CWT U.K. Reports Rebounding Airline Bookings, Business Class Use - Business Travel News

Share this page

Text size: A A A

CWT U.K. Reports Rebounding Airline Bookings, Business Class Use

July 21, 2010 - 12:15 PM ET

By Amon Cohen

Carlson Wagonlit Travel reported a rebound in trip bookings for its United Kingdom business Wednesday, with especially strong growth in long-haul travel in the first half of 2010—and price rises to match. The travel management company also said it saw a resurgence in business class reservations in the second quarter, as well as a continuing shift from air to rail.

CWT originally predicted flat volumes for 2010, but air transactions for January to June rose 8 percent, despite severe disruptions caused by snow, the British Airways cabin crew strike and the volcanic ash cloud. Almost all of the growth was on long-haul routes, up 22 percent, with transatlantic ticket sales up 30 percent.

In the second quarter, long-haul business-class bookings shot up 33 percent compared with the same period in 2009, while transatlantic services fared even better with a 40 percent increase. Premium economy bookings also did well, up 28 percent for long haul in general and 41 percent for transatlantic in particular.

The rise in premium cabin seat sales contributed to an increase in average ticket prices in Q2. London-New York rose 6 percent, but the biggest price hikes were in flights to the Far East, including Singapore, up 17 percent, Shanghai, up 29 percent and Hong Kong, up 32 percent.

"Long-haul travelers are also paying more for their hotel stays," said CWT director of public sector and industry affairs Nigel Turner. "For example, New York average nightly room rate is up 17 percent in Q2 over the same period last year. Other cities with high demand have also seen double-digit growth, including Singapore, up 26 percent, Mumbai, up 11 percent, and Hong Kong, up 12 percent."

Closer to home, CWT has seen customers shift from air to rail on five key routes from London where the two transport modes compete: Manchester, Glasgow, Edinburgh, Brussels and Paris. In all five cases, air transactions are down while rail is up. In contrast to air, CWT is witnessing downgrading on rail to standard class, with first-class bookings down 6 percent so far this year. "With public sector cuts, we expect this trend to continue," said Turner.

Looking at all categories of travel, Turner added, "we are seeing almost a reversal year on year. Public sector expenditure is in decline, with corporate spend starting to return to 2008 levels."

This page is protected by Copyright laws. Do Not Copy. Purchase Reprint

Leave your comment:

Comments

blog comments powered by Disqus