Cheap Airfare Powers Business Travel

Cheap Airfare Will Power Corporate Travel Growth in 2017

So far, 2016 has been a mixed bag for corporate travel. The strength of the U.S. dollar, along with terror fears and a stagnant global economy, led many international companies to reduce their travel spend. Mediocre economic growth in Europe and South America also contributed to the malaise. Yet, emerging markets are expected to continue their business travel growth as business travel remains cheap, according to Advito’s 2017 industry forecast report. The report indicates that global hotel rates should see a modest increase over the next year, between 1 to and 3 percent, while airfares are expected to stay flat globally. North America, the Middle East, and the Southwest Pacific are most likely to see hotel rates increase. Overall, the outlook is strong for North American business travel, barring the uncertainty of a potential Trump presidency or interest rate hike. South America is also primed for increased business travel as its biggest economies rebound from an unusually weak year. (Skift 9/14/16)