September 2022 Digital Issue
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EDITORIAL<br />
WHAT'S ON<br />
THE HORIZON<br />
With summer now fading into our collective<br />
memory, the industry is turning its sights on the<br />
last quarter of the year. For many hoteliers, the<br />
summer has been a great time to solidify sales<br />
and bask in the glow of increased travel trends. Now, they wait<br />
with bated breath to see how the fall will play out and whether<br />
business travel will begin to rebound. But with news that travel<br />
prices are expected to continue their upward trajectory, the<br />
reality may play out differently than many had hoped.<br />
According to the 2023 Global Business Travel Forecast, published<br />
last month by CWT (the B2B4E travel-management platform) and<br />
the Global Business Travel Association (GBTA), rising fuel prices,<br />
labour shortages and inflationary pressures in raw-material costs are<br />
the primary drivers of expected price growth.<br />
Interestingly, the past two years seem to have moved<br />
sustainability on the front burner as consumers and businesses<br />
have become increasingly concerned about combating climate<br />
change. That means there will be a renewed focus on promoting<br />
greater visibility at the point of sale for greener travel options,<br />
as well as carbon footprinting, helping the travel industry to<br />
actively assist in responsible choice-making.<br />
It doesn’t appear prices will decrease any time soon. Pent-up<br />
demand, a desire to build company culture and an uncertain<br />
economic outlook mean the cost-per-attendee for meetings<br />
and events in <strong>2022</strong> is expected to be approximately 25 per<br />
cent higher than in 2019, and it’s forecast to rise a further<br />
seven per cent in 2023.<br />
According to the study, prices are expected to rise 48.5 per cent in <strong>2022</strong>, but even<br />
with this steep price increase, prices are expected to remain below pre-pandemic levels<br />
until 2023. Following an increase of 48.5 per cent in <strong>2022</strong>, prices are expected to rise<br />
8.4 per cent in 2023. Rising demand and continued price rises on jet fuel, are putting<br />
upward pressure on ticket prices.<br />
On the hotel front, prices fell 13.3 per cent in 2020 from 2019 and a further 9.5 per<br />
cent in 2021, however the report expects them to rise 18.5 per cent in <strong>2022</strong> followed by<br />
an 8.2 per cent lift in 2023. Hotel prices have already eclipsed 2019 levels in some areas<br />
such and are expected to do so globally by 2023.<br />
In most parts of the world, hotel rates have risen sharply, including a 22 per cent<br />
increase in North America and a forecast 31.8 per cent across Europe, the Middle East &<br />
Africa. This has been fuelled by an accelerated recovery coupled with continued capacity<br />
constraints.<br />
Hotel rate increases were initially driven by strong<br />
leisure travel in 2021 but group travel for corporate<br />
meetings and events is improving and transient business<br />
travel is gaining healthy pace, putting further pressure on<br />
ADR. To access the full report of the study, click here. ◆<br />
2 | SEPTEMBER <strong>2022</strong><br />
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ADVISORY BOARD<br />
Andrew Weir, Destination Toronto; Anne Larcade, Sequel<br />
Hotels & Resorts; Anthony Cohen, Cresent Hotels — Global<br />
Edge Investments; Bonnie Strome, Hyatt Hotels; Christiane<br />
Germain, Germain Hotels; David McMillan, Axis Hospitality<br />
International; Don Cleary, Marriott Hotels; Geoffrey Allan,<br />
Project Capital Management Hotels; Hani Roustom, Friday<br />
Harbour Resort; Heather McCrory, Accor; Laura Baxter, Co-Star<br />
Reetu Gupta, Easton's Hotels; Ryan Killeen, The Annex Hotel<br />
Ryan Murray, The Pillar + Post Hotel; Stephen Renard, Renard<br />
International Hospitality & Search Consultants<br />
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