Travel Leaders Corporate: Q3 Domestic Air Costs Up, International Down - Business Travel News

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Travel Leaders Corporate: Q3 Domestic Air Costs Up, International Down

November 29, 2012 - 10:30 AM ET

By Chris Davis

Travel Leaders Corporate clients during the third quarter on average paid slightly more for U.S. domestic air travel and car rentals than they did a year earlier, but average costs for international air travel and non-U.S. hotel stays each dropped by more than 5 percent, according to the travel management company.

The average third-quarter international ticket cost declined to $1,622 from $1,710, according to Travel Leaders Corporate. President David Holyoke attributed the decline to demand that "continues to soften somewhat. This softening is due, at least in part, to the economic uncertainty in Europe."

The average domestic air travel cost rose year over year to $412 from $400, a 3 percent increase. "Our early projections are that those costs will increase slightly going into the first two quarters of 2013," according to Holyoke.

While the average third-quarter U.S. per-night hotel cost held steady from 2011 levels at $140, the non-U.S. per-night hotel cost dropped more than 5 percent, to $214 from $228.

The average cost for a U.S. car rental increased to $168 in the third quarter of 2012 from $147, but the per-day car cost fell to $44 from $46. "It continues to intrigue me that despite consolidation in the car rental segment of our industry, the three major car companies remain very competitive with corporate pricing as daily rates trend downward," according to Holyoke. "It will be particularly interesting to see if further consolidation will reverse that long-standing trend."

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