Advito Releases 2013 Industry Forecast For Business Travel

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Sunday, 02 December 2012 11:33

Demand growth for business travel is projected to slow heading into 2013, according to the just-released 2013 Industry Forecast from Advito, BCD Travel’s independent consulting unit. Continued sluggishness in the euro zone is softening growth rates in other regions, even in historically strong driver markets like China. But demand will nonetheless continue to outpace supply, with airlines keeping a particularly tight hold on inventory. As a result, buyers should brace for low- to mid-single digit price hikes in air fares and hotel rates.

“With the current macroeconomic situation uncertain and limited capacity going into next year, it’s more important than ever that buyers have a clear understanding of their buying power going into their negotiations, make better use of data analysis in their decision making process, and closely monitor their travel spend,” said Bob Brindley, principal at Advito.

“For instance, with air fares projected to increase, buyers should pay close attention to fare restrictions and recommend smarter purchasing behavior for their travelers. On the hotel side, options include searching for internal savings such as minor downgrades in accommodation standards and expanding the number of properties used in high demand markets to improve the likelihood of booking availability.”

Advito draws upon industry and economic data through August and transactional (hotel and air) data through June 2012 to forecast demand and pricing developments in the air, hotel, car rental, rail and meetings categories. The 2013 Industry Forecast also shines a spotlight on Middle Eastern airlines,
Australian and Indian markets, airline consolidation, ancillary fees and important considerations in hotel negotiations.

The analysis builds on Advito’s thorough understanding of the business travel market and the influence of global and local factors, providing travel buyers and managers with vital information for planning.

This year the forecast for the first time also includes analysis of secondary spend categories,including dining, mobile roaming and ground transportation. Such expenses are estimated to account for 18 percent of total T&E, and will become a major savings opportunity in 2013 and beyond.


• Advito is forecasting moderate airfare increases across all regions, with the strongest demand occurring in Latin America, with expected year-over-year fare increases between 6 percent and 7 percent, and lowest in Europe (2 percent to 3 percent). North America and Asia will see fare increases between 4 percent and 5 percent, and Southwest Pacific between 2 percent and 4 percent.

• Disciplined capacity management by airlines will be a primary factor behind cost increases.


• Advito forecasts hotel average daily rate (ADR) to grow in 2013—though not as high as hotels are pushing in early negotiations. Exceptions include Australia and Latin America, where demand is driving rates up considerably.

• Anticipated rate hikes include: 6 percent to 7 percent in North America; 8 percent to 14 percent in Latin America; 2 percent to 4 percent in Europe; 5 percent to 10 percent in the Middle East; 5 percent to 8 percent in Asia and 6 percent to 10 percent in Southwest Pacific.

• Double-digit ADR increases are probable yet again in the top rung of international gateway cities such as New York, Hong Kong and Singapore and in some Latin American cities.

Ground Transportation

• Advito expects car rental rates to freeze in the U.S.—the largest car rental market worldwide—in 2013.

• In Europe, Advito expects high-speed rail fare increases of around 3 percent to 5 percent, similar to 2012.

About Advito

Advito provides travel-management advisory, procurement and outsourcing services that guide clients through a complex travel environment. Advito delivers proven value, unbiased counsel and a customized approach for every client and every engagement, together with industry expertise and access to data to drive quantifiable
decision-making. Advito is headquartered in Atlanta, and operates in key business markets around the world. Advito is an independent operating unit of BCD Travel, the world’s third-largest travel management company, owned by BCD Holdings N.V. For more information, visit

About BCD Travel

As a leading provider of global corporate travel management, BCD Travel simplifies and streamlines the business of travel. This benefits the organization on every level: from the bottom line to the business traveler. BCD Travel operates in more than 95 countries, with US$20.8 billion in total sales and a combined worldwide
work force of more than 11,000 people. BCD Travel is a BCD Holdings N.V. company. For more information, visit

About BCD Holdings N.V.

BCD Holdings N.V is a market leader in the travel industry. The Dutch, privately owned company was founded in 1975 by John Fentener van Vlissingen and consists of BCD Travel (global corporate travel management), Travix (online travel: CheapTickets, Vliegwinkel, BudgetAir and Vayama), Park 'N Fly (off-airport parking), TRX
(travel transaction processing and data integration), Airtrade (consolidating and fulfillment), VakantieXperts (leisure) and Parkmobile International (mobile parking and traffic applications). BCD Holdings employs approximately 13,700 people and operates in more than 95 countries with total sales, including franchising, of
US$24.4 billion. For more information, visit


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