A recent survey by Thomas Cook (India) Pvt Ltd. revealed that airline fares in India are expected to go up by 12-14%, while hotel tariffs would go up in the range of 5-6% in 2011. The paper, ‘Corporate Travel – Trends, Outlooks and Opportunities for 2011,’ was released yesterday in Mumbai, and also revealed that the cost per trip component of corporate travel will increase by nine to 11% over the next six months.
Girl with hooded ilk - around the back streets of Mumbai - photo courtesy Trey Ratcliff (click on the image for original shot)
“On an average, the domestic fares are likely to go up by 12-14%. However, this increase will spread through the quarters,” the survey said, also revealing that increasing crude oil prices can result in increase of taxes. Also, constrained capacity at Indian airports during prime time slots will result in Corporate India buying more expensive tickets.
According to the survey, on the international air front, North American sectors are going to witness maximum fare hikes, while Europe and Middle East as transit hubs will have higher wave movements from support markets.
Hotel tariffs will also go up 5-6%, but despite more expensive lodging, Thomas Cook India expects improved occupancy rates. There is also a clear trend for expansion of global hotel chains in India. Corporate volumes and loyalty with relationships will drive the savings the corporation can achieve.
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