This page contains a Flash digital edition of a book.
In association with THE REVIEW ›› DATA 


The price is right... or is it?


A QUICK glance of the data displayed to the right suggest that there's likely to be minimal change in airline pricing for the remainder of the year and into 2015, but the impact will nevertheless be felt by travel buyers – for better or worse. Compiled by AREKA


Consulting, the data paints a mixed picture but concludes that "corporates need to be prepared for tough discussions on some routes and airlines". Below each region, AREKA


Consulting sums up the regional trends and develop- ments that will impact both positively and negatively on pricing and on buyer leverage in the year ahead. Featuring strongly are airline


consolidation in North America and Latin America, where less competition is likely to lead to rising prices – partially offset by healthy competition across the Atlantic – while continued growth of the big Middle East airlines should help drive down airfares to the region. All of which leads the


company's CEO, Pascal Jungfer, to conclude that corporates will generally be in a weaker position in the Americas in 2015 but better off when it comes to purchasing airfares in Europe and Asia-Pacific.


1% 2014 2015


>> Fierce competition on transatlantic routes << US and AA merger project; Network consolidation especially for non-hub cities


2014 2015


>> More mature corporate offers << LATAM consolidating LAN and TAM prices, especially on inter- continental routes


>> Buyer negotiating leverage up/prices down << Buyer negotiating leverage down/prices up


Source: AREKA Consulting NORAM EMEA MEA LATAM APAC


2015 airlines pricing outlook


3% 2% 2% 0% 2014 1% 2015


>> Low-cost airlines expanding and looking to attract corporates; Price war on long haul to the Middle East << Flag carriers keeping capacity tight and trading market shares; Some carriers scaling back due to competition on long-haul to Asia


2014 -1%


2015 -2%


>> Strong capacity increase due to aircraft orders and intense competition


2014 -1%


2015 -2%


>> Travel policy downgrades driving down volumes in business class; Long-haul flights to Europe impacted by over-capacity of Middle East carriers


The three Ss: safety, security and sustainability


The figures below show the percentage of travel managers in the UK and in Western Europe that already have these trends established in their company. The data is taken from AirPlus research and shows that the UK is, on the whole, ahead of Western Europe when it comes to implementing safety, security and sustainable policies


TRAVELLER SAFETY


71% UK


62% WESTERN EUROPE


DATA SECURITY 69% UK


62% WESTERN EUROPE


TRAVELLER COMFORT


67% UK


63% WESTERN EUROPE


INTRODUCTION TO CORPORATE RESPONSIBILITY


64% UK


44% WESTERN EUROPE


LESS TRAVEL DUE TO VIRTUAL MEETINGS


49% UK


49% WESTERN EUROPE


Source: AirPlus UK Travel Management Study 2014, Volume 2 of 3 – Travel Management Micro-trends


44 THE BUSINESS TRAVEL MAGAZINE


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48  |  Page 49  |  Page 50  |  Page 51  |  Page 52  |  Page 53  |  Page 54  |  Page 55  |  Page 56  |  Page 57  |  Page 58  |  Page 59  |  Page 60  |  Page 61  |  Page 62  |  Page 63  |  Page 64  |  Page 65  |  Page 66  |  Page 67  |  Page 68  |  Page 69  |  Page 70  |  Page 71  |  Page 72  |  Page 73  |  Page 74  |  Page 75  |  Page 76