TRENDS ARE IN THE AIR
According to a new survey released by Hogg Robinson Group (HRG) recently, despite an unprecedented number of disruptions over the last year business air travel is showing encouraging signs of recovery — with travel to emerging markets in Africa and Latin America leading the charge. Based on data on HRG UK clients’ domestic and international air transactions and fares from April 2012 to March 2013 indicates that despite ongoing challenges, particularly in the Eurozone economies, there are signs that the business travel market is on the road to recovery. Global air travel booking activity in the first quarter of 2013 was up 3.2% compared to the same period in 2012. After a shaky start to 2012, the survey found that the number of UK domestic transactions increased by 2.6% in the fourth quarter of 2012, and rose by 4.3% in the first quarter of 2013. India was among the destinations where HRG saw the strongest growth in corporate air travel. Year on year transaction volumes were up by 11.1%. Corporate air travel to the Rest of the World region, encompassing the emerging markets of South East Asia, Latin America, and Africa grew by 3.3%. Transaction volumes in Brazil and China declined by 6.1 and 2.3% respectively, as the economies in both countries began to slow after breakneck growth in previous years. Business class transactions showed an overall decrease of 14.8% with economy transactions recording an overall increase of 0.5%. The shift from business class to economy was particularly acute in Europe suggesting changes made by business travellers on short haul routes during the peak of the downturn has extended well beyond it. “The general picture is of an industry in slow but steady recovery. However, despite the improved view there is still a focus on cost by our clients and an increase in the use of economy fares, particularly on short-haul destinations. We’re also seeing rail re-emerge as a genuine alternative to air travel,” observed Stewart Harvey, group commercial director of HRG. Go to http://www.hrgworldwide.com/Media/Press-Releases/Pages/HRG-Air-Trends-survey-indicates-upward-trend-for-business-travel-market.aspx#Air_Trends_vnr for a video report on the findings.
