Amid "slow but steady" corporate travel demand
growth, BCD Travel consulting unit Advito this week lowered some of its
projected 2013 airfare and hotel rate increases around the world.
Airline cost-per-mile figures in North America and Latin
America were lower than expected in the fourth quarter of 2012, according to Advito,
leading to lower projected fare increases by a few percentage points in each
region. Advito now projects 2013 North American regional economy fares to rise
by 3 percent year over year and business class fares by 1 percent, with intercontinental
business and economy class fares each to increase by 2 percent. In Latin
America, Advito projects international fares will rise 4 percent, regional
business class 3 percent and regional economy class 5 percent.
Fares in the Middle East, however, are increasing more than
expected. Advito raised its 2013 forecast increase to 9 percent from 5 percent
for international business- and economy-class fares and for regional business-class
fares.
"The Middle East's growing importance as an alternative
to Europe for flight connections to Asia is showing in higher local point-of-sale
fares, as passengers transiting the region are filling more seats,"
according to Advito.
On a regional basis, average hotel daily rates largely are
holding true to the earlier forecast, though Advito said a few markets are
seeing softer-than-expected year-over-year increases due to "hotels'
inability to push through major increases in their corporate rate negotiations,
combined with minor shifts in capacity and demand." Those markets include
Mexico, Brazil—which, at a 15 percent to 18 percent increase, Advito still forecasts
to see the largest regional ADR increase globally—Germany, Turkey, Saudi
Arabia, the United Arab Emirates, China, Singapore and Australia. South Africa,
however, "has made a surprisingly strong showing," according to
Advito, leading it to raise its ADR forecast to an 8 to 10 percent increase, up
from the previous forecast of 4 to 6 percent.