This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

American Express Global Business Travel Predicts Country-Specific Economic Trends And Supply-Side Dynamics To Drive Changes In Business Travel Prices In 2014

According to the American Express (NYSE:AXP) Global Business Travel Forecast 2014 (the “Forecast”), country-specific, rather than global, economic trends – such as Brazil’s preparation for upcoming global sporting events, Germany’s relative economic strength within the Eurozone and China’s slower but stabilizing growth – are expected to contribute to a slight uptick in business travel prices within specific regions. In addition, supply-side dynamics, including more low cost carrier options, weaker demand for business class air travel due to more stringent corporate policies and lack of new hotel construction (or oversupply in some areas) across specific regions are expected to have a greater impact on pricing changes. The Forecast provides subscribers with over 2,100 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.

“In this environment we recommend travel managers emphasize access to relevant and reliable data and reporting in order to really understand their travel program and to help ensure their travel investments are allocated to support their overall business objectives,” said Janey Whiteside, Senior Vice President and General Manager, American Express Global Business Consulting & Solutions. “Gaining this understanding can in turn help improve supplier relationships, illuminate compliance gaps and ultimately help enable companies to remain flexible and nimble enough to adjust to changing travel and business environments.”

Global Snapshot

 
2014 Global Business Travel Forecast
Region      

Short Haul Business Class

 

Long Haul Business Class

 

Short Haul Economy

 

Long Haul Economy

 

Mid-Range Hotel

 

Upper-Range Hotel

 

Car Rental Rates

North America       -13 to -8%   3% to 6%   0 to 3%   -4% to 0%   2% to 5%   3.5% to 5.5%   1% to 1.5%
Latin America       -2% to 2%   2% to 5%   -2% to 1%   -3% to 0%   4% to 8%   3% to 7%   3% to 3.1%
EMEA       -1% to 2%   0% to 3%   0% to 2%   -2% to 1%   0.4% to 6%   -0.4% to 4.2%   0% to 2%
APAC       0% to 5%   1% to 5%   0% to 4%   -1% to 3%   0% to 6%   0% to 6%  

Country-levelpredictionsare includedin Forecast.

                 

Americas Predictions & Dynamics

North America

Overall, North American business travelers can likely expect mixed price changes across travel categories in 2014. With minor exceptions, North American airfares are expected to decline in 2014 as a result of heightened competition from low cost carriers, challenging unemployment levels and corporate travel policies becoming more stringent in regard to business class travel. However, pending consolidation among major U.S. airlines may offset these expected declines.

1 of 5

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,131.97 +100.83 0.59%
S&P 500 1,998.98 +14.85 0.75%
NASDAQ 4,552.7590 +33.8570 0.75%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs