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Business travel: Signs of optimism for next year, but again not for hotels

December 08, 2009 | Online Travel

Expedia's business travel unit Egencia examined business travel market conditions in more than 35 cities in North America, Europe and Asia/Pacific, and anticipates average daily hotel rates of flat to negative 5 percent, year over year, in part due to increased supply and reduced demand resulting from higher airfares.

Egencia examined conditions in more than 35 cities in North America, Europe and Asia/Pacific. For each market, the company conducted an in-depth diagnostic covering macroeconomic factors and industry-specific behaviors, as well as supply and demand pressure.

At a high level, its research highlighted the driving trends for the key segments of air, hotel and car. The company anticipates:

- Airfares for corporate travelers to major destinations rising 5 to 10 percent, reflecting recent merger activity, an increase in corporate travel demand and airlines’ continued capacity discipline

- Average daily hotel rates of flat to negative 5 percent, year over year, in part due to increased supply and reduced demand resulting from higher airfares

- Car rental prices decreasing 5 percent, year over year, continuing on a strong 2009 trend as more auto-loan financing becomes available and rental agencies refurbish their fleets

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