Gurgaon, June 30 (ANI): A study carried out by leading travel management company Egencia has found that average ticket prices (ATPs) have on average decreased in India and the Asia Pacific region year-on-year.
According to the 2011 Global Supply Hotel Benchmarking Research and Analysis survey of over 350 travel managers, the Asia-Pacific region represents a mixed air pricing landscape, varying on a market-by-market basis.
The study says that ticket prices for Intra-APAC destinations have decreased by an average of two percent year-on-year, with prices for North American destinations down by an average of one percent year-on-year.
Decreased ATPs can be attributed to increased competition in the local markets due to the entry of low cost carriers, increased capacity on the majority of routes, and the domestic and international pricing battle for Australia, while increased ATPs can be attributed to the mixed capacity environment for APACestinations, increased fuel costs, potential of joint-ventures on trans-Pacific routes, and increased demand into India and China, the study claims.
Egencia India Country Director Gaurav Sundaram said: "Although ATP's are down for Indian business destinations, there are ongoing costs associated with travel that can be addressed."
He added: "Indian corporate travel managers can take advantage of global best practice to impact costs and address leakage by making informed decisions when implementing company travel policy."
"As ATP's come down, inversely demand is increasing for hotels pushing up ADR's. As hotel occupancy rates and the ADR's that accompany them increase, opportunities for savings can still be found. Travel managers should look to their TMC's to identify additional savings opportunities in hotels" said Ceciliaoutledge, Managing Director, Egencia, APAC.
According to respondents of Egencia's survey of nearly 350 travel buyers, 54 percent of buyers expect their travel volumes to increase during the remainder of 2011, with 17 percent planning to change their travel policies during the year.
Additionally, 38 percent of travel buyers said they will negotiate more this year than they did in 2010.
Travel managers universally identified cost control/reducing spend as the greatest challenge facing travel programs.
Specific rankings of travel program challenges were as follows:- Cost control/reducing expenses (79 percent); Traveller satisfaction (43 percent); Traveller compliance/policy enforcement (42 percent) and Capturing a full view of travel spend (40 percent).
Egencia is the fifth largest travel management company in the world. As part of Expedia, Inc., the world's largest travel marketplace, Egencia helps businesses get ahead by offering the only truly integrated corporate travel service. (ANI)
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