Experts predicting travel rebound in 2010
August 13, 2009
Although it has been widely reported that business travel is down by 15 per cent this year, HIS Global Insight is reporting better news that indicates a recovery in 2010.
The economic data company is predicting an annual growth rate of 1.2 per cent for the five-year period through 2013, following a study that was conducted in co-operation with the National Business Travel Association, and sponsored by Egencia.
It looks like there are signs indicating an upturn in the overall travel sector. Cathay Pacific Airways has raised hopes by returning to profitability, even though the profits were a result of gains made by fuel hedging that compensated for decreased cargo and passenger traffic.
Christopher Pratt, the chairman of Cathay Pacific, said: “There is still no sign of early recovery,” adding: “The best we can say at the moment is the worst may now be over.”
Orbitz, the online travel agency, also added to industry optimism when it posted a profit for the second-quarter, driven in part by an increase in the number of booking transactions and a cost-cutting programme designed to offset decreased travel demand.
Barney Harford, the Orbitz chief executive, said he feels the worst of the decline in demand is over. He said: “What we’re seeing is stabilization in terms of demand. We’re seeing stabilization in terms of average daily rates on hotels. But I don’t think we’re seeing any major signs of any kind of uptick.”
Thanks to www.travelmole.com for the above quotes, for more information on this article please visit their website.
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