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September 2022, Virtual
September 29 2022, Virtual
Global travel prices are set to “increase moderately” in 2014 although there will be some regional exceptions, according to forecasts from Carlson Wagonlit Travel.
The TMC added that hotel prices could drop in Europe next year due to the continued “economic uncertainty, according to CWT's 2014 Travel Price Forecast.
CWT said that airfares in the UK could rise by as much as 3.5 per cent while hotel rates would be "largely flat" although they could shrink by nearly 2 per cent due to "additional accommodation available after last year’s London Olympics". Car rental prices could also rise by 2 per cent next year while rail tickets are set to see a 6 per cent increase year-on-year.
Christophe Renard, vice president of CWT Solutions Group, said: “While we expect moderate price increases worldwide next year, there are some notable exceptions.
“Prices in Europe are likely to decrease because of the continued economic uncertainty in the region, while emerging markets such as Argentina could experience far higher increases in 2014 due to high projected GDP growth and significant inflationary increases.”
CWT is predicting that flight prices in the EMEA region could rise by as much as 3.1 per cent, with this increase in airfares likely to be driven by higher prices in both Germany and Russia.
But hotel rates in the region may decline by as much as 2.5 per cent, although CWT admits that “European cities with high demand will continue to demand healthy price increases”.
“This offers buyers an opportunity to secure lower rates in impacted areas, particularly in those cities their organisation visits most frequently,” said CWT.
“That said, buyers should be prepared to accept one-year contracts rather than the two-year deals that are sometimes available, as hotels will not want to lock in price decreases for longer than necessary.”
Hotel rates in the Middle East and Africa are likely to increase by as much as 2.5 per cent and 2.1 per cent respectively.
For ground transport, CWT is forecasting that major economies such as the UK, Germany and Russia could see price increases of up to 4 per cent while southern European nations such as Italy and Spain are expected to see price declines.
The global cost of meetings and events is also likely to rise in 2014, as CWT is predicting “across-the-board increases in daily attendee costs” which may lead to cuts in group sizes compared to this year.
“Ongoing economic concerns in the Eurozone are making meeting planners cautious, at the same time as challenging meeting suppliers,” added CWT in its report.
“Daily attendee costs will remain flat as suppliers reduce their prices to stimulate demand, while attendee numbers could reduce by as much as 3 percent as planners continue to exercise restraint.”
To see the full report, click here