We've all heard what the industry analysts and experts predict for business travel pricing trends in 2012, now it's time to hear what actual buyers are saying.
A Morgan Stanley survey of more than 360 corporate travel buyers released this week indicates that a majority predict that air travel budgets, fares and travel volume will grow next year. Specifically:
- 63% expect travel budgets to grow; but one-fifth will shrink their budgets
- 64% expect air travel booking volume to increase
- and 80+% are expecting negotiated airfares to go up (mid-to-single digits) or remain flat
It's encouraging to read, though, that discounts are getting healthier, as Morgan Stanley saw buyers with discounts of 10% or less decline, while the percentage with higher discounts climbed. And more good news: 40% said their travel budgets "are currently back at the peak, pre-financial crisis levels," according to a story about the survey in Business Travel News. Plus, an additional 15% expect to reach those peaks next year.
While prices are headed up and budgets, too, I don't expect travel and meeting managers to deconstruct all the hard-learned management lessons of the financial crisis--and the new survey bears this out. For example, 70% will maintain current premium air travel policies next year, another 25% will tighten them up, and fewer travel managers see themselves actually relaxing policies.
When we were in the thick of the recession, the new normal was to make do with less. Now, as things slowly improve, the new normal is all about getting back on track but keeping smart, financially savvy rules in place. From all the evidence I've seen, 2012 is rapidly looking like it's going to be a year of renewed travel vigor mixed with common sense spend management.
A Morgan Stanley survey of more than 360 corporate travel buyers released this week indicates that a majority predict that air travel budgets, fares and travel volume will grow next year. Specifically:
- 63% expect travel budgets to grow; but one-fifth will shrink their budgets
- 64% expect air travel booking volume to increase
- and 80+% are expecting negotiated airfares to go up (mid-to-single digits) or remain flat
It's encouraging to read, though, that discounts are getting healthier, as Morgan Stanley saw buyers with discounts of 10% or less decline, while the percentage with higher discounts climbed. And more good news: 40% said their travel budgets "are currently back at the peak, pre-financial crisis levels," according to a story about the survey in Business Travel News. Plus, an additional 15% expect to reach those peaks next year.While prices are headed up and budgets, too, I don't expect travel and meeting managers to deconstruct all the hard-learned management lessons of the financial crisis--and the new survey bears this out. For example, 70% will maintain current premium air travel policies next year, another 25% will tighten them up, and fewer travel managers see themselves actually relaxing policies.
When we were in the thick of the recession, the new normal was to make do with less. Now, as things slowly improve, the new normal is all about getting back on track but keeping smart, financially savvy rules in place. From all the evidence I've seen, 2012 is rapidly looking like it's going to be a year of renewed travel vigor mixed with common sense spend management.
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Comments for Buyers Predict Higher Travel Budgets, Prices ... But Also Bigger Discounts, Tight Spend Management