American Express Global Business Travel today released first quarter figures on business travel pricing trends from its Business Travel Monitor for trips originating in North America and going to both domestic and international destinations. Domestic airfares this quarter have pushed past the pre-recession levels of Q1 2008 and hotel rates are on the rise. Q1 2011 Business Travel Monitor Highlights:
- Average domestic airfares increased ten percent (10%) in Q1 2011 vs. Q1 2010 to $247, surpassing the pre-recession average in Q1 2008 which was $233
- Average international airfares increased eight percent (8%) in Q1 2011 vs. Q1 2010 to $1866
- Average domestic hotel rates increased three percent (3%) in Q1 2011 vs. Q1 2010 to $150
- Average international hotel rates increased four percent (4%) in Q1 2011 vs. Q1 2010 to $238
|Year||Q1 Domestic Average Airfare Paid||Q1 International Average Airfare Paid|
Executives continue to emphasize the opportunity and value of business travel and meetings as respondents from the survey say that roughly half of their prospective clients are converted to new clients with in-person meetings versus a little bit less than one-third that are converted without.Hotels The moderate increases seen in average room rates are in line with American Express Global Business Travel’s forecast expectations as demand in travel increases. “With the moderate rate increases we’re seeing this year that are due to increase in demand, companies need to be vigilant in ensuring travelers receive their corporate negotiated rate. Hoteliers are likely to try to continue increasing rates particularly, as we head into the negotiating season. However, companies that keep a close eye on market conditions and benchmarking actual rates paid in key travel destinations will be better positioned to maintain their discounts,” said Manning. Manning concluded: “One way to combat rate increases in 2012 would be to lump group travel volumes with transient commitments thus leveraging total travel activity to maximize savings. Meetings are certainly part of the demand equation and will play a contributing factor in specific market rate changes next year.”
|Year||Q1 Domestic Average Hotel Rates Paid||Q1 International Average Hotel Rates Paid|
|City||Q1 2010||Q1 2011||PercentChange|
|San Francisco, CA||$178||$206||16||%|
|New York, NY||$270||$290||8||%|
The Business Travel Monitor includes both average published and business traveler purchased air fares captured across hundreds of domestic and international routes, including unrestricted first class, business, economy, and discounted, restricted economy air fares. The methodology for the average air fare paid is the one-way price paid by all travelers booked through American Express Global Business Travel, including taxes and fees at ticketing point of sale, for all routes.Average booked hotel rates, both international and domestic, represent the total spending of all American Express Global Business Travel clients, excluding taxes, divided by the total number of room nights confirmed. The full Business Travel Monitor includes hotel averages by major city neighborhoods and category of hotel by price range. The average daily cost for car rentals is drawn from American Express Corporate Card data and includes all charges incurred, including mileage, gas, tax and insurance, divided by the average length of rental. Data for the distribution of rental class categories is drawn from all rentals booked by the entire American Express Global Business Travel customer base. About the Research To conduct the study, Oxford Economics carried out surveys of 500 global business travelers and executives in the United States, United Kingdom, Germany, Brazil, and China. In addition to this, an econometric analysis covering 190 countries tested for causal relationships between business travel and national economic performance. The full report, Business Travel: A Catalyst for Economic Performance, is available free online on WTTC.org and by clicking here. About American Express Global Business Travel American Express Global Business Travel, a division of American Express Company, is a global industry leader in business travel and meetings management committed to helping businesses succeed through cost-effective program management, world-class customer service, and enhanced traveler productivity and support worldwide. Through leading online, offline and on-the-go solutions, consulting services, business insights and research, supplier negotiation expertise, and meetings and events capabilities, innovative services are delivered to clients to maximize their return on investment. Learn more at www.americanexpress.com/businesstravel interact with peers on www.businesstravelconnexion.com and follow us on http://www.facebook.com/businesstraveconneXion and www.twitter.com/btconnexion. American Express operates one of the world’s largest travel agency networks with locations in over 140 countries worldwide. Total travel sales volume processed in 2010 was $25.7 billion, including consolidated volume and non-consolidated volume processed through joint ventures and partner network.
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