Egencia Releases 2011 Corporate Global Travel Benchmarking Study and Travel Manager Research
By Egencia, PRNETuesday, June 14, 2011
PARIS, LONDON, MUNICH, BRUSSELS, June 15, 2011 -
- ADRs Increase in Most Business
Destinations, While ATPs Experience
a Mixed Pricing Landscape
Egencia™, an Expedia, Inc. company, today unveiled
its 2011 Corporate Global Travel Benchmarking Study, evaluating the
current business travel landscape and supply environment for air
and hotel. Focusing on top domestic and international business
destinations in Europe, North America and Asia-Pacific, Egencia
analysed industry trends, supplier data and capacity
implications in Q1 2011. Additionally, Egencia surveyed nearly 350
travel buyers globally regarding travel programme expectations,
policies and challenges.
“We strive to provide our customers with the most
insightful knowledge of the market so that they‘re
able to adjust their travel policy and negotiate with
suppliers,” said Jonny Shingles, Managing Director, Egencia UK.
“Our proprietary solution enables us to have access to
data very easily and to pass them on to our clients via our annual
studies which clearly reflect industry trends.“
The study reveals that:
- For European points-of-sale, ATPs (Average Ticket Prices) for
intra-European destinations decreased 4% Yoyo; yet increased 8% for
North American destinations.
- For North American points-of-sale, ATPs showed increases in
nearly all business destinations: intra-North America +13% Yoyo,
+1% for European destinations and -4% for APAC destinations.
- For APAC overall, ATPs slightly decreased: 2% Yoyo for
intra-APAC destinations and 1% in North American destinations.
- The hotel environment worldwide saw Average Daily Rates (ADRs)
increase in the majority of destinations, which reverses the
decline trend of 2010.
“In Europe, contrary to last year, the
hotel pricing landscape has increased. But air trends remain more
or less the same,“ said Christophe Pingard, Senior Vice
President, Egencia EMEA and APAC.“Hotels seem to be
driven mostly by demand pattern. Air seems more complex, with two
opposite trends: on one hand prices rising due to fuel and tax
increases, on the other hand low cost airlines and high speed rail
pushing prices down.“
For full study:
https://www.egencia.co.uk/public/uk/en/promotion/landing-supply-benchmarking/?Campaign_ID=701200000004AvZ
MAIN HIGHLIGHTS
Average Ticket Prices (ATPs)
Europe
European airlines are tightly maintaining their capacity
discipline in 2011. European businesses are slowly increasing
travel demand both domestically and Internationally; this has
resulted in an increase in average ticket prices for specific
business destinations (Dublin, Munich and Frankfurt), though the
picture is more varied and not as clear cut as in North America.
Increased ATPs can be attributed to rising fuel prices (although
the fuel price in Euros hasn’t risen as much as the fuel price in
USD due to currency fluctuations), tightly managed capacity by
airlines, and airline consolidation and alliances. Tax increases in
UK and Germany have also contributed to rising prices.
Conversely, in some areas of Europe, prices are being driven
downward. The main factor is that competition between airlines has
increased, especially due to low-cost carriers and high-speed rail.
Airlines have adjusted their products and services accordingly.
Compared to 2010, the trend of ATP changes YoY has stayed the
same; i.e. the ATP upward trend for North American destinations and
downward trend for European destinations in general.
The chart below illustrates Q1 YoY ATP figures in top business
destinations for European points of sale.
European POS ATP Change YoY European POS ATP Change YoY
Munich 9% Stockholm -10%
Dublin 3% Barcelona -11%
Frankfurt am Main 1% Manchester -13%
Moscow -3% Milan -13%
London -3% Paris 0%
Madrid -4% Marseille -10%
Berlin -4% Chicago 13%
Glasgow -5% Los Angeles 9%
Amsterdam -7% New York 7%
Brussels 0%
Sources ARC, Smith Travel
Research, OAG, Expedia Internal
Analysis
Local currency
North America
As a result of increased cost pressures in Q1 2011, ATPs have
increased for most routes departing from North America. These
increases can be largely attributed to higher fuel prices, tight
management of capacity, strong demand on major corporate routes,
and continued airline consolidation. YoY has remained the same:
Average Ticket Prices continue to go up on domestic destinations,
while going slightly down for overseas destinations.
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 North America POS ATP Change YoY
Calgary 28% Denver 11%
Montreal 20% Dallas 10%
Toronto 19% Vancouver 10%
San Diego 17% Minneapolis 9%
Houston 17% Atlanta 7%
Seattle 16% Washington DC 4%
San Francisco 15% Boston 3%
Chicago 15% Hong Kong 5%
Phoenix 15% Tokyo -4%
Los Angeles 13% Paris -4%
New York 12% London -4%
Philadelphia 11%
Sources ARC, Smith Travel
Research, OAG, Expedia Internal
Analysis
Local currency
APAC
Asia-Pacific represents a truly heterogeneous air pricing
landscape, varying on a market-by-market basis. However, as a whole
APAC is averaging a decrease in overall ATPs. Prices for Intra-APAC
destinations have decreased by an average of two percent YoY, with
prices for North American destinations down by an average of one
percent YoY.
Decreased ATPs can be attributed to increased competition in the
local markets, increased capacity on majority of routes, and the
domestic and international pricing battle for Australia. Increased
ATPs can be attributed to the mixed capacity environment for APAC
destinations, increased fuel cost, potential of joint-ventures on
trans-Pacific routes, and increased demand into India and
China.
The chart below illustrates Q1 YoY ATP figures in top business
destinations for APAC points of sale.
APAC POS ATP Change YoY APAC POS ATP Change YoY
Hong Kong 5% Sydney -5%
Singapore 4% Delhi -7%
Melbourne 2% Tokyo -10%
Mumbai 0% New York 17%
Beijing -1% Los Angeles -4%
Shanghai -2% San Francisco -8%
Sources ARC, Smith Travel
Research, OAG, Expedia
Internal Analysis
Local currency
Hotel Average Daily Rates (ADRs)
In the first quarter of 2011, hotel ADRs increased in most major
business destinations, reversing the downward trends from the
previous year. The increase in ADRs can be attributed to the return
of corporate demand, reduced scale of new supply, improved
occupancy, and higher air capacity.
The charts below illustrate Q1 YoY ADR figures in selected
business travel destinations globally.
North America ADR Change YoY Europe ADR Change YoY
Atlanta 1% Amsterdam 9%
Boston 7% Barcelona 1%
Chicago 5% Berlin 1%
Dallas 10% Brussels 7%
Denver 4% Frankfurt am Main 9%
Houston 3% London 9%
Los Angeles 7% Madrid 2%
Minneapolis 2% Milan 2%
New York 6% Munich 9%
Philadelphia 6% Paris 10%
Phoenix 6% Stockholm 4%
San Diego 5%
San Francisco 17%
Seattle 5%
Washington DC 3%
Calgary 5%
Montreal 5%
Toronto 3%
Vancouver -27%
APAC ADR Change YoY
Beijing 9%
Delhi 0%
Hong Kong 25%
Melbourne 2%
Mumbai 3%
Shanghai 8%
Singapore 16%
Sydney 8%
Tokyo -1%
Sources ARC, Smith Travel Research, OAG,
Expedia Internal Analysis
Reflected in local currency for each city
Travel Management Trends
According to respondents of Egencia’s survey of nearly 350
travel buyers, 54 percent of buyers expect their travel volumes to
increase during the remainder of 2011, with 17 percent planning to
change their travel policies during the year. Additionally, 38
percent of travel buyers said they will negotiate more this year
than they did in 2010.
Travel Managers universally identified cost control/reducing
spend as the greatest challenge facing travel programs. Specific
rankings of travel program challenges are as follows:
- Cost control/reducing expenses (79%)
- Traveler satisfaction (43%)
- Traveler compliance/policy enforcement (42%)
- Capturing a full view of travel spend (40%)
Compared to last year, the challenges reported in 2011 are
mainly the same, with Cost Control still being at the top of travel
buyers’ mind but a greatest focus on Traveler Satisfaction and
Traveler Compliance.
For full study:
https://www.egencia.co.uk/public/uk/en/promotion/landing-supply-benchmarking/?Campaign_ID=701200000004AvZ
Research Methodology
Forecast and projections are based on the statistical analysis
of the past and present industry trends, macroeconomic
factors, market research and vendors’ capacity forecasts
for 2011. Smith Travel Research (STR) and OAG filings were
leveraged for a market-level analysis of both Lodging and Air
capacity. ARC, STR and Expedia Internal Data were used for
market-level analysis of pricing.
About Egencia, an Expedia, Inc.
Company
Egencia is the fifth largest travel management company in the
world. As part of Expedia, Inc., (NASDAQ: EXPE), the world’s
largest travel marketplace, Egencia helps businesses get ahead by
offering the only truly integrated corporate travel service.
Egencia’s industry expertise helps drive results that matter,
delivering meaningful advancements that have a real impact. By
combining a powerful offline and online service, Egencia delivers a
complete corporate travel offering supported by global market
expertise and a best-in-class technology platform.
For more information, go to
This press release contains “forward-looking statements” within
the meaning of the Private Securities Litigation Reform Act of
1995. These statements are not guarantees of future performance.
These forward-looking statements are based on management’s
expectations as of the date of this press release and assumptions
which are inherently subject to uncertainties, risks and changes in
circumstances that are difficult to predict. Actual results and the
outcome of events may differ materially from those expressed or
implied in the forward-looking statements for a variety of reasons,
including declines or disruptions in the travel industry caused by,
among others, prolonged adverse economic conditions, health risks,
increased adverse weather, natural disasters such as earthquakes or
volcanic eruptions, war and/or terrorism and bankruptcies.
Egencia and the Egencia logo are either registered trademarks or
trademarks of Expedia, Inc. in the U.S. and/or other countries.
Other logos or product and company names mentioned herein may be
the property of their respective owners.© 2011 Egencia, LLC.
All rights reserved. CST # 2083922-50
Press contact: Raphaëlle Boissicat
Egencia European Corporate Communications Manager
+33-6-12-56-32-26, r.boissicat at egencia.com
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