Average flight ticket prices set to go up in Indian sector: Egencia survey
Gurgaon, Nov.2 (ANI): Unveiling its 2012 Corporate Travel Forecast and Hotel Negotiability Index, leading travel management company Egencia has predicted that airline average ticket prices (ATPs) and hotel average daily rates (ADRs) for top corporate travel destinations will be slightly up overall in North America and Europe.
The world's fifth largest travel management company has also predicted that average ticket prices in the Indian sector will increase in 2012, while average daily hotel rates will fall.
The predictions, which appear in Egencia's 2012 forecast and hotel negotiability index for corporate travel also suggests that corporations will continue to face a weak to moderate negotiating environment in 2012 across the Asia-Pacific region.
According to the 2012 Global Corporate Travel Forecast, ATPs overall for corporate travellers to top business travel destinations are expected to be (1) Slightly to moderately up (six percent) in Asia Pacific destinations; (2) Slightly up (four percent) in North American destinations and (3) Slightly up (four percent) in European travel destinations.
The forecast further says that the hotel environment continue to show signs of year-on-year growth relative to increased corporate demand, resulting in improved hotel occupancy worldwide.
In key destinations for 2012, Egencia forecasts average daily rate increases as follows (1) Asia Pacific (up seven percent); North America (up five percent) and Europe (up two percent).
"We are predicting India will offer a diverse corporate travel landscape next year. In India we will continue to see overall growth of the corporate travel market as a response to the Asia Pacific growth rates, ATPs are increasing in contrast to decreasing ADRs," said Gaurav Sundaram, Country Director, Egencia India.
He added: "In this complex travel landscape, we work with our clients to ensure they are well informed and leveraging the right tools and technologies to optimise their travel programs and attain maximum cost control."
The forecast said that ATPs for China and India are expected to grow nine percent and 7.5 percent respectively according to the IMF World Economic Outlook Database, as opposed to an average of four percent for the Asia-Pacific region.
It says that ATPs for India's top business hubs of Delhi and Mumbai have increased significantly in comparison to the rest of the region at eight percent and 11 percent respectively.
The Egencia forecast also warns that high occupancy rates and limited supply in the region in relation to the demand is impacting the flexibility of negotiating corporate rates.
However, it says that new supply growth in Asia Pacific is stronger than the rest of the world and is now catching up to demand growth.
Average Daily rates for the Indian cities of Delhi and Mumbai it says have both decreased, with occupancy rates in continued decline for Mumbai, and Delhi occupancy returning to normal rates after the increased demand spike during the 2010 Commonwealth Games.
The availability of good quality hotels at relatively good prices continues to be an important factor in maintaining India as a key business destination.
Strong growth year over year is particularly visible in key business hubs of Hong Kong (up 15 percent), Singapore (up 11 percent) and Sydney (7 percent), presenting challenges to negotiating corporate rates, the forecast reveals.
The forecast has been made on the basis of a survey of over 250 travel buyers in Asia Pacific, North America and Europe regarding cost control measures, travel spend, technology trends and expectations for 2012.
According to survey respondents, 40 percent of buyers have slightly or significantly increased travel over the last 6 months, compared with just one third of buyers last year signaling a continued rise in overall travel demand.
The Egencia forecast also reveals that mobile devices are becoming increasingly important to today's travel managers, with 70 percent of respondents saying that mobile devices/functionalities are moderately important to very important to their travel programs.
Respondents identified the following as the most important uses for mobile technology during business travel-Check flight status (77 percent); Online check-in (77 percent); Urgent destination/flight alerts (60 percent) and Review latest itinerary (59 percent).
Sundaram said that the release of Egencia Mobile for the iPhone will deliver global best in class experience and technology solutions to Egencia clients in India.
Only 38 percent of respondents cited that they have a formal traveler duty of care or security program in place for their travellers. (ANI)
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