In the UK, airfares could rise by as much as 3.5 per cent, while hotel rates will remain largely flat or possibly shrink up to two per cent over the next year because of additional accommodation available after last year’s London Olympics. The projection for 2014 comes from new research by travel and meetings management specialists Carlson Wagonlit Travel (CWT), which also predicts worldwide travel prices will increase moderately next year.
The 2014 Travel Price Forecast says car rental in the UK could rise an average two per cent more than 2013 prices next year, and rail prices increase six per cent, the highest increase across Europe.
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 mainland 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’s full Forecast is divided into four separate sections: air; hotel; ground; and meetings and events, allowing for comparisons across regions.
The airline landscape is set to remain dynamic in 2014, according to CWT, as carriers continue to align, whether through code-share agreements, alliances or mergers. At the same time, more low-cost carriers are entering the global stage, applying pressure on legacy carriers’ pricing and offering new products and services geared towards the business traveller.
CWT anticipates meetings and events providers will raise prices around the world next year, resulting in across-the-board increases in daily attendee costs.
Key figures from the meetings and events section of the research include:
- Delegate attendee numbers could reduce by as much as three per cent in the Eurozone as planners continue to exercise restraint
- Latin America will see the highest price increases for daily attendees, of 4-7 per cent. As a result, group size in the region will fall by as much as two per cent, and the region may see a switch to domestic instead of international meetings
- In Asia Pacific, a booming meetings and events industry will see group size increase 3-5 per cent, while daily costs per attendee rise 4-5 per cent
- Demand for meeting space continues to outstrip supply in North America, with group size increasing by up to 1.5 per cent, leading to daily attendee costs rising as much as 5.5 per cent.
CWT’s forecast addresses additional factors that can directly affect overall travel spend and traveller satisfaction, such as safety and security and use of technology. Visit carlsonwagonlit.com to view the forecast in full.
The projections in the forecast were formed from the combination of a statistical model created by the University of California at Los Angeles, market-specific expertise and travel industry knowledge of CWT personnel worldwide and macro-economic information sourced from IHS Global Insight, the International Monetary Fund Research Department and the UN. Calculations were also based on the transaction data of CWT’s global client portfolio.
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