Short- and long-haul average fare prices for top European point-of-sale destinations in 2010 should experience flat to moderate increases as additional airline capacity cuts and consolidation are expected and the economy shows signs of improvement, online travel management company Egencia this week announced in its 2010 Corporate Travel Forecast and Hotel Negotiability Index.
Average fares in Berlin, Brussels and Paris are projected to stay flat compared with 2009 levels, and London, Madrid, Milan and Munich should have an increase of 1 percent to 2 percent, according to Egencia. Barcelona average ticket prices will see the largest impact of a 7 percent rise.
Unlike in North America
(BTNonline, Nov. 3), where average daily hotel rates are projected to continue to decrease in most of the top business travel cities, European hotels are expected to slightly increase average daily rates in 2010, according to the forecast. Average daily rates in Frankfurt, London, Milan, Munich and Paris are pegged for a 1 percent rise from 2009 levels. Other cities could go higher, with Berlin and Madrid hotels projected to grow rates 2 percent, and Brussels hotels to see 3 percent ADR increases.
The travel management company's Hotel Negotiability Index., which factors in local conventions and other one-off demand effects, forecasts for a tougher negotiating climate for buyers in Europe than in other regions, with expectations of weaker buyer negotiating outlooks in Berlin, Frankfurt, London and Paris, while Barcelona, Madrid and Milan remain strong areas buyer negotiations.