Business Travel Executive, February 2019

INDUSTRY NEWS 6Business Travel Executive FEBRUARY 2019 US Business Trip Costs Rose in the Third Quarter US domestic business travel during the third quarter 2018 was up 8 percent over the same period last year according to client spending data from Travel Leaders Corporate The average total cost of a trip rose to 1073 driven by a 16 percent increase in hotel costs Domestic airfares were up 6 percent year over year but flat compared with the second quarter and the average car rental cost was 143 down from 165 in the third quarter of 2017 For international trips hotel costs on an average trip were up 27 percent year over year in the third quarter though that stemmed from longer trip lengths as well as rising rates International airfares were up 3 percent year over year and car rental rates were flat Travel Buyers Compensation Holds Steady in 2018 Average compensation for US travel buyers remained stable between 2017 and 2018 at 108000 according to the latest Compensation and Benefits survey from the Global Business Travel Association The report includes salaries bonuses and benefits for US buyers and identifies disparities in compensation based on a variety of demographic traits like gender education region and position Over three quarters 76 percent of buyers in the survey say they are satisfied with their compensation levels However there are gaps for example directors and executives earn an average of 174000 24 percent more than a manager Male buyers earn an average of 13 percent more than their female counterparts Not surprisingly regional differences mean buyers earn more in the Northeast than in the West Pacific South and Midwest and buyers with a bachelors degree average approximately 12000 more than buyers with an associates degree BTE SPONSORS IATA Predicts Another Profitable Year for Airlines The International Air Transport Association forecasts the global airline industry will see a net profit of 355 billion in 2019 slightly ahead of projected net profit of 323 billion in 2018 Carriers in North America continue to lead on financial performance over their global counterparts accounting for nearly half of the industrys total profits This would be the 10th consecutive year of profitability and the fifth consecutive year in which airlines deliver a return on capital that exceeds the industrys cost of capital Alexandre de Juniac IATAs director general and CEO said that expectations for a drop in profitability in 2019 had been offset by a sharp fall in oil prices and solid global GDP growth