Minimal growth in oil prices, emerging economies and rises in renewable energy resources will mean a volatile year in 2017 for travel in the energy, resources and marine sector.
These are the main findings of the Carlson Wagonlit Travel2017 Energy, Resources and Marine Forecast – which has warned buyers to expect cost pressures in the sector.
“There are economic headwinds that will have a significant impact on travel within the energy, resources and marine industry,” said Monisa Cline, senior vice president, CWT Energy, Resources & Marine. “We expect there will be some growth, but as the data from the report shows, there will also be volatility. Travel managers need to understand how these pressures will impact their travel programmes, to keep them efficient and compliant.”
The data showed that in the US, air travel will remain constant, neither growing nor shrinking, in 2017. Other areas of the Americas are likely to remain stable, but see some pricing volatility with regional carriers being aggressive in their pricing.
While hotel stays may remain flat or even decrease globally, the Americas are likely to see a small price increase in hotel rates due to industry consolidation.
In China, airfares are expected to increase in 2017. However, the overall Asia Pacific market should remain stable as low cost carriers continue to have an impact.
In Europe and the Middle East, air pricing is expected to remain flat or decrease slightly. Hotels across the globe are also expecting to see flat or decreasing rates next year.
Monisa Cline added: “Travel managers have several options to improve their purchasing in 2017. A quarterly review of their air spend can help them negotiate better rates with the airlines. Travel managers should also consider making the most of the decreased or flat hotel rates to negotiate longer-term deals.”