Business Travel Increases for 2013
February 9, 2012 7:48 AM Subscribe
Where can I find a source giving anticipated increases for business travel for 2013 for budgeting purposes?
If a business trip in 2012 costs $xxx per day for airline, hotel, car rental and food what percentage of an increase is the market anticipating for 2013? It would seem someone would be projecting that but I'm having no luck finding a good source. Thanks in advance.
If a business trip in 2012 costs $xxx per day for airline, hotel, car rental and food what percentage of an increase is the market anticipating for 2013? It would seem someone would be projecting that but I'm having no luck finding a good source. Thanks in advance.
You can probably cobble together 2012 forecasts for free through various industry-specific data collectors. But 2013 will be more difficult, unless you're willing to pay for it. In any case, here's what I know...
For hotels, Smith Travel Research is the primary source of industry data aggregation and projections. For 2012, STR forecasts +3.9% increase in US hotel ADR (avg daily rate). That link quotes some other sources as well.
You can also look through the investor relations materials from publicly-traded hotel companies to see what they have to say. But those companies are only going to forecast 2012 at this point. For example, Marriott, the industry bellwether, projects RevPAR of +3-7% in North America for 2012. RevPAR (revenue per available room) combines occupancy and ADR, but occupancy is probably +0-1%, so pricing would make up most of the rest.
Equity research from Wall Street will have 2013 projections, but those are 1) available only to clients and 2) most likely semi-educated guesses. For example, JPMorgan is projecting Marriott's RevPAR to go up 5% in 2013, but I doubt there's much conviction behind that number.
I'm less familiar with data sources for car rentals, flights and food. For car rentals, the public companies (HTZ, DTG, CAR) probably have guidance for 2012 available. Flights and food are going to be much more difficult to pin down since they're so volatile.
posted by mullacc at 8:15 AM on February 9, 2012
For hotels, Smith Travel Research is the primary source of industry data aggregation and projections. For 2012, STR forecasts +3.9% increase in US hotel ADR (avg daily rate). That link quotes some other sources as well.
You can also look through the investor relations materials from publicly-traded hotel companies to see what they have to say. But those companies are only going to forecast 2012 at this point. For example, Marriott, the industry bellwether, projects RevPAR of +3-7% in North America for 2012. RevPAR (revenue per available room) combines occupancy and ADR, but occupancy is probably +0-1%, so pricing would make up most of the rest.
Equity research from Wall Street will have 2013 projections, but those are 1) available only to clients and 2) most likely semi-educated guesses. For example, JPMorgan is projecting Marriott's RevPAR to go up 5% in 2013, but I doubt there's much conviction behind that number.
I'm less familiar with data sources for car rentals, flights and food. For car rentals, the public companies (HTZ, DTG, CAR) probably have guidance for 2012 available. Flights and food are going to be much more difficult to pin down since they're so volatile.
posted by mullacc at 8:15 AM on February 9, 2012
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posted by Aizkolari at 8:14 AM on February 9, 2012 [1 favorite]