Projected increases in business travel pricing in select markets in Latin America, Asia, and Eastern Europe indicate that road warriors will likely continue to travel in these regions to pursue business opportunities in 2013, according to new research from American Express Global Business Travel.
At the same time, global economic uncertainty – particularly due to the fiscal crisis in Europe and deceleration of growth in China – is expected to curtail demand and keep rates in mature markets, as well as in China, relatively flat.
Taken together, American Express Global Business Travel forecasts prices globally to increase only modestly.
“We are expecting a dynamic landscape for business travel in 2013, with prices likely rising to reflect companies’ interest in doing business in growing economies such as Brazil, India, and Russia, but staying flat or even declining in those markets where growth is stagnant,” explains Hervé Sedky, Senior vice president and general manager, Global Business Partnerships & Premium Services, American Express Global Business Travel.
“Our Forecast helps companies understand where in the world and in which categories prices will likely increase and by how much, so they can make smart and informed decisions about how their investment in business travel is best allocated,” Sedky added.
The the Global Business Travel Forecast 2013 provides nearly 2600 predictions across air fares, hotel rates, and car rental rates in 29 countries.
This year, the report adds four new markets (Italy, Poland, Russia, and South Korea) and introduces predictions for published air fares in addition to paid fares, since understanding this gap is integral to companies looking to effectively manage their business travel programs in today’s marketplace.
“Our Forecast goes beyond mere figures representing the prices a supplier is expected to charge to provide recommendations around other factors to consider – including who is paying what, where, when, and why – in order to help our clients gain a more complete picture of pricing dynamics and develop the most effective travel management strategy to take advantage of them,” added Mr. Sedky.