Each year we take a look at the forecasts for the coming year to see what the experts are predicting with respect to business travel.
For this forecast we reviewed the American Express Global Business Travel Forecast 2016, which makes predictions regarding air travel, hotel and ground transportation prices.
Business travel forecast for 2016
According to American Express prices across all three areas will see modest gains in 2016, due to a slowly-improving global economy.
For air travel, favorable market conditions in North America and tempered growth in Asia will causes prices to increase slightly despite increased demand, primarily since fuel costs will lower than in past years.
The hotel industry is also expected to see improvement for the coming year as well. The main driver of price increases is fueled by supply and demand. Simply put, available inventory has not kept pace with a growing demand for global travel.
Businesses located in North America should expect to have another good year, with rate increases expected for 2016 as well. As for ground transportation rates, these are expected to remain relatively flat over the coming year based on overcapacity coupled with strong competition in most US cities.
According to Caroline Strachan, Vice President, Consulting, American Express Global Business Travel “travel managers are operating in an era of new challenges and evolving disrupters.” Additionally, she pointed out that their job has certainly become more demanding, based in large part on “handling tasks such as measurement and compliance, new factors such as the sharing economy and mobile booking channels … becoming increasingly popular for business travelers.”
At Teddy’s we value your business.
As this year comes to a close let me pass along my heart-felt thank you to all of our loyal clients.
Thank you for choosing Teddy’s
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