Will business travel costs continue to rise in 2018?

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Travel Management Companies (TMCs) should be expecting to see travel prices tracking upwards on a global basis during the year ahead, according to new research.

The global TMC Carlson Wagonlit Travel has recently published a series of reports highlighting various factors that are leading to higher airfares, hotel prices and transportation costs, including inflation, higher oil prices and emerging market growth.

In July, the company published its 2018 Global Travel Forecast in association with the Global Business Travel Association, predicting that global airfares will rise by 3.5 per cent in 2018, while hotel prices will be 3.7 per cent higher and ground transportation costs for taxis, trains and buses will go up by 0.6 per cent.

Kurt Ekert, president and chief executive officer of Carlson Wagonlit Travel, said: "The higher pricing is a reflection of the stronger economy and growing demand. The global numbers from this forecast should be considered strong leading indicators of what 2018 will mean for global businesses, as we anticipate higher spending."

Since then, a separate report from the TMC has indicated that overall costs per attendee per day for meetings and events around the globe increased in 2017, with a further rise expected next year partly as a consequence of the growing cost of travel.

Additionally, an analysis focusing specifically on the energy, resources and marine (ERM) sectors suggested that these industries will be no exception to the trend of rising costs, citing expected global GDP growth of 3.6 per cent in 2018, combined with favourable foreign exchange rates in many ERM-dependent countries, as factors that will bolster pricing.

Given the evidence indicating that this is an ongoing trend, it may be advisable for TMCs to factor these considerations into their strategies for 2018 and beyond.

For information on how your TMC can automate its mid and back-office systems with ProTAS, contact ProCon Solution now.

 
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