Search Travel Market Report

algv HPTO
algv
mainlogo
www.travelmarketreport.com
  • News
  • Tours & Packages
  • Cruise
  • Hotels & Resorts
  • Destinations
  • Retail Strategies
  • Niche & Luxury
  • Well-Being Travel
  • Training & Events
  • Who We Are
    • Anne Marie Moebes
    • Brian Israel
    • Dan McCarthy
    • Denise Caiazzo
    • Dori Saltzman
    • Kelly Fontenelle
Sponsored By ALG
Sponsored By ALG
algv

American Express Forecasts Business Travel 2016

by Anna Gleksman / November 30, 2015

American Express’s new Global Business Travel Forecast for 2016 predicts moderate growth in prices for air, hotel, and ground transportation in the corporate-travel market.

In the United States, the cost of airline tickets will likely rise by 2%-3%, hotels will rise 4%-6%, and car rentals will rise 1%, the survey said.

North America Forecast

In North America, short-haul flights, increased competition, and growth among budget carriers will help keep price increases below 3%. Fares on long-haul flights are expected to range from .4% to 2.9%; the high end will likely come on routes to Asia and Latin America. In Canada, prices should remain flat, from -1.5% to 1.1%, for both short- and long-haul flights as a result of strong competition and the lower price of oil.

Source: American Express Global Business Travel Forecast 2016

Hotels are expected to increase in price by 4%-6%, with the upper-range hotels rising slightly more than the mid-range.

Ground transportation rates will increase just 1%, thanks to overcapacity and strong competition globally. Ride-sharing services, such as Uber and Lyft, are expected to see greater mainstream adoption and expansion in 2016.

Latin America Forecast
In Latin America, air travel will continue to decrease in cost across the board for 2016. The depreciation of the Brazilian real and other local currencies against the U.S. dollar and the euro will further lower domestic demand for international air travel.

 Latin America Airfare, Hotel and Car Rental Forecast

Europe, Middle East, and Africa Forecast
European air prices for 2016 are projected to remain stable, though the cost of premium seats is expected to increase by 3%. Lo- cost carriers will place strong downward pressure on fares throughout Europe, particularly on short- and long-haul routes to Asia.

In the Middle East, rapid capacity growth by Gulf carriers and continued weakness in the region’s oil-based economies are generally pushing prices down by 2%, with the exception of premium long-haul fares. In Africa, fares are expected to increase up to 5%, as a result of factors such as high operating costs, a lack of low-cost carriers (outside of South Africa), and stringent intra-continental regulation.

The average daily rates for ground transportation in Europe, the Middle East, and Africa are all expected to rise in 2016 on higher additional expenses. Car-sharing services will also see significant growth in 2016 even as major car-rental companies expand in this area.

EMEA Airfare & Car Rental Forecast


In Europe the larger cities will see the most growth where the euro is weakening causing an increase in tourism. With not much hotel prices will be increasing by about 2%-3.5%. In the Middle East and Africa, an increasing inventory of. In the Middle East and Africa, an increasing inventory of mid-range offerings will provide travelers with more affordable choices, but rates will still rise 2-3.5% as well with stronger economics in 2016. (Though it remains to be seen if the

EMEA Hotel Forcast


Asian Pacific Forecast
In Asia-Pacific, airfare prices across the region are expected to show moderate growth across both business and economy classes in 2016. Domestic economy fares are expected to see the strongest fare hikes within the region. Also, China will show a small increase in fares as demand, especially from the middle class, keeps up with capacity and carriers expand their long-haul networks. Increases will also be strong in India as the economy booms and poor ground infrastructure push more travelers to require air options.

APAC Airfare Forecast

Source: American Express Global Business Travel Forecast 2016

Affordable and luxury hotels in Asia-Pacific are likely to experience moderate growth in 2016, depending on the market. As the anti-corruption campaign for government officials still impacts luxury hotels across China, the country has a strong demand in higher average daily rates and occupancy numbers. Favorable exchange rates and limited inventory is the basis behind rate hikes in Sydney and Tokyo, but the end of the mining boom has the opposite effect in the western half of Australia.

APAC Hotel Forecast

  3
  2
alg HPTO
Related Articles
American Express Confirms End to its Franchise Program
More Than Half of Travelers Would Pay More for Personalized Itineraries
American Express Global Business Travel to Acquire Hogg Robinson Group
Continued Growth Forecasted for U.S. Hotel Industry
Business Travel Remains a Big Opportunity for Small Agencies
U.S. Business Travelers Spend $424 Billion in 2016
Talking Luxury Travel Trends At The Travel Salon
American Express GBT Aims At Small Agencies
Amex GBT Appoints President
Marriott Turns Its Focus To Meetings

MOST VIEWED

  1. Why Travel Advisors Need to Learn to Say No to New Business
  2. U.S. Passport Renewal Processing Time Now 8 to 11 Weeks
  3. U.S. Passport Renewal Waiting Time Could Soon Get Even Worse
  4. Government of Canada Updates Its Mexico Travel Advisory
  5. European Union Delays Launch of ETIAS Until At Least 2024
  6. Here’s What the U.S. and Canada Are Saying About Travel and Crime in Mexico

MOST EMAILED

  1. U.S. Passport Renewal Processing Time Now 8 to 11 Weeks
  2. U.S. Passport Renewal Waiting Time Could Soon Get Even Worse
  3. Why Travel Advisors Need to Learn to Say No to New Business
  4. European Union Delays Launch of ETIAS Until At Least 2024
  5. Travelers Believe That Working With Advisors Is Only Way to Get a True Luxury Experience
  6. 9 Travel-Advisor Friendly Paris Boutique Hotels to Know About
TMR THIS WEEK
Sponsored by Explora Journeys
//services.travelsavers.com/AMGService.svc/REST/GetImage?ImageID=78f79d51-15c7-ed11-b00b-005056a8720b&Width=350&Height&250

All About Culinary Immersion at Sea

Travel advisors can help their foodie clients enjoy true immersion experiences by booking them on culinary-focused cruises.

Read More...
alg
TMR Subscription

Subscribe today to receive daily in-depth coverage, analysis of industry news, trends and issues that affect how you do business. Subscribe now for free.

Subscribe to TMR

Top Stories
Two of Germany’s Busiest Airports Will Be Closed on Monday
Two of Germany’s Busiest Airports Will Be Closed on Monday

Lufthansa is advising its passengers to make alternative plans. 

Read...
Travel Trivia Tuesday: March 21, 2023
Travel Trivia Tuesday: March 21, 2023

What is the largest museum in the world? 

Read...
Travel Agency February Air Ticket Sales Up 54% Over 2022
Travel Agency February Air Ticket Sales Up 54% Over 2022

Travel agency air ticket sales continue to trend upward.

Read...
U.S. Embassy in Mexico Issues Travel Warning for Spring Breakers
U.S. Embassy in Mexico Issues Travel Warning for Spring Breakers

The Embassy recognized that thousands of U.S. citizens visit Mexico each year without issue during spring break. 

Read...
Hundreds of Flights Cancelled Friday Due to Strike at Four German Airports
Hundreds of Flights Cancelled Friday Due to Strike at Four German Airports

There’s another round of significant flight disruptions due to union action in Germany on Friday.

Read...
Air Canada Adds Summer Service to Amsterdam from Montreal
Air Canada Adds Summer Service to Amsterdam from Montreal

The new service will kick off on June 2.

Read...
TMR OUTLOOKS & WHITE PAPERS
river cruise 2022
group outlook 2022
lux cruise outlook
CP White Paper
Multi-Gen Outlook
River Cruise Outlook 2019
View All
Advertiser's Voice
https://img.youtube.com/vi/BDz_-mzUmZA/0.jpg
Meet South Africa with Your Local Guides
About Travel Market Report Mission Staff Advisory Board Advertise
TMR Resources Webinars Calendar of Events Outlook/Whitepapers Previous Sponsored Articles Previous This Week Articles
Subscribe to TMR
Select Language
Do You Have an Idea Email
editor@travelmarketreport.com
Give Us a Call
1-(516) 730-3097
Drop Us a Note
Travel Market Report
71 Audrey Ave, Oyster Bay, NY 11771
News |Tours & Packages |Cruise |Hotels & Resorts |Destinations |Retail Strategies |Niche & Luxury |Well-Being Travel |Training & Events |Who We Are
© 2005 - 2023 Travel Market Report, an American Marketing Group Inc. Company All Rights Reserved | 243 South Street, Oyster Bay, NY, 11771 USA | Telephone (516) 730-3097| Terms and Conditions
Cookie Policy Privacy Policy