. corporate travel industry forecasts the following ranges for changes in travel rates/fares:
|Average U.S. Domestic Rates / Fares|
expected for 2010
|AIR||$299*||-2% to +3%*|
|HOTEL||$136||-2% to – 8%|
|CAR RENTAL||$46||-1% to -3%|
|* Airline ancillary fees may increase the cost
of an airline ticket by 30% or more
With air travel and car rental costs expected to remain nearly flat and hotel rates expected to decline, businesses expect to travel more. That growth in travel is expected to lead to increases in travel expenditures.
- Nearly 7 in 10 (69%) of travel managers responding to an NBTA survey expect business travel volume to grow in 2010.
- 56 percent of travel managers project their total travel spend to increase in 2010; another 31 percent expect their total travel spend to remain flat year over year
Travel and meetings buyers also expect to see an easing of travel & meeting reductions in 2010. Compared to the previous year, the percentage of travel managers expecting to see cuts has gone down in the following areas: number of meetings (-27%), non-essential travel and conference (-20%) and event attendance (-15%).
In the new business travel environment, corporate travel managers expect to drive good values with preferred travel suppliers:
- 70 percent of buyers expect to negotiate better hotel discounts for 2010.
- More than 30 percent forecast better discounts with airlines, and car rental companies.
The NBTA 2010 U.S. Business Travel Buyers’ Cost Forecast is based on primary findings from an online survey completed by 180 U.S.-based NBTA Direct Members (corporate travel buyers) between the dates of August 13 and September 24, 2009, as well as additional analysis of data collected from sources such as the Bureau of Transportation Statistics, Smith Travel Research, IHS Global Insight, and the International Air Transport Association (IATA).