Hotel Rates Down, Airfares Up, Says Latest Advito Report

Highlights
Despite some of the gloomy projections out there, Atlanta–based business travel consulting firm Advito saw a double-digit increase in corporate travel in the first quarter of 2010.

In a recent update to its 2010 Industry Forecast, business travel consultant Advito forecasted the number of business trips and to gradually move upward even more in the second half of 2010 and even more in 2011.

On the hotel side, 2010 will remain a buyer’s market for corporations, the update says, in part because many projects that were commissioned during the “boom years” are now just coming on line. In the original forecast, average daily rate was expected to stabilize in late 2009; however, it has continued to drop. Based on that trend, the revised report expects ADR for North American hotels to drop 1.6 percent this year.

On the air side, Advito forecasts a slight rise in average ticket prices and gradual return to companies allowing travelers to use business class for long-haul flights—not for short-haul. In recent years, Advito has seen companies shift the cutoff for economy class from six hours to eight, and now, up to 10 or 12 hours. In Europe, some airlines, including Air France, are cutting business-class service on their domestic and regional routes.

A full copy of the updated report is available for free.

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