US Corporate Travel Budget: 5% Rise Expected; Sellers Market Taking Over

The National Business Travel Association (NBTA), in its 2010 Industry Pulse: Business Travel Buyers’ Sentiment stated the average corporate travel budget was up 5.5% in 2010 compared to 2009 and expects it to expand an additional 4.45% in 2011 to USD 98 million. NBTA surveyed 170 North American corporate travel buyers and found that more travellers (38%) are taking more trips (51%) this year. Increasing outbound international business travel and higher costs are also large driving forces behind the increase in total travel spend. With the exception of domestic car rentals, travel buyers expect domestic prices to rise between 3% and 4.5% in 2011. Travel companies, including airlines, are wielding more negotiation power making corporate discounts harder to come by.

	2009 USD	Estimated 2010 Change	Projected 2011 Change
Domestic Airfare	$442.00	4.17%	4.48%
International Coach Airfare	$1,137.00	3.21%	3.81%
International Business Class Airfare	$4,084.00	3.24%	3.93%
Domestic Hotels	$160.00	-0.52%	2.98%
International Hotels	$322.00	1.10%	2.84%
Domestic Car Rentals	$48.17	0.23%	0.74%

The international share of U.S. business travel spend in 2009 was 28 percent; this share is expected to increase. Outbound international spend per company is estimated to increase by 13 percent in 2010 to $28.2 million. Travel buyers expect their international business travel spend to further increase by 11.4 percent to $31.42 million in 2011.

Agent, Tour Operator Influence To Resurge In 2011

Agents and tour operators will see a resurgence of influence in the future, predicts Cox & Kings, the longest-established travel company in the world. Waning influence of Internet due to information overload and specialized and specific requests by the traveler has caused resurgence in working with tour operators and travel agents.

Other travel trends predicted for 2011 are:

Multi-destination vacations: visiting two countries in one trip is more convenient than ever, affording travelers the opportunity to experience what they want from a combination of countries.

Learning experiences: Demand has increased for specialized learning experiences. People want to come away with a strong emotional connection with a destination and bring back more a skill they can actually use from a vacation.

Luxury trains: There will be renewed interest in rail travel that will increase throughout 2011. Rail travel is an easy and comfortable way to maximize travel time, allowing travelers to see a large number of sites without having to pack up and fly or drive between these locations.

Experiential family travel: The face of the family vacation is changing and they are extending far beyond a week-long island refuge. The demand for hands-on experiences that focus on learning and doing as opposed to just seeing will increase in 2011.

Women Travelers Turn to Social Media

According to a survey commissioned by ‘Women on their Way’, nearly half of women surveyed access social media while traveling.

Key findings from the survey include:

- Almost half (46 percent) of women use social media during their trip and half access it through their smartphones

-Of those respondents who use social media during their trip, the majority (81 percent) are on a leisure vacation. Three in every four women are on family visits and a quarter is on girlfriend getaways.

- More than half of those under the age of 35 are using social media while on their trip, almost two-thirds share photos or videos and 46 percent update their status or provide commentary.

- Almost two-in-five women provide status updates or commentary during their trip on Facebook and well over half (57 percent) share photos or videos.

Premier Inn, Travelodge Dominate UK Branded Budget Hotel Market

According to TRI Hospitality Consulting, top two budget hotel brands have more than two-thirds of the UK branded budget hotel market: Premier Inn (38%) and Travelodge (25%). Since 1993, the number of branded budget hotel rooms in the UK has grown more than tenfold, increasing from 10,555 rooms to 109,528 rooms at the end of 2009.

UK's Leading Branded Budget Hotel Operators

Brand	Number of Hotels	Number of rooms
Premier Inn	582	41,511
Travelodge	377	27,010
Holiday Inn Express	109	12,464
Ibis	53	7,173
Jurys Inn	23	5,828
Innkeeper's Lodge	91	2,652
Etap	17	2,212
Ramada Encore	16	1,947
Days Inn	30	1,834
Days Hotel	12	1,562

Source: Budget Hotels 2010 UK

Outbound Spending 2020: 32% By Asia Pacific Residents

Spending by Asia Pacific residents is forecast to account for 32% of the total in 2020 – much larger than the 2008 level of 21%. Spending by Europe is forecast to reduce by 10% (from 51% to 41%); North America by 3% (from 16% to 13%). Spending from Latin America may increase marginally from 3% to 4% while the Middle East is expected to remain at the 2008 level (5%).

Source: The Travel Gold Rush 2020

Global Tourist Flow 2020: Share of Asia Pacific Increases; Europe Decreases

According to the study conducted by Amadeus and Oxford Economics, the share of Asia Pacific of the global tourist traffic in 2020 increases while that of Europe decreases. Global share for Asia Pacific in 2010 is estimated at 18.3% while the forecast for 2020 is 21.7%. Europe is estimated at 59.5% share in 2010 and the forecasted share for 2020 indicates a fall to 55.9%. The average 10 year growth rates range from 3.3% per annum (Europe) to 5.8% per annum (Asia Pacific).

Outbound Visitor Traffic 2010-2020

Source: The Travel Gold Rush 2020