Overall business travel spending in the UK is predicted to rise 5.1 per cent in 2015, according to a new joint report from Carlson Wagonlit Travel (CWT) and the Global Business Travel Association (GBTA).
The joint 2015 Global Travel Price Outlook report says, internationally, travel businesses can expect moderate price rises in 2015 and that meetings and events compliance will remain a concern for the sector over the next year, regardless of industry or geography.
The use of social technology is identified as a rising trend.
It is expected that there will be more domestic meetings and shorter booking lead times worldwide in 2015.
Mid-price hotels offering core meetings and events services will be most popular, according to the report.
Other country-specific data for the UK indicates buyers should prepare for air prices to increase by one per cent, while hotel prices will increase by 3.5 per cent next year.
Ground transportation costs, however, are expected to drop by half a per cent in the UK.
The report highlights that demand from emerging markets such as China, India and Brazil and improved economic growth in advanced economies, combined with limited advances in travel supply, will result in increased pricing, particularly in high-demand travel markets.
“With business travel prices on the rise, this study is the key to effective budgeting,” said Christophe Renard, Vice-President for CWT Solutions Group.
“The study reveals that travel managers expect price increases next year across the board on travel categories including airfares, hotel room rates and rental car rates,” added Joseph Bates, GBTA Foundation Vice-President of Research.
The report sponsors did acknowledge risks to the forecasts, including the escalating Ukrainian crisis; declining European inflation; burgeoning debt in China and oil price shocks, all of which could potentially have a negative influence on travel demand and pricing.
“Travel managers are advised to consider contingencies for these risks in their planning,” said Bates.
The 2015 Global Travel Price Outlook is split by category: air; hotel; ground; and meetings and events and can be viewed in full on carlsonwagonlit.com.
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