ATLANTA, Oct. 2, 2006 (PRIMEZONE) -- Corporate airfares will increase up to 11 percent next year, and hotel costs will rise as much as 14 percent in some markets, according to the just-release BCD Travel 2007 Industry Forecast.
"Over the past two years, we've seen strong, sustained growth in business travel, and this continues to drive industry prices higher," said Mary Ellen George, general manager of BCD Travel Consulting, which produced the forecast. "We expect growth - and high prices - to continue for at least the next two years."
BCD Travel, the world's third-largest corporate travel-management company, produces an industry forecast each year for clients. The forecast draws on BCD Travel's extensive knowledge of the corporate travel industry, offering a look ahead to the next year.
The full BCD Travel 2007 Industry Forecast is available at www.bcdtravel.com (in the Information Center section under "White Papers"). Here are a few of the report's key predictions:
-- Airfare increases: During the first six months of 2006, overall
air passenger traffic grew by 6.8 percent. We expect this
passenger growth rate to continue into 2007, resulting in
corporate airfare increases of 7 to 11 percent.
-- Hotel rates and supply: BCD Travel Consulting expects the 2007
average daily room rate to increase by 6 percent on average,
with rate increases in some markets as high as 14 percent. We do
not anticipate relief until well into 2008, when the supply of
hotels begins to approach demand.
-- International hotel rates: The Asia-Pacific and India regions
are expected to see daily lodging rate increases from 14 percent
to 17 percent. The same is true in the Latin American region,
where lodging daily rate increases are currently tracking at 13
percent to 16 percent. Europe is experiencing minimal or
negative daily rate changes.
-- Meeting costs: Average group room rates will increase 3 percent
to 5 percent in 2007. In popular meeting destinations, group
room rates are expected to increase 8 percent to 9 percent.
-- Car rental rates: Car rental rates will increase by 5 percent
to 7 percent in 2007.
-- Long lines and security: We expect travelers will continue to
experience long lines at airport security checkpoints,
overbooked flights and high airfares, and face increasing fuel
surcharges as airlines offset operating costs with all available
revenue sources.
Notes to editors:
About BCD Travel
As a leading provider of global corporate travel management, BCD Travel simplifies and streamlines the business of travel. This benefits our client's organization on every level: from the bottom-line to the business traveler. BCD Travel operates in 96 countries on five continents, with US$12 billion in total sales and a combined worldwide workforce in excess of 12,000. BCD Travel is a BCD Holdings N.V. company. For more information, visit www.bcdtravel.com.
About BCD Holdings N.V.
BCD Holdings N.V., a Dutch family-owned company founded in 1975 by John Fentener van Vlissingen, is a market leader in the travel industry and successful niche player in the financial services industry. The BCD Holdings companies are: BCD Travel (global corporate travel management), Park 'N Fly (off-airport parking), TRX (travel transaction processing and data integration services), Airtrade (leisure travel) and Primary Capital (real estate financing). The company employs approximately 14,000 people and operates in 96 countries with total sales, including franchising, of US$ 13 billion. For more information, visit www.bcd-nv.com.