SOURCE: MarketResearch.com

MarketResearch.com

February 08, 2011 11:08 ET

Worldwide Spending on Business Travel Projected to Reach US $1.6 Trillion by 2020

ROCKVILLE, MD--(Marketwire - February 8, 2011) - MarketResearch.com has announced the addition of Mintel International Group Ltd's new report "Business Travel Worldwide - International" to their collection of Travel Services market reports. For more information, visit http://www.marketresearch.com/product/display.asp?ProductID=2826938

This report provides an overview of business travel worldwide and is structured by type of travel service provider (ie airlines, hotels and car rental) as well as by selected geographical region.

Key findings:

  • Worldwide spending on business travel should decline for the second year in a row in 2010 -- by an estimated 1.8% -- but is projected to almost double to reach US$1.6 trillion by 2020.
  • Airlines are earning a growing proportion of their revenues on ancillary items (luggage check-in fees, in-flight meals, priority boarding, seat selection, etc), which poses a problem for cost estimates and price comparison of fares listed on the global distribution system (GDS), as well as for travel management groups and their clients.
  • After two years of sharp declines, premium (first- and business-class) air-ticket sales are rebounding, increasing by 11% year on year for the first five months of 2010.
  • Premium economy is a growing 'fourth' cabin-class option offering more space than standard economy seats but without the service of business class. So far the class is largely available only on European and Asian routes, as lack of standardization prevents it from being integrated into the travel programs of large North American companies.
  • Some airlines are attempting to offset credit card commissions, either by imposing surcharges on tickets purchased with credit cards or by blocking travel agencies from using airline merchant accounts for tickets purchased with credit cards. The effect ultimately is to drive up the cost of air tickets by 2% to 3%.

For more information, visit http://www.marketresearch.com/product/display.asp?ProductID=2826938

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