News for the Hospitality Executive
Forecasts for 2013 Global Travel Prices Released by Carlson
AMSTERDAM-July 24, 2012 -Carlson Wagonlit Travel (CWT) today released its 2013 Travel Price Forecast, which indicates that prices in most areas of travel spend are expected to grow modestly around the globe next year, with the most significant inflation expected throughout the Asia Pacific and Latin America regions.
CWT’s forecast combines a statistical model that uses CWT global client data with the market and industry knowledge of CWT experts around the world, to provide price projections for every region, as well as country- and local-level expectations for those destinations to which CWT clients most frequently travel. CWT’s forecast also addresses the additional factors that can directly affect overall travel spend and traveler satisfaction, such as safety and security and use of technology.
“Price increases in 2013 will begin to level off in most regions throughout the world compared to what travel buyers experienced in 2012, as booming economies like Asia Pacific’s begin to normalize, and as uncertainty remains in Europe,” said Nick Vournakis, senior vice president, Global Product Marketing and CWT Solutions Group. “While slightly higher prices will be the reality again next year as demand for travel outpaces supply in most places, our forecast demonstrates there is still plenty travel buyers can do to watch costs and take care of travelers through other measures, including reexamining how they influence traveler behavior.”
Growth in Asia Pacific stabilizes, bringing modest price increases
The Asia Pacific (APAC) region has experienced strong economic growth over the past several years, which quickly drove prices upward. Growth in 2013 is expected to stabilize, which will likely lead to modest price increases, although specific results vary widely by country.
Latin America still a focal point with highest global hotel inflation
The Latin America (LATAM) region continues to experience overall economic growth, though significant disparities continue to exist that will create varied travel pricing by country next year. The newly formed LATAM Airlines, which is now the world’s second largest airline by market value, will embark on its first full year of operation in 2013, which may result in improved routes and frequencies to, from, and within the region.
While the economies of the United States and Canada are experiencing slow and steady improvement, there is no major growth expected for the foreseeable future, which will help contain travel price increases in 2013 for most categories of spend.
Continued economic uncertainty in Europe, Middle East and Africa limits price increases
While Europe continues to face mounting economic uncertainty, most Middle Eastern and African economies are faring reasonably well. As such, the region overall will experience moderate travel price increases in 2013, though the tenuous economy could prompt significant changes at any point.
Please click here to view CWT’s 2013 Travel Price Forecast in its entirety.
CWT’s global 2013 price projections were formed from the combination of a.) a statistical model that evaluates historical price behavior and forecasts future price references; b.) the market-specific expertise and travel industry knowledge of CWT personnel worldwide; and c.) macro-economic information sourced from IHS Global Insight, the International Monetary Fund Research Department, and the United Nations. All monetary references are in U.S. dollars.
About Carlson Wagonlit Travel
CWT is a global leader specialized in managing business travel and meetings and events. CWT serves companies, government institutions and non-governmental organizations of all sizes in more than 150 countries and territories. By leveraging both the expertise of its people and leading-edge technology, CWT helps clients derive the greatest value from their travel program in terms of savings, service, security and sustainability. The company is also committed to providing best-in-class service and assistance to travelers. CWT services and solutions comprise Traveler & Transaction Services, Program Optimization, Safety & Security, Meetings & Events and Energy Services. In 2011, sales volume for wholly owned operations and joint ventures totaled US$28.0 billion. For more information about CWT, please visit our global website at www.carlsonwagonlit.com
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