Supply Excellence — Sometimes Analysts Get it Right

Sometimes Analysts Get it Right — Unfortunately

January 15th, 2007 · by Tim Minahan · No Comments · sourcing, supply market dynamics

Hate to say, I told you so. Or rather, the market watchers told you. I just reported on it.

Last week I shared reports from the leading travel industry analysts warning of a 4% - 5% increase in business travel costs. Over the weekend, these predictions began their climb to fruition.

On Saturday, four of the five US carriers raised round-trip air fares by as much as $10, signaling the industry’s first major boost this year. Brace yourselves for more increases to follow.

United Airlines drew first blood, boosting fares across its entire network. American Airlines and Delta Airlines quickly followed suit, instituting fare increases on all routes. Northwest Airlines raised prices only in markets where it competes with low-fare carriers.

All told, round-trip fares climbed $6 - $10, depending upon the airline, lane, and flight length.

See last week’s post for strategies to combat soaring costs across all types of travel spend.

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