CWT anticipates meetings and events providers will raise prices around the world next year, resulting in across-the-board increases in daily attendee costs.
“While we expect moderate price increases worldwide next year, there are some notable exceptions,” says Vice-President of CWT Solutions Group, Christophe Renard.
“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.”
The conclusion emerges from CWT’s 2014 Travel Price Forecast. The projections in the forecast were formed from the combination of a statistical model created by the University of California, travel industry knowledge of CWT staff worldwide and macro-economic information sourced from IHS Global Insight, the International Monetary Fund Research Department and UN. Calculations were also based on the transaction data of CWT’s global client portfolio.
CWT’s full forecast is divided into four sections: air; hotel; ground; and meetings and events.
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 services geared towards businesses.
Key figures from the meetings and events section 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 meetings
- In Asia Pacific, a booming meetings 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.
“Buyers will have an opportunity to secure lower rates in impacted areas, particularly in those cities their organisation visits most frequently,” Senior Director for CWT Solutions Group EMEA, Vincent Lebunetel, tells CMW.
“The industry is moving toward the trends of including a fifth season in corporate contracts when possible, and/or providing ‘fair rates’ during blackout dates. Buyers should anticipate higher rates as a result, and should proactively consider this when negotiating the overall contract.”
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.
This was first published in issue 74 of CMW. Any comments? Email cmw@mashmedia.net
