News AIRLINES
Digital editor Tom Newcombe compiles the latest news from
www.buyingbusinesstravel.com
HOTELS
UK HOTEL PRICES SET TO FALL AFTER OFT CASE
Tony Tyler
STRONG RISE IN AIR PASSENGER TRAFFIC – IATA
GLOBAL AIR PASSENGER GROWTH rose by 5.2 per cent in 2013 compared with the previous year, according to IATA’s full-year traffic results. The strongest overall growth was recorded by carriers in the Middle East (11.4 per cent), followed by Asia-Pacific (7.1 per cent) and Latin America (6.3 per cent). IATA said the 2013 performance aligns with the average annual growth rate of the past 30 years. IATA’s CEO Tony Tyler said the healthy demand growth seen last year in the industry “bodes well for 2014”. “Last year’s demand performance demonstrates the essential and growing role that aviation-enabled connectivity plays in our world,” said Tyler.
The results showed airline capacity rose by 4.8 per cent, while the average load factor, or percentage of seats occupied, was 79.5 per cent, a 0.4 point increase on 2012. Tyler said that improved load factors were a clear sign of the airline industry’s continued efficiency drive. Demand in international markets grew by 5.4 per cent, slightly ahead of the growth of 4.9 per cent seen for domestic air travel. North American carriers recorded the slowest passenger growth of any region at 3 per cent compared to 2012, but still an increase of 1.3 per cent on 2012. IATA also forecast that airlines are on course for record profits, citing sliding oil prices and mergers for the sector’s improving outlook. It also said profits are likely to have reached US$12.9 billion in 2013, and could rise to US$19.7 billion this year.
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We no longer have boilermen and stokers working on the Underground, because we no longer have trains that run on coal London mayor Boris Johnson on cutting Tube ticket offices
THE OFFICE OF FAIR TRADING (OFT) expects that UK hotel prices should fall following the end of its investigation into the fixing of discounts. The OFT investigated hotel chain Intercontinental Hotels Group (IHG) and two major online travel agents (OTAs), Expedia and
Booking.com, over separate agreements that restricted the level of discounts for selling room-only accommodation at hotels in the UK. The three companies made a series of commitments to resolve this issue, which have now been accepted by the OFT. These commitments mean other OTAs and hotels that work with these three businesses will be able to offer discounts on ‘headline’
CONFERENCES
room-only rates, as long as their customers sign up to a membership scheme or make one full-priced booking with them. OFT senior director Ann
Pope said the outcome should “increase competition and mean travellers across Europe can benefit from reductions on hotel accommodation throughout the UK. By shopping around, people can compare the different discounts offered by hotels and OTAs, and ensure they get the best deal.” The commitments made by IHG, Expedia and
Booking.com apply to bookings made by residents of the European Economic Area (which includes the 27 EU countries plus Iceland, Liechtenstein and Norway) for hotels in the UK.
Huw Edwards
AN INTELLIGENT FUTURE FOR ITM
BBC NEWS PRESENTER Huw Edwards will once again host the annual ITM conference, which is taking place at the Celtic Manor in Newport, Wales, on May 12-14. Buying Business Travel is a media sponsor of the event, which is
entitled Intelligent Futures. The conference will look at a range of topics, including data analysis, modal shift, open booking, supplier negotiations and value-driven travel management. Lord Adonis will take part in a debate on Sir Howard Davies’ Airports Commission’s report, while IATA will demonstrate how New Distribution Capability (NDC) could operate in a corporate travel environment. The conference will also feature social and networking events, and buyer-only focus groups. ■ More information at
www.itm.org.uk
MARCH/APRIL 2014
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