says. “Yet more than five years after the height of the global recession, businesses remain cautious about spending too much too soon, so travel growth will be modest rather than spectacular. “The same is true for price. In advanced economies, the combination of growing demand and limited supply expansion should, in theory, push prices up quickly. Yet travel suppliers remain deeply aware that recovery is fragile, so they are reluctant to raise fares and rates too fast. Rises in line with, or just ahead of, consumer price infla- tion are most likely, although, of course, we will see many local variations.” Those local variations are most likely
where supply and demand are espe- cially out of kilter. Hotels in New York, San Francisco, Buenos Aires and London are just a few examples. In the aviation market, Advito expresses concern about the growing strength of the big three US carriers after the merger of American
TOM STONE Managing director, Sirius Management The debate around open booking will continue, driven by traveller demand and the emergence of a technological solution that satisfies all parties. The reduction of choice, driven by airline joint-ventures, will impact more heavily on corporate airline programmes.
BELINDA POTE Chief sales and marketing officer for Europe, Marriott Demand for a product that appeals on a personal level as well as for business. Lifestyle is as important for business
BUYINGBUSINESSTRAVEL.COM
“Fares may start to rise faster on transatlantic routes, as airlines operating in joint ventures realise the pricing power of consolidation”
Airlines and US Airways in 2013 com- pleted consolidation of the major domestic airlines. Advito reports the big three have started pulling out of their competitors’ hubs, leading to higher domestic fares. In Europe, however, not only is demand weaker than the rest of the world, but com- petition remains intense, both from low-cost
as for leisure, and today’s travellers are not prepared to compromise on the style and technology they enjoy in their homes when they travel.
FRANK JAHANGIR Staff vice-president, sales and affairs EMEAI, Delta Air Lines Airlines offering wifi across their international and domestic systems.
DEAN DE BEER CEO, Tristar Worldwide
I expect upward pressure on rates and fares as the economy continues to improve, causing demand to outstrip supply.
carriers on short-haul routes and the Middle Eastern airlines on long-haul. That said, Advito draws a distinction according to the direction your long-haul travellers are flying. “Fares may start to rise faster on transatlantic routes, as airlines operating in joint ventures realise the pricing power of consolidation,” it states. “However, for flights to the eastern hemisphere, the continuing introduction of new aircraft by Middle Eastern carriers should push down prices even more.” Advito gives recommendations for how to manage air costs better in 2015. It urges challenging airlines on their surcharges and ancillary fees, which it says will keep rising (see According to Amon, p34), and increased use of demand management.
STRONGER DEMAND FOR HOTELS Turning to accommodation, GBTA/CWT offers a blunt outlook of the challenges. “The hotel industry is currently enjoy- ing a robust period of stronger demand,
What is the one thing you would like to happen in 2015 (even if you’re not sure it will actually happen)?
JEF ROBINSON
TMCs offer a truly global, consumer-like platform for online booking, and single- source, real-time reporting.
PETER BRODBECK
Airlines allow corporate clients direct access to their content.
CAMILLA LAGESEN Tailor-made airline products for
travellers, distributed through their managed travel
programmes, not via targeting them independently. If suppliers want to continue with corporate agreements, they must understand who the real customer is.
JO GREENFIELD
Some standardisation within travel technology. The tools are crucial to the travel procurement process but to date all suppliers have worked in silos, with no standards for traveller HR data acquisition, policy
BBT NOVEMBER/DECEMBER 2014 51
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