Global Demand for Corporate Travel on the Rise

Increased demand is resulting in higher air fares

AH Correspondent

Overall global demand for corporate travel increased by 10.2 percent during the second quarter of 2010 compared with the same period one year ago, according to an analysis of client data by BCD Travel’s consulting unit Advito. Increased demand is resulting in higher air fares overall, with disparities among individual regions. Meanwhile, a sluggish recovery in some advanced markets, including Europe, and an abundance of room capacity in developing and

In its April 2010 World Economic Outlook update, the International Monetary Fund reported world economic growth of 4.2 percent, compared to a contraction in 2009 of 0.6 percent. China led world economies in the second quarter of 2010, expanding by 10 percent over the same period in 2009. emerging markets is keeping hotel rates down. In response to a stronger global economic recovery than anticipated, Advito is revising earlier market projections in a second quarter update to its 2010 Industry Forecast. In its April 2010 World Economic Outlook update, the International Monetary Fund reported world economic growth of 4.2 percent, compared to a contraction in 2009 of 0.6 percent. China led world economies in the second quarter of 2010, expanding by 10 percent over the same period in 2009.

Other key findings in Advito’s 2010 2Q Industry Forecast update include:

* Advanced economies are emerging from the global recession more sluggishly than emerging markets

* Ongoing concerns about the European economic outlook and governmental austerity measures are suppressing demand and fare evolution in both the air and hotel categories

* Premium travel is increasing on transatlantic and transpacific flights

* April’s volcanic eruptions brought new emphasis to duty of care initiatives and traveler communication

* Airfares in the second quarter rose sharper and faster in North America and Asia-Pacific.