»»Business Travel Trends for 2010 – Egencia Study
Travel management company Egencia issued its 2010 Corporate Travel Global Benchmarking Study.
The study analyzed business travel trends for air, hotel and car rental, focusing on top domestic and international business destinations in North America, Europe and Asia-Pacific.
Average Ticket Prices (ATPs)
- North America
The chart below illustrates Q1 YoY ATP figures in selected business travel
destinations for North American points of sale.
North America
POS ATP Change YoY Montreal 11%
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Atlanta 5% New York 10%
Boston 9% Paris 17%
Calgary 13% Philadelphia 16%
Chicago 15% Phoenix 15%
Dallas 15% San Diego 12%
Denver 5% San Francisco 14%
Hong Kong 13% Seattle 17%
Houston 11% Tokyo -2%
London 25% Toronto 17%
Los Angeles 11% Vancouver 12%
Minneapolis 7% Washington DC 3%
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*Reflected in local currency
- Europe
The chart below illustrates Q1 YoY ATP figures in top business destinations
for European points of sale.
European POS ATP Change YoY
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Amsterdam -2% Madrid 1%
Barcelona 5% Manchester 0%
Berlin -4% Marseille 5%
Brussels 11% Milan -11%
Chicago 19% Moscow -1%
Dublin 13% Munich -6%
Frankfurt am Main -9% New York 15%
Glasgow -2% Paris 0%
London -5% San Francisco 13%
Lyon -10% Stockholm 0%
*Reflected in local currency
APAC
The chart below illustrates Q1 YoY ATP figures in top business destinations
for APAC points of sale.
APAC POS ATP Change YoY
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Delhi 32%
Mumbai 16%
Beijing 9%
Hong Kong 7%
Tokyo -7%
Shanghai -8%
Singapore -8%
Melbourne -25%
Sydney -27%
San Francisco 13%
New York 4%
Los Angeles 0%
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*Reflected in local currency
Hotel Average Daily Rates (ADRs)
The charts below illustrate Q1 YoY ADR figures in selected business travel
destinations globally.
North America ADR Change YoY Europe ADR Change YoY APAC ADR Change YoY
------------- -------------- ------ -------------- ---- --------------
Atlanta -3% Amsterdam -3% Beijing -3%
Boston -4% Barcelona -5% Delhi -4%
Calgary -4% Berlin 5% Hong Kong 17%
Chicago -10% Brussels -6% Melbourne -4%
Frankfurt am
Dallas -5% Main -2% Mumbai -10%
Denver -5% London 4% Shanghai -1%
Houston -8% Madrid -12% Singapore 0%
Los Angeles -3% Milan -8% Sydney 2%
Minneapolis -4% Munich 2% Tokyo 4%
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Montreal -1% Paris 2%
New York -3% Stockholm -1%
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Philadelphia -5%
Phoenix -11%
San Diego -1%
San Francisco -9%
Seattle -5%
Toronto -3%
Vancouver 43%
Washington, DC -12%
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*Reflected in local currency for each city
Car Rental
For the North American car rental industry, restricted financing and subsequently constrained supply made 2009 an unusual year. Q1 2010 rates per day (RPDs) have fallen 10 percent YoY, however, they are still above 2008 levels. The robust used car market and unwillingness of healthier car manufacturers to provide cheap inventory is also adding upward pricing pressure. On the other hand rising ATPs squeezing traveler budgets, which along with improved financing conditions and profitability of car rental vendors in Q1, are contributing to downward pricing pressure.
Travel Management Trends
According to respondents of Egencia’s survey of more than 400 travel buyers in North America and Europe, 56 percent of North American buyers and 45 percent of European buyers expect their travel volumes to increase during the remainder of 2010, with 20 percent (North America) and 15 percent (Europe) planning to change their travel policies during the year. Additionally, 40 percent of North American travel buyers and 49 percent of European travel buyers said they will negotiate more this year than they did in 2009.
Travel Managers universally identified cost control/reducing spending as the greatest challenge facing travel programs. Specific rankings of travel program challenges are as follows:
- Cost control/reducing expenses (59% Europe, 49% North America)
- Traveler satisfaction (11% Europe, 23% North America)
- Traveler compliance/policy enforcement (12% Europe, 13% North America)
- Capturing a full view of travel spend (9% Europe, 7% North America)
Further insights into Egencia’s 2010 Benchmarking study and Travel Manager survey are available upon request. Egencia is the fifth largest travel management company in the world. It is part of Expedia, Inc., the world’s largest travel marketplace.
