Carlson Wagonlit Travel has released its 2013 Travel Price Forecast, which indicates 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.
The 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 traveller 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 normalise, 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 travellers through other measures, including re-examining how they influence traveller behaviour.”
The Latin America 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.
Average daily hotel rates in LATAM will likely rise about 6.3 per cent during 2013.
Brazil will see the largest increase in hotel rates, and in fact, is the only nation in CWT’s entire 48-country forecast expected to see double-digit price increases next year.
This is due to strong demand and limited supply; however, that will soon change, as inventory is rapidly being added in Brazil to accommodate the 2014 FIFA World Cup and the 2016 Summer Olympics.
Even underperforming economies will experience noteworthy price inflation given continued international demand amid stagnant construction pipelines.