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Cathay Pacific notes challenges in corporate travel, sees increase in corporate sales revenue

19-Sep-2013 11:26 AM

Cathay Pacific, in the Sep-2013 edition of CX World Magazine, stated (18-Sep-2013) that while corporate travel continues to face
challenges on multiple fronts, Cathay Pacific and Dragonair managed to grow corporate sales revenue by more than 5% in the first seven months of 2013. Corporate sales manager Nicolas Masse, while noting that the business travel peaks between September and November, stated: “While the downgrading of travel policies is not expected in general, competition is rife and businesses continue to look for savings. This is not set to go away – it’s somewhat institutionalised". The carrier noted that common measures include reduced travel budgets and more restrictive fares for business units. The carrier also explained that increased competition on Hong Kong routes and within the region have led to price wars in a climate of economic uncertainty. However, the revenue growth so far indicates that video conferencing has not replaced business travel, with Mr Masse stating: “Most successful corporations, big or small, continue to see value in meeting clients and facilitating internal communication beyond emails". On the outlook, the carrier noted that 2013 corporate sales are expected to be helped by an improved business sentiment, with the situation in Europe settled somewhat, and Asia remaining an engine of growth for manufacturing. Quantitative easing in the United States continues to fuel controlled growth in consumption and investments, the carrier said, while noting that on the flip side, China has continued to suggest a tightening appetite for resources, which has negative implications for resource rich-countries like Australia and Canada. [more - original PR