A white paper, ‘Corporate Travel – Trends, Outlooks and Opportunities for 2011′, recently released by Thomas Cook India, reported that corporate travel is expected to see an increase of 12-14 percent in domestic airfare, five to six percent in domestic hotel tariff, and four to five percent in international hotel rates.
The increase in airfare has been attributed to an increase in premium traffic, insufficient capacity at Indian airports leading to expensive tickets, increase in crude oil prices and airlines’ focus on increasing profitability. Domestic hotel tariffs will rise due to improved occupancy rates, global chains expanding in India and a delay in execution of hotel property construction.
Thomas Cook also put forth the concept of cost per trip as an ideal metric to measure the effectiveness of travel programmes for Indian corporate clients. It stated that the cost per trip component of corporate travel will increase by nine to eleven percent by mid-2011 and recommended corporate firms to review their business plans and associated travel plans.