Corporate Travel Outlook and Forecast for 2017

Corporate buyers of business tours, businesspersons traveling all over the world, and the staff of the agencies rendering services of business tourism: today they are all interested in development of the sphere of corporate tourism. Business tourism is developing dynamically in Canada and the entire World. It is no wonder that topical news of the industry attracts keen interest of many Canadians.

The year 2016 has been a contradictory time for corporate travel segment. The strength of the U.S. dollar, along with terrorism fears and a stagnant global economy, forced many international companies to reduce their travel spending. Mediocre economic growth in Europe and South America also contributed to the malaise.

Corporate Travel Outlook and Forecast for 2017

World Travel & Tourism Council and its partner Oxford Economics estimate that on a world-wide basis, travel and tourism comprise 9.8% of world’s Gross Domestic Product (GDP).

Air traffic worldwide is expected to increase significantly by 2018

Air traffic worldwide is expected to increase significantly by 2018, according to projections from the International Civil Air Organization and Airbus. The Asia Pacific region - which already leads world air traffic with 30 percent of revenue passenger kilometers (RPKs) (versus Europe’s 25% and North America’s 24%) - is expected to increase air traffic by 5.7% according to Airbus and GMF.

Advito has made its annual Industry Forecast to give travel managers a range of set prices they can use to prepare for supplier negotiations and budgeting. The forecast includes supply, demand and pricing trends for air, hotel, meetings, transportation and ride-hailing for all major regions in the world.

Global business class fares will increase slightly in 2017, up to 1%, and economy fares will remain flat. Moreover, travel buyers should anticipate a significant difference in fares from region to region - meaning that regional corporate fares will range from flat (in Europe and Latin America) to 3% grow (in Asia and Asia Pacific). However, intercontinental economy class fares should fall fractionally everywhere except Europe. Advito expects little change in economy class fares with 2% reductions in Latin America.

Corporate Travel Outlook and Forecast for 2017

 

Comments are closed.