Business Travel is Booming in 2010! Well, Sort of…
It looks like business travel is expected to grow…a little bit…in 2010. The National Business Travel Association (NBTA) just released its 2010 Business Travel Buyers Cost Forecast which predicted a conservative increase in business travel. Seven out of ten business travel managers surveyed expect business travel to grow while about a third see spending remaining the same.
The study also looked at average travel expenditures for airfare, hotel, and car rental and predicted changes in 2010. Average airfares in 2009 were $299 (I feel like I was on the high end of that average, but oh well) and are forecast to grow by 3% next year.
Hotel rates per night averaged at $136 this year and are expected to drop up to -9% next year. Car rentals sat at an average of $46 this year and will also drop by -1 to -3% in 2010.
The decline in two major travel categories will help businesses rationalize increasing their corporate travel, and thus is predicted to result in an increase in travel expenditures.
TRIVIA QUESTION OF THE DAY (who am I fooling? This is the first one I’ve ever asked.)
QUESTION: What is the most profitable US Airline?
ANSWER: Allegiant Air (who?)
Allegiant Air just announced their 27th CONSECUTIVE profitable quarter (for those non-mathematicians, that equals 6.75 years). Why Allegiant, you ask? Allegiant Air doesn’t consider itself a mere ‘airline.’ In fact, it calls itself “Allegiant Travel Co.” because it has identified and seized the opportunity to push ancillary products and services out to customers. In fact, Allegiant makes, on average, $32.36 over the cost of each ticket from a variety of fees as well as hotel room sales, car rentals, and other extras. Bravo, bravo. Now if I could just figure out who these guys are…
