Travel Management Priorities for 2013 - Carlson Wagonlit Travel

Latin America: still a focal point with the highest global hotel inflationThis region continues to experience economic growth overall, although significant disparities between counties will create variedtravel pricing next year.Air ticket prices are likely to increase by 1.3 percent overall, with two main pricing trends. Countries with healthyeconomies like Brazil and Chile should experience solid price inflation, while countries with weaker economies like Argentina,Colombia, Mexico and Peru can expect moderate decreases to only slight growth.Average daily hotel rates will likely rise by about 6.3 percent. Brazil will see the largest increase in hotel rates, and in fact,is the only nation in CWT’s entire 48-country forecast expected to see double-digit price increases in 2013.Car rental rates will likely increase by 1.4 percent, primarily due to U.S.-based brands expanding operations in the regionto meet increasing demand. However, Brazil-based Localiza is a major player that will offer an added element of competitionto international suppliers in its home market.Increases in meetings and events spending per attendee and per day will be the highest in the world, at an averageof 11 percent. Meanwhile, group size will decrease by about 7 percent as buyers seek to offset higher supplier costs.North America: no major rate increases as economies improve slowly and steadilyWhile the economies of the United States and Canada are experiencing slow and steady improvement, no major growth isexpected for the foreseeable future. This will help contain travel price increases for most categories of spend.Air ticket prices may increase by 2.8 percent. Carriers in both countries will remain disciplined about controlling capacityto ensure that demand outpaces supply, enabling price increases.Average daily hotel rates will likely increase by 3.2 percent throughout the year. As always, increases will vary by market,with the top business destinations able to command much higher prices. Western Canada will experience particularly highincreases based on an influx of foreign demand for the area’s energy and mining resources.Car rental rates may well decrease by 1.1 percent. For yet another year, car rental firms in North America will struggleto raise prices as the market remains highly competitive with only a few existing suppliers available to battle for corporatebusiness.Meetings and events spending should continue to grow, with an average 4.8 percent increase expected in the costper attendee per day, along with an average 6 percent increase in group size. At the end of 2012, advance bookingsfor 2013 were already strong, with booking windows increasing by 5 percent as organizations showed more confidence inthe future.(See the full report, available online, for more details.)42