With industry data showing continued increases for both average domestic airfare and the average daily rate for hotels, Orbitz for Business (http://www.orbitzforbusiness.com/) today unveiled a ranking of the top business travel markets in which these costs have demonstrated price fluctuations, including increases and decreases in business traveler spending.
Average Air Transactions
Orbitz for Business, a leading online corporate travel company serving more than one million business travelers, used year-to-date client bookings to determine this newest trend in traveler spending. For example, based on Orbitz for Business transactions, the market that has seen the greatest percentage increase dollar-wise in average airfare is Columbus, Ohio, while Salt Lake City, Utah, tops the list of cities on a percentage basis that have seen their average airfare decrease in 2008.
Top 10 Business Travel Markets Where Average Cost For Air Travel Has
Increased or Decreased*
Increased Decreased
1. Columbus, OH 1. Salt Lake City, UT
2. Toronto, Canada 2. Los Angeles, Calif.
3. New York City (all airports) 3. London, England
4. Houston, Texas 4. San Antonio, Texas
5. Newark, N.J. 5. St. Louis, MO
6. Minneapolis, Minn. 6. Atlanta, GA.
7. Indianapolis, Ind. 7. Fort Lauderdale, Fla.
8. Detroit, Mich. 8. Seattle, Wash.
9. Richmond, Va. 9. San Jose, Calif.
10. Cleveland, OH 10. Portland, Ore.
* Based on percentage increases and decreases for 2008 Orbitz for Business
bookings that included a minimum of 1,000 air transactions per market
The U.S. Bureau of Transportation Statistics shows the average domestic airfare increased 4.5 percent through the first quarter of 2008. Additionally, Consumer Price Index data lists the average domestic airfare increasing an additional 4.5 percent in June alone, its largest monthly increase since March 2000. In contrast, the average air transaction among Orbitz for Business' customers has increased less than two percent (1.55%) thus far (through July 23) in 2008 over the same time period last year.
Average Daily Rates -- Hotel
According to Smith Travel Research, a leading provider of data and information in the hospitality industry, the average daily rate for hotels in the U.S. is up five percent in 2008. But while some may be paying more for lodging, Orbitz for Business hotel bookings also reflect percentage decreases in spending (measured by average daily rate) in a number of top markets, including New York City, Boston, San Francisco and Dallas.
Top 10 Business Travel Markets Where Average Daily Hotel Rate Spending
Has Increased or Decreased*
Increased Decreased
1. Pittsburgh, Pa. 1. Dallas, Texas
2. Sacramento, Calif. 2. Las Vegas, Nev.
3. Toronto, Canada 3. San Diego, Calif.
4. Charlotte, N.C. 4. Phoenix, Ariz.
5. Minneapolis, Minn. 5. New Orleans, La.
6. St. Louis, MO. 6. Cleveland, OH
7. Orlando, Fla. 7. Baltimore, MD.
8. Tampa, Fla. 8. San Francisco, Calif.
9. Columbus, OH 9. New York City
10. Washington, D.C. 10. Boston, Mass.
* Based on percentage increases and decreases for 2008 Orbitz for
Business bookings that included a minimum of 1,000 hotel room nights
per market
A recent Orbitz for Business and Business Traveler Magazine survey found that more than two-thirds (68%) of travelers say they are now staying at less-expensive/lower star-rated hotels as a means to save money.
"It's interesting that in some key markets where customers are spending more on airfare their hotel spend is down, with New York City serving as a prime example," said Dean Sivley, COO and senior vice president, Orbitz for Business. "Some spending increases are inevitable in our current travel climate, however we've been very proactive in integrating cost saving products and initiatives to help our customers best manage their travel programs."
Orbitz for Business Announces Agreement with ExpenseWire
Orbitz for Business also announced today an agreement with ExpenseWire(R), a Rearden Commerce company, to provide its leading expense management solution to Orbitz for Business customers. ExpenseWire and Orbitz for Business will be providing seamless integration from Orbitz for Business travel bookings, giving customers valuable benefits including:
-- Credit Card Integration -- users can set up personal and corporate cards to move transactions directly from credit cards to expense reports.
-- Integrated Travel Itineraries -- integration allows expense reports to be created automatically based on trips and itineraries.
By pre-populating expense reports with trip and credit card information, the ExpenseWire solution will provide companies greater control of travel and entertainment expenses. ExpenseWire is the latest tool that will be integrated by Orbitz for Business, and is designed to reduce costs and help customers manage an optimally efficient travel program.
"The automatic matching of booked travel rates with those being charged through credit cards and expense reporting is a tremendous time-saver and benefit for our customers, further ensuring accuracy and control," Sivley said. "ExpenseWire is a tool, along with a number of other offerings we've launched this year, that's helping many of our customers achieve record-high adoption levels and increased cost savings in a challenging economic environment."
In 2008 alone, Orbitz for Business has implemented an array of products, tools and resources to help corporate travel programs best manage spending, while continuing to conduct business travel. In addition to ExpenseWire, Orbitz for Business recently launched the following:
-- Southwest Airlines content -- the addition of another leading low-cost carrier, offering service to 64 cities in 32 states. Orbitz for Business is one of the only online companies that provides managed corporate customers the ability to load Southwest's Rapid Rewards accounts into their corporate traveler profiles. Southwest Airlines is currently available to Orbitz for Business -- advanced policy customers only, and planned to be available for all Orbitz for Business customers in Q3 2008.
-- Online Meetings Management and Event Planning -- gives customers desktop control over meeting and event planning, delivers cost savings, seamless travel booking functionality and more.
-- Real-time Reporting -- gives travel administrators greater cost control through data reporting and tracking, and the latest dashboard technology to improve travel spend. Offers customers data consolidation, payment card data and access to advanced business intelligence.
The first quarter of 2008 was Orbitz for Business' best ever in terms of new business sold, and followed the fourth quarter of 2007, in which the company doubled its new business from the previous year.
"This is a time when I believe more and more companies are recognizing the true value of a managed corporate travel program and a strategic partner like Orbitz for Business," Sivley said.
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