Minimal Growth Expected For 2013 Travel Budgets
A majority of corporate travel buyers expect to spend modestly more on air travel next year, with most projecting year-over-year increases in trip volumes and average airfares, according to a Morgan Stanley survey of 369 corporate travel managers.
Projected budget growth rates have moderated from 2012 levels, according to Morgan Stanley. “Executives indicated that budgets are expected to grow 1.3 percent in 2013 on a budget-weighted basis,” according to a Monday research note from Morgan Stanley airline analysts. “This is down from the 2.8 percent growth expectation for the forward year reported in our last survey.”
Polled in late October, 59 percent of respondents indicated that they expect their organization’s bookings to grow next year, with approximately half of those anticipating bookings to grow by at least 6 percent from projected 2012 levels. “Furthermore, our survey results indicate that volume growth will be led by emerging market growth, as has been the case for some time,” according to the research note.
Meanwhile, nearly 56 percent of those surveyed said they expect 2013 airfares to grow year over year. Respondents were “travel managers across all industries and at companies with international operations in Europe and the United States.”