business travel rates will vary significantly by country in the Asia Pacific region. Amex expects to see the greatest increases in India, where airfares could shoot up by as much as 8 percent. In China, rates are forecast to remain flat or even decrease, due to slowing construction and manufacturing as well as decreased investments from Europe.
Despite growing economic uncertainty throughout Europe, prices in that region are also expected to increase, as still-strong demand continues to outpace limited supply, particularly in Eastern Europe. The Advito Industry Forecast predicts that average air fares have risen 3 percent to 5 percent in Europe in 2012 and similar increases can be expected again in 2013. The Amex forecast concurs with this, but warns that those countries hardest hit by the economic crisis could see price drops.
In North America –assuming that the economy keeps moving steadily in a positive direction – suppliers will enjoy modest price increases as well, with the exception of car rental providers, who for the past many years have been forced to reduce prices in a hyper-competitive environment, according to the CWT forecast. The Amex forecast expects airfares in North America to rise by between 1 and 3 percent for business-class travel, while short-haul economy fares could climb by 2 to 4 percent. Upper-range hotels in the same region could climb by as much as 4 to 9 percent.
The Meetings, Events and Business Travel Sectors – Demand-side
- Europe, Middle East and Africa (EMEA) In Europe, meeting planners will plan more meetings - and spend more on those meetings - in 2013, according to the latest Meeting Professionals International’s (MPI) Business Barometer forecast. The survey predicted that the number of meetings in Europe will rise by 3.2 percent, in 2013. Meeting budgets, meanwhile, will increase by 0.7 percent.
Strong business travel demand is still expected for Germany and the United Kingdom next year, as their economies should perform better than the region overall. In fact, 2013 business travel spending growth should reach 5.4 percent in Germany, according to the GBTA Foundation’s spring 2012 outlook for Western Europe.
But strong competition from low-cost carriers (LCCs) easyjet and Ryanair, particularly on continental routes to and from Germany, is holding down expected rate inflation to around 2 percent. Competition from LCCs and high-speed rail on intercontinental routes to and from France is expected to result in only minor price inflation of about 2 percent in that country throughout 2013.
The CWT Travel Price Forecast maintains that Russia is a market to watch in 2013 and beyond. It remains attractive to investors, and much like Brazil, it will host both
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