Egencia Releases 2010 Corporate Travel Global Benchmarking Study and Travel Manager Research

Dépèche transmise le 2 juin 2010 par PRNewswire

LONDON, June 2, 2010 /PRNewswire/ -- Egencia(R), an Expedia, Inc. company, today unveiled its 2010 Corporate Travel Global Benchmarking Study, evaluating the current business travel landscape and corresponding supply environment for air, hotel and car inventory. Focusing on top domestic and international business destinations in North America, Europe and Asia-Pacific, Egencia analyzed industry trends, supplier research and capacity implications in Q1 2010. The study validates themes uncovered in Egencia's 2010 Forecast and Hotel Negotiability Index, including that the hotel market for corporate travel has experienced significant decreases in Q1.

"As expected, the pricing environment has changed compared to last year," said Christophe Pingard, Senior Vice-President, Egencia EMEA and APAC. "While businesses are maintaining their fiscal conservatism, they have begun to reinvest and corporate travel has begun to return. At the same time, airline carriers continue to limit capacity which results in rising fares that do not compensate for the decrease of 2009. In 2010, the largest opportunity for corporations to control spend is through the management of a strict hotel program, area where prices remain soft."

Average Ticket Prices (ATPs)


European airlines are maintaining their capacity discipline in 2010. Though European businesses are slowly increasing travel demand both domestically and internationally, this tighter control of capacity has resulted in an increase in ATPs for several business destinations, though the picture is not as clear-cut as North America. Conversely, prices are being driven downward by a number of factors including perceived economic vulnerability of Euro-zone. Increased competition from a number of low-cost carriers and decreased passenger load factors have also resulted in downward pricing pressure for corporate travel.

The chart below illustrates Q1 YoY ATP figures in top business destinations for European points of sale .

European POS ATP Change YoY Dublin 13% Brussels 11% Barcelona 5% Marseille 5% Madrid 1% Paris 0% Manchester 0% Stockholm 0% Moscow -1% Glasgow -2% Amsterdam -2% Berlin -4% London -5% Munich -6% Frankfurt am Main -9% Lyon -10% Milan -11% Chicago 19% New York 15% San Francisco 13%

*Reflected in local currency

North America

As a result of the economic downturn and resulting decrease in travel in 2009, airlines have maintained capacity discipline into 2010. With increased demand for business travel in Q1 2010, this has resulted in an increase in average ticket prices. Higher fuel surcharges, reduced competition on many routes and the dramatic slowing of route expansion has also resulted in upward pressure on ticket prices for major business destinations in North America.

The chart below illustrates Q1 YoY ATP figures in U.S. dollars in selected business travel destinations for North American points of sale.

North America POS ATP Change YoY Toronto 17% Seattle 17% Philadelphia 16% Chicago 15% Phoenix 15% Dallas 15% San Francisco 14% Calgary 13% San Diego 12% Vancouver 12% Montreal 11% Los Angeles 11% Houston 11% New York 10% Boston 9% Minneapolis 7% Atlanta 5% Denver 5% Washington DC 3% London 25% Paris 17% Hong Kong 13% Tokyo -2%

*Reflected in local currency


Asia-Pacific represents a truly heterogeneous air pricing landscape, varying on a market-by-market basis. Driving the pricing increases is greater demand for business travel into China and India and the strength of the dollar, which has resulted in higher fuel costs for many APAC carriers. Many markets also showed substantial decreases, especially in Australia where the competition for domestic routes heated up between JetStar and Virgin Atlantic, as well as Tiger Airways. Many Asia-Pacific carriers have maintained or increased capacity in contrast to their European and North American counterparts, resulting in decreased prices.

The chart below illustrates Q1 YoY ATP figures in top business destinations for APAC points of sale.

APAC POS ATP Change YoY Delhi 32% Mumbai 16% Beijing 9% Hong Kong 7% Tokyo -7% Shanghai -8% Singapore -8% Melbourne -25% Sydney -27% San Francisco 13% New York 4% Los Angeles 0%

*Reflected in local currency

Hotel Average Daily Rates (ADRs)

In the first quarter of 2010, hotel average daily rates dropped in major business destinations. Contributing to this, the meetings and incentives business has yet to fully recover and the recent influx of supply coming on the market over the last several years has resulted in an overabundance of hotel capacity in many cities. While corporate demand has begun to rebound, higher average ticket prices and lower air capacity brings less business travelers, resulting in decreasing hotel rates. With improved occupancy and a decreasing amount of new hotel supply coming into the market, hotel prices in select European and Asia-Pacific markets were actually flat to up.

The charts below illustrate Q1 YoY ADR figures in selected business travel destinations globally.

ADR ADR ADR North America Change Europe Change APAC Change YoY YoY YoY Atlanta -3% Amsterdam -3% Beijing -3% Boston -4% Barcelona -5% Delhi -4% Calgary -4% Berlin 5% Hong Kong 17% Chicago -10% Brussels -6% Melbourne -4% Dallas -5% Frankfurt am Main -2% Mumbai -10% Denver -5% London 4% Shanghai -1% Houston -8% Madrid -12% Singapore 0% Los Angeles -3% Milan -8% Sydney 2% Minneapolis -4% Munich 2% Tokyo 4% Montreal -1% Paris 2% New York -3% Stockholm -1% Philadelphia -5% Phoenix -11% San Diego -1% San Francisco -9% Seattle -5% Toronto -3% Vancouver 43% Washington, DC -12%

*Reflected in local currency for each city

Travel Management Trends

Egencia also surveyed more than 400 travel buyers in North America and Europe regarding travel program expectations, policies and challenges. According to respondents, 56 percent of North American buyers and 45 percent of European buyers expect their travel volumes to increase during the remainder of 2010, with 20 percent (North America) and 15 percent (Europe) planning to change their travel policies during the year. Additionally, 40 percent of North American travel buyers and 49 percent of European travel buyers said they will negotiate more this year than they did in 2009.

Jonny Shingles, Managing Director, Egencia UK, said: "According to our survey, 46 percent of European corporate travel buyers are evaluating supplier contracts more frequently due the economic climate. That means companies learned the importance of tightly managed travel programs and have kept strong focus on these efforts. This is indeed the best opportunity to build savings, especially with hotel programs."

Travel Managers universally identified cost control/reducing spending as the greatest challenge facing travel programs. Specific rankings of travel program challenges are as follows:

- Cost control/reducing expenses (59% Europe, 49% North America) - Traveler satisfaction (11% Europe, 23% North America) - Traveler compliance/policy enforcement (12% Europe, 13% North America) - Capturing a full view of travel spend (9% Europe, 7% North America)

Further insights into Egencia's 2010 Benchmarking study and Travel Manager survey are available upon request.

Research Methodology

Forecast and projections are based on the statistical analysis of the past and present industry trends, macroeconomic factors, market research and vendors' capacity forecasts for 2010. Smith Travel Research (STR) and OAG filings were leveraged for a market-level analysis of both Lodging and Air capacity. ARC, STR and Expedia Internal Data were used for market-level analysis of pricing.

About Egencia, an Expedia, Inc. Company

Egencia is the fifth largest travel management company in the world. As part of Expedia, Inc., , the world's largest travel marketplace, Egencia helps businesses get ahead by offering the only truly integrated corporate travel service. Egencia's industry expertise helps drive results that matter, delivering meaningful advancements that have a real impact. By combining a powerful offline and online service, Egencia delivers a complete corporate travel offering supported by global market expertise and a best-in-class technology platform.

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This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are not guarantees of future performance. These forward-looking statements are based on management's expectations as of the date of this press release and assumptions which are inherently subject to uncertainties, risks and changes in circumstances that are difficult to predict. Actual results and the outcome of events may differ materially from those expressed or implied in the forward-looking statements for a variety of reasons, including declines or disruptions in the travel industry caused by, among others, prolonged adverse economic conditions, health risks, increased adverse weather, natural disasters such as earthquakes or volcanic eruptions, war and/or terrorism and bankruptcies.

Egencia and the Egencia logo are either registered trademarks or trademarks of Expedia, Inc. in the U.S. and/or other countries. Other logos or product and company names mentioned herein may be the property of their respective owners.

(c) 2010 Egencia, LLC. All rights reserved.

For more information, press only: Raphaelle Boissicat, Egencia Europe Corporate Communications Manager +33-1-73-01-01-47 [email protected]

CONTACT: For more information, press only: Raphaelle Boissicat, EgenciaEurope, Corporate Communications Manager, +33-1-73-01-01-47, .


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