BCD sees the future of travel

Companies always follow its indices for the evolution of their business travel budgets with an adaptation according to international contracts won or lost. It will therefore be necessary to see if the BCD forecasts were accurate at the end of the year

A moderate change in air ticket prices

The BCD travel industry forecasts a 1% increase in air fares. As the economic outlook improves, strong global demand for air travel and rising oil prices are contributing to higher fares. In response to supply constraints and increased demand, the BCD raised its oil price assumption from US$50 per barrel to US$60.

Airlines increase distribution costs

The report would explore the implications and impact of the development of taxes imposed by certain airlines.

European groups such as Lufthansa or IAG (British Airways and Iberia) have started to levy surcharges for tickets purchased through non-direct channels. Air France-KLM will soon follow.

This has resulted in increased costs for customers purchasing tickets through third-party channels, such as GDS.

Hotel rates would rise faster

The BCD Travel report forecasts an increase of 2-4% over last year. In Europe the increase would be between 1% and 2%. Hotels in Africa are estimated to increase by 5-7%. This is the strongest growth in the world. Then Asia and the Pacific region would seem to evolve by 3 to 5%.

Enterprises can do even more about travel management

About 60% of companies surveyed by BCD Travel use an online booking tool (OBT) and the same proportion have introduced an expense management system. Surprisingly, less than a third of these companies have integrated the two. Implementing an end-to-end system helps reduce the stress associated with business travel while improving the effectiveness of travel programs.

To follow BCD Travel’s table: https://www.bcdtravel.com/sg/2018-industry- forecast-for-corporate-travel/