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No major changes are expected in business travel prices for 2017

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Carol Bernard

It seems there will be no major variations in corporate travel prices in 2017 compared to 2016, but flexibility will be required because of the uncertainty in the economic and geopolitical environment worldwide.

According to the Global Forecast of Prices in the Travel Sector 2017, published by the GBTA Foundation and Carlson Wagonlit Travel, there are 6 key risks for next year that could affect professional travel prices and the world economy in general. They are:

  • The general uncertainty about BrexitNo major changes are expected in business travel prices for 2017
  • The performances of emerging markets
  • Geopolitical risks
  • Possible fluctuations of interest rates in the United States of America
  • Crude prices.
  • Financial market turmoil

In the case of land transport, there is a forecast for global stagnation in prices: it is expected that prices will increase by 0.5% in Latin America and 0.8% in Asia Pacific with a tiny reduction of 0.1% in Europe, the Middle East and Africa.

As for air transport, there will be a little more movement, with a forecast of an average increase of 2.5% in transport prices and an increase of up to 7.8% in charges for supplementary services. The greatest variation in air fares is in Eastern Europe and North America, with expected increases of up to 4% and 3.7%, respectively. However, a decrease of 1.1% is expected in Asia Pacific, together with a decrease of 1.9% in Latin America and the Caribbean.

In terms of accommodation, the report also expects no significant variations: It highlights a decrease of 2.4% in prices in Eastern Europe and an increase of 4% in North America. Even so, the report anticipates major changes in 2018, due to the hotel mega-mergers that are currently taking place, which will not affect prices until then.

The MICE sector would have the greatest variations according to the study: moderate increases in North America and Asia Pacific, down 10% in Latin America and no movements expected in Europe.

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