Global economic uncertainty, including the risk of another recession in the euro zone, has led corporate travel consultant Advito to lower its 2012 forecast for airfare prices in Europe. At the same time, Advito expects tight inventory and strong demand in emerging markets to drive higher costs in Latin America and Asia.

Trips to emerging markets helped push corporate travel to pre-recession levels this year, and travel to those same markets is expected to buoy the industry in 2012, despite economic malaise in Europe and North America, according to the 2012 Industry Forecast released by BCD Travel consulting unit Advito.

The Customer Always Knows Best

Business travelers’ expectations are unavoidably colored by trends in the consumer space—yet the elements that characterize traditional corporate travel program management are far removed from the daily realities of the consumer world. Travel managers need to embrace a model that privileges travelers’ consumer-driven behaviors and expectations, as well as acknowledges the needs and preferences of the Millennial generation, who by 2014 will comprise almost 50 percent of the U.S. workforce.

Advito, leading consultancy provider for business travel, finds that costs for air travel will continue to rise in the course of the year. This is mainly due to the rising fuel costs.

Corporate travel buyers will face a confluence of factors leading to an increase in the overall cost of travel in 2011, according to the 2011 Industry Forecast by BCD Travel consulting unit Advito. These factors include steadily rising demand, caution by suppliers in adding capacity, earlier closure of lower fare “buckets,” increased application of restrictions to lower fares, and a continuing trend toward ancillary fees and unbundled services.