ANNUAL BUSINESS TRAVEL INDEX MARCH 2018
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1 ANNUAL BUSINESS TRAVEL INDEX MARCH
2 TABLE OF CONTENTS ANNUAL DOMESTIC AIRFARE AVERAGE PRICE PAID...3 ANNUAL INTERNATIONAL AIRFARE AVERAGE PRICE PAID...4 ANNUAL TRAVEL PATTERNS...5 ANNUAL DOMESTIC HOTEL AVERAGE PRICE PAID...6 ANNUAL INTERNATIONAL HOTEL AVERAGE PRICE PAID NEGOTIATED HOTEL ROOM RATES BY CITY...8 Following each quarter, takes a look back at select clients quarter-over-quarter travel patterns in our Quarterly Business Travel Indexes. These high-level quarterly analyses allow us to identify trends and to benchmark individual client activity against a yardstick representing over $230 million (Industry Mix Business Travel Index), $50 million (Financial Services Firm Business Travel Index) and $180 million (Law Firm Business Travel Index) in annual air and hotel spend. Following each calendar year, we combine the year-over-year data into this report, looking back at 5 years of average prices paid for domestic and international airfares and hotel rates as well as class of service and domestic/international travel trends. Turn to page 8 for the newest addition to our Annual Business Travel Index report, the 2018 Negotiated Hotel Room Rates by City overview, an analysis of negotiated hotel rate variance for 2018 as compared to 2017 negotiated rates in the top hotel markets for Ovation s proprietary Preferred Hotel Partners Program. 2
3 DOMESTIC AIR FARE AVERAGE PRICE PAID 3
4 INTERNATIONAL AIR FARE AVERAGE PRICE PAID 4
5 TRAVEL PATTERNS 2013 TO % 12.2% 12.6% 11.9% 12.1% 14.6% 14.7% 14.6% 10.6% 23.9% 12.0% 12.2% 11.8% 12.0% 11.7% % 72.8% 73.5% 77.3% 64.5% % 87.9% 88.2% 88.0% 88.3% Economy Business First Domestic International % 25.0% 26.8% 26.6% 28.4% 22.6% 17.6% 19.5% 21.2% 19.1% 52.1% 57.5% 53.8% 52.3% 52.5% % 13.2% 13.1% 14.4% 15.2% 87.5% 86.8% 86.9% 85.6% 84.8% Economy Business Class First Class Domestic International 3 9.5% 10.4% 10.9% 10.6% 11.1% 14.0% 14.2% 14.9% 9.9% 26.4% 75.6% 75.0% 74.6% 79.0% 64.1% % 10.5% 10.2% 10.1% 10.4% 89.3% 89.6% 89.8% 89.9% 89.6% Economy Business First Domestic International 5
6 DOMESTIC HOTEL AVERAGE PRICE PAID 6
7 INTERNATIONAL HOTEL AVERAGE PRICE PAID 7
8 2018 PREFERRED HOTEL PARTNERS PROGRAM NEGOTIATED ROOM RATES BY CITY THE LIST: Atlanta Austin Beijing Boston Chicago Dallas Denver Geneva Hong Kong Houston London Los Angeles Miami Miami Beach Nashville New Orleans New York City Paris Portland Philadelphia Rome Seattle San Francisco Tokyo Washington, DC Full Program Average -2.22% 0.40% -2.95% 2.61% 0.23% 1.11% 4.50% -0.45% -0.67% 1.02% 3.64% 1.77% -0.07% 4.40% 2.42% 2.78% -1.32% 1.09% 2.05% -0.71% 0.57% 3.36% 3.58% 1.68% 0.27% 1.08% THE ANALYSIS: This chart provides an overview analysis of our negotiated Preferred Hotel Partners Program hotel rates for 2018, average year over year room rates increase or decrease by city, as compared to the 2017 negotiated rates in the top hotel markets. With over 715 elite (3/4/5 star) hotels worldwide participating in the program, Ovation s 2018 negotiated hotel rate analysis illustrates what we see as an overall soft increase in negotiated hotel rates for None of the top hotel market cities see average negotiated rate increases more than 5% over 2017, with several cities showing year over year negotiated rate decreases. The city with the greatest average negotiated hotel rate increase in 2018 compared to 2017 is Denver, with an average increase of 4.5%. The city with the greatest average negotiated hotel rate decrease in 2018 is Beijing, down 2.95% on average. 8
9 is an independently-owned, $1.1 billion travel management company. Ovation s mission is to provide outstanding service, significant cost savings and comprehensive, convenient travel solutions to professional travel managers, administrators and business travelers
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