Travel prices dropping in line with Advito forecast
Recent industry news indicates business travel prices are on the decline—just as Advito experts predicted in the March update of Advito’s 2015 Industry Forecast.
According to BCD Travel’s insights, on April 14, the Global Business Travel Association said the effect of “plummeting oil prices” was squeezing travel price inflation, particularly in transportation. “Although business travelers have yet to see the benefits of lower fares as a result of lower oil prices, we expect the cost of air travel, ground transportation and rental cars will all moderate in 2015,” GBTA reported.
A day before, Delta Air Lines President Ed Bastian told attendees at an Association of Corporate Travel Executives Global Corporate Travel Conference in Atlanta that oil prices were beginning to affect airfares. “If we’re going to see fuel staying at the $50 to $70 [per barrel] trading range, you’ll see prices fall,” Bastian said, as reported by Business Travel News.
The news is in line with one of the key predictions of Advito’s latest Industry Forecast update: Lower oil prices will make it difficult for airlines to raise fares but give them the scope to drop prices—particularly in markets with competition. They’ll also encourage airlines to slowly add in new capacity, providing further relief to average fares, especially for economy-class travel.