With little new capacity forecast in terms of either airline seats or hotel accommodation, the Forecast predicts that the cost of travel will continue to rise in 2013, either in line with or just ahead of the rate of inflation. However, it adds that 2013 looks set for the fiercest negotiations between hotel companies and their corporate clients in many years. The gap in expectations between seller and buyer is extremely wide. On the supplier side, Marriott and others have warned that they plan to push up rates significantly in their Request for Proposal responses because corporate rates are still ‘meaningfully lower than they were in 2007’. On this issue, the Forecast concludes that ‘On average, we believe hoteliers will look for 8 percent to 9 percent negotiated rate increases but will end up with 5 percent to 7 percent. Africa and Europe will be lower’.


Reed Exhibitions | EIBTM Trends Watch Report 2012 31


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