state of the industry san diego business travel association michele cardella february 23, 2012 video

State of the IndustrySan Diego Business Travel Association

Michele CardellaFebruary 23, 2012 video

http://www.youtube.com/watch?v=23skmMm4bjs&feature=related

2Copyright Advito 2012

State-of-the-Industry Overview

Airline

Setting

Hotel

Ground Transportation

Meetings


Risk Factors

Economy

Oil price

Security/safety


Global Economic Outlook

The recovery is expected to slow down in 2012 in most regions, including China, and will decline in the eurozone

2010: +5.2% ◄2011: +3.8% ◄2012: +3.3% ◄

2010: +1.9%◄2011: +1.6% 2012: - 0.5%◄

Euro Area

2010: +3.0%◄2011: +1.8%◄2012: +1.8%◄

USA

World

2010: +10.4%◄2011: +9.2% ◄2012: +8.2% ◄

China

GDP◄ indicates revision to previous forecast

Source: IMF, World Economic Outlook, Jan. 2012


Eurozone Crisis

So far there is no solution to Greek debt, and future bailouts remain open questions

Source: Advito 2012 Industry Forecast Update, Feb. 2012

Eurozone breakup averted - at least for the moment

Belgium has entered another

recession

France’s credit rating has been

downgraded, joining Austria, Malta, Slovenia, Slovakia, Cyprus, Italy, Portugal and Spain


2012 Outlook

A range of capacity conditions means hotel rate hikes will vary across the globe, from 1-20%

Demand is relatively robust and will continue to grow in 2012, barring negative economic developments

Strong demand in Latin America and Asia is pushing airfare increases higher in these regions (up to 9% YOY) than in others (average 3% YOY)

After two years of little change, rental car rates may rise 4-6%


Meeting rates will rise faster in 2012 and accelerate in 2013


High demand for regional economy-

class travel in Asia has bumped the

forecast increase up to 9%

Air Outlook 2012

Major airlines are cutting capacity after an estimated 2% YOY decline in 4Q2011

The projected YOY increase for Latin America has risen to 7% for

intercontinental and 8% for regional travel

Airfare forecast for Europe is reduced

from a YOY increase of 5% down to 3%



Airfare Predictions for 2012North America

Forecast of average development of air fares used by corporate clients 2012 against 2011 (in USD)

Business Economy

Intercontinental +5% +5%

Regional +3% +5%


Rising demand and supplier capacity discipline will result in YOY increases in airfares

◄ indicates revision to previous forecast


Airfare Predictions for 2012Latin America

Forecast of average development of air fares used by corporate clients 2012 against 2011 (in $ USD)

Business Economy

Intercontinental +7%◄ +7%◄

Regional +8%◄ +8%◄


Following similar trends and capacity/demand balance, Latin American air costs will also increase



Airfare Predictions for 2012Europe

Forecast of average development of air fares used by corporate clients 2012 against 2011 (in € EUR)

Business Economy

Intercontinental +3%◄ +3%◄

Regional +1%◄ +3%◄


Ongoing concern for Europe’s economy has led Advito to revise downward its forecast for YOY fare increases



Airfare Predictions for 2012Middle East

Forecast of average development of air fares used by corporate clients 2012 against 2011 (in € EUR)

Business Economy


Regional +3% +5%


Large capacity increases by Middle East carriers will temper ability to raise fares even with higher demand



Airfare Predictions for 2012Asia-Pacific

Forecast of average development of air fares used by corporate clients 2012 against 2011 (in $ USD)

Business Economy


Regional +4% +9%◄


Demand is increasing rapidly with the strength of the region’s economic rebound



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Advance Booking Behavior

Same Day

> 0 and <=3 Days

> 3 and <= 7 Days

> 7 and <= 14 Days

> 14 and <=21 Days

> 21 Days

Advance Booking

Bookings made more than 14 days in advance remain at about 50% share of a fluctuating behavior pattern

North America



Recommendations for Buyers – Air

Be wary of significant over-commitment to volume or market-share targets during negotiations

Negotiate hard on the pockets of over-capacity in the market

Joint ventures and other airline consolidations will pose an increasing threat to managed air programs

A reliable way to reduce average ticket price is to find ways to avoid last-minute purchases

Source: Advito 2012 Industry Forecast, Sept. 2011


Spotlight: Oil Prices

Fears of economic slowdown have moderated

skyrocketing oil prices

Every US$10 rise in barrel price pushes up total

ticket price by approximately 3% (higher fares and

fuel surcharges)

IMF forecasts US$99.09/barrel in 2012



Spotlight: Ancillary FeesThe Issues

Total price

VisibilityLeverage


Spotlight: Ancillary FeesThe Trends

Airlines collected $21.46bn in ancillary fee revenue in 2010 – an increase of 59% YOY and 775% over 2007

Expect airlines to continue experimenting with different forms of unbundling and merchandising

Our recommendations to clients Continue to create policy on unbundled services, including specifying which can be reimbursed and which cannot

Press suppliers to provide adequate reporting

Try to negotiate on rebundled packages as part of corporate agreements



Spotlight – Europe Card Payment Fees


In 2011, BA and Lufthansa Group announced fees for credit card paymentsWhat should clients be doing?– Prepare for other airlines to

follow suit/expand similar fee systems

– Make the fees a topic for negotiation in upcoming deals

– Evaluate payment options


Spotlight – EU Emissions Trading System

EU will include all airlines in ETS as of Jan. 1, 2012ETS sets a cap on permissible emissions; beyond that cap, companies must buy permitsNon-European airlines are fighting hard against being included in the ETS


How much the ETS will cost airlines?How much of that cost they will pass on to passengers?How they will pass it on?


India’s forecasted ADR increases are

slowing to 2-4% due to growing capacity

Brazil will see double-digit YOY

ADR growth at 18-20%

In Israel and Saudi Arabia demand is outstripping capacity,

leading to 10-15% rise in ADR

Strong demand in Asia, Latin

America and the Middle

East is driving a 3% YOY jump in ADR

Hotel Outlook 2012



Hotel ADR: 2012 Forecast by Region

Forecast of average development of hotel rates used by corporate clients in 2012 against 2011 (local currency)

North America +5-6%

Europe+2-3%

Asia-Pacific+8-10%◄

Middle East +7-15%◄

Africa+3-4%

Steadily increasing demand will usher in moderate ADR increases

Latin America +8-18% ◄




Hotel ADR: 2012 Forecast by Market

Forecast of average development of hotel rates used by corporate clients in 2012 against 2011 (local currency)

US +5-6%

RU +3-5%

CN +4-6% KO +3-5%

SG +8-10%◄

AE +2-4% IN +2-4%◄MX +1-3%

BR +18-20%◄

CH-PT-SE +0-2%ES-IE-IT +1-3% NL-TR-UK +1-3% AT-BE-CZ +2-4%FR-DE +2-4%


AR +8-10%◄

AU +7-9%◄

CA +4-6%

JP +0-2%

DK-FI-NO +2-4%

ZA +2-4%

SA +13-15%◄

Moderate increases are expected due to continuing though moderated economic growth tempered by new supply



Spotlight – London Olympics (July 27- Aug.12, 2012)

February 2012 Update

20 percent of rooms to be released back into the market

120,000+ room nights

200 hotels (5-star to budget)

Hotels may ask 5-10x their normal rate

Demand will skyrocket


Recommendations for Buyers – Hotel

Insist on negotiated rate being an LRA rate


Expand number of hotels in RFP process but concentrate on fewer properties in final decision

Negotiate hotel contracts for transient travelers to cover small meetings (up to 50 room nights)

Be wary of dynamic pricing, and be sure to negotiate more than 10 percent off the BAR

Consider imposing city caps based on total cost of stay


2012 Outlook – Meetings

Demand will continue to grow worldwide, approaching peak 2008 levels by year-end 2012

Rates are expected to return to 2008 levels in 2013/2014

Rates for meetings will rise faster in 2012 than in 2011 and accelerate even more sharply in 2013

Lead-times may start to lengthen as supply at preferred hotels dwindles



Recommendations for Buyers – Meetings

Watch out for suppliers being less flexible in negotiating terms and conditions

With the negotiating environment likely to be even tougher in 12 months’ time, consider the option of multi-year deals with suppliers

Book ahead, especially in high-demand cities

Do not rely on finding upscale hotel bargains


Be more prepared to consider second- and third-tier cities.


2012 Outlook – Car Rental

Rate increases will be minor (4-6%) thanks to strong competition, but total cost of rental will continue to climb (ancillary charges, taxes, insurance, fuel)

Demand will continue to rise steadily, and providers will keep inventory tightly aligned



Spotlight – Car Sharing

Corporate interest is likely to grow in 2012Good for less-than-a-day rentalsAdministrative processing provides good management informationEnvironmentally friendly aspect–better vehicle utilization and introduction of electric cars


Companies which need car rentals in major cities should

evaluate the market

Analyze your existing rental program in more detail


Recommendations for Buyers – Car Rental

Negotiate harder on ancillaries and other charges, such as refueling premiums


Revisit car rental program before suppliers start to push up their rates

Book further in advance

Evaluate relative financial costs of private vehicle use vs. car rental

Set a policy on ancillary items (e.g., satellite navigation systems)


2012 Outlook – Rail


Expect price increases of 4-5%, on a par with 2011

Demand and price are provisionally forecast to be flat in 2012, although that could change with the

introduction of several planned new domestic LCCs

Distribution of international rail will remain

challenging

French national operator SNCF could lose market

share as they begin major network renovations

Europe

Japan


Advito Links

Industry Forecast: updated quarterly

Changing the DNA of Managed Travelo Using Social and Mobile to Enhance Productivity, Morale and the

Bottom Line

Strategic Travel Program KPI's White Papero Improving travel program management through strategic KPIs

and meaningful savings measurement

Coming soon…Beyond End-to-End

How Consumerization is Redrawing the Blueprint for Corporate Travel Management

http://www.advito.com/


Thank You!


Cost per Mile: Asia Pacific

Source: Advito 2012 Industry Forecast Update, February 2012

-20%

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Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11

Cost per Mile (y-o-y)

Inter-continental Business Inter-continental Economy Regional Business Regional Economy

Asia Pacific - USD Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11Intercontinental Business CPM 40.0 41.2 39.5 40.3 38.3 44.5 43.3 41.7 42.6 42.2 44.4 43.2Intercontinental Economy CPM 16.4 14.9 15.0 14.2 15.0 15.3 17.4 18.7 19.2 16.5 16.0 19.4

Regional Business CPM 48.7 41.9 46.2 46.6 48.6 49.9 52.9 58.2 53.2 53.3 51.9 54.8Regional Economy CPM 30.1 28.0 29.1 30.8 35.8 32.2 32.9 33.0 33.6 31.3 32.9 31.5


Cost per Mile: Europe

-30%

-20%

-10%

0%

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30%

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EUROPE - EUR Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11Intercontinental Business CPM 33.6 31.3 33.8 34.7 34.3 34.4 35.5 32.6 32.4 33.8 33.5 34.4Intercontinental Economy CPM 11.9 9.9 11.4 10.9 11.8 11.2 15.0 11.9 12.1 12.5 11.7 12.6




Cost per Mile: Middle East

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Middle East - EUR Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11Intercontinental Business CPM 25.7 32.7 31.7 30.8 27.4 29.3 32.5 27.3 27.8 37.3 31.2 33.2Intercontinental Economy CPM 10.0 11.0 10.5 12.0 8.3 9.1 11.0 10.4 13.3 14.2 12.3 13.2




Cost per Mile: Latin America

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Latin America - USD Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11Intercontinental Business CPM 35.0 33.5 34.6 35.3 42.6 38.9 36.8 40.6 44.5 40.6 36.2 40.5Intercontinental Economy CPM 18.0 15.4 13.9 16.5 16.5 16.8 15.5 16.6 17.1 19.7 16.2 18.5




Cost per Mile: North America

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North America - USD Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11Intercontinental Business CPM 53.6 55.2 55.9 56.8 57.9 57.9 56.2 54.4 55.1 58.8 58.6 58.2Intercontinental Economy CPM 18.3 18.0 17.2 18.4 18.7 19.9 21.2 20.9 19.6 20.0 18.5 18.0




Economy Class Ratio

North America Europe

The use of economy class has increased on regional flights in North America and Europe

51% 54% 51%

87% 87% 89%

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Economy Class RatioInter-continental Regional

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Economy Class RatioInter-continental Regional



Hotel Rate Developments: United Kingdom

6%

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Country ADR Last 12 Months

United Kingdom DEC 10 JAN 11 FEB 11 MAR 11 APR 11 MAY 11 JUN 11 JUL 11 AUG 11 SEP 11 OCT 11 NOV 11Local ADR (GBP) £149 £140 £137 £141 £147 £152 £165 £159 £136 £170 £154 £150



Hotel Rate Developments: United Arab Emirates

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UAE DEC 10 JAN 11 FEB 11 MAR 11 APR 11 MAY 11 JUN 11 JUL 11 AUG 11 SEP 11 OCT 11 NOV 11Local ADR (AED) AED 927 AED 921 AED 977 AED 901 AED 809 AED 693 AED 593 AED 602 AED 593 AED 755 AED 870 AED 1,023



Hotel Rate Developments: Singapore

11%

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1%

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7%

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12%

7% 7%

0

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Singapore DEC 10 JAN 11 FEB 11 MAR 11 APR 11 MAY 11 JUN 11 JUL 11 AUG 11 SEP 11 OCT 11 NOV 11Local ADR (SGD) SGD 296 SGD 312 SGD 304 SGD 307 SGD 305 SGD 310 SGD 309 SGD 304 SGD 303 SGD 360 SGD 316 SGD 320



Hotel Rate Developments: Russia

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Russia DEC 10 JAN 11 FEB 11 MAR 11 APR 11 MAY 11 JUN 11 JUL 11 AUG 11 SEP 11 OCT 11 NOV 11Local ADR (RUR) 8,878р. 8,271р. 8,814р. 8,345р. 8,737р. 8,744р. 8,950р. 8,109р. 8,128р. 9,694р. 9,117р. 8,283р.



Hotel Rate Developments: United States


1%

3%

3%

4%

3%

3%4%

3%

3%

3%3% 3%

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United States DEC 10 JAN 11 FEB 11 MAR 11 APR 11 MAY 11 JUN 11 JUL 11 AUG 11 SEP 11 OCT 11 NOV 11Local ADR (USD) $132 $129 $131 $135 $134 $137 $139 $134 $132 $140 $140 $138


Hotel Rate Developments: Korea

Republic of Korea OCT 10 NOV 10 DEC 10 JAN 11 FEB 11 MAR 11 APR 11 MAY 11 JUN 11 JUL 11 AUG 11 SEP 11Local ADR (KRW) KRW 256,904 KRW 255,287 KRW 220,635 KRW 223,201 KRW 230,986 KRW 237,131 KRW 231,705 KRW 240,298 KRW 229,216 KRW 220,106 KRW 234,094 KRW 262,607

4%3%

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8%

-6%

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2%

14%

8%

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Jan-

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Hotel Rate Developments: Japan

-11%-10%

-6%

-17%

-3% -3%

-6%

2%

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5,000

10,000

15,000

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Japan DEC 10 JAN 11 FEB 11 MAR 11 APR 11 MAY 11 JUN 11 JUL 11 AUG 11 SEP 11 OCT 11 NOV 11Local ADR (JPY) JPY 19,354 JPY 18,608 JPY 20,025 JPY 17,070 JPY 20,461 JPY 19,620 JPY 19,016 JPY 19,855 JPY 19,390 JPY 19,736 JPY 20,517 JPY 20,729



Hotel Rate Developments: Italy

2%

5%

0%1%

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5%

-2% -3%

4%

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Italy DEC 10 JAN 11 FEB 11 MAR 11 APR 11 MAY 11 JUN 11 JUL 11 AUG 11 SEP 11 OCT 11 NOV 11Local ADR (EUR) € 132 € 144 € 141 € 143 € 156 € 157 € 163 € 152 € 148 € 178 € 160 € 142



Hotel Rate Developments: Ireland

-6%

-3%

-1%

1%

4%

-3%

-5%

1%

-5%

9%

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Dec

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Ireland DEC 10 JAN 11 FEB 11 MAR 11 APR 11 MAY 11 JUN 11 JUL 11 AUG 11 SEP 11 OCT 11 NOV 11Local ADR (EUR) EUR 105 EUR 105 EUR 110 EUR 110 EUR 109 EUR 113 EUR 117 EUR 120 EUR 111 EUR 123 EUR 113 EUR 116



Hotel Rate Developments: India

8%

2%

6%

3%

5%

-1% -1%-1%

2%

0%

-2%

-3% 0

2,000

4,000

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Jan-

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India DEC 10 JAN 11 FEB 11 MAR 11 APR 11 MAY 11 JUN 11 JUL 11 AUG 11 SEP 11 OCT 11 NOV 11Local ADR (INR) INR 9,479 INR 9,407 INR 9,607 INR 8,967 INR 8,308 INR 7,937 INR 7,772 INR 7,651 INR 7,839 INR 8,557 INR 8,486 INR 8,796



Hotel Rate Developments: Germany

-1%

3% 3%

6%

1%

11%

0%

-1%

3%

-2%

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Jan-

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Germany DEC 10 JAN 11 FEB 11 MAR 11 APR 11 MAY 11 JUN 11 JUL 11 AUG 11 SEP 11 OCT 11 NOV 11Local ADR (EUR) € 112 € 119 € 118 € 119 € 116 € 123 € 116 € 109 € 107 € 133 € 128 € 117



Hotel Rate Developments: France

7%

4%

2%1%

3%

5%

7%

2%

6%

2%

-2%

4%

0

50

100

150

200

250

-3%

-2%

-1%

0%

1%

2%

3%

4%

5%

6%

7%

8%D

ec-1

0

Jan-

11

Feb-

11

Mar

-11

Apr

-11

May

-11

Jun-

11

Jul-1

1

Aug

-11

Sep

-11

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-11

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-11

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France DEC 10 JAN 11 FEB 11 MAR 11 APR 11 MAY 11 JUN 11 JUL 11 AUG 11 SEP 11 OCT 11 NOV 11Local ADR (EUR) € 164 € 159 € 156 € 161 € 161 € 180 € 202 € 173 € 167 € 192 € 177 € 165



Hotel Rate Developments: China

7%8%

3%2%

4%

1%

2%

0%

5%

1%

-3%

2%

0

200

400

600

800

1,000

1,200

-4%

-2%

0%

2%

4%

6%

8%

10%D

ec-1

0

Jan-

11

Feb-

11

Mar

-11

Apr

-11

May

-11

Jun-

11

Jul-1

1

Aug

-11

Sep

-11

Oct

-11

Nov

-11

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AD

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China DEC 10 JAN 11 FEB 11 MAR 11 APR 11 MAY 11 JUN 11 JUL 11 AUG 11 SEP 11 OCT 11 NOV 11Local ADR (CNY) CNY 1,038 CNY 1,056 CNY 981 CNY 1,018 CNY 1,104 CNY 1,045 CNY 1,042 CNY 1,013 CNY 1,002 CNY 1,080 CNY 1,127 CNY 1,051



Hotel Rate Developments: Canada

2%

-1% -1%

2%

-2% -2%

-4%

-5%

0%

2%

0%

3%

0

20

40

60

80

100

120

140

160

180

-5%

-4%

-3%

-2%

-1%

0%

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3%

4%D

ec-1

0

Jan-

11

Feb-

11

Mar

-11

Apr

-11

May

-11

Jun-

11

Jul-1

1

Aug

-11

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Canada DEC 10 JAN 11 FEB 11 MAR 11 APR 11 MAY 11 JUN 11 JUL 11 AUG 11 SEP 11 OCT 11 NOV 11Local ADR (CAD) $146 $144 $146 $147 $146 $154 $159 $151 $157 $164 $158 $155



Hotel Rate Developments: Brazil

3% 3%

5%

8%

13%

5%

7%

13%

16%

25%

17%

21%

0

50

100

150

200

250

300

350

0%

5%

10%

15%

20%

25%

30%D

ec-1

0

Jan-

11

Feb-

11

Mar

-11

Apr

-11

May

-11

Jun-

11

Jul-1

1

Aug

-11

Sep

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Oct

-11

Nov

-11

Mon

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Brazil DEC 10 JAN 11 FEB 11 MAR 11 APR 11 MAY 11 JUN 11 JUL 11 AUG 11 SEP 11 OCT 11 NOV 11Local ADR (BRL) BRL 210 BRL 230 BRL 242 BRL 246 BRL 251 BRL 248 BRL 246 BRL 249 BRL 258 BRL 286 BRL 261 BRL 279



Hotel Rate Developments: Top U.S. Cities

Highest 2011 ADR increases seen in San Francisco and NYC

Top 2010 2011 U.S. Cities 1Q 2Q 3Q 4Q 1Q 2Q 3QATL ADR 132 129 131 137 135 133 132

Y-o-Y -8.1% -5.8% -1.7% 4.9% 2.6% 3.0% 1.2%BOS ADR 176 228 235 218 183 240 246

Y-o-Y -6.9% 1.0% 6.6% 2.2% 3.9% 5.3% 4.8%CLT ADR 124 125 121 128 131 130 127

Y-o-Y -6.8% -5.7% -1.3% 1.9% 5.0% 3.8% 4.3%CHI ADR 147 193 195 200 153 206 202

Y-o-Y -11.8% -0.1% 5.3% 5.5% 4.1% 6.9% 3.9%DFW ADR 125 124 125 129 138 132 131

Y-o-Y -8.2% -4.2% -0.6% 3.8% 10.4% 6.5% 4.4%DEN ADR 139 140 140 139 141 146 151

Y-o-Y -4.3% -0.7% -0.3% -0.6% 1.4% 3.9% 7.3%HOU ADR 135 136 130 131 134 141 134

Y-o-Y -10.2% -7.5% -5.3% -3.9% -0.8% 3.9% 3.4%IND ADR 109 113 110 107 109 112 112

Y-o-Y -6.2% -0.2% -3.2% -4.4% -0.3% -0.8% 1.9%LAS ADR 134 128 120 129 141 133 130

Y-o-Y -3.6% 2.2% 6.2% 3.4% 5.0% 3.3% 8.5%LAX ADR 155 162 162 161 168 169 170

Y-o-Y -5.2% 0.4% 2.5% 2.1% 8.5% 4.3% 5.3%

Top 2010 2011 U.S. Cities 1Q 2Q 3Q 4Q 1Q 2Q 3QNYC ADR 245 303 304 350 260 329 323

Y-o-Y -5.3% 12.6% 7.2% 4.2% 6.0% 8.8% 6.4%ORL ADR 121 119 104 116 130 123 109

Y-o-Y -8.1% -4.7% -1.2% -0.7% 6.9% 3.3% 4.5%PHL ADR 157 164 160 163 164 177 170

Y-o-Y -7.7% -1.1% 2.9% -1.7% 4.6% 8.0% 6.3%PHX ADR 159 122 104 130 153 120 104

Y-o-Y -10.3% -0.4% -0.6% -3.5% -3.7% -1.9% 0.4%PDX ADR 118 121 127 123 117 134 133

Y-o-Y -12.0% -7.3% -4.0% -2.5% -0.4% 5.9% 5.0%STL ADR 113 118 118 118 119 125 124

Y-o-Y -4.3% -0.6% 1.1% 4.0% 2.6% 3.9% 5.0%SAN ADR 140 144 152 139 143 144 152

Y-o-Y -9.8% -4.6% 1.0% -1.2% 2.3% -0.1% 0.0%SFO ADR 187 186 203 205 207 213 235

Y-o-Y -8.5% -1.7% 3.9% 2.9% 11.1% 14.8% 15.6%SEA ADR 148 160 170 151 152 163 178

Y-o-Y -7.0% -4.9% 0.7% 0.7% 3.0% 2.2% 4.7%WAS ADR 229 260 230 239 234 259 223

Y-o-Y -3.4% 5.0% 7.0% 0.6% 2.1% -0.4% -3.3%



Hotel Rate Developments: Top European Cities London continues to be the best performing market in Europe

Top Euro Cities 2010 2011ADR Local Currency 1Q 2Q 3Q 4Q 1Q 2Q 3QAmsterdam ADR 141 160 158 150 146 159 158

Y-o-Y -4.7% 7.8% 8.1% 5.5% 3.4% -0.3% -0.3%Barcelona ADR 116 130 129 120 121 147 161

Y-o-Y -8.4% 2.3% 1.1% 4.1% 4.7% 13.1% 24.5%Berlin ADR 121 120 127 116 122 118 117

Y-o-Y -3.1% -0.8% 4.1% -1.9% 0.7% -1.8% -7.6%Brussels ADR 141 155 139 157 156 163 145

Y-o-Y -8.0% 3.7% 4.4% 5.9% 10.6% 4.7% 4.4%Copenhagen ADR 1031 1111 1184 1120 1132 1208 1207

Y-o-Y -4.3% -1.9% 9.1% -10.8% 9.8% 8.8% 1.9%Dublin ADR 114 119 116 109 111 117 121

Y-o-Y -13.8% -5.0% -6.2% -8.1% -3.1% -1.2% 3.7%Duesseldorf ADR 114 116 116 129 122 137 109

Y-o-Y -4.8% -0.1% 0.1% 0.9% 7.1% 18.6% -6.4%Frankfurt ADR 145 146 140 139 152 141 142

Y-o-Y -7.9% 2.2% 1.7% -1.2% 4.3% -3.4% 1.5%London ADR 156 166 168 171 160 180 180

Y-o-Y 2.1% 11.3% 9.5% 8.2% 2.5% 8.6% 7.3%Hamburg ADR 114 117 123 115 114 123 125

Y-o-Y -6.5% 0.0% 2.7% -3.8% -0.2% 5.0% 1.2%

Top Euro Cities 2010 2011ADR Local Currency 1Q 2Q 3Q 4Q 1Q 2Q 3QMadrid ADR 117 130 115 120 118 130 134

Y-o-Y -11.0% 5.9% 4.1% -1.4% 0.4% 0.1% 16.6%Milan ADR 170 171 170 162 171 176 169

Y-o-Y -6.5% 0.0% 12.2% 4.9% 0.5% 2.8% -0.6%Moscow ADR 9180 9391 9275 9831 9548 9556 9590

Y-o-Y -14.0% -3.6% 1.0% 1.3% 4.0% 1.8% 3.4%Munich ADR 124 139 152 142 136 140 151

Y-o-Y -10.0% 4.1% 7.3% 4.5% 9.9% 1.0% -0.8%Paris ADR 180 198 199 196 184 215 209

Y-o-Y -4.8% 3.5% 9.8% 7.3% 2.4% 8.5% 5.0%Prague ADR 2849 3130 3108 2958 2712 3172 3229

Y-o-Y -11.1% -6.4% 0.8% 0.0% -4.8% 1.3% 3.9%Rome ADR 147 191 184 167 157 190 182

Y-o-Y -9.9% 4.1% -1.0% 6.5% 6.3% -0.6% -1.3%Stockholm ADR 1629 1740 1767 1695 1616 1723 1671

Y-o-Y -3.2% 3.5% 8.0% 1.0% -0.8% -1.0% -5.4%Vienna ADR 131 141 145 137 131 143 143

Y-o-Y 2.6% 7.6% 6.1% 2.3% -0.1% 1.0% -1.3%Zurich ADR 279 288 280 259 260 277 274

Y-o-Y -7.9% 1.9% 5.6% -5.9% -7.0% -4.0% -2.4%



Hotel Rate Developments: Top Cities in Asia-Pacific

Hotel rates in APAC are recovering faster than other regions with Hong Kong and Singapore leading the way

Top APAC Cities 2010 2011ADR Local Currency 1Q 2Q 3Q 4Q 1Q 2Q 3Q

Bangkok ADR 4784 4604 4393 4585 4881 4900 4785Y-o-Y -9.4% -0.1% -5.0% -6.8% 2.0% 6.4% 8.9%

Beijing ADR 1004 1060 1012 1079 1074 1142 1111Y-o-Y -9.4% -7.0% -2.3% 4.1% 7.0% 7.7% 9.7%

Dubai ADR 961 702 614 874 915 709 668Y-o-Y -10.6% -10.4% -3.3% -9.7% -4.8% 0.9% 8.8%

Hong Kong ADR 1911 1896 1911 2210 2350 2112 2116Y-o-Y 0.4% 13.2% 13.4% 20.2% 23.0% 11.4% 10.7%

Mumbai ADR 9582 9044 8921 10337 10252 9121 8629Y-o-Y -17.7% -6.6% -1.7% 12.0% 7.0% 0.9% -3.3%

Seoul ADR 230912 236423 240690 253612 242163 245719 248310Y-o-Y -0.6% 9.4% 10.1% 9.9% 4.9% 3.9% 3.2%

Shanghai ADR 1136 1281 1250 1289 1195 1228 1185Y-o-Y -7.7% 7.6% 9.2% 13.3% 5.2% -4.2% -5.2%

Singapore ADR 288 304 301 296 307 308 322Y-o-Y -1.5% 12.6% 9.8% 8.8% 6.6% 1.2% 7.1%

Sydney ADR 259 242 237 260 249 238 245Y-o-Y 2.8% 7.6% 2.3% 3.8% -3.8% -1.6% 3.3%

Tokyo ADR 22243 22100 20760 20958 21050 21643 21207Y-o-Y -8.3% -3.0% -7.5% -9.3% -5.4% -2.1% 2.1%



Hotel Rate Developments: Top cities in Canada & Latin America

Inflation is affecting Buenos Aires with the highest ADR increases. Brazil’s economic boom is also affecting their hotel rates

Canada & Lat.Am 2010 2011ADR Local Currency 1Q 2Q 3Q 4Q 1Q 2Q 3Q

Bs. Aires ADR 526 548 574 674 667 674 753Y-o-Y -14.8% -7.4% 4.4% 13.4% 26.8% 23.0% 31.2%

Lima ADR 498 460 478 512 530 561 536Y-o-Y -19.7% -9.9% -2.9% -0.8% 6.5% 21.9% 12.1%

Mexico City ADR 1805 1723 1706 1673 1709 1595 1665Y-o-Y -17.4% -9.1% -12.3% -9.4% -5.3% -7.4% -2.4%

Montreal ADR 143 164 167 153 148 163 162Y-o-Y -4.4% 11.0% 6.0% 1.6% 3.1% -0.6% -2.7%

Rio ADR 328 324 314 330 355 360 373Y-o-Y -9.7% 8.8% 9.8% 12.0% 8.3% 11.3% 18.9%

San Jose ADR 76435 72840 74371 73623 75448 77334 74853Y-o-Y 0.6% -3.0% 7.7% 1.5% -1.3% 6.2% 0.6%

Santiago ADR 100117 93344 81930 93463 84601 88655 90939Y-o-Y -10.0% 0.6% -6.8% 14.5% -15.5% -5.0% 11.0%

Sao Paulo ADR 283 276 265 264 302 325 332Y-o-Y 3.1% 7.1% 10.9% 6.9% 6.9% 17.7% 25.1%

Toronto ADR 150 164 160 160 153 161 164Y-o-Y -8.0% 5.8% 3.0% 5.0% 2.0% -1.9% 2.4%

Vancouver ADR 181 170 180 163 153 177 182Y-o-Y 15.9% 6.4% 2.6% 7.2% -15.2% 4.0% 1.0%



3.9%

4.0%

4.0%

47.7%

48.4%

47.5%

13.0%

12.5%

11.4%

32.6%

32.3%

33.9%

1.6%

1.6%

1.7%

0% 20% 40% 60% 80% 100%

2011 YTD

2010

2009

% of Room Nights

Tier Distribution

Luxury Upper Upscale Upscale Mid Scale Economy Mixed

Tier Distribution

The upscale market has been slowly reclaiming its market share while the Upper Upscale segment retains the largest corporate market

United States



Hotel Supply Growth

For 2012, most new hotels in the US are planned for NY, while in Europe, UK is getting a third of new constructions (Olympics)

United States



Thank you

[email protected]

state of the industry san diego business travel association michele cardella february 23, 2012 video

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