Travel buyers in the energy, resources and marine sector can expect moderate price rises globally in 2014, but with decreases in some European destinations, research by Carlson Wagonlit predicts.
CWT’s 2014 Travel Price Forecast for the sector forecasts travel costs rising globally “in line with generally modest expectations for economic growth”.
However, it predicts a decrease in prices in a number of European destinations driven by continued concerns on the economy, particularly in the hotel sector. In Europe, it predicts a fall in room rate of more than 3 per cent and a drop in ground transport costs of almost 1 per cent. However, these will be offset by a 3 per cent increase in air travel rates.
CWT predicts the highest price increases in Latin America, where hotel rates are expected to rise more than 5 per cent. Air fares to Asia are set to rise by a similar amount.
The report highlights regional variations in energy industry development. It notes that Australia is a key region to watch following its government’s abandonment of green energy policies. This, it says, is likely to prompt a resurgence in the mining and energy resources sector. Other hotspots are in North America, in North Dakota and Alberta, where the shale oil boom is occuring. The report suggests that natural gas and coal consumption will grow faster than petroleum and other fuel use until after 2030.
The report warns airline consolidation will have an effect in 2014. It predicts carriers in Germany and Russia will yield the biggest price rises of the European economies next year, driven in Germany by economic growth and tighter capacity. CWT also warns of big price rise on routes to Baghdad and Basra, where capacity has not kept pace with demand for travel to Iraq’s oilfields.
In the hotel sector, Europe’s dip in rates will not be matched elsewhere, CWT predicts, adding that the length of time it takes for new supply to come online means that in general, demand will continue to outpace supply in key locations.
Travel buyers in the energy, resources and marine sector can expect moderate price rises globally in 2014, but with decreases in some European destinations, research by CWT predicts.
CWT’s 2014 Travel Price Forecast for the sector predicts travel costs rising globally “in line with generally modest expectations for economic growth”.
However, it predicts a decrease in prices in a number of European destinations driven by continued concerns on the economy, particularly in the hotel sector. In Europe, it predicts a fall in room rate of more than 3 per cent and a drop in ground transport costs of almost 1 per cent. However, these will be offset by a 3 per cent increase in air travel rates.
CWT predicts the highest price increases in Latin America, where hotel rates are expected to rise more than 5 per cent. Air fares to Asia are set to rise by a similar amount.
The report highlights regional variations in energy industry development. It notes that Australia is a key region to watch following its government’s abandonment of green energy policies. This, it says, is likely to prompt a resurgence in the mining and energy resources sector. Other hotspots are in North America, in North Dakota and Alberta, where the shale oil boom is occuring. The report suggests that natural gas and coal consumption will grow faster than petroleum and other fuel use until after 2030.
The report warns airline consolidation will have an effect in 2014. It predicts carriers in Germany and Russia will yield the biggest price rises of the European economies next year, driven in Germany by economic growth and tighter capacity. CWT also warns of big price rise on routes to Baghdad and Basra, where capacity has not kept pace with demand for travel to Iraq’s oilfields.
In the hotel sector, Europe’s dip in rates will not be matched elsewhere, CWT predicts, adding that the length of time it takes for new supply to come online means that in general, demand will continue to outpace supply in key locations.