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Hike forecast in business travel


Posted on 23/09/2013 by Wayne Brophy FCILT

There's set to be further momentum in demand for business travel during 2014, with this happening alongside forecast recovery in the global economy, the latest Industry Forecast from Advito predicts.

But the travel consultancy says that the exact size of the hike remains unclear, because there was smaller trip growth than had been forecast this year.

It predicts that price increases for hotel, air, and car sectors ought to be in step with inflation in 2014.

The Advito report is brought out yearly so that procurement and travel managers have some idea of forecast prices which can be used in preparation for budgeting and negotiating with suppliers.

It features trend information on car rental, meetings, air and other areas across every major global region.

When it comes to air trends, this year's suggests that in 2014, soft demand is probably going to mean there won't be significant fare rises for European and US airlines. But the biggest increases will be seen in Latin America, the consultancy predicts.

Here fares will rise some two to three per cent, it forecasts. But prices may fall on a variety of routes by air between Africa, Asia Pacific and Europe.

When it comes to Asia, it predicts that travellers might find the best of the deals out there will be in business class.

When it comes to hotels, on the other hand, it has found that companies are going to try and bring up corporate prices some four to six per cent next year – yet forecasts that the chances are they will only manage rises that equate to half of this hike.

The biggest growth in demand is expected to be seen in Latin America and Africa.

Advito also expects there will be moderate hikes in meeting prices next year, with meeting demand still showing strength.

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