There will be a moderate increase in business travel pricing across the globe next year, as well as across-the-board increases in daily attendee costs at meetings and events, according to Carlson Wagonlit Travel's just-released 2014 Travel Price Forecast. Some highlights of the report:
• U.S. airfares could rise by as much as 1.2 percent during the year, while hotel and transportation rates might climb as high as 4.9 and 1.3 percent, respectively.
• Latin America will see a rise of up to 4 percent overall in air prices in 2014, with Argentina and Venezuela leading the region -- and the world -- at 13 percent and 8 percent, respectively. Hotel rates are expected to climb by up to 16 percent in Venezuela and 8.4 percent in Brazil, the two highest such gains in the forecast.
• The Asia Pacific region overall is projected to see airfare increases of 4 percent and hotel rates climbing by up to 4.9 percent, year-over-year, while China could experience an air price increase of nearly 7 percent as a rise in leisure travel adds capacity pressure to an already high demand for business travel.
• In Europe, the Middle East and Africa, airfares will potentially increase by up to 3.1 percent overall; Russia and Germany will lead the pack with hikes of as much as 8 percent and 5.4 percent, respectively. Hotel rates in the same geographical grouping are predicted to range from a 2.5 percent decline to a 1.6 percent increase due to ongoing economic uncertainty.
• Latin America will see the highest price increases for daily attendees, of 4 to 7 percent, in 2014. As a result, group size in the region will fall by as much as 2 percent, and the region might see a switch to more domestic instead of international meetings.
• In Asia Pacific, a booming meetings industry will see group size increase by 3 to 5 percent, while daily costs per attendee will rise 4 to 5 percent.
• Ongoing economic concerns in the Euro zone will result in daily attendee costs remaining flat, while attendee numbers could decrease by as much as 3 percent.
• In North America, daily attendee costs could rise by as much as 5.5 percent, as demand for meeting space continues to outstrip supply.